MtGox price: $160 to $270 to $212 to $290 to $199 to $250 in the last hour(bitcoinwisdom.com) |
MtGox price: $160 to $270 to $212 to $290 to $199 to $250 in the last hour(bitcoinwisdom.com) |
http://www.reddit.com/r/Bitcoin/comments/1ymb4r/some_light_o...
http://www.reddit.com/r/Bitcoin/comments/1ymwzj/mtgox_still_...
(An MtGox bitcoin can currently be sold for 0.4 bitcoin, so this was quite a lot of money being lost or made over the last hour.)
Can someone explain this?
It has been months now since Gox separated from all other markets. First their value was hundreds higher than all others, but no one really cared because it was irrelevant - you can't withdraw fiat, and bitcoin was having trouble getting out too.
Then Gox value went below, and it was concerning so price on other exchanges were affected, but Gox was still irrelevant because their problems are unique to them, and not anything inherent with bitcoin. All withdrawals are shut down, and their last update said there's no news since the last update, and it didn't state when or if they would provide the next update on progress.
Also, your statement implies a consensus in market perception. Please don't take that from whatever the media is saying. Or whatever people on the internet are saying. Take it from the data - look at what the market is saying on exchanges, with their money. Most people don't care what the price is no Gox, and other exchanges are actively trading hundreds of dollars higher.
Even without shorting, as market price moves downward, it is only a loss for those holding. Those who got out at $950, and bought back back in at $800 have increased their holdings - as price fluctuates in the future, they increase their leverage.
Finally, you are focusing on fiat which is a tunnel-visioned approach. When BTC/USD drops, for those already in fiat it gives them more buying power. This is a gain, as yesterday they only had 1 BTC worth of fiat, and now they have 1.2BTC worth of fiat.
So it all depends on perspective, and you are right in your view. However there are many ways of looking at things, and my view isn't necessarily right either. I would say they are all valid examples though, of different ways of looking at it. Much harder to say which is "right".
Reality is you just lost quite a bit of money, but it makes it sound positive. Not that you automatically make these mistakes, but it is trivial to do that when letting your other currency float.
"Your BTC is worth 80% of what it was before, but since you are only 20% invested in BTC your BTC value has gone up 20%!"