I bought my bitcoin for under $10,000 about a year ago. No tears here. How has your fiat performed in comparison?
What did you sell it at?
Why would I sell it? Can you name a better place to store my money?
Bitcoin’s plunge intensifies, tanks 30% to $30k in single day
201–210 of 211 posts
Re: Bitcoin’s plunge intensifies, tanks 30% to $30k in single day
#202The value of cryptocurrencies is currently comprised of just a 3 components: 1) Speculation 2) Electricity 3) Compute There's going to be volatility.
The price of cryptocurrencies you mean.
Value != Price
Re: Bitcoin’s plunge intensifies, tanks 30% to $30k in single day
#203Earlier quoted context omitted.
It's impossible for any currency to be stable in the period before it gains mainstream acceptance. Fiat currencies share the same fate
The fundamental problem with BTC's stability is why spend it today if tomorrow it will be worth +20% more?
You're right, it is not a good currency today. In the interim period, BTC is extremely risky, volatile, and not a stable store of value. The value proposition is that:
- People will want to adopt BTC as a mainstream currency in future, for all the reasons I listed earlier
- When BTC is adopted as a mainstream currency, the value of each BTC will be X (in relation to raw materials, manufactured goods, etc)
- Because today's price of BTC is much smaller than X, you stand to make a huge profit if you buy BTC, and it later becomes a mainstream currency
Ie, BTC is a startup that if successful, everyone will want to use in the future. And that makes it a very valuable investment for angels/VCs today
Re: Bitcoin’s plunge intensifies, tanks 30% to $30k in single day
#204Earlier quoted context omitted.
It’s not sketchy at all that price movements on exchanges are seemingly simultaneous. it’s because of automated arbitrage. Another factor (the prevalence of which is hard to measure) is that those who want to buy or sell large amounts (is whales) will chunk their orders and split them up across exchanges. These, especially the former, are signs of markets maturing.
Effective arbitrage is nothing special, but that the platforms go down and prevent trading is. On reasonable market people should be allowed to make money with price going either direction.
Aaah, I thought “going down” was referring to the price moving.
Re: Bitcoin’s plunge intensifies, tanks 30% to $30k in single day
#205Earlier quoted context omitted.
No, you can’t. Given a transaction on the btc blockchain, how would you determine if actually changed hands (as opposed to internal/self-transfer), and if so, at what valuation? Trades on sidechains or on centralized exchanges also don’t register.
The exchanges do produce a "tape" that is analyzed by various people but you're basically taking their word that it's not fraudulent.
Right.
> There's a public ledger
Nothing to do with this.
> we can find out exactly how many people bought it at every price.
None of them afaik will tell you how many people. Trade data tends to be anonymous and only give you price, amount, and side for each trade. There’s no way to differentiate between 2 people trading back and forth 1 million times vs 2 million people trading once each.
Re: Bitcoin’s plunge intensifies, tanks 30% to $30k in single day
#206Re: Bitcoin’s plunge intensifies, tanks 30% to $30k in single day
#207Earlier quoted context omitted.
The fundamental problem with BTC's stability is why spend it today if tomorrow it will be worth +20% more?
You're right, it is not a good currency today. In the interim period, BTC is extremely risky, volatile, and not a stable store of value. The value proposition is that: - People will want to adopt BTC as a mainstream currency in future, for all the reasons I listed earlier - When BTC is adopted as a mainstream currency, the value of each BTC will be X (in relation to raw materials, manufactured goods, etc) - Because t…
> - People will want to adopt BTC as a mainstream currency in future, for all the reasons I listed earlier
How can this happen if the price never stabilizes (because no one wants to spend what they have)?
> - When BTC is adopted as a mainstream currency
How can this happen if the transaction costs are $10+? To pay for a Starbucks coffee, it would cost $5 for the drink and $15 for the transaction fee.
> - Because today's price of BTC is much smaller than X, you stand to make a huge profit if you buy BTC, and it later becomes a mainstream currency
How can it become a mainstream currency if everyone treats it like a speculative investment and the transaction costs prevent it from used in "micro" transactions?
The entire system disincentivises use as a "mainstream currency"
Re: Bitcoin’s plunge intensifies, tanks 30% to $30k in single day
#208Earlier quoted context omitted.
>We were able to do that in the 70s with servers that had no more power than today's raspberry pis. You weren't able to send value from one part of the world to another in minutes without an intermediary for a tiny fraction of the transaction amount in the 70's and you still can't do it today without crypto.
You can't per se do it with crypto today either. You go through two intermediaries with crypto. One to turn your chinese currency into crypto, then another to turn the crypto into us currency.
You're assuming fiat onramps are part of the process and dont realise that in the future fiat doesn't exist. How could it?
Re: Bitcoin’s plunge intensifies, tanks 30% to $30k in single day
#209Earlier quoted context omitted.
> you don't seem to care about the hydro carbons purged in the process of strip mining the earth for shiny rocks though This persistent idea that people who care about the carbon footprint of Bitcoin somehow single it out is silly. I dislike unnecessarily large SUVs, cruise ships, American suburb culture, and diamond mining too. Bitcoin just happens to be the topic of this thread.
Of note: things like SUV's still have energy related regulations tied to them.
Is there energy regulations on new bank branches that open?
Re: Bitcoin’s plunge intensifies, tanks 30% to $30k in single day
#210My - surely far fetched and with no evidence to back up - take is that Musk didn't go long on BTC when he announced TSLA would buy BTC for 1.5$bn, but actually went short. Musk wanted to take TSLA off the public trading market but failed due to lack of money/investors for a buy back. Buying large amounts of BTC with TSLA money, ties the TSLA price to the BTC price. And Musk is a very smart person, he definetely knows…
That sounds super-fraudulent.
Yes, if that would be done on purpose, this would be very illegal. But I have a hard time believing Musk goes all-in into Bitcoin with 1.5$bn investment, just to suddenly realize 3 weeks later that the environmental impact due to high energy consumption is a bad thing and backs out of it again.