The price is correcting naturally. After the tremendous gains investors are taking profits and celebrating. If you put down $50k and made 1/4 million under 2 weeks you sell. We see this in the alt market everyday. Its normal.
It depends on how much you sell. Suppose you have $250,000 from $50,000 initial investment? Why would you sell now for fiat when you could have purchased BitUSD at the peak and then sold now at the bottom for more BTSX? Suppose you do get your $50,000 out? Where are you going to put it? Bitcoin?
I think the reason people don't hold BitUSD is because you can't yet easily spend it and also because no one typically wants to hold USD anyway or why would we all be into Bitcoin or altcoins?
Panic is good because it shows people actually care about the technology rather than just taking a quick profit.
Right! Once you can easily turn BitUSD into Fiat in your bank account, it will pass
GTV ("Galt's Test of Value") because I still have to pay for most things in Fiat USD. Now, it's difficult.
Try to do it in Bter through BTC and you will not be offered a good price. Try to do it in Bter through USD and you can't get it out if you are in the U.S. (egopay doesn't accept u.s. accounts anymore) so you will end up Back to BitUSD->BTSX->BTC->CoinBase->Bank Account and then you think, well I should have just kept it in BTSX or BTC!!
So, the closer we can get to BitUSD->Bank Account the better it will hold it's value.
Ironically, the easier you can move BitUSD into your bank account, the less people will feel the need to do it!!If you can't spend it like USD or easily convert it to USD, it isn't USD. It's a mindset.