Wednesday, April 10, 2013

The Latest Bitcoin Crash ...

... took longer than I expected to arrive.

Here's a news story, and here's some commentary from Mike Gogulski.

I liquidated most of what little I had on March 28th -- earlier than I probably should have, but as it happens only five days before my preferred service for doing so, BTC Buy, shut down. I can't complain. In Federal Reserve Note terms, I think I took out about four times what I put in, and that doesn't include some donations I had made in the interim.

It wasn't a huge amount, and I didn't liquidate because I was worried about Bitcoin's FRN value. I did it because I wanted to buy some things and because my Bitcoin balance was attractive for the purpose at that moment. But as BTC passed $100 shortly after and just kept climbing, I did think that the price reflected some irrational exuberance by speculators on one hand and maybe some Cyprus-related fiat currency panic on the other. I didn't expect it to hit $200.

If you're disillusioned by the crash and want to dump your Bitcoin balance, there's a button in the sidebar. But frankly I recommend against it. And I also recommend looking at Bitcoin as a medium of exchange, not an "investment." The point isn't to "buy it low and sell it high," it's to use it to facilitate your own personal buying and selling of other things. A Bitcoin isn't a share of stock, it's (at least putatively) money.

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