Quote from: Sage on April 13, 2013, 07:17:46 AM

Bitcoin was on the verge...

...the verge of breaking into the mainstream, and hitting the critical tipping point. It was about to explode like never before.

Cyprus revealed the extreme risks of the current antiquated banking system. The smart money was looking to get out. Then along comes Bitcoin at just the right timing.

I agree with your points about Mt Gox and the exchanges in general and the need for something better.

But I'm not sure the exchanges are actually the cause of Wednesday's crash.

I think the real cause was the parabolic rise in the value of Bitcoin throughout March. It went too fast and overstretched itself in too short a time period.

Even if the exchanges had still been open, I think it highly likely we would be seeing a crash either now or sometime very soon. The price just went too high too fast. When it does that there has to be a correction.

You don't need malfunctioning exchanges or even ddos attacks or overloaded exchange webservers to set off a sudden move down. If the price has risen too high, then almost anything can set it off.

A lot of selling is just fear and herd mentality. Once a sharp move downward occurs large numbers of people take heed and follow and sell. Especially if they've just come into the market to speculate and not to buy and hold or use Bitcoin in the long run. Those buyers will sell as soon as there's a clear downward sign.

Im convinced Bitcoin will rise above the price of gold and within a relatively short time period, but trying to make gains of the sort we had in March is just unrealistic. Growth in price has to be more steady to be sustainable.