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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

#151

Post by cuteboy19 »

tim333 wrote: post #102
podgaj wrote: post #80

Earlier quoted context omitted.

Bitcoin is probably the first Ponzi scheme where everyone in it knows it is a Ponzi scheme. So I agree with your take here.

As an occasional bitcoin holder, I don't think it's a Ponzi scheme. Who's the Ponzi schemer? How come every time it collapses it comes back bigger in a year or two?

70% of Bitcoin holders bought in last year. A continuous stream of greater fools is necessary for its price to even remain at the current level

Also, every ponzi scheme gives amazing returns, before it inevitably collapses. For example Madoff was able to give decent returns to his investors for 17 years! 'Number go up' is not a refutation of a ponzi scheme.

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

#152

Post by jeffwass »

fullstop wrote: post #21
ajross wrote: post #11

Earlier quoted context omitted.

Are you making leveraged trades in a retirement account? It's off 9%. If someone told you you'd have to make do with only 91% of your planned income, you'd be OK. This is what markets do.

I won't touch leverage with a 10 foot pole. With that being said, 9% is a lot depending on how much you have in the account.

> I won't touch leverage with a 10 foot pole.

But with a long enough pole and a firm-enough place to stand, you could move the world!

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

#153

Post by ulzeraj »

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…

There is no such thing as inherent value. Value is subjected to the individual who makes decisions on the margin.

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

#154

Post by microtherion »

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…

What the alert shows is that the coins came into existence. It makes no claim one way or another whether it means that somebody deposited $100M USD or whether there was creation ab nihilo.

But I find it generally a bit suspicious that people would choose to buy a stablecoin in order to buy bitcoin instead of buying the bitcoin directly (the explanation given is usually something about evading currency controls/KYC). In a bear market, I find it even more suspicious that there would still be more buyers than sellers of these stablecoins necessitating further creation.

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

#155

Post by darkwater »

matheusmoreira wrote: post #143
schnebbau wrote: post #110

Earlier quoted context omitted.

What did you do with the XMR?

I deposited most of it in a binance savings account. Left some in my mobile wallet. Unfortunately I had to cash it out in order to spend it. Wish I didn't have to but nothing else accepted it. These things will not ever be real if we don't start using them as currencies. I came this close to proposing Monero transactions to a business partner after some banking problems but the market isn't looking good right now, to…

Your "unfortunately" part is the whole point of what GGP was saying.

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

#156

Post by tim333 »

podgaj wrote: post #104
boringg wrote: post #24

Earlier quoted context omitted.

Nasdaq down on inflation concerns and monetary policy support is getting pulled back. Therefore crypto which is almost lockstep with equity markets drops heavily. It will deflate a fair bit more this year as equities come off last years highs and monetary policy for the US continues to get pulled.

Bitcoin is the stock market. Just more volatile. Prove me wrong.

Stocks are backed by companies and assets more than Bitcoin is.

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

#157

Post by mavhc »

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.

You're buying electricity, and using it to make the bitcoins.

The red flag is you're buying something that's useless. The cost of a bitcoin may be correct, but doesn't mean it's worth the cost.

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

#159

Post by fullstop »

jeffwass wrote: post #152
fullstop wrote: post #21

Earlier quoted context omitted.

I won't touch leverage with a 10 foot pole. With that being said, 9% is a lot depending on how much you have in the account.

> I won't touch leverage with a 10 foot pole. But with a long enough pole and a firm-enough place to stand, you could move the world!

Archimedes investment strategies?

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

#160

Post by hervature »

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.

The problem is that, due to exponential growth, the majority of bitcoin holders entered in the last year. So, in a very meaningful way, the chart is always effectively only a year old in the collective's mind.
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