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Bitcoin Falls Below $20k for the First Time Since 2020

bloomberg.com

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Re: Bitcoin Falls Below $20k for the First Time Since 2020

#71

Post by scoopertrooper »

lrvick wrote: post #55
silisili wrote: post #31

Earlier quoted context omitted.

Here's hoping. When stocks tank, one can decide if a company is undervalued and decide whether to buy in. Bitcoin has no value other than speculation, so it's a hard ask for people to buy in as it's never technically undervalued...

Bitcoin has value for the same reason Visa has value. A medium of exchange is a tool, and tools people use have value. I grant the majority of the market is speculation but many of us actually regularly use Bitcoin for things like payroll, settling debts, cheap international value transfer, buying coffee, and for cash-like privacy for online purchases. For those like me that have been continually buying, saving, and…

You shouldn't have your wealth stored in a medium of exchange, while expecting capital appreciation exceeding or even comparable to the equity market. That kind of volatility is a sign of there being something seriously wrong with that medium of exchange.

Re: Bitcoin Falls Below $20k for the First Time Since 2020

#72

Post by Grimburger »

SunlightEdge wrote: post #17

I was laughed at, repeatedly, on Twitter, by crypto types when I often said I was confident Bitcoin price would fall below $20k 6 months ago. It's not something you can really short though?

> It's not something you can really short though?

It's the easiest financial instrument in the world to short? Far easier than going short on stocks.

You can go long and short on 6 month futures for a tiny fee.

Re: Bitcoin Falls Below $20k for the First Time Since 2020

#73

Post by redox99 »

dzogchen wrote: post #45
benj111 wrote: post #19

Earlier quoted context omitted.

While I appreciate that's somewhat psychologically important, I don't think it's magically going to drop to zero now.

It's not going to 'magically' drop to zero. It is going to drop to zero.

So I assume you are heavily shorted on BTC? Put your money where your mouth is?

Re: Bitcoin Falls Below $20k for the First Time Since 2020

#74

Post by lrvick »

dendriti wrote: post #67
lrvick wrote: post #55

Earlier quoted context omitted.

Bitcoin has value for the same reason Visa has value. A medium of exchange is a tool, and tools people use have value. I grant the majority of the market is speculation but many of us actually regularly use Bitcoin for things like payroll, settling debts, cheap international value transfer, buying coffee, and for cash-like privacy for online purchases. For those like me that have been continually buying, saving, and…

Visa is not a medium of exchange. This is a sad take.

I assume you have used credit cards.

Re: Bitcoin Falls Below $20k for the First Time Since 2020

#75

Post by rvz »

agilob wrote: post #39

People here cheer for fall of Bitcoin and end of cryto not seeing that GOOG dropped from 2999.05 to 2157 and both charts look pretty much the same?

There you go. In the last 6 - 7 months the SNP 500 is down from its ATH, taking all the other stocks with it and especially even those at Netflix or holding NFLX stock. They have been awfully quiet ever since.

The market needs a wipe out of the speculators, VCs, scammers and retail investors to drain out the billions of dumb money to cause these prices to go down again to around November 2020. This is why once Tether collapses, we will see Bitcoin at $10K again, lower than we have seen since March 2020.

As for the stock market, It isn't done and can still drop further as soon as the Fed increases rates again in July and the layoffs will accelerate when the VCs continue to deny more funding for the vast majority of useless unprofitable startups that will also be wiped out.

Either way, Just like 90% of startups fail. 90% of these cryptocurrency / blockchain projects won't survive this bear market or even the first foot of regulations. The remaining 10% will continue to survive once again.

Re: Bitcoin Falls Below $20k for the First Time Since 2020

#76

Post by zarzavat »

lottin wrote: post #54

I wonder how the bitcoin mining industry is doing. Bitcoin's hash rate isn't falling [1], which suggests miners aren't able to reduce costs. Revenue on the other hand is tied to bitcoin price, which is falling. So what does that mean... are they headed for bankruptcy? [1] https://www.blockchain.com/charts/hash-rate

It either suggests that mining is still profitable relative to energy prices, or that miners believe that the price is likely to rise and so are mining at a loss regardless.

Re: Bitcoin Falls Below $20k for the First Time Since 2020

#77

Post by scoopertrooper »

Asraelite wrote: post #43
xmprt wrote: post #24

Earlier quoted context omitted.

Are used graphics cards worth buying or does bitcoin mining cause significant wear and damage to them?

Bitcoin mining is done with ASICs, not GPUs afaik. It's other currencies like Ethereum that use GPUs. I don't know what the extent of damage is though.

Ethereum is down about 80% from their all-time-high and 74% from the start of 2022. It's a massacre for the whole scene.

Re: Bitcoin Falls Below $20k for the First Time Since 2020

#79

Post by igorkraw »

lrvick wrote: post #66
igorkraw wrote: post #62

Earlier quoted context omitted.

Using this logic, we can value 1 bitcoin at 7/1700* 442billion /21 million = 87$ (Bitcoin Tps divided by Visa TPS times first visa market cap I found divided by number of Bitcoins ). Except if course, if you buy a piece of visa, you get a dividend and legal rights, while owning a Bitcoin gets you the privilege of paying miners to extract that value. So really, that 7/1700*442e9 $ is the value of those who own the net…

The miners have no incentive to mine unless there are a large number of people choosing to exchange Bitcoin giving it buying power to offset electricity cost.

So you are saying there is no value to be extracted? Shocking

Re: Bitcoin Falls Below $20k for the First Time Since 2020

#80

Post by MandieD »

af78 wrote: post #37
ramshanker wrote: post #9

My favourite side effect is the Graphics Card prices coming back to realities.

Are there still people using graphics card for crypto? I thought specialized chips had made them noncompetitive years ago.

You’re right about Bitcoin mining, but high-end gaming cards are still favored for Ethereum mining, which is why any card capable of handling it (more than 4-6 GB RAM) has been ridiculously expensive, even old cards.
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