Worries Grow That the Price of Bitcoin Is Being Propped Up • Hacker News Board

Re: Worries Grow That the Price of Bitcoin Is Being Propped Up

#51

Post by [deleted] » Thu, Feb 01, 2018, 5:16 AM UTC

wmf wrote: post #39

sjg007 wrote: post #31

I really want bitcoin to succeed because it really is a great way to take back the power from corporations and the plutocracy we find ourselves in today. The fixed pool of bitcoins is slightly problematic.. would it not be better if the pool increased at 1% a year or so..? Gold made sense as a reserve since it formed a quorum among the various economies. The dollar makes sense now but so does bitcoin. The only issue…

In reality, a small number of early adopters are trying to set up a new crypto-plutocracy with themselves at the top. You're the sucker at the table.

[deleted]

Re: Worries Grow That the Price of Bitcoin Is Being Propped Up

#52

Post by thisisit » Thu, Feb 01, 2018, 5:37 AM UTC

mattcaldwell wrote: post #45

thisisit wrote: post #37

Earlier quoted context omitted.

The fallacy around marketcap is well explained the above post. Or check the link: https://news.ycombinator.com/item?id=16279591

That doesn't actually apply here, does it? If $2B is an inflated market cap, that's good for everyone.

The idea presented in the post is simple - marketcap is based on the last trade. So it is an unreliable indicator.

True measure might be something like liqudity and exits. What happens if the liquidity shifts or exits to fiat disappear completely? Like I pointed out, currently USDT is connected to 15% of liquidity in BTC:

https://news.ycombinator.com/item?id=16279642

Or as MekaiGS said the whole thing will depend on exits:

https://news.ycombinator.com/item?id=16279618

Re: Worries Grow That the Price of Bitcoin Is Being Propped Up

#53

Post by thatoneyouthrow » Thu, Feb 01, 2018, 5:39 AM UTC

ucaetano wrote: post #48

atomical wrote: post #32

Earlier quoted context omitted.

Why shouldn't we follow the example to its logical conclusion? He's clearing trying to demonstrate that it's the wild west. It's really only the wild west until the SEC starts to enforce existing laws.

Afaik wash trades aren't illegal, you just can't use the losses to lower your taxes. So nothing wrong with my trades.

They are illegal.

https://definitions.uslegal.com/w/wash-trading/

Re: Worries Grow That the Price of Bitcoin Is Being Propped Up

#54

Post by mattcaldwell » Thu, Feb 01, 2018, 5:58 AM UTC

thisisit wrote: post #52

mattcaldwell wrote: post #45

Earlier quoted context omitted.

That doesn't actually apply here, does it? If $2B is an inflated market cap, that's good for everyone.

The idea presented in the post is simple - marketcap is based on the last trade. So it is an unreliable indicator. True measure might be something like liqudity and exits. What happens if the liquidity shifts or exits to fiat disappear completely? Like I pointed out, currently USDT is connected to 15% of liquidity in BTC: https://news.ycombinator.com/item?id=16279642 Or as MekaiGS said the whole thing will depend on…

I'll agree that the whole thing will depend on exits.

Re: Worries Grow That the Price of Bitcoin Is Being Propped Up

#55

Post by ucaetano » Thu, Feb 01, 2018, 6:20 AM UTC

thatoneyouthrow wrote: post #53

ucaetano wrote: post #48

Earlier quoted context omitted.

Afaik wash trades aren't illegal, you just can't use the losses to lower your taxes. So nothing wrong with my trades.

They are illegal. https://definitions.uslegal.com/w/wash-trading/

Oh, forgot to say, I'm not based in the US. Not sure if you know, but there are other countries out there...

Re: Worries Grow That the Price of Bitcoin Is Being Propped Up

#56

Post by monus21 » Thu, Feb 01, 2018, 7:16 AM UTC

josephagoss wrote: post #40

monus21 wrote: post #18

So what is the likely outcome of the fallout of Tether and Bitfinex? I'm guessing the price of Bitcoin will fall drastically?

As bitcoin is quite impossible to value via traditional methods it's very hard to say where the price could end up after a tether pop. I've heard many in the cryptocurrency space throw figures around such as $1,000. I fear that the crash would be far lower. The argument is that the entire run up is fake therefore a realistic price would be back around $100.

I can see this happening. Sucks for everyone who bought in at $18K.

Re: Worries Grow That the Price of Bitcoin Is Being Propped Up

#57

Post by atarian » Thu, Feb 01, 2018, 7:27 AM UTC

@dang, this story was on the front page and then just disappeared. Was it removed intentionally? And if so, what was the reason?

Re: Worries Grow That the Price of Bitcoin Is Being Propped Up

#58

Post by dang » Thu, Feb 01, 2018, 7:41 AM UTC

HN15718653 wrote: post #34

ucaetano wrote: post #8

Reposting from another thread: I recently created my own cryptocurrency, UCaetanoCoin (UCC), with a supply of 100 trillion and one coins, all owned by me. I sold one to a friend of mine for $0.01 yesterday, which made me not only the richest person in the world, but also the first trillionaire, as the coins I own are valued in $1T USD. And my UCC has a total market cap of $1T USD (and one cent). Then I exchanged a si…

I know you're just joking, but... I DO WANT TO INVEST!!!

Could you please stop posting unsubstantive comments to Hacker News?

Re: Worries Grow That the Price of Bitcoin Is Being Propped Up

#59

Post by HN15718653 » Thu, Feb 01, 2018, 8:08 AM UTC

dang wrote: post #58

HN15718653 wrote: post #34

Earlier quoted context omitted.

I know you're just joking, but... I DO WANT TO INVEST!!!

Could you please stop posting unsubstantive comments to Hacker News?

Top post, which I was replying to, was about a trillion-dollar bitcoin offering. I trust that you scolded him as well, dang.

> I recently created my own cryptocurrency, UCaetanoCoin (UCC), with a supply of 100 trillion and one coins, all owned by me. > I sold one to a friend of mine for $0.01 yesterday, which made me not only the richest person in the world, but also the first trillionaire, as the coins I own are valued in $1T USD. > And my UCC has a total market cap of $1T USD (and one cent). Then I exchanged a single coin with myself for $0.01. > As my coin has zero transaction cost and instant transactions (it's a badass coin), I traded it back and forth with myself 100 quadrillion times. > This generated a total traded value UCC-USD of 1 Quadrillion Dollars yesterday, more than any other security was ever exchanged in a single day.

Re: Worries Grow That the Price of Bitcoin Is Being Propped Up

#60

Post by dang » Thu, Feb 01, 2018, 8:24 AM UTC

ucaetano wrote: post #8

Reposting from another thread: I recently created my own cryptocurrency, UCaetanoCoin (UCC), with a supply of 100 trillion and one coins, all owned by me. I sold one to a friend of mine for $0.01 yesterday, which made me not only the richest person in the world, but also the first trillionaire, as the coins I own are valued in $1T USD. And my UCC has a total market cap of $1T USD (and one cent). Then I exchanged a si…

Please don't copy and paste from other threads.

The comment itself is sort of a rehashing of by now ultra tedious material, too. You're far from the only one rehashing it—pun intended—but it would be good if everyone doing it would stop. Repetition is the leading anti-value of this site.