Ah, the Bloomberg and TechCrunch bottom signals I’m looking for.
As Bitcoin Sinks, Industry Startups Are Forced to Cut Back
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Re: As Bitcoin Sinks, Industry Startups Are Forced to Cut Back
#12BTC/USD is doing just fine. Nobody who knows anything about anything made any kinds of plans involving $20,000 Bitcoin. At ~$4k, it's still 10x where it was 2 years ago. Anybody remotely involved in BTC from it's actual inception (not the bandwagon shirt-losers of 2017) is filthy stinking rich now.
> Nobody who knows anything about anything made any kinds of plans involving $20,000 Bitcoin. Except for Goldman, Morgan Stanley, Citigroup and Barclays (see https://www.bloomberg.com/news/articles/2018-12-23/wall-stre... )...
That article really does not support your point at all...
>Squeamish from the start about pursuing profits in one of the darker corners of finance, established firms this year slowed their already halting efforts to make a business out of Bitcoin mania.
So they were slow from the start, and are slowing their already slow efforts.
>“The market had unrealistic expectations that Goldman or any of its peers could suddenly start a Bitcoin trading business,” said Daniel H. Gallancy, chief executive officer of New York-based SolidX Partners, which hopes to launch a Bitcoin ETF in the U.S. "That was top-of-the-market-hype thinking."
So the market (not banks or other insiders) had unrealistic expectations of traditional institutions.
>With regulators offering little clear guidance on how they will classify the broad universe of tokens—as commodities, securities or something else—banks and investment firms are treading cautiously.
Banks continue to wait for regulations and guidance before committing fully.
Re: As Bitcoin Sinks, Industry Startups Are Forced to Cut Back
#13At what price will the Bitcoin death spiral occur? (i.e. when it costs more to produce/handle Bitcoin than the revenue generated, so best move is to just exit the crypto industry).
Bitcoin was doing perfectly fine at $100, so I think these predictions are a bit premature and have some recency bias. The price drop does lower the amount of security in the network, so it becomes cheaper to attack it. However, it also means the payoff to attack is lower.
The cost of production (as a function of the hash rate) was much lower than $100/coin at that time.
Re: As Bitcoin Sinks, Industry Startups Are Forced to Cut Back
#14Earlier quoted context omitted.
> Nobody who knows anything about anything made any kinds of plans involving $20,000 Bitcoin. Except for Goldman, Morgan Stanley, Citigroup and Barclays (see https://www.bloomberg.com/news/articles/2018-12-23/wall-stre... )...
What stops GS from replacing their fee-based offerings with a blockchain solution? Could this really be as obvious in hindsight as looking at Sears in the 90s not developing an online catalog?
How does a blockchain solution solve Goldman Sachs' business problems better, or with less resources, than existing solutions?
Re: As Bitcoin Sinks, Industry Startups Are Forced to Cut Back
#15BTC/USD is doing just fine. Nobody who knows anything about anything made any kinds of plans involving $20,000 Bitcoin. At ~$4k, it's still 10x where it was 2 years ago. Anybody remotely involved in BTC from it's actual inception (not the bandwagon shirt-losers of 2017) is filthy stinking rich now.
> Nobody who knows anything about anything made any kinds of plans involving $20,000 Bitcoin. Except for Goldman, Morgan Stanley, Citigroup and Barclays (see https://www.bloomberg.com/news/articles/2018-12-23/wall-stre... )...
I think OP is saying they don't know anything about anything. Which has a point, they claim to know what they are doing, but just have such large capital that there is no way for them to fail even if they did everything wrong. So you can't use success as a barometer for knowing anything.
Re: As Bitcoin Sinks, Industry Startups Are Forced to Cut Back
#16At what price will the Bitcoin death spiral occur? (i.e. when it costs more to produce/handle Bitcoin than the revenue generated, so best move is to just exit the crypto industry).
Don't bitcoin costs adjust to a shrinking miner population as well as it adjusts for a growing one? If so, the answer is never. As people give-up, the costs for the remaining ones reduce so that at some point it's lucrative again. The interesting question is at what price people will stop speculating on its price and run to an exit? I don't think anybody can answer this one.
The difference is that even if the difficulty adjusts, there will be dormant ASICs waiting to be used. If the price lowers enough and enough ASICs are out on the bench, it’ll at one point becoming economically beneficial to turn them all on and attack the network rather than having them collect dust and depreciate.
Re: As Bitcoin Sinks, Industry Startups Are Forced to Cut Back
#17long time since the last Bitcoin is dead article
Re: As Bitcoin Sinks, Industry Startups Are Forced to Cut Back
#18At what price will the Bitcoin death spiral occur? (i.e. when it costs more to produce/handle Bitcoin than the revenue generated, so best move is to just exit the crypto industry).
there can be no such a thing by design. Tulips didn't have it but Bitcoin does have a mechanism of self adjusting mining difficulty
Re: As Bitcoin Sinks, Industry Startups Are Forced to Cut Back
#19Earlier quoted context omitted.
Don't bitcoin costs adjust to a shrinking miner population as well as it adjusts for a growing one? If so, the answer is never. As people give-up, the costs for the remaining ones reduce so that at some point it's lucrative again. The interesting question is at what price people will stop speculating on its price and run to an exit? I don't think anybody can answer this one.
The difference is that even if the difficulty adjusts, there will be dormant ASICs waiting to be used. If the price lowers enough and enough ASICs are out on the bench, it’ll at one point becoming economically beneficial to turn them all on and attack the network rather than having them collect dust and depreciate.
If they’re dormant, by definition they’re already unprofitable to operate. If the price decreases further, only the most efficient miners will remain, not the least efficient of them.
Re: As Bitcoin Sinks, Industry Startups Are Forced to Cut Back
#20BTC/USD is doing just fine. Nobody who knows anything about anything made any kinds of plans involving $20,000 Bitcoin. At ~$4k, it's still 10x where it was 2 years ago. Anybody remotely involved in BTC from it's actual inception (not the bandwagon shirt-losers of 2017) is filthy stinking rich now.
> Nobody who knows anything about anything made any kinds of plans involving $20,000 Bitcoin. Except for Goldman, Morgan Stanley, Citigroup and Barclays (see https://www.bloomberg.com/news/articles/2018-12-23/wall-stre... )...
They are part of the getting in late group and the lower valuations are most probably signs they are leaving the market.
I remember when the price started to increase I didn't think 4,000 would hold. 2500 seemed like the correct price. The fact that it hasn't fallen below that amount means there are more investors.
Personally I was using it to purchase goods before the runup and the slowness and increased fees made me move to another form of payment. I'm considering going back now that the price[is dropping