Bitcoin and cryptocurrency prices have fallen sharply over the last few days
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Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days
#2> Last Saturday, ahead of the traditional market rout caused by Opec, PlusToken scammers moved a little over $100 million worth of bitcoin to so-called mixers, designed to disguise the origin and destination of the coins.
> The fraudsters may have then sold off the bitcoins, causing prices to fall as supply flooded the market, according to Singhal.
May have? Is this anything more than pure speculation? I mean, I am a very, very big fan of using time to correlate events ("what changed"), so the mixing is certainly a signal, but how good of a signal? Why highlight PlusToken vs bitcoin holders en masse wanting to get cash out thanks to the market downturn?
Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days
#3I have to say, the crypto market's strong ties to traditional finance in this crash surprise me. I understand selling off stock because of expected corporate losses, I don't understand mass conversions to FIAT especially when "print more money" seems to be the fed's response to this.
Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days
#4I have to say, the crypto market's strong ties to traditional finance in this crash surprise me. I understand selling off stock because of expected corporate losses, I don't understand mass conversions to FIAT especially when "print more money" seems to be the fed's response to this.
Exactly
Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days
#5Hopefully this starts to kill the notion that crypto is some magical thing that people should gamble with.
If it can't go up during a global crisis or EVEN be resilient.. then it's proven it's just a house of cards.
Crypto technology itself has value, but not in most of it's current forms as some magical gambling currency/asset.
Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days
#6I have to say, the crypto market's strong ties to traditional finance in this crash surprise me. I understand selling off stock because of expected corporate losses, I don't understand mass conversions to FIAT especially when "print more money" seems to be the fed's response to this.
My take on the selloff is people looking for liquid cash. Very similar to stockpiling home supplies. People are looking for stuff they can use or trade in the very short term because they don't know how bad it would get. It's a lot harder to do that today with crypto.
I haven't seen anyone with strong reason to believe that companies are gonna be that much worse off a year from now than they were a month ago, or for the four years after that, so I don't see a reason to sell stocks based on expected company performance anymore than to sell crypto - but in the short term, everyone's stockpiling immediate goods.
Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days
#7Wait...aren't crypto currencies supposed to be the favored monetary instrument during times of crises?
Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days
#8Wait...aren't crypto currencies supposed to be the favored monetary instrument during times of crises?
Not as much as cold hard cash.
Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days
#9Wait...aren't crypto currencies supposed to be the favored monetary instrument during times of crises?
Only to anarcho-capitalists and speculators. Most people don't mistrust regulated banking enough that a volatile, unregulated black market economy looks attractive, even in a crisis.
Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days
#10It's a common misconception that Bitcoin is a safe haven. It's not. Not even Gold is a safe haven during a liquidity crisis. In sharp downturns, cash is king.
Think of Bitcoin and Gold as call options on the entire global monetary system. If Govs become insolvent, Bitcoin and Gold is there. If the masses lose faith in central banks, Bitcoin and Gold is there. If central banks debase currencies too quickly, Bitcoin and Gold is there. That is the staying power of scarcity via well known stock to flow ratios.
I'm glad Bitcoin is not inversely correlated to equities, because that would mean Bitcoin went down in an equities uptrend. Being non-correlated is superior: Bitcoin marches to it's own drum.
All this being said: cash is king in times of uncertainty. Bitcoin is a speculative bet that "money without masters" will become an essential part of the future monetary system. We're a long way from that still.
Advice in good times and bad: maintain a deep safety net and don't get too nuts with debt or leverage.