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The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

foreignpolicy.com

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Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#51

Post by lampshades »

low_tech_love wrote: post #34

I love the fact that crypto people are not satisfied with creating one pseudocurrency out of thin air; as soon as that has the tiniest semblance of stability (in this case ether) they go and create other ones “backed” by it. How did we reach the kind of socioeconomic climate where people are actually willing to put their hard-earned money into such a thing?

> How did we reach the kind of socioeconomic climate where people are actually willing to put their hard-earned money into such a thing?

Many people feel it's their only way to escape wage slavery.

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#52

Post by Commodore63 »

lampshades wrote: post #51
low_tech_love wrote: post #34

I love the fact that crypto people are not satisfied with creating one pseudocurrency out of thin air; as soon as that has the tiniest semblance of stability (in this case ether) they go and create other ones “backed” by it. How did we reach the kind of socioeconomic climate where people are actually willing to put their hard-earned money into such a thing?

> How did we reach the kind of socioeconomic climate where people are actually willing to put their hard-earned money into such a thing? Many people feel it's their only way to escape wage slavery.

That's the core of every MLM sales pitch.

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#53

Post by lampshades »

airbreather wrote: post #31

Author of the article has a long and deep/irrational inherent bias against crypto, so regardless whether you are pro or anti be very careful of taking his opinion. I am semi pro crypto, depending on the use etc, but have personally always found this author to be a total dick, an opinion originating when I engaged with him via some correspondance after a published article a long time ago.

Fwiw, I'm very pro crypto and I enjoyed the article.

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#54

Post by aeternum »

JumpCrisscross wrote: post #35
low_tech_love wrote: post #34

I love the fact that crypto people are not satisfied with creating one pseudocurrency out of thin air; as soon as that has the tiniest semblance of stability (in this case ether) they go and create other ones “backed” by it. How did we reach the kind of socioeconomic climate where people are actually willing to put their hard-earned money into such a thing?

> How did we reach the kind of socioeconomic climate where people are actually willing to put their hard-earned money into such a thing? They’re unregulated slot machines. Go and look at the Terra/Luna Twitter and Reddit. It’s filled with casual to addiction-level gambling tells. The responsible ones acknowledge they’re putting a few hundred in and will likely lose it but maybe it goes up. The less fortunate treat it…

The regulated companies didn't do much better: CVNA -91% PTON -91% RIVN -90% FVRR -90% HOOD -90% U -85% ROKU, DKNG, RBLX, the list goes on

.. and we call those investments.

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#55

Post by aeternum »

CPLX wrote: post #4

Yeah but is crypto causing the crash or just a symptom of it? It doesn’t seem like all the large investment banks and reinsurers are flirting with insolvency due to crypto exposure. They definitely were due to CDO and mortgages. That distinction seems substantive.

One substantial risk is the amount of leverage out there. There was tons of it in the crypto ecosystem, and there is a lot in stocks too:

https://fred.stlouisfed.org/series/BOGZ1FL663067003Q

Now as the fed starts pulling money out of circulation by selling it's balance sheet, there's a multiplicative effect on the amount of money siphoned out.

Due to this magnificent, it seems very easy for the fed to overcorrect and pull way too much money out of the system. The fed must walk a very fine line in triggering this deleveraging.

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#56

Post by [deleted] »

Barrin92 wrote: post #12
sharadov wrote: post #10

200 Billion in crypto wiped out in 24 hrs is bound to cause ripple effects in traditional finance as well. "Crypto has at least started to work its way into the real financial system. Some traditional investors also own crypto; if their crypto goes down they might have to sell regular stuff. Some public companies are exposed to crypto (because they are crypto exchanges, because they have levered crypto holdings, etc.…

>so your boring old index fund might go down when crypto goes down I need someone to explain to me how my S&P 500 blackrock ishares are going to die from crypto. I don't think FAANG, Berkshire, Exxon and Pfitzer are going to notice if all of crypto dropped to zero right now.

[deleted]

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#57

Post by mirceal »

rvz wrote: post #16
randomhodler84 wrote: post #9

Earlier quoted context omitted.

It is not safe to say, but rvz likes to keep saying it. When the blocks stop, it has failed. It’s a timechain, a decentralized clock. Tick Tock Next Block.

> It is not safe to say, but rvz likes to keep saying it. Yes it is. Assuming you have read the whole article, it is safe to say that it has failed in its original purpose. I and and many others keep saying it because it is an irrefutable fact after many years of its existence. In the case of the author on Bitcoin and the contents of this article, he has made that totally clear. Hence, can one use it for on-chain pay…

that's some great mental gymnastics and goal post moving. "original purpose", "irrefutable fact", "many years of existence", "author of Bitcoin", "supposed to be better"

yes, people use it for payments. yes, it is better than the "current system" as it literally cannot be censored (as shown by its banning - multiple times - in China).

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#58

Post by andrew991116 »

aeternum wrote: post #54
JumpCrisscross wrote: post #35

Earlier quoted context omitted.

> How did we reach the kind of socioeconomic climate where people are actually willing to put their hard-earned money into such a thing? They’re unregulated slot machines. Go and look at the Terra/Luna Twitter and Reddit. It’s filled with casual to addiction-level gambling tells. The responsible ones acknowledge they’re putting a few hundred in and will likely lose it but maybe it goes up. The less fortunate treat it…

The regulated companies didn't do much better: CVNA -91% PTON -91% RIVN -90% FVRR -90% HOOD -90% U -85% ROKU, DKNG, RBLX, the list goes on .. and we call those investments.

Go ask a CFA and they’ll tell you that buying stocks in these companies is not investing, but speculating. Nothing in these company’s fundamentals warrants any investment. If you buy a stock based on the idea that someone will buy it at a higher price without considering it’s intrinsic value, it’s speculating.

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#59

Post by mirceal »

rvz wrote: post #50
jakupovic wrote: post #39

Earlier quoted context omitted.

"As for the crypto-maximalists screaming about Bitcoin as a peer-to-peer electronic cash system for on-chain payments and as a currency, it is safe to say that experiment has totally failed and that was found out the hard way." Crypto has not failed. These are your words, not from the article. You are wrong, as you don't have any proof. Also, the onus is on you to prove your statement. Right now it's baseless and doe…

> Crypto has not failed. These are your words, not from the article. And where in those words did I say that 'Crypto has failed'? Did I say 'about Crypto' ? or was it 'about Bitcoin' ?, the one who's author's name is 'Satoshi Nakamoto' , and published a white-paper titled: 'Bitcoin: A peer-to-peer electronic cash system' ? Of all replies to me, everyone (except you) knew that I was talking about Bitcoin being a failu…

> Of all replies to me, everyone (except you) knew that I was talking about Bitcoin being a failure in its original purpose.

Nope. Not everyone. You are making vague overarching claims. When you get pushback you are moving the goalposts.

Re: The Cryptocurrency Crash Is Replaying 2008 as Absurdly as Possible

#60

Post by chii »

andrew991116 wrote: post #58
aeternum wrote: post #54

Earlier quoted context omitted.

The regulated companies didn't do much better: CVNA -91% PTON -91% RIVN -90% FVRR -90% HOOD -90% U -85% ROKU, DKNG, RBLX, the list goes on .. and we call those investments.

Go ask a CFA and they’ll tell you that buying stocks in these companies is not investing, but speculating. Nothing in these company’s fundamentals warrants any investment. If you buy a stock based on the idea that someone will buy it at a higher price without considering it’s intrinsic value, it’s speculating.

it's fine to speculate, as long as the person doing the speculating knows what they're doing. The only problem happens when you speculate, but think you're investing.
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