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Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

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Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#81

Post by AndrewKemendo »

KasianFranks wrote: post #22

Time to buy. Down from what price since January? Cryptocurrency is a long term play from a software and financial engineering vantage. It also continues to irritate the hell out of banks (bank accounts are being closed and restricted from exchange transfers, including coinbase) and general investors. It's not liquid enough yet, creates no need for middle men and Bitcoin itself is now being manipulated by futures cont…

creates no need to middle men

I've seen this consistently touted as a structural advantage to (bit)coins, but have yet to see a compelling technical explanation as to how/why this would be the case. The Satoshi paper doesn't discuss middlemen at all.

Very few people (relatively) are actually mining and most are just buying with USD from an exchange which by default is a middleman. Many of the other coins are pre-mined so aren't decentralized at all, which takes that whole point out of possibility.

Where's the proof of this claim?

Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#82

Post by jgh »

Insanity wrote: post #65
matwood wrote: post #27

Earlier quoted context omitted.

Yeah, people love to overreact. I follow the reddit investing forum sometimes, and people go nuts with 'plunge' and 'crash' when a tech stock moves -1%.

Well, I think that might be explained due to the popularity of cryptocurrencies amongst an audience that is otherwise not economically inclined. They end up spending some money on bitcoin due to "hearsay" or what they read in the news, and think they can quickly make a lot of money. Without an understanding of how much can actually be lost. So when this happens, they might not think in percentages but in "how much di…

Youre probably not far off. I’ve been hearing TA works better on cryptocurrency markets than regular stock markets, probably because like you say it’s mostly relatively unsophisticated investors.

Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#83

Post by ganoushoreilly »

Insanity wrote: post #65
matwood wrote: post #27

Earlier quoted context omitted.

Yeah, people love to overreact. I follow the reddit investing forum sometimes, and people go nuts with 'plunge' and 'crash' when a tech stock moves -1%.

Well, I think that might be explained due to the popularity of cryptocurrencies amongst an audience that is otherwise not economically inclined. They end up spending some money on bitcoin due to "hearsay" or what they read in the news, and think they can quickly make a lot of money. Without an understanding of how much can actually be lost. So when this happens, they might not think in percentages but in "how much di…

This is actually one reason for Accredited investor certification. When you read posts about people saying they can't afford rent now because of the down swing, it's a very tricky situation and one that could / should have been prevented. It's as if the financials industry had to go through these same issues to get where it is now.

Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#84

Post by dragontamer »

joering2 wrote: post #32
blang wrote: post #18

Earlier quoted context omitted.

https://en.wikipedia.org/wiki/Executive_Order_6102

This keeps coming back to HN. What the order ban is actually hoarding the gold. Since each dollar was backed by physical gold, people that hoard physical gold were limiting government with ability to move currency and relese it as soon as needed. Obviously taking us off gold standard fixed the problem (by making US an insolvent nation btw)

"Hoarding gold" was defined as having more than 6-ounces of gold (roughly $6500 in 2018 USD)

Which basically means gold was dead as an exchange medium after EO 6102. It was illegal to have more than $6500 (today's money) worth of gold / 5-ounces or so, so transactions would have to be way smaller than that!!

In 1930s money, 5-ounces of gold was just $100.

Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#86

Post by bduerst »

omegaworks wrote: post #74
cantrip wrote: post #44

Earlier quoted context omitted.

>As the blockchain grows ever larger the thing gets more and more useless as a currency. Just look at how long it takes a transaction to confirm. Blockchain size and confirmation times are two entirely different things.

Good to know, what is it based upon? I know you can spend coin to prioritize a transaction, is it formulaic?

Block size is limited by bytes allowed in the block, usually about 7 transactions a second (on average) for Bitcoin. Increased demand for transactions increased tx fees.

The length of the chain can affect processing power and bandwidth, as each block contains all previous blocks.

Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#89

Post by nukeop »

jedberg wrote: post #30

If the threat of regulation drops it 25%, that's not a very good store of value or medium of exchange.

No, it means its value is lower if governments try to mess with something they don't understand and want to ruin in fear of their power being diminished.

Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#90

Post by spookthesunset »

nukeop wrote: post #72
spookthesunset wrote: post #59

Earlier quoted context omitted.

Ahh the "time to buy cheap coins" rally of the die-hard bitcoin shysters. Your own post says "It's not liquid enough yet, creates no need to middle men and Bitcoin itself is now being manipulated by futures contracts based on supply being increased artificially." Does that sound like buying now is a good idea? Doesn't to me... Bitcoin is, was and always will be a highly manipulated penny stock. It spiked from $1000 t…

What do you mean "no reason"? Supply and demand are the reasons the prices are shaped the way they are. It's a near perfect market.

> What do you mean "no reason"?

As in "why is the price what it is". Saying "because of supply and demand" is useless, unhelpful pedantry.

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