201–210 of 259 posts
One of the supposed benefits of holding cryptocurrency that has been peddled is that it is a strong hedge against a down turn in traditional securities. Here we have a new, real data point to the contrary.
Since almost nobody is using Bitcoin to pay for things it’s just a giant speculative thing. It’s not a safe haven.
It'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 an…
I suspect that by this time next year Bitcoin will be seen as a safe haven. The events that are about to play out are exactly what Bitcoin was designed for.
Earlier quoted context omitted.
This is the first bear market (drop of 20% from a recent peak in broad-based index) Bitcoin or the crypto-currency market has ever seen, 'traditional' or not, so it's really uncharted territory.
This. Everyone is speaking so authoritatively as though they knew crypto was not a hedge. This is the first real such test that crypto has seen. Yes, it appears to have failed, but no one could have predicted this with any certainty.
To me it seems much more likely the large exchanges just dumped in order to make a killing off the leveraged longs.
So in short people did actually believe in it as a shore of wealth and exchanges manipulated this belief in order to selfishly profit.
This isn’t something that was easy to predict, my comment is obviously a reflection of what happened today but I think it’s the most logical explanation.
I actively trade crypto. Today's crash was due (from what I'm seeing) to a massive Bitmex contract liquidation (probably in the $100m-300m range). The market, with panic, couldn't get the price in sync across all exchanges. At some point the difference between two exchanges is close to $1000/btc. Very profitable if you know what you are doing. You can AMA.
I’m not one to get involved in any type of trading personally, as I don’t trust myself, so this is outside of my space. Please excuse and correct me if I misused any terminology or don’t understand stuff. Some of my family is heavily invested in crypto, so I like to know what is going on.
Anyway, does my assessment sound accurate to you? I would love to see you expand on this.
I 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.
I have a hypothesis that Bitcoin post-2018 is largely held by a handful of major banks as a way to sidestep anti money laundering rules. It's widely known (and proven in court) that the major banks routinely serve billionaire-class criminals (real criminals like drug cartels and terror groups) and large crypto holdings and prop trading operations allow them to move money on and off their books with relative ease. A s…
Wait...aren't crypto currencies supposed to be the favored monetary instrument during times of crises?
Turns out humans are selfish and emotional, who would have thought?
I have made a large amount of money trading cryptocurrency over the years. This correlation is spurious at best. These stories are so wrong it is hilarious. The price action of crypto is unlike any other market. What we have seen over the last month is massive legs down caused by whales flooding the market at specific times. These bart patterns are so obvious I can't believe people can't draw these incredibly easy to…
The large majority of the liquidity was on longs today.
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bitcoin is not really "there" the same way as gold is. The whole point of gold is that it is a tangible asset. You can hold gold in your pocket or under your mattress and it costs nothing to store it. You can't prove you have bitcoin if you don't have internet access for example. You can't have bitcoin if miners don't run their nodes. Basically, you are depending on a resource in faraway lands to let you "own" what y…
This is another misconception. Gold can be held, yes. It also is expensive to verify, transport, and protect. This has proved problematic for holders of the past. A paper system had to be built on top of Gold, which severely diluted the value proposition as gold was confiscated and stockpiled centrally. Practically speaking, very few individuals hold gold and the utility of doing so is limited when you consider how l…
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> Bitcoin market is like the regular equities market No it's not. The Bitcoin market is the exact opposite: it's unnecessary and of little consequential tangible value to the real economy. The regular equity markets have a large share of the productive output of nations behind them, including the employment and taxation that goes with that. Companies that actually produce goods and services. In many cases goods and s…
> It could disappear tomorrow and other than the lost capital trapped in it, it wouldn't matter in a meaningful way; and it wouldn't matter at all to the average person. That's because Bitcoin is a zero-sum game. No value is created or lost, it's basically just a big game of poker.