Top bitcoin exchange freezes, arbitrarily shuts down, proving you will not be able to get out of bitcoin when you want to

It is now abundantly obvious that bitcoin has become an insidious “trap” that’s taking money from suckers who are deluded into believing the “bitcoin cult.” The top bitcoin exchange, MTGox, now openly admits that its trade engine crashed during the yesterday’s panic selloff, preventing people from being able to get out of the bitcoin market.

Today, MT.Gox now says, “Trading is halted until 2013-04-12 02:00am UTC to allow the market to cooldown following the drop in price,” meaning that the #1 bitcoin exchange has arbitrarily decided to stop processing orders just because it wants to!

It’s a bitcoin bank holiday! Don’t you just love holidays?

All this means three very concerning things:

#1) The bitcoin infrastructure cannot handle a selloff. Once the rush for the exits gains momentum, you will not be able to get out. Only those who sell early will be able to exit the market.

#2) The bitcoin infrastructure is subject to the whims of just one person running MTGox who can arbitrarily decide to shut it down whenever he thinks the market needs a “cooling period.” This is nearly equivalent to a financial dictatorship where one person calls the shots.

#3) Every piece of bad news will be “spun” by exchanges like MTGox into good-sounding news. As bitcoin was crashing yesterday by 60% in value in mere hours, MTGox announced it was a “victim of our own success!” So while bitcoin holders watched $1 billion in market valuation evaporate, MTGox called it a success. Gee, then what would you call it when bitcoin loses 99%? A “raging” success?

Keep in mind that MTGox makes money off bitcoin transactions, meaning the organization has every reason to spin bad news (just like Wall Street) and keep the market “churning” so that more transactions are taking place. Listening to bitcoin advice from people who are making money off bitcoin transactions is a lot like listening to Obama promise you how he’ll protect your liberty.

You are a fool if you believe anything now coming out of the “bitcoin cult.”

Check out this volatility. The time period for this chart is just 24 hours during which prices were swinging wildly:

Conclusion: Bitcoin is a failed currency experiment; not ready for prime time

Bitcoin is now officially a failed experiment. Thanks to the out-of-control hyping and “get rich” propaganda coming from its promoters, bitcoin has become nothing more than a pyramid scheme to take people’s money by suckering them into a currency scam that has no use in the real world. The wild market volatility of bitcoin now proves that merchants will not embrace this currency. There’s too much risk.

And that means bitcoins have little use in the real world, which also means that people are buying bitcoins for the sole purpose of selling bitcoins later — i.e. they are speculators playing the bitcoin casino. At this point, bitcoins might as well be widgets… or tulips.

Many bitcoin speculators are too young to have lived through the exact same mania with the dot com bubble, but believe me, it’s a nearly-identical repeat. …Millions of people all thinking they’re going to get rich without effort, suckering each other into a total delusion, displaying cult-like behaviors and irrational justifications while losing their shirts.

Ever pyramid bubble is wonderful as long as it keeps going up. Everybody thinks they’re rich, and the whole thing works great until it doesn’t. Once the delusion is shattered, everybody loses and the pyramid scheme collapses while the cult members stare in disbelief, unable to cash out because it’s already too late.

If you own bitcoins, SELL NOW while you still can

Get out of bitcoins. If you bought low, sell now while there are still suckers out there who think bitcoins will make them rich. If you bought high, sell now before it drops even further.

Oh, wait, I forgot: You can’t sell now, probably, because the #1 bitcoin exchange decided to close its doors. It’s the “bitcoin bank holiday!”

At this point you will hopefully realize that you traded dollars for a virtual currency that can be wildly manipulated, crashed, frozen and halted without your knowledge or input. If you bought in at anything over $20, you probably got suckered.

So my advice is to eat the losses, learn your expensive lesson, wise up and stop being such a fool in the future. Sell your bitcoins and focus on something more worthwhile.

The bitcoin cult is now the Jim Jones of currency, and everybody is drinking the kool-aid. It’s only a matter of time before they start dropping dead.

“It’s a holiday! A holiday!” – Gerald Celente, singing about the looming bank holidays that await depositors across the EU.

http://www.naturalnews.com/039880_bitcoin_bubble_panic_selling_accounts_frozen.html#ixzz2QBVdkNGk

BitCoin Down 50% In Massive Sell Off: Over $1 Billion Vaporized In a Few Hours

Just a few months ago the total net worth of all Bitcoins, a popular encrypted digital currency, was worth about $140 million. The non-tangible exchange mechanism is used by people all over the world to purchase everything from traditional goods and services, to illicit trade that may include drugs and stolen credit card numbers. The coins became a go-to digital store of wealth around the world after the meltdown of the Cypriot financial system, and was pushed as a ‘safe’ way to preserve wealth out of view prying government eyes. All of the excitement surrounding Bitcoin has driven the price of a single unit to in excess of $250, giving the total Bitcoins in global circulation a market capitalization of over $2.5 Billion in just a few months time.

Earlier this morning, Mike Adams of Natural News penned a warning to investors and those seeking privacy and wealth protection by utilizing the digitally encrypted BitCoin currency unit:

Bitcoin has become a casino. It is almost a perfect reflection of the tulip bulb mania of 1637 in these two ways: 1) Most people buying bitcoins have no use for bitcoins (just like tulip bulbs), and 2) The rapid increase in bitcoin valuations cannot be substantiated in any way that reflects reality.

