Top Three Reasons Bitcoin Price Is Falling

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(Newswire.net — June 14, 2014)  — 

The price of Bitcoin (exchange rate really) has been fluctuating wildly earlier this week. Why?

Here are top three reasons for this roller coaster ride.

First of all, there are roughly 30,000 coins that are about to be back in circulation.

The U.S. government is placing a block of coins on the auction block that was confiscated during of bust of the online black market operation of Silk Road last year.

The price of admission for this “exclusive” event will be dear. In order to participate you need to cough up $200,000 for a seat at the table. Then you will need to bid on a block of 3,000 coins, expected price to be $1.7 million, unless the price keeps falling.

Secondly, in all markets there is an emotional swing and Bitcoin is not immune. Sometimes in spite of all logic, fundamental analysis, and deductive reasoning, there is an element of “well he’s selling so I better sell as well”. In others words… the fear factor.

Lastly, the claims of an unregulated crypto currency are mainly tongue in cheek.

There has been a “glass ceiling” that few knew of in the Bitcoin market. Once the 51% threshold of ownership was crossed, the price would tank. That amount of control gives the owner the ability to confirm the existence of Bitcoin transactions.

This week, the mining pool of GHash broke the ceiling and the result was an immediate downward shift in Bitcoin.  

GHash said “oops” and removed some of their resources from the pool but were otherwise unapologetic.

“We understand that the Bitcoin community strongly reacts to GHash.IO’s percentage of the total hash rate,” Jeffrey Smith said. “However, we would never do anything to harm the Bitcoin economy; we believe in it. We have invested all our effort, time and money into the development of the Bitcoin economy. We agree that mining should be decentralized, but you cannot blame GHash.IO for being the #1 mining pool.”

Right.

If you would like to take advantage of the swings in the price of Bitcoin, Register now for this exclusive event at http://btcmastermind.com

 

Sources:

http://www.businessinsider.com/today-bitcoins-doomsday-scenario-arrived-2014-6

http://money.cnn.com/2014/06/12/technology/security/silk-road-bitcoin-auction/

http://www.cryptocoinsnews.com/news/bitcoin-mining-pool-ghash-io-is-unapologetic-risk-theoretical-51-attack/2014/06/12

http://hackingdistributed.com/2014/06/13/time-for-a-hard-bitcoin-fork/