Bitcoin Bubble Graph Compared to DotCom Crash | Fix Willpower: I recommend this author, Prit Kallas. He is quite perceptive! Bravo!
Bitcoin’s Mt. Gox Shuts Down, Loses $409,200,000 Dollars — Recovery Steps and Taking Your Tax Losses. So, these stupid, worthless, fake money things have finally collapsed. Unlike tulips of Beanie Babies, the fall isn’t just in the value fans give this fake currency, with the two other items, one is left at least with a flower or a toy! In the bitcoin case, one is left with nothing. Not even some paper money which can rise in value as a collector’s item in the far future.
I went to the Mt. Gox webpage to see what was there and found…MtGox.com is a totally empty site! Nothing there. Nada. Vanished! CNN claims in the last hour that Survival of Bitcoin exchange Mt.Gox in doubt which is hilarious since it no longer exists! HAHAHA. Bitcoin Exchange Mt. Gox Goes Offline Amid Allegations of $350 million in losses which made the news about four hours ago. CNN is kind of behind the curve here. As are most bitcoin owners who were asleep when Japan was raided.
Evidently, Mt. Gox was suspected to be hacked before to the tune of 400,000 Bitcoins (Today worth $220,000,000 dollars) in 2011. HAHAHA. Like stealing candy from babies. Hackers have stolen the bitcoins from nearly all previous ‘exchanges’ in the past. Not once or twice but over and over again, monotonously. Instead of admitting there is a serious problem, collectors of this fake currency went into denial.
So far from fixing it, they soldiered onwards telling everyone to stop stealing the bitcoins. On the remaining open markets for bitcoin collectors, the value has been dropping like a rock during the last 24 hours and I predict it will end up eventually being worth what it was on day one: nearly nothing. Another thing geeks like to collect is Magic: The Gathering –and they bid up the value of these cards to high levels but it is Losing 11.1% market value overnight due to poor customer service.
Bitcoin Is Not Anonymous And Is Always Taxable is another hammer blow to geeks who thought they could create something out of nothing. Forbes magazine wonders if anyone can sue the Japanese gang that ran Mt. Gox but says it is not worth a lawsuit because the company has no assets. Eventually, computer geeks will figure out what happens when real banks with real money go bankrupt. They hold bonds and properties and lots of other things which can be seized or sold. The Bitcoin operations all had nothing of real world value.
Countries that go bankrupt can ruin other banks holding bonds, for example, but note how money is extracted from such countries like pulling teeth and we see how the pliers are hauled and the the teeth pulled with maximum pain. Recently, major banking houses in the US and UK were bailed out by the Bank of England and the privately owned Federal (sic) Reserve but the teeth are definitely being pulled to pay for the bail outs which is why citizens in both nations are seeing budget cuts, austerity, public property being sold off to foreigners or rich bankers who were bailed out and are now using the money to buy distressed government properties while evading taxes.
Good reasons for an uprising! Yes, real banks are really bailed out by raiding the public’s collective value, the national GDP and sovereign wealth. Bitcoins have no banks holding property nor sovereign wealth. The Winklevoss twins launched the bitcoin ‘Winkdex’ just four days ago hoping this would salvage their fake money scheme. Last November, The $11 million in bitcoins the Winklevoss brothers bought was worth $32 million. They own 1% of the coins. They got this all pretty cheap and then decided to double down using real money to buy the fake money.
Now, that $32 million has plunged in value. The $11 million in real money is gone forever. And I bet they now regret wasting it on speculation in a fad market of nothing. Last November, the bitcoin market took off like a rocket, a classic hockey stick graph, rising in one month from $120 @ to $1200 @. It instantly began to collapse. By Xmas, it lost 50% of the previous month’s value. In the last month, the sell off is obvious. The price hasn’t dropped totally yet but this is due to the latest news about the coins being taxable (duh!) to the fact that the market isn’t secure and more of these fake things are gone with the wind, in the next week even the dumbest computer geek will figure out he has been conned and will try desperately to sell off his Magic Money the Gathering junk.
Only it is already too late to recoup losses unless one is selling stuff bought at the beginning. I don’t feel sorry for the participants in this mania. I warned everyone about this. Real money does have some basis in value in first world nations and that value is in the ability to TAX EVERYONE to make good on promises. For all paper money is an I.O.U….backed by taxpayers. Even as the paper value can fall due to government overprinting or bank bail outs, the matter remains that someone has to support this paper I.O.U. and it is the captive public.
No one has to pay anything to a bitcoin buyer who buys ‘market shares’ which vanish when the guys running the exchange drop the ball. It is backed by nothing and you get nothing in return. When banks fail, usually the value of their holdings fall, too which is why the return on money not insured by governments can be very small compared to losses. But this is why our government insures bank accounts to some degree. To prevent what is happening to the bitcoin market!
On the other hand, when one buys STOCKS, if a company goes under, the value of the stocks drops to zero and there is no insurance, nothing. And this is where the bitcoin believers screwed themselves. They thought all money is fake so why not have super fake money? They thought the only issue was restricting the creation of the money which is why their fake money was supposedly harder and harder to ‘make’ via solving riddles using computers.
Unfortunately for them, the way money works is far more complex. And has a great deal to do with foreign trade. I have written in the past a great deal about money and trade. The US value of the dollar is based 100% on trade value set by trade rivals who artificially keep the dollar more valuable than it deserves because this enables them all to invade our domestic markets and destroy our native industries and then buy up our properties and systems and exploit our population. The dollar has great value to our rivals! And they want desperately to keep it this way.
