Cryptocurrencies are collapsing • Hacker News Board

Re: Cryptocurrencies are collapsing

#11

Post by singularity2001 » Tue, Jan 16, 2018, 9:53 AM UTC

The December 23 'collapse' so far was bigger, however there is some significant market momentum which I found easier to grasp here: https://cryptowat.ch/

Re: Cryptocurrencies are collapsing

#12

Post by mschuster91 » Tue, Jan 16, 2018, 9:54 AM UTC

viach wrote: post #9

eddz wrote: post #2

I would call it more of a "market correction" than a "collapse."

Indeed, I wouldn't call a change 15K -> 13K a collapse.

There are a bunch of coins that lost over 20% in 24h, and the 7d-situation looks even worse with even huge coins like Ripple taking a 45% drop in value.

Re: Cryptocurrencies are collapsing

#13

Post by maze-le » Tue, Jan 16, 2018, 9:55 AM UTC

This site lists 1450 different cryptocurrencies. I wonder how many of them can be used as actual currency. Bitcoin adoption has stalled and at least one big vendor (valve/steam) dropped it because of the price instability.

Re: Cryptocurrencies are collapsing

#14

Post by flowctrl » Tue, Jan 16, 2018, 9:56 AM UTC

A confluence of factors:

1. China cracking down harder: https://www.nytimes.com/reuters/2018/01/16/business/16reuter...

2. South Korea cut off access to banks by cryptocurrency exchanges in December, and access to exchanges by foreign traders. As a result the prices in the country spiked, and the largest price aggregator CoinMarketCap removed Korean exchanges from the index because they were skewing the averages. This caused ~$150B to appear to have suddenly vanished, gapping prices down. This is when the sell-off began in earnest. Then recently the South Korean Minister of Justice said he wants to shut down exchanges, but then the PM says that would require a vote in the National Assembly on new legislation. They are consulting with Japan (who are positive on crypto) and China (who are not) to create a new regulatory framework. http://www.koreaherald.com/view.php?ud=20180116000817

3. Indonesia just banned cryptocurrency transactions, stating only their native currency is legal tender. http://www.thejakartapost.com/news/2018/01/15/bank-indonesia...

4. France's central bank has been whining about cryptocurrency for some time and finally convinced the Minister of Finance to make a public statement and authorize a draft of new regulations. https://www.express.co.uk/finance/city/905169/bitcoin-France...

5. A speculative theory: the Bitcoin futures contracts are about to expire, and some investors will have bet on lower BTC prices. There could be large market players deliberately pushing prices down to meet those futures bets. Or just market makers wanting to get in at a lower price point.

Re: Cryptocurrencies are collapsing

#15

Post by nopriorarrests » Tue, Jan 16, 2018, 10:03 AM UTC

viach wrote: post #9

eddz wrote: post #2

I would call it more of a "market correction" than a "collapse."

Indeed, I wouldn't call a change 15K -> 13K a collapse.

according to reuters, "Bitcoin extends slide to trade down 18 percent on day at $11,191 on Bitstamp Exchange, on track for biggest one-day fall in three years" - so, pretty significant move.

Re: Cryptocurrencies are collapsing

#16

Post by anonytrary » Tue, Jan 16, 2018, 10:03 AM UTC

maze-le wrote: post #13

This site lists 1450 different cryptocurrencies. I wonder how many of them can be used as actual currency. Bitcoin adoption has stalled and at least one big vendor (valve/steam) dropped it because of the price instability.

Why businesses might not use Bitcoin:

1. Bitcoin remains speculative and volatile. This will cause it to be adopted by smaller businesses that can "do things that don't scale". We won't see big businesses support mainstream crypto payments until the demand is high enough to justify the risk.

2. Bitcoin itself is a clamped network, as such the fees are very high. You can't sell Lemonade at your stand with Bitcoin if the fees are much greater than the cost of a cup of lemonade.

Other cryptocurrencies aim to solve these problems.

Re: Cryptocurrencies are collapsing

#17

Post by sidhuko » Tue, Jan 16, 2018, 10:04 AM UTC

mschuster91 wrote: post #12

viach wrote: post #9

Earlier quoted context omitted.

Indeed, I wouldn't call a change 15K -> 13K a collapse.

There are a bunch of coins that lost over 20% in 24h, and the 7d-situation looks even worse with even huge coins like Ripple taking a 45% drop in value.

48 now. Ripple's being hit hard.

Re: Cryptocurrencies are collapsing

#18

Post by mr_toad » Tue, Jan 16, 2018, 10:04 AM UTC

viach wrote: post #9

eddz wrote: post #2

I would call it more of a "market correction" than a "collapse."

Indeed, I wouldn't call a change 15K -> 13K a collapse.

Below 11.5k now and picking up speed.

Re: Cryptocurrencies are collapsing

#19

Post by flowctrl » Tue, Jan 16, 2018, 10:04 AM UTC

anonytrary wrote: post #16

maze-le wrote: post #13

This site lists 1450 different cryptocurrencies. I wonder how many of them can be used as actual currency. Bitcoin adoption has stalled and at least one big vendor (valve/steam) dropped it because of the price instability.

Why businesses might not use Bitcoin: 1. Bitcoin remains speculative and volatile. This will cause it to be adopted by smaller businesses that can "do things that don't scale". We won't see big businesses support mainstream crypto payments until the demand is high enough to justify the risk. 2. Bitcoin itself is a clamped network, as such the fees are very high. You can't sell Lemonade at your stand with Bitcoin if t…

The Lightning Network, coming soon to Bitcoin, will solve the performance & fee problems too. Stability will come with increased liquidity.

Re: Cryptocurrencies are collapsing

#20

Post by singularity2001 » Tue, Jan 16, 2018, 10:09 AM UTC

am I in a filter bubble? The OP to me shows bitcoin UP 3% whereas https://cryptowat.ch/ shows it DOWN 15%

edit: finally, after 2h delay!