The whole Tethers thing scares me the most:
https://twitter.com/Bitfinexed/status/953398351889944576
There's $5B worth.
Bitcoin Fall Extends to 25% as Fears of Crackdown Linger
111–120 of 371 posts
Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger
#112the real test comes when folks try to withdrawl their fiat...
Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger
#113Earlier quoted context omitted.
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-mine…
The Satoshi whitepaper calls middlemen "trusted third parties"
Yes, good point, however I interpreted the "trusted third party" as preventing a central bank managed authority process that would "devalue" a currency through monetary creation. Nothing prevents that with bitcoin unless it was strictly used - you can always create derivatives that you sell to people.
It's like expecting people to trade goods with gold etc...
Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger
#114The last time China explicitly banned Bitcoin, it dropped by around 45% to around $6000. It went on to $20K from there. But what's different this time is that there are first time investors in millions who joined in the last 2 months. They didn't read the white paper, they didn't invest in technology, they invested for the monster returns. So I think there will be a more sell off this time before it rebounds back to…
I love bitcoin and cryptocurrency as potential solutions to problems with gov-controlled currencies (I've used crypto to buy drugs, for example). But I'm still confused why people refer to purchasing currency as an "investment." Obviously the rates are going up now, but doesn't everyone expect them to just come back down? I don't convert my USD to Yen and call it an "investment."
Well, there is actual forex investing (speculating). For instance, the value of the USD versus the Argentine Peso (ARS) is something I track (my girlfriend lives there and long term I would consider moving there, current plan is for her to move here). The USD to ARS conversion is increasingly favorable for the USD, the buying power of ARS hasn't dropped significantly (in country) but the USD is worth more ARS now than 1.5 years ago (1USD:15ARS then versus 1USD:18ARS today). Someone who had currency in ARS at the time, and converted it to the USD, could see significant returns on that investment (assuming reasonable exchange fees). Almost 20% gains, that matches the US stock increases over this past year.
It is speculation, however, as you generally don't have the same sort of insight into currency movements as you will into stock movements and commodities in general. Someone watching the Brexit vote in summer 2016 would have made a decent return on ARS had they moved it to the USD before the vote and back after (changed from 1USD:13ARS to 1USD:15ARS practically overnight). But that is speculation and requires watching global and national scale events to predict.
Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger
#115Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger
#116Earlier quoted context omitted.
Not everyone that buys with credit card does so because they don't have money. Many people do this because this is the fastest way to move money to an exchange. Wire transfers to exchanges sometimes wait for weeks before they are confirmed.
No public, known, good investment suddenly becomes a bad investment in a few weeks, unless something terrible happens in between.
You must not have held gold in October of 1997. Price had been stable for years, then it dropped 13% in two months on no specific underlying news. There's tons of examples like this.
Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger
#117The last time China explicitly banned Bitcoin, it dropped by around 45% to around $6000. It went on to $20K from there. But what's different this time is that there are first time investors in millions who joined in the last 2 months. They didn't read the white paper, they didn't invest in technology, they invested for the monster returns. So I think there will be a more sell off this time before it rebounds back to…
Just like with dot com burst, it doesnt mean someone will turn the lights off forever. Just like the internet eventually got mainstream and websites are being bought and sold for billions these days, same way BitCoin will never be at 0,001 cent with nobody touch it with a long stick.
The internet had a significant use. Bitcoin hasn't really found one yet.
And I would say that the proper comparison would be to a company during the .Com bust.
Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger
#118The suicide prevention hotline is pinned to the top of cryptocurrency subreddits because the price of bitcoin is where it was at the beginning of last month. Think about that for a minute. When we really have a bear market people are going to lose their minds.
Well it doesn't matter what it was last month if you just took the plunge... So many stories of people putting in their college funds, taking out loans, using credit cards, exchange margin, etc.
Taking any form of fiat credit to buy cryptocurrencies is where the pedal hits the metal in terms of stupidity.
Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger
#119Time 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…
The futures contracts trade less than 1% of the global spot btc volume on any given day.
The products so far have been a failure.
Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger
#120The suicide prevention hotline is pinned to the top of cryptocurrency subreddits because the price of bitcoin is where it was at the beginning of last month. Think about that for a minute. When we really have a bear market people are going to lose their minds.
> The suicide prevention hotline is pinned to the top of cryptocurrency subreddits Which ones? I checked r/bitcoin, r/btc, r/ethereum, r/litecoin, r/bitcoinmarkets. Only one I saw with it was r/cryptocurrency
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