In other words, there is no fundamental reason why bitcoins should be 2000% more valuable today than four months ago. Nothing has changed other than the craze / mania of people buying in.

When bitcoins were in the sub-$20 range, I was not concerned about any of this. I actually encouraged people to buy bitcoins and support the bitcoin movement. But alarm bells went off in my mind when it skyrocketed past $150 and headed to $200+ virtually overnight. These are not the signs of rational markets. These are warning signs of bad things yet to occur. (Via Infowars)

A few hours after Adams’ dire warning was posted, the crash he warned about has become a reality.

This morning, without warning, and moments after Bitcoin achieved its all time highs, the currency collapsed over 50%, essentially vaporizing upwards of one billion dollars in value.

This is what panic selling looks like – in real time:

Bitcoin-Collapse(Chart Courtesy Bitcoinbullbear.com)

And given that there are no protective mechanisms for the alternative free market Bitcoin trade, the crash may not yet be over.

Will it stage an amazing recovery? Alas, for this particular bubble, there are no NYSE circuit breakers nor is there a Federal Reserve-mandated “plunge protection team.” And why should there be? The central banks hate all currency alternatives. Firehats: on, especially since the volume is still relatively lite. (Zero Hedge)

The momentum for Bitcoin has now turned to the downside, much like it did in previous crashes where the currency achieved new highs, and was promptly sold off by those who bought into the bubble early at rock-bottom prices.

While BitCoin may be a preferred method of keeping payments for services and products private through its crypto-mechanisms, it is still a non-tangible asset and it require brokers and the internet to function properly.

Touted as a safe haven store of wealth and a “gold standard of the internet age” by Forbes, tens of thousands of investors bought into the hype.

Today they are paying the price.

During times of financial and economic stability BitCoin may function just fine as a suitable mechanism of exchange. But these are not ordinary times. Interesting, yes. Stable, no. And thus, exchanging one’s assets and turning them into digital Bitcoins may not be the best choice of asset protection during periods of financial, economic and political turmoil and uncertainty.

Only physical assets – the kind we can hold in our hand – can truly be called safe havens.

Food in your pantry that you can consume at anytime.

Skills and labor you can barter for other goods.

Precious metals, which have stood the test of time over thousands of years.

Land on which you can produce food and alternative power.

These are the assets that provide a realistic level of safety and security.

These are money when the system crashes and confidence in the paper ponzi schemes around the world is lost.

Bitcoin is fine for certain types of transactions. But having funds in Bitcoin is, obviously, no different than a deposit account at a bank which can go under or a stock marketprone to manipulation.

Get physical. It’s the only way to ensure your assets will really be there when you need them.

 

 

http://www.shtfplan.com/headline-news/bitcrash-down-50-in-massive-sell-off-over-1-billion-vaporized-in-a-few-hours_04102013

5 of 10 Top Economies in the World Drop the Dollar

Activist Post

The U.S Dollar is quickly losing its status as the world reserve currency. Five of the top ten economies in the world, plus a few others, no longer use the dollar as an intermediary currency for trade. This trend poses a huge risk to the dollar and the United States along with it.

ZeroHedge points out today that Australia, the world’s 12th-ranked economy, has now joined a growing list of nations that have agreed to bypass the dollar in bilateral trade with China. China, ranked 2nd behind the U.S., also has similar agreements with Japan (3rd), Brazil (6th), India (9th), and Russia (10th).

Although unilateral agreements have been in place for some time between China and the countries listed above, last week the BRICs (Brazil, Russia, India & China) agreed to set up a development bank to compete with the IMF, indicating it’s gearing up to compete in a post-dollar world.

Additionally, Brazil, who agreed in principle to drop the dollar with bilateral trade with China some time ago, just made it official with $30 billion in annual currency swaps which will facilitate around 50% of all trade between them.

Besides those agreements with China, some of these nations have made other similar agreements with each other. India and Japan began swapping $15 billion in each other’s currency in 2011 to handle their bilateral trade. And the sanctions against Iran haven’t stopped them from trading oil with China, Russia, and India in anything but the dollar.

Here’s how the current reign of the US dollar compares to previous world reserve currency:

Source

It appears that the dollar is certainly nearing the end of its reign, which could lead to severe economic hardship for the United States.

Dave Hodges writes:

The United States’ good economic fortune is due solely to the fact that world must use the dollar, the Petrodollar if you will, in order to make their nation’s individual oil purchases; this provides the only source of backing for the U.S. dollar that the Federal Reserve requires in order to somewhat sustain our back-breaking debt that the banker-occupied United States government has passed along to the American taxpayer in the form of bailouts.

And Marin Katusa of Casey Research writes:

If the US dollar loses its position as the global reserve currency, the consequences for America are dire. A major portion of the dollar’s valuation stems from its lock on the oil industry – if that monopoly fades, so too will the value of the dollar. Such a major transition in global fiat currency relationships will bode well for some currencies and not so well for others, and the outcomes will be challenging to predict. But there is one outcome that we foresee with certainty: Gold will rise. Uncertainty around paper money always bodes well for gold, and these are uncertain days indeed.

America’s imperialism, combined with its ultra-fiat status of unending debt creation, appears to have created a final downward spiral that has caused many of the top economies to abandon a sinking ship. It might not be too much longer before the rest follow suit. Now might be a great time to consider diversifying into other currencies, and even digital currencies, to mitigate growing losses in the U.S. dollar.