It makes perfect sense that the price is dropping. Mining became super popular recently. If everyone starts mining to get USD, then that's a huge increase in bitcoin supply. There was no new increase in demand (in fact, maybe a decrease, due to all the security scandals lately), so that translates into a big price drop like what you're seeing now.
If only you could have shorted BTC, then I would have been able to make a profit.
And many people wouldn't have wasted so much money buying mining equipment, because the price would have never gotten so high, and would have steadily decreased as the mining pool increased, instead of crashing rapidly like it is now.
This is why shorting is good for the market.
All this would require is a service where you can borrow Bitcoins, right? Does a service like this not exist right now?If only you could have shorted BTC, then I would have been able to make a profit.
And many people wouldn't have wasted so much money buying mining equipment, because the price would have never gotten so high, and would have steadily decreased as the mining pool increased, instead of crashing rapidly like it is now.This is why shorting is good for the market.
I guess the problem is that it's hard to enforce over the internet, when you lend Bitcoins to someone. What if they don't pay you back?
It just doesn't make any sense to declare a distributed electronic currency like this "over." It almost can't be over.
Breaking the SHA-256 hash function would make it over. Or at least the current incarnation of Bitcoins would be.