The last remaining question is, who is hacking these poor computer nerds? It is most interesting and I am betting it is someone in either Russia, China or Eastern Europe. But then, it could be anyone, we have no idea at all.
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27 responses to “Incredibly Stupid Bitcoin Market Bites The Dust, A Total Wipeout”
From Mac Keiser:
What’s happening to MtGox would have happened to JPM, GS, C, HSBC, RBS, BRK, in 2008 if we had free markets.
This is Bitcoin’s finest hour
And speaking go bankers, now that El Chapo Guzman has been cuffed, how long before he pulls out the flow chart and shows us how he laundered the six billion thru the American banking system. .?
ELAINE: Absolutely no one does that! Not even our own bankers. Like Romney and so on, they all do it at Queen Elizabeth’s private owned islands in the Caribbean.
One of my cats likes to bring back things from the neighbourhood,gloves,socks etc.
One day she brought back a Beanie Baby,a snake,Slither I think he’s called.
I often wonder if it’s one some poor soul paid $700 for!
“I have written in the past a great deal about money and trade.” Link Bitte.
Isn’t it remarkable how closely it matches Rodrigue’s bubble curve?
It’s hard to trade those bubble curves, though, because you can’t tell in advance just where the top is going to be. After the top is no good.
And paper money is backed by Uncle Sam, who is bankrupt. I sense the next few years in USA will be very very tough and Obama wants to DOUBLE the number of welfare recipients [most immigrants need aid] being brought here!
I have not been too interested in Bitcoin…but the value was 5 billion?
Mt Gox was 1/3 billion..so bitcoin still exists and trades?
When you see hunting wolves devouring your fellow deer, you are the next meal.
Obviously someone has figured out how to drain all bitcoin operators and has been going after one then another then another. See? Eventually this unseen wolf will eat all the bitcoins unless you bury them in the back yard or hide it under your bed which means YOU CAN’T USE IT ONLINE!!!
See? Only determined inability to see the obvious outcome causes bitcoin users to press onwards in the teeth of this wolf.
“…who is hacking these poor computer nerds?”
And who’s bad mouthin’ my avatar?
“Government plans to monitor and influence internet communications, and covertly infiltrate online communities in order to sow dissension and disseminate false information, have long been the source of speculation.”
I’m not advocating shitcoin , buts its still ‘worth” $500 right now. Surprising. Even if it goes to ..00000? it would still be a good money transfer vehicle to bypass western union in africa.
thanks for yr OP, Ziff!
if bicoin can be hacked, can all banking online be next?
All banking is multiple records. And so are much more invulnerable than the helter skelter, decentralized, ‘anyone do it’ bitcoin world that also has no theft insurance at all.
A Tale of Two Currencies – David Malone
Banks were debasing the currency not nation states.
Not sure the banking system is much better than bitcoin.
Tale of Two Currencies part 2
Almost all lectures about ‘money’ ignore trade issues. Yet that is the main function of ‘money’. That is what gives it ‘value’.
that is true. that is a problem with david’s lecture.
it is nice to create money since you can buy foreign goods and labour with it too.
money out of thin air still buys oil and chinese goods.
Money printed anywhere outside of Europe and the US buys NO oil overseas.
Otherwise, ALL trade is done in euros and dollars. Japan doesn’t do its trade in yen. When the Chinese demanded they do this several years ago the Japanese went NUTS.
All the big export powers in Asia demand trade be done in dollars because it is insured by our government and if we debase our currency, they do likewise. Always. They love this system! It works perfectly…for them.
King Faisal announced he would no longer take the Queen’s money and was assassinated.
Only a people so obsessed with electronic gadgets that they cannot even acknowledge human beings standing right next to them would have become involved in something as stupid and fake as bitcoins. Of all the ways to spend one’s money or invest it in something real and lasting, they chose “bitcoins”.
I don’t feel the slightest sympathy for them. The vast amount of money they wasted on this get rich quick scheme could have done a lot of good for others or even their own family members. Now, it is in the hands of con men, where such things always end up. The money will be used for gambling, drinking, drugs, and prostitutes. After all, it was free. I am fairly certain the real money was spent long before the “value” dropped to zero.
speaking of charting bubbles try this one.
To infinity and beyond,,,,,
Yes, they are printing money like crazy but all our trade rivals who are taking over our economy via free trade are doing the same thing. So relative value is flat, not shifting violently.
Of course, this is pure insanity in the long run but by the time it ends, the US will have zero wealth and foreigners will own everything.
Of course, the headline reads like “Lehman failure presages death of the dollar”. … Bitcoin is still ‘worth’ about $500 elsewhere.
What the Mtgox exchange says bitcoin is worth is irrelevant, since their promises are now meaningless. Mtgox exchanges neither money nor bitcoin.
And as you say, Elaine, the dollar has value because of the potential threat of someone pointing a gun at you and telling you what it is worth. Wtihout that, the dollar would soon be like the Ukranian currency.
The hunters destroying the bitcoin scam are still prowling around, destroying it one after another in fairly quick succession. Far from being finished.
the situation will be extremely stable in the next days. Bulgaria might possibly be the next masses for prime to be utilized
Bitcoin is used to buy food in Venezuela.
So some people are being helped by crypto currency.
DONT WE ALL WISH WE BOUGHT IT WHEN A BC WAS A NICKEL? OR A DOLLAR AND SOLD AT $1500.05.
“Florida passes law making crimes with bitcoin money laundering”
Amazingly, 3 years later we are still in the ‘Mania’ phase of that market curve up top.
These manias can go on for quite a long while.