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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

#61

Post by mirceal »

nradov wrote: post #45
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…

So far cryptocurrency has failed for everything except facilitating certain illegal transactions (buying drugs, paying ransoms, evading currency controls). Someday we might find a real use case for it and then you can claim success, but that hasn't happened yet.

> facilitating certain illegal transactions (buying drugs, paying ransoms, evading currency controls).

how about sending money all around the world with minimum fees? or paying for your VPN to preserve your privacy? (Mullvad FTW). Or donating to charity? (https://www.savethechildren.org/us/ways-to-help/ways-to-give...).

What does currency controls even mean?

Hate to brake it to you bud, like 99% of drugs are bought using the good old dollar. Does that make the dollar bad? Should we ban the dollar?

People have found real use cases. Just because you haven't experienced something yourself it doesn't mean that it doesn't exists?

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

#62

Post by chii »

netheril96 wrote: post #36
Barrin92 wrote: post #12

Earlier quoted context omitted.

>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.

> I don't think FAANG, Berkshire, Exxon and Pfitzer are going to notice if all of crypto dropped to zero right now. If some investors are invested in both FANNG and crypto, when they face margin call in the latter they may have to sell the former to cover their position.

do most investors really take out margin loans to buy stocks?

I can understand _some_ investors do it, but i'd imagine it's not a majority.

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

#63

Post by mthehacker »

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.…

By fading the print out after a few interesting paragraphs, you don't make me want to subscribe you just piss me off. That's because you suckered me into reading something I couldn't finish without paying. If you told me that at the beginning of the article, I would have more respect for you and, who knows, might have even considered subscribing. If you are sincere honest journalist don't function like a pimp.

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

#64

Post by junofan »

nradov wrote: post #49
jakupovic wrote: post #47

Earlier quoted context omitted.

Here we go again with baseless statements generalizing crypto success or not. Please prove or at least give a source for a sweeping statement you make: "So far cryptocurrency has failed for everything except facilitating certain illegal transactions (buying drugs, paying ransoms, evading currency controls)." Unless you can prove above it's worthless, and obviously you don't know this and as such your sweeping general…

That's not how it works. That's not how any of this works. If you think that cryptocurrency has been or will be a success then the onus is on you to provide proof. So far it's just worthless garbage.

It’s proven to be a great way to bootstrap new things that have heavy network effects. I think more and more businesses will take advantage of this effect—it’s pretty powerful.

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

#65

Post by lukewrites »

mthehacker wrote: post #63
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.…

By fading the print out after a few interesting paragraphs, you don't make me want to subscribe you just piss me off. That's because you suckered me into reading something I couldn't finish without paying. If you told me that at the beginning of the article, I would have more respect for you and, who knows, might have even considered subscribing. If you are sincere honest journalist don't function like a pimp.

This sort of stuff makes me a militant user of archive.is

https://archive.ph/20220512234058/https://www.bloomberg.com/...

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

#66

Post by yunohn »

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.

There’s a difference between equity in badly performing companies, and a Ponzi scheme where “stable” coins that promise a value of 1$ can depeg.

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

#67

Post by sonotathrowaway »

low_tech_love wrote: post #33
ohiovr wrote: post #26

2008: What do you mean credit default swaps on synthetic collateralized debt obligations will lead to a recession? That sounds like nonsense! 2022: What do you mean monkey pictures in block chains will lead to a recession? That sounds like nonsense!

I don’t there’ll be a recession, just a bunch of very disappointed people with less money than they started with.

That sounds like a recession.

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

#68

Post by ranguna »

sonotathrowaway wrote: post #67
low_tech_love wrote: post #33

Earlier quoted context omitted.

I don’t there’ll be a recession, just a bunch of very disappointed people with less money than they started with.

That sounds like a recession.

just a bunch of very disappointed people != the whole economy

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

#69

Post by ukoki »

mthehacker wrote: post #63
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.…

By fading the print out after a few interesting paragraphs, you don't make me want to subscribe you just piss me off. That's because you suckered me into reading something I couldn't finish without paying. If you told me that at the beginning of the article, I would have more respect for you and, who knows, might have even considered subscribing. If you are sincere honest journalist don't function like a pimp.

For anyone else looking for access: This particular article is the web version of the excellent daily Money Stuff newsletter by Matt Levine which you can subscribe to for free https://www.bloomberg.com/account/newsletters/money-stuff . It's probably the best newsletter covering the financial industry

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

#70

Post by netheril96 »

chii wrote: post #62
netheril96 wrote: post #36

Earlier quoted context omitted.

> I don't think FAANG, Berkshire, Exxon and Pfitzer are going to notice if all of crypto dropped to zero right now. If some investors are invested in both FANNG and crypto, when they face margin call in the latter they may have to sell the former to cover their position.

do most investors really take out margin loans to buy stocks? I can understand _some_ investors do it, but i'd imagine it's not a majority.

> do most investors really take out margin loans to buy stocks?

In the scenario I describe, those investors take margin loans to long or short crypto, and when they fail, they sell other assets to cover themselves.

This is just one possibility I describe.

> but i'd imagine it's not a majority.

No one knows. It may take only one institutional investor who lost a gigantic amount of money in crypto trading and were therefore forced to sell stocks to shake the stock market.

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