This is an archived post.You won't be able to vote or comment.The price crash has nothing to do with bitcoin software, but with trades gone sour at Bitfinex (self.Bitcoin)submitted by Somebody explained it here: /r/Bitcoin/comments/3hi1gs/emotions_and_uncertainty_are_at_a_high_right_now/ Basically a 10K short bet an an 8K long bet at Bitfinex got closed, triggering a flash crash.Nothing we haven't seen before.Personally I'm pretty happy about it.I sold right on time, then bought back just before the rebound and now I have more coin at a higher value.Sorry for those of you who didn't sell on time and now feel like your life is in slow motion, though, but you CAN take action to protect your money through the legit, no leverage-nonsense bitcoin exchanges like Coinbase.It's not like 3 years ago when you could only trade coin after passing through the draconian verification process at Mt.Gox, BTC-e and Bitstamp.Remember when Mark Karpeles wanted a rectal exam before allowing you to give him your money so he could embezzle it?

So don't worry about it.The price has been bouncing up and down all year.In April it got up to 292 only to drop to 220.Then in July it went up to 315 only to nosedive to 230-ish right now.It'll go up again.UPDATE: For those of your who claim the Bitfinex crash was caused by XT, the only way you can support that claim is by presenting proof that the 10K trader whose short position got closed was actually reacting to XT.bitcoin esempiNo proof, no reason to believe you.bitcoin ecciesSecond: So a bunch of people are getting their panties in a twist because the price dropped from 255 to 233.bitcoin estateBut when the price fell from 315 to 265 (a nearly 16% drop) nobody blamed it on a fork.giant bitcoin farm

Finally, Bitfinex has crashed the price because of a price crash before.Here are a couple of articles on the margin trading hack of August 2014, almost exactly a year ago: /margin-trading-crash-price-bitcoin/ http://www.matlabtrading.net/main/2014/08/14/bitfinex-margin-call-cascade-algorithm-explained/ Quite frankly, as long as Bitfinex allows margin trading, the entire market will be at risk.ghs bitcoin chartMargin trading has proven again and again to be a major problem for bitcoin.bitcoin geometric seriesAs far as I'm concerned, the biggest threat to bitcoin is not XT, but Bitfinex and its reckless margin trading."But if there is no margin trading there is no incentive!"Bitcoin was designed to be deflationary.That should be incentive enough.Margin trading is just plain greed and it benefits nobody except for a few greedy speculators.

PS: Yes, I did trade bitcoin to protect myself from volatility, but not on margin.It's not the same.π Rendered by PID 129689 on app-239 at 2017-06-23 23:49:49.127384+00:00 running 3522178 country code: SG.We are actively seeking partners, entrepreneurs, and team members.Contact us, or join our mailing list to stay informed.Submit Ethereum is how the Internet was supposed to work.There are four core technological building blocks that are coordinated to enable the Ethereum decentralized application platform to operate: 1) Cryptographic Tokens and Addresses: a mathematically secure unique voucher system that can act as numeraire and be used pay for goods, services or assets, and can also be used to represent a mathematically secure, pseudonymous identity; 2) Peer-to-peer Networking: individual users connect their computers together forming a network to exchange data without a central server (both Bitcoin and Ethereum run on P2P networks); 3) Consensus Formation Algorithm: this algorithm permits users of the blockchain to reach consensus about the current state of the blockchain (the Bitcoin blockchain reaches consesus on a global state change every 10 minutes on average whereas the Ethereum blockchain reaches consensus approximately every 15 seconds).

4) Turing Complete Virtual Machine: a virtual machine is a computer that exists as software, and can be run at a layer of abstraction above the underlying hardware; “Turing complete” means that this software computer can run any computer program one defines and is powerful enough to implement any program defined in any similarly computationally complete system (as opposed to Bitcoin, which has a virtual machine but can only run a much simpler class of programs); These 4 pillars of decentralized application technology are designed to enable smart contracts.Smart contracts are computer protocols that facilitate, verify, or enforce the negotiation or performance of some sort of agreement (e.g.a legal contract emulating the logic of contractual clauses or a financial contract specifying responsibilities of the counterparts and automated flows of value).Smart contracts usually have a user interface that can be implemented as web page, an application, or a mobile app.Thus traditional contracts could become outdated for the purposes of certain transactions.

Rather than drafting a costly, lengthy contract employing attorneys, banks, notaries and Microsoft Word, contracts might be created with a few lines of code, perhaps constructed automatically by wiring together a handful of human readable clauses.Learn More Ethereum 101 // Wikipedia: Ethereum Technical Resources Ethereum White Paper // Ethereum Yellow Paper // Ethereum Blog // Ethereum Forum // Network Statistics // Where to Start Videos What Is Ethereum?// Vitalik Buterin explains Ethereum // Ethereum Explained in 100 Seconds // Ethereum and the Decentralization Revolution Ft.Joe Lubin // Vitalik Buterin reveals Ethereum at Bitcoin Miami 2014Ethereum Classic is, in my view, a total and absolute scam by any traditional financial definition of the word "scam."It doesn't have the support of the Ethereum developers, nor of Ethereum creator Vitalik Buterin, making it vaporware and an altcoin created in protest of Ethereum's hard fork decision.

Now is it valid to "protest" the Ethereum community's hard fork in such a way?Even after a month of open, intensive, exhaustive community debate about whether or not to fork?I'd argue that any protest where the aim is to increase exposure and buys of a protest altcoin that enriches the promoters is, inherently, very dubious.But at a core level, it's just completely absurd as I outline in today's live crypto videocast below, which incidentally broke my personal record for most number of concurrent live viewers.I'm thirty; about time I start breaking some personal records, dammit.Also, the fact that "Ethereum Classic" (in no way Ethereum, in no way Classic as Ethereum itself is not even a year old) is being tirelessly promoted by Bitcoin's most vocal Ethereum detractors leads me to believe one thing: Bitcoin is not doing well.After its recent reward halving, miners get only 50% of what they were previously rewarded per block, yet the price per bitcoin has not skyrocketed in response - so now miners are subsidizing losses, in many cases.

Those economics cannot last forever.As more miners drop off the network, network security decreases, making Bitcoin fundamentally less secure as a record of all prior transactions on the network.Between Coinbase's blowout acceptance of Ether earlier last week, and Coinbase co-founder Fred Ehrsam's explanation of why Ethereum was added as a fledgling "first class citizen" to Coinbase's platform, it all becomes clear.The trolls and narrowminded Bitcoin bagholders pushing Ethereum "Classic" on an unsuspecting public are not the ultimate reason I'm selling off much of my Bitcoin tonight - that's just another indication to me that Bitcoin is in a weak position.Ultimately, however, my decision is grounded in economic self-interest.I see optimism and amazing ideas being built out in Ethereum, and I don't see anything close to this level in Bitcoin at the moment.Shortly after I file this story, I'll be selling off 80% of my personal Bitcoin holdings; or more accurately, converting them into Ether, on Coinbase.