Between the dump of the 19,000 Hacked BTC, China holders dumping BTC for the AliBaba IPO, ALT's Draining BTC dry, and possibly if there is enough volume for POT related coins could cause this drop too.
The Legal Marijuana Sellers have no way to get their money into a Federally insured bank. FED deems it illegal. So if they accept CANN or BitCoin as payment they can trade those coins in for USD and then possibly withdraw into FIAT and deposit at a bank. Even if they don't put it in the bank they dump to FIAT ASAP. Since people would have to buy BitCoin to pay for the product you would think it would even out. But there are so many other factors draining BitCoin that this may be the Weed that broke the Camel's back.
If BitCoin is being dumped for a high priced commodity that was grown on the cheap then the market won't sustain an economy that can only drain it in the end. I wonder how large an affect on BTC this really has had, and if the FIAT can go to a bank without being traced since it was a sale and taxed. Maybe they pay the tax with the cash proceeds and then the money was supposed to sit in a vault anyways to pay payroll and electricity and rent. BitCoin should never have been traded for FIAT in order to succeed. It should have been used by all people instead of FIAT. This just proved that all the hype about Decentralization was touted to gullible people so big miners and faceless crooks could get rich off of them. If ditching the banking system was the goal why put control into a corporation or majority hash holder and early adopters had ties to silk road. Why make these people rich like we hate bankers so much but love them more just because we hold some BTC and want to get rich too? Pretty sad to see the greed cause the demise of BTC.
I don't know how anyone could only accept BTC though since all costs roll back to FIAT. It just was doomed from the start...
Miners are forced to dump their coins because mining isnt profitable anymore, this cause the price to drop even more, this is just a circle.
In France few real estate agencies in Paris accept bitcoin as payment for the rent, imagine how many bitcoin these agencies need to dump every month.
Well if everyone accept bitcoin, there is no need to trade it back for fiat. But the volatibility scares peoples and holding bitcoin isnt that easy.
Miners do not have to dump! If Miners are in it just for the money then yes they dump, the majority dump, but they don't have to as a requirement. If they held, and boosted the price they would be even richer, and you are talking about worthless alts at the same time. But if you hold while others sell then there is no one to buy your coins later as the price plummets during sell off.
We should make a coin cost right at or slightly above the cost to mine it. Never go up or MOON like everyone wants Crypt to do. PEG a buy and sell wall of huge proportions that has every miners coin in it, with every buyer understanding the costs will never go up or down only follow an index to USD. Then the coin gets used for what it was intended and never exploited for profit. But most Investors want to make so much from a coin like they deserve it or something that they want the MOON! Would you want to sell a product to someone who paid little or nothing for the coin they gave you? And if you did sell it you would immediately sell the coin for FIAT. It is like a waste of time and energy and money. Yet it makes the exchanges rich and they have to dump on us too.
People can still pay their rent with BitCoin instead of 10 BTC a month it is 50 now lol. They go buy more with their money right? Why would they do that instead of just giving the landlord the money, unless they mined it for cheap? It is useless since you can get trapped in the coin and lose money just trying to pay your rent. Crypto had so much promise but greed will be its demise.
That was the dilemma... If no one traded back to FIAT then it would work. But you have costs of goods paid for in USD, like a new car would never be bought with BitCoin, only second hand. Since the Manufacturer has costs of Steel paid for in FIAT, the leather, tires, engine, headlights, and super nice sound system. The manufacturer has no desire to accept your BitCoin just to convert it to FIAT for you. BitCoin has become the ultimate scam when you look at it deeper, since the only parties that would accept it, control it and could lock investors in as they dump. You see how prices of Alt's have not rebounded upwards as BitCoin drops? It is to entice more money in like a penny is a good buy or to hedge position, as it slips to half a penny and then to a sliver of copper in satoshis.
We need to brainstorm a way to make it work? I could see a forced burn if exchanged for FIAT then you have less coin as it burns. But still anyone could exchange coin for FIAT without burning privately so this would not work. There has to be a way.
But then again this could be the final shake out for BitCoin and then it goes to $2000 as the whales gobble up the panic selling.
