Bitcoin Drama

Price of Bitcoin Still Dropping, Falls Below the Price of Mining

The price of Bitcoin continues to drop by about a dollar every week to ten days, currently settling at about $2.80 USD, and Bitcoin enthusiasts are starting to get worried. “I am not trying to cause a panic here, but the value of Bitcoin has dropped very low today with huge spikes,” one user wrote on the Bitcoin forum on Reddit. “I do suspect it will hit 1 USD mark this week maybe even lower.We need to be discussing thoroughly on promoting Bitcoin and actively putting more effort to spread the message to newer users as I do suspect the popularity is dropping very steeply too.”

Betabeat has recently noticed more Bitcoin businesses for sale, including Forbitcoin (www.forbitcoin.com) and FreeBitcoins.org (www.freebitcoins.org). “When the mtgox hack happened, it totally screwed up forbitcoin.com as we used them for our merchant services…it was such a frustrating thing I just gave up on it and started to focus on finishing a film I had been working on for 3 years,” writes the owner of the sites to the Bitcoin People Google group.

Check out the second installment of Betabeat’s new web: The Pitch.

It now appears the $3 to $33 prices for Bitcoin were due to speculation. “At the moment there is no need to use Bitcoin, as anything that can be bought for BTC can be bought for ‘real money’ elsewhere,” a Redditor writers. “Love it or hate it, Silkroad is the one example of Bitcoin actually being used as it was designed.”

UPDATE: Bitcoin Mining Still Profitable for Some.

Follow Adrianne Jeffries on Twitter or via RSS. ajeffries@observer.com

Comments

  1. We’ll still be in business even if Bitcoin goes to $0.01. It’s a good way to take payments, there’s no overhead and no fees, and it keeps us free of the banking system. Put another way, it’s worth at least 10 cents on the dollar to avoid all that overhead; in normal terms, that’s split between merchants bearing the cost and what they pass on in higher prices to their consumers, so, there’s a basement price to Bitcoin that’s based on how rapacious and greedy payment processors are; and as long as they stay greedy, there’ll be value in a virtual currency that doesn’t require us to kiss some other corporation’s ass just to keep our own earnings.

  2. parker_vmg3 says:

    Get em, send it round the globe & Spend em. It does not matter what the price is.  If you have an ethos like the linux, GNU, opensource community(like the designer’s of bitcoin intended) you would see what it for what it is.  If your a speculator, hoarder or a farmer,  your in for a bumpy ride :)

  3. Why do bloggers and journalists STILL NOT KNOW that this is caused by Botnets doing bitcoin mining these days ?

    Why do bloggers and journalists STILL NOT KNOW that this is actually GOOD for the currency?People should not get into Bitcoin because it’s profitable. That’s not what it’s designed for.
    These opportunists are leaving now, allowing the system to flourish as it should.

  4. Anonymous says:

    This ‘journalist’ obviously doesn’t understand anything about economics or Bitcoin. The headline says the “Price of Bitcoin Still Dropping, Falls Below the Price of Mining’. She clearly doesn’t know the difference between the COST of producing something and its PRICE. This is economics 101. How can we take anything else she says seriously if she cannot even get this right?

    Definitions aside, if someone is running their Bitcoin mining rig on wind power or solar, the cost of the electricity needed to do the mining is zero, and of course, the amount people are charged for electricity varies greatly.

    I really do wish that there were journalists out there who had even half a clue. On a site like this, where we come to get news of innovations, we find journalists who are not able to see the potential of Bitcoin. I wonder what else they are clueless about, and what they have turned down for inclusion in their site, “because its not interesting enough”?

    1. A b says:

      Your false certainty is wrong and makes you look silly. Costs are prices. Economists speak all the time, for example, of legal sanctions as the “price” of an activity.

    2. dot tilde dot says:

       if someone is running their bitcoin mining rig on wind power or solar, the cost of the electricity needed to do the mining is still not zero. the price for mining is the income lost by not selling the energy to the grid.

      .~.

  5. Ben Reeves says:

    Charts of miners profits – http://blockchain.info/

  6. Jgavina92 says:

    I have a bank account, but I use it to buy silver coins. My free bank account is currently being used against the Fed!

  7. ze says:

    My suggestion is to buy silver. I found a site that let’s you purchase as little as $25 a week!         https://silversaver.com/share/WCCA3/       

  8. name says:

    all ponzi schemes come to an end sooner or later

  9. Davinci Jeremie says:

    Bitcoins is still in a classic bubble that is near it’s end those of us who know like me as a developer will buy like  a Rothschild “when there is blood in the streets” . 

    As for buying stuff with real money?  Honey you have no clue what real money is and it’s not bitcoins or dollars.

    But here is a hint…. (ITS 2 ITEMS THAT HAVE BEEN MONEY FOR OVER 5000 YEAR!)  

  10. MattN says:

    bitcoin is worthless now

    glad i made my money scamming mtgox and bitcoin users though

  11. Jefferson Greenpeace says:

    Stop fucking spreading knowledge of silkraod you dumbcunts.