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by lectrick 4509 days ago
Buy when there's blood in the streets (assuming the fundamentals are still good, which it looks like they are...)

http://www.bitcoinpulse.com/

3 comments

There could be even more blood on Monday.

Short term the price will drop even more dramatically, but once recovered, it should increase more, as main exchanges will get more busy. Or is there a flaw in my logic?

If Mt.Gox does implode like a lot of people are expecting then that is going to start a news cycle that is not favorable and probably cause the price to depress for a period. It will be a good time to get in though if you have been looking for a chance to buy at a good price.
Might be the best to sell on Sunday then.
Outside of Mt Gox prices haven't really changed since yesterday. The only difference is that Mt Gox's $100 premium is gone now.
On German marketplace bitcoin.de the price fell from roughly 605€ to 500€ some hours ago, but now it's "back" at 550€.
BTC-e dropped $100 compared to two days ago.

Localbitcoins ~50 pounds compared to two days ago.

If I recall correctly, prices have dropped around $30 on coinbase in about 24 hours.
Coinbase has already recovered some today. It had dipped below $700 when I woke up this morning.
Can you explain what you consider to be the more important fundamentals for bitcoin?
1. Number of users holding bitcoins

2. Number of users SPENDING bitcoins to purchase goods

3. Number of merchants accepting bitcoins for goods

4. Total $ value of bitcoins being spent to purchase goods

5. Total $ value of bitcoins being spent to perform international money transfers

6. Amount of press (bad press OK, good press is worth much more) that bitcoins are getting as it drives 1 and 3.

I'm sure others have their own list of fundamentals.

Is there anybody publishing reliable numbers for any of those?
IMO Bitcoin's limited amount incentivises speculation/hoarding over spending. Dogecoin, on the other hand, with its inflationary approach feels much more like something that can be used as a currency.
I don't know of anyone.

I sometimes estimate (3) and (6) by monitoring news stories. It doesn't give me absolute numbers, but some sense of scale. I sometimes see values reported for (2) or (4) from individual merchants, but they are rarely useful: the merchants report the great response they had in the weekend after first announcing their support for bitcoin, then we never hear numbers again. Occasionally we'll hear from sites like reddit about the total amount of contributions (not exactly goods, but close) being made in bitcoins: these are usually quite disappointing. I can think of no way to monitor (1) and (5) is likely kept secret on purpose.

So these are the fundamentals I care about and that I think affect the long-term value of bitcoin (as opposed to its short-term speculative value). But I don't have a way to measure them, except for guessing based on press coverage.

6 isn't really measurable as a number.

Blockchain doesn't have info for 1,2,3,4 or 5.

Number of users.
Integrity of the cryptography. It is the backing value of the currency, after all.
No, bitcoin depends on there being a majority of honest (or whatever you want to call it) miners.
> honest (or whatever you want to call it) miners

"mutually distrustful parties"