Earlier quoted context omitted.
Is Bitcoin a currency or an equity? I forget.
It's a commodity
'commodity' okay. Show me one legitimate use case for btc without converting it into a real currency
$130B wiped off crypto markets in 24 hours
241–250 of 382 posts
Re: $130B wiped off crypto markets in 24 hours
#242Earlier quoted context omitted.
I jumped in right at 60k fully knowing it will either go to 500k or to zero. I will wait this out whatever happens.
Depending on how much you went into, aside from HODL, that's called YOLO. In general, people spread their assets. So for example, you could speculate some on the stock market, some in cryptocurrencies, etc. If you put all your savings in, and it goes to zero, I feel sorry for your children. Cause there goes their scholarship.
Childless and European here :). But I put like 3 months of salary there. Really nothing that could financially ruin me. I went YOLO on housing though... That shit is expensive.
Re: $130B wiped off crypto markets in 24 hours
#243Re: $130B wiped off crypto markets in 24 hours
#244Earlier quoted context omitted.
The S&P 500 is down about 9% off its high from a month or two ago. BTC just crossed under half of it's peak. It's true that's not captured in the headline, but this is a newsworthy crypto crash. It's not the first or the worst, but it's worth covering.
It's very standard for bitcoin and won't be going away for a while as the asset is still realizing its value across all global liquidity. It's scary and why the SEC dragging their feet on a spot ETF approval i.e. an investment vehicle that a non-crypto fanboy can use (yours truly) is criminal.
GBTC exists and seems to be tracking BTC's price successfully.
Re: $130B wiped off crypto markets in 24 hours
#245Earlier quoted context omitted.
Although obviously not as dramatic as crypto, gold has had huge drops and multi year bear markets, but it's still considered an inflation hedge. The housing market has had huge dips too. Neither is as volatile as crypto, but my point is no asset has a guarantee that its value won't "drop randomly", simply not possible. Inflation was positive during the real estate crash of '08 and during multiple gold bear markets. I…
2008 was a period of deflation. Of course inflation hedges would drop, when inflation was negative. Oil, housing, car prices all dropped at that time. Prices dropped so low that companies like General Motors went bankrupt. ------- We face an opposite problem today. Prices are going up. Old established companies love this, they can sell their stuff at higher prices. Aka, inflation. Turns out crypto was terrible at hed…
You're right I stand corrected on '08, but if look at the 6m chart on a real estate index now it also seems like a bad inflation hedge. On the flip side, if you looked at crypto or real estate in November they seemed like amazing inflation hedges.
Most assets have tanked in the last couple months, so it's sort of misleading to single out crypto.
Re: $130B wiped off crypto markets in 24 hours
#246Earlier quoted context omitted.
The thing about Bitcoin specifically, though, is that there are only really 2 possible outcomes: 1. The world decides it's "tulips" at some point, and the value goes to 0. 2. The world decides it will be a major part of the financial system, and it goes to 500k or 1 million. Basically, anything in between is just a probability calculation of whether it will end up at one end or the other. The problem with this, thoug…
I could be wrong about this, but I don't know if the energy requirements have anything to do with the price (I.e. demand) for the coin, does it? I was under the impression that the problems that you have to solve get predictably more difficult, and they're more of a function of time than price. But yes, with your point overall I agree, like in 10 years or something it doesn't seem workable without major changes. Wasn…
Ah ok, I just looked it up on Wikipedia and understand why I was confused and where the corrections are coming from as well.
> Every 2,016 blocks (approximately 14 days given roughly 10 minutes per block), nodes deterministically adjust the difficulty target based on the recent rate of block generation, with the aim of keeping the average time between new blocks at ten minutes.
So the changes are made at somewhat predictable paces, in this case roughly every 14 minutes, but the difficulty is adjusted based on demand. In other words, it's a little of both. Demand though will definitely affect the difficulty of the problems, but the demand is only updated every 2,016 blocks.
Re: $130B wiped off crypto markets in 24 hours
#247Earlier quoted context omitted.
It's very standard for bitcoin and won't be going away for a while as the asset is still realizing its value across all global liquidity. It's scary and why the SEC dragging their feet on a spot ETF approval i.e. an investment vehicle that a non-crypto fanboy can use (yours truly) is criminal.
Yes, it’s truly criminal that the SEC hasn’t approved more ways for speculation in cryptocurrency. It’s not as if an Average Joe can just go out and buy cryptocurrency or something. Can you imagine what the market volatility would be if cryptocurrency proponents were allowed to convince naïve people to invest their money, too?
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Re: $130B wiped off crypto markets in 24 hours
#248Didn’t Tether, during the last precipitous fall, just print more Tethers and prop the house of cards back up? I wonder if that will work again..
Yes, they're busily printing away right now, as are USDC, and it will likely work just as well as before because everyone involved in crypto is incentivised to look the other way in the face of this blatant and massive fraud.
Will that work if say... Tesla has to sell their BTC to you know, pay their bills?
Some time ago, Tesla entered into $1.5 Billion in Bitcoin. They need that money to build cars and factories in the long term, they had the money raised from stock offerings and bond offerings.
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Someone out there wants actual dollars, not this USDT or USDC fake dollar crap. Sure, my financially illiterate coworkers who can't tell the difference from USD, USDT, or USDC may not care, but the people who actually use USD on a large scale care.
Re: $130B wiped off crypto markets in 24 hours
#249Besides drug (a trillion dollar market) and money laundering, is there a serious legal use of cryptocurrency?
I've accepted XMR payments for code. All you have to do is choose to use it.
Re: $130B wiped off crypto markets in 24 hours
#250When price goes up, the conspiracy theory is that it's all fake, because it's just Tether printing. So where is the Tether printing now? Since everybody agrees that Tether is unbacked and their printer can go brrr at will, why don't they just print more billions to prop the market up?
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.
That Twitter is stunning. If this were a private company that was signing multiple $100MM contracts a day, and the occasional $1B contract they’d easily be the biggest company on the stock market.
$47B in “revenue”, with probably a 99.99% margin.
Deal sized like this take a very long time, tons of legal work, audits, background checks, etc. To have multiple every day is nonsensical.