4 theories on today’s British Bitcoin sell-off

Posted on December 1, 2013

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Don’t panic. 100 200 GBP just got wiped off the Bitcoin trade price in an afternoon. Welcome to Bitcoinworld, where value is illusionary and stability is a whim.

What’s fascinating is the massive GBP volume over on MtGox today. It doesn’t seem to be mirrored so much in the US MtGox or the BTCChina charts though, even if the link between cause and effect over the price is unclear.

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My favourite theories are:

1. British day traders are namby-pambies, and get out at the first sign of anything less than 100% profit.

2. With China asleep (if they sleep), the British are mounting a revenge value-drop in return for having to give back Hong Kong.

3. British hackers, working undercover for the MoD (Ministry of Defence) and the BoE (Bank of England), are sowing confusion and chaos to distract voters from the latest hare-brained Tory scheme to cut costs. This also explains why the Bitcoin Forums have been taken down, for no logical reason.

4. Satoshi is selling off a stash to keep things stable and sensible. Also, having a clear love and understanding of free markets, he knows that the best way to drive demand is through attention, and nothing gets attention these days like bad news does. (And yes, I do think Satoshi was British.)

OK, that’s enough “speculation” from me. What do you reckon?

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Posted in: Finance, Opinion, Trading