By one estimation, 1000 people own 54% of all Bitcoin in existence. 10,000 people own 78%. The market could be easily manipulated by a relatively few number of people.
On the day the Mt Gox news box, the number of buy/sell transactions increased by ~300% from the day prior, but the currency was mostly stable. To defend the price level on that day, about $75 million was required. So it's a big bet. But also minuscule compared to the amount of capital that traders on Wall Street play typically work with.
I wonder who is buying it? I wonder if increasing the concentration of wealth into the hands of the few will eventually have adverse consequences for the value of Bitcoin?
Even at $50 a coin--it would still NOT be considered a collapse--as long as anyone holds it or trades it, or any business accepts it--which thousands have based their WHOLE business on bitcoin, so yeah--not going anywhere...
Values will drop, but that's happed all the time, it's a very volatile currency--but that's also why there's so much profit potential--wait for $100, but up 10 bitcoins @ 1000, then watch it shoot to $2000/coin and rake in the profits...
Banks have failed before but that DOES not mean they took the USD, or GBP w/ it! Cause people STILL use it!
If the NYSE was a lemonade stand.
The next war won't be fought on the ground, it'll hacked out in the deep web. Until regulation /security concerns are shored up bitcoin isn't a viable long term currency option.
