So my question is this, what is the psychological effect that is causing people to sell instead of buy? Gigamining pays outstaning dividends (though the yield is dropping slowly) so why aren't people snapping it up like candy? The price is based on demand, not on difficulty, correct?
Hi tmfp143,
Pirateat40 not paying back his lenders in a timely fashion is causing a shift of perception in the entire BTC economy. Those who once felt more secure purchasing assets or lending bitcoins are now becoming more paranoid and are wanting to keep those same bitcoins back in their possession. Bitcoins have also appreciated a great deal in price so I believe these things combined are leading to a credit squeeze. The result is people wanting to sell their Gigamining bonds, even at a loss, to secure the funds in their wallet.
I do believe this is a temporary effect but it remains to be seen how long it will last or how deep it will be.
Best,
gigavps