All I have ever used Bitcoin to actually buy has been substance purchases on Silk Road probably way before most people on this forum even knew what Bitcoin was.

But until the day comes when I can put petrol in my car or buy a house with Bitcoin, I am primarily interested in increasing the amount of Fiat that I have.

To my understanding, the value of Bitcoin has rapidly outgrown its real world uses and its value is largely hoarding and speculator driven. Now, I thought this as Bitcoin soared past $100. A price level that would be unthinkable today, and I never got involved. Indeed, I have only shifted a sizeable portion of my capital over to Bitcoin since mid November 2013, having spent a very long time on the sidelines, thinking that surely the price cannot keep rising.

Based on my rational of being wrong all the way up from $100 to $1000, I have now entered at top of market and done quite well, although am losing now and selling at lower prices than I paid to limit damage. Perhaps Bitcoin could go all the way to $10'000, and I will always be willing to take a punt on it when the going looks good. But in the short term, Bitcoin could also go to $500 or even less. Right now, it is looking far more likely to head south in the next few days than head north. Long gone are the days when Bitcoin could be seen as a Anarchist Kid on the Block...something that the little man concerned with freedom should support. These days, Bitcoin is the ultimate speculative bubble, with the potential to deliver great riches, but also to suck wealth dry.

I don't plan on having my real wealth sucked dry. Right now, I have far too many Bitcoins and 70% of them are getting sold.

I will keep my fiat.

New entrants to the market represent the money that has most recently drove the price up. It stands to reason that newer money is going to be a whole lot more nervous and sensitive than old money. Those lucky enough to have properly invested even 1 or two months ago need to shtfu and stop bitching when those of us who have paid high prices for most of our BTC start getting twitchy.

Buying back in at sub $800 and all the way down to $500....if it goes down that far.