It'll just bring buyers back into the game when it's at a 50% discount.
“Crashes are just discounts” is one of the more pernicious financial memes around.
Speaking of memes, a crash is discount only when enough people believe it is to make it so.
Bitcoin’s Overnight Collapse Probability Is About 50%
41–50 of 226 posts
Re: Bitcoin’s Overnight Collapse Probability Is About 50%
#42Earlier quoted context omitted.
it is intrinsically valuable How? As an intrinsically valuable means of speculation because sound investment opportunities are absent?
It has a social network effect of people who agree that it's the store of value for the future. Your paper dollar bill has very little intrinsic value. It's just a shared acceptance.
I fail to see the distinction between “shared acceptance” and “social network effect of people who agree”. Each has value because people agree it does.
Re: Bitcoin’s Overnight Collapse Probability Is About 50%
#43I hope the price tanks so that BTC will be primarily used for its intended purpose, like it was in the Silk Road days.
I’m far more selfish, I would just like to hear amateur investors stop talking about it. I’d really like for people to stop suggesting a database (blockchain) will fix any problem, even when problems are explicitly not database issues. I think we’re well past either of those things being possibilities though.
cryptocurrency proponents often discuss how manipulated and encumbered with politics normal fiat currencies are, but they don't seem to mind the obvious nation-state-level manipulation of BTC's price shrug
Re: Bitcoin’s Overnight Collapse Probability Is About 50%
#44We're living in an era when it is easy to create new "currencies". Bitcoin is only the first, as some others have already been developed. The "value" of such currencies is a social construct. So, the price of BC will continue to grow as long as people have expectation that it will be valuable in the future. The only problem I see in "investing" in BC is the counterpart risk, i.e., I don't trust any of the companies t…
That is why Uniswap and other AMM DEX's are on the rise https://medium.com/dragonfly-research/what-explains-the-rise...
Re: Bitcoin’s Overnight Collapse Probability Is About 50%
#45I hope the price tanks so that BTC will be primarily used for its intended purpose, like it was in the Silk Road days.
It's primary purpose is a store of value that can't be manipulated by the government. It's succeeding wildly at this. There's a lot of extreme Bitcoin hate on this site, but BTC is helping a ton of people right now, as evidenced by the rapidly increasing demand and money flowing into Bitcoin investment.
Instead it's being manipulated by a few large whales.
Re: Bitcoin’s Overnight Collapse Probability Is About 50%
#46A blog by a guy going by Trolly, that can't even properly set up HTTPS, and admits he makes things up in the headerline means absolutely nothing. Tether has been involved in shady dealings for a long time. Last bull run people like this guy were claiming it was all going to blow up and tether was worthless etc etc etc. That never happened. This hysteria is very common for nocoiners, why are they so worried about my w…
did you read the article? He calculates the risk using basic math and publicly available numbers from Bitcoin futures.
Re: Bitcoin’s Overnight Collapse Probability Is About 50%
#47> p = S/(1-R)
Good luck with using old instruments in brave new world. At least ppl have learnt not to use stop-loss while trading crypto.
Re: Bitcoin’s Overnight Collapse Probability Is About 50%
#48Bitcoin is powered by a shared belief in its value. While it has been powered by scams as well, couch couch Tether, tt seems to be getting more adherents to believing that it is intrinsically valuable. The fact that it tends to go up so quickly also yields to FOMO. Because Bitcoin is just shared belief, it is hard to dispel that belief via real-world events such as earnings releases and other things that affect more…
Bitcoin isn’t likely to be banned. Might as well ban World of Warcraft gold while you’re at it. Clearly it has value as a speculative vehicle and as a systemic risk hedge (like Gold). Whether it can become a true currency is still debatable. Its infrastructure feels more like selling stock or bonds today.
It is not a currency. It is an asset like gold for sure. I think because it is deflationary in nature, it will stay an asset. Currencies need inflation to encourage spending.
Re: Bitcoin’s Overnight Collapse Probability Is About 50%
#49BTC is similar to art paintings or Pokémon cards in many regards. The intrinsic value is based on scarcity and perception of people in BTC network.
The main driver of BTC is belief and hype, as more people believe in BTC there’s more hype and increase in demand and price.
Re: Bitcoin’s Overnight Collapse Probability Is About 50%
#50Earlier quoted context omitted.
it is intrinsically valuable How? As an intrinsically valuable means of speculation because sound investment opportunities are absent?
It has a social network effect of people who agree that it's the store of value for the future. Your paper dollar bill has very little intrinsic value. It's just a shared acceptance.
Dollars have some amount of intrinsic value: they are the only currency accepted by the US government to pay any taxes due to them. Also, by force of law, anyone living in the US must accept dollars as a way to settle a debt that is due to them, which also gives them some intrinsic value.