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$130B wiped off crypto markets in 24 hours

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Re: $130B wiped off crypto markets in 24 hours

#121

Post by ajross »

fullstop wrote: post #78
iso1631 wrote: post #55

Earlier quoted context omitted.

It's annoying, but it doesn't matter too much unless you're retiring soon. I suspect it will drop another 20% though, back to mid 2020 levels. Fed will start to intervene if it goes beyond that, too many votes. Its like house prices in the UK, the government won't allow them to drop.

I am paying my daughter's college tuition from a 529 plan, so this affects me even though I am not retiring soon.

Tough love: if you are currently making needed payments out of an account invested primarily in volatile assets, you have invested it incorrectly. More likely you left the 529 money in stocks because it's a tax shelter, not because you were actually setting that money aside for tuition.

It's the same point above: this is what markets do. Investment strategies are risk management strategies. You can't just dump money into whatever is going up right now and then complain when it goes down.

Re: $130B wiped off crypto markets in 24 hours

#122

Post by samarama »

dtech wrote: post #100
sschueller wrote: post #89

Earlier quoted context omitted.

Please explain to me how Bitcoin is a Ponzi scheme while USD after 1971 (going away from the gold standard) is not. More so explain to me how the USD is less of a Ponzi scheme when it is the super wealthy banks/institutions that are getting zero interest loans allowing them to make even more money while at the same time devaluating the currency.

Bitcoin and other cryptocurrencies have ~zero inherent value, due to their non-speculation use-cases like payment being very limited or still early development (smart contracts). Unless you count BTC in black market I guess. USD has inherent value, it's the only currency where you can pay taxes in, and if you want to do business with government or government employees - who are ever only paid in USD - you must accept…

Bitcoin’s inherent value is

1. Immutability

2. Limited supply

3. Censorship-resistance

4. Independence of governments, nations, banks, institutions, corporations

5. Accessibility

You can also pay your taxes in crypto in many countries.

The dollar’s inherent value is very weak and not really tangible.

It’s 2022 and people still don’t get that.

Re: $130B wiped off crypto markets in 24 hours

#123

Post by matheusmoreira »

podgaj wrote: post #88
mavhc wrote: post #76

Earlier quoted context omitted.

Bitcoin has 3 mechanisms built in to make it almost always increase in value, halving of the rewards, finite total+lost bitcoins, and increasing complexity when more people are mining. In the end all you're doing is buying electricity and converting it to bitcoin, anything above that cost is based on future costs when the rewards halve. All this means you should never sell your bitcoins, which means it's a terrible c…

"to make it almost always increase in value" To any investor this should be the biggest red flag that you are in a Ponzi/pump and dump scheme. "You can't lose!" And rather than you are "buying electricity" I would say you are buying used electricity, which is useless.

It's a deflationary currency. The opposite of "USD always decreases in value because of inflation". Not a red flag at all. Even the idea that it's deflationary is debatable since exchanges now offer loans, a service which effectively creates new bitcoins out of nowhere.

Re: $130B wiped off crypto markets in 24 hours

#124

Post by AnonHP »

anon9001 wrote: post #82
dimgl wrote: post #33

Earlier quoted context omitted.

It's there. It continues to happen almost hourly. https://twitter.com/whale_alert https://twitter.com/usdcoinprinter Two hours ago $100m USDC went into circulation. Almost another $100m two hours before that.

I'm not sure I understand what this is showing. What does "Just printed $100,494,053 USDC!" mean? I think this means that someone minted $100M of USDC by depositing USD. The way this normally happens, USD deposits are made to an exchange that has a relationship with Circle, and 1 USDC is minted for each 1 USD on deposit at Circle. Circle then invests those funds in things that are considered financially prudent, maki…

> The way this normally happens, USD deposits are made to an exchange that has a relationship with Circle, and 1 USDC is minted for each 1 USD on deposit at Circle.

On the other hand, the most popular (?) stablecoin, Tether (USDT) doesn’t have a one-to-one relationship with USD deposits, and the amount it really has in USD is believed to be very low (I don’t know the numbers, but have read that there haven’t been any audits or published audits).

Re: $130B wiped off crypto markets in 24 hours

#125

Post by LeanderK »

In the past, I've thought of bitcoin as worthless hype but the persistence is impressive. I mean bitcoin just doesn't represent anything and can't be used much, it can just go out in flames and nobody would step up to help those poor crypto-holders. But thinking about other things like gold. Nobody uses gold to pay and while it's used as a resources, people who invest in gold just trust gold to be valuable. Maybe crypto is like gold, it passed the critical mass of people thinking it's valuable and now it stays valuable. It will go up, it will go down, like gold. You don't buy gold to use it, it's just to park some money in something you trust.

Re: $130B wiped off crypto markets in 24 hours

#126

Post by sschueller »

ethanbond wrote: post #98
khuey wrote: post #94

Earlier quoted context omitted.

The USD is backed by the power to tax 330 million people. Bitcoin is not.

And, ultimately, the power to invade the other few billion people who can’t be taxed

Switzerland's currency is quite strong and considered a safe heaven. Do you think Switzerland has the capability or would invade another country to collected tax from a few billion people?

Re: $130B wiped off crypto markets in 24 hours

#127

Post by kickout »

moneywoes wrote: post #41
rvz wrote: post #22

Magnificent and as expected. We needed a 'crash'. It is what we need to remove all the useless cryptocurrencies and projects that are only there to pump each other bags and exit scam retail investors. This is why you have people telling others to 'HODL' or 'never sell' with wild predictions of BTC going to 100K or DOGE going over $1. [0]. This is nothing. This is before the banning, and crackdowns of the other useles…

How do you see crypto reacting once the fed hikes rates? Shouldn’t btc be deflationary

Crypto had its original run-up in 2017...when the fed raised rates 3x...

Re: $130B wiped off crypto markets in 24 hours

#128

Post by kasey_junk »

melenaboija wrote: post #108
kasey_junk wrote: post #84

Earlier quoted context omitted.

Modern treasury operations for large cash holders absolutely “invest” in currencies. They do so in the form of what cash they hold outside of their immediate needs and in what cash “equivalents” they keep on their books.

What’s the difference between “investing” and investing? Maybe that will help me to better understand cryptocurrencies “investors”.

The only difference in investing in currency than other asset classes is that the value of currencies is entirely relative to other currencies in ways other asset classes aren’t.

In practice that doesn’t make a difference because all the mechanics are the same as any other form of investment decision.

Re: $130B wiped off crypto markets in 24 hours

#129

Post by elif »

skrebbel wrote: post #19

I own no crypto and I think it's a ridiculous piece of hype, but I think all that reporting (and, on twitter, all that schadenfreude) about bitcoin (etc) going down is nonsense. If you look at a 5 year chart of the BTC value, it's still super insane high and it's been going down hard once before (summer 2021). If I were a crypto fan I'd just tweet HODL like every previous time.

It's also worth noting that BTC is virtually even (down 1.6%) to where it was 6 months ago.
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