Bitcoins for dummies

[Pie Crust]

lol bitcoins price did worse. At the start of 2014 it was about $950 USD now it's $265

bitcoins aren't any more reliable

Remember that the price of the bitcoin depends on a community, not on five idiots in charge.
As long as people invest in mining rigs or keep thinking that bitcoins have value, its value will not have a drastic change. Our highest denominator is $100 which is less than $7 USD and it's not getting any better judging by February.

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[devildogelite]

If people being invested in bitcoins means there won't be any drastic price change why did it drop from $950 to $260. Bitcoins are awful at using for anything long term.

[Headcrab Zombie]

As long as people invest in mining rigs

I'm not an expert on bitcoins but isn't that exactly why it dove? Someone released a new, really efficient rig optimized for mining, and the value dropped because the currency was easier to obtain?

keep thinking that bitcoins have value

That's what value is

[Pie Crust]

I'm not an expert on bitcoins but isn't that exactly why it dove? Someone released a new, really efficient rig optimized for mining, and the value dropped?

Remember that mining bitcoins involves in solving arithmetics. X amount of bitcoins are given at maximum and is split between each arithmetic equasion. As they get solved, they become 5 times harder than the previous. IIRC, the drop in value was caused by the easy equasions. When Bitcoins came out, they were $10USD. The price went sky-high when peole invested in mining rigs and flunked because of the rate in which they were solved. I'm by no means an expert in economy but this is what I understand that happened.