Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Crypto crash deepens, stocks slip

reuters.com

Post reply on HN
Print view View original

181–190 of 688 posts

Re: Crypto crash deepens, stocks slip

#181

Post by hexedpackets »

SavantIdiot wrote: post #119
tadzik_ wrote: post #33

Earlier quoted context omitted.

> If $SPY dropped 40% we'd all call it a crash. This isn't that different If $SPY was 40% up since last month, would that be normal? ETH is still currently higher than its value from April 19th. Cryptocurrency market is extremely volatile. This isn't that far from normal.

SPY is up 50% since 2019 (pre covid crash). As someone partially invested in index ETFs, this worries me. Index funds aren't supposed to be nitro, they are supposed to be slow and plodding, and 10% annual is supposed to be huge. I think major indices should be nice, slow, inertial gains from ~6-7% annual, tops. Why? When at any point as an engineer or a scientist have you observed large exponential growth to be susta…

10% annual is not huge at all, it would actually be on the lower end of a year that had positive gains. 10% average is what you should expect for the SP500 - and that tends to be driven by lumps, years with returns >20%.

50% is high from a historical perspective but there are plausible explanations for why it's not absurd.

Re: Crypto crash deepens, stocks slip

#182

Post by ericwooley »

jmacd wrote: post #11

As an outside observer, who has no crypto holdings at all, but is very deeply invested in the public stock market with a heavy weight on technology stocks... this doesn't look like a crash to me at all. It just looks like some steam being let off and old investors cash out and new investors get more comfortable with how much and where to invest. I consider crypto currency as it is to be an elaborate Ponzi scheme (per…

Read up on what a ponzi scheme actually is. https://www.investopedia.com/terms/p/ponzischeme.asp#:~:text....

I'm so tired of people saying crypto is a ponzi scheme.

Maybe you think it's nonsense, or a bad investment, but it is not a ponzi scheme.

> A Ponzi scheme is an investment fraud in which clients are promised a large profit at little to no risk. Companies that engage in a Ponzi scheme focus all of their energy into attracting new clients to make investments. This new income is used to pay original investors their returns, marked as a profit from a legitimate transaction.

Re: Crypto crash deepens, stocks slip

#183

Post by afavour »

voldacar wrote: post #81
ProjectArcturis wrote: post #56

Bitcoin is the ultimate, purely financial object. It has no revenues or profits. The supply is fixed -- unlike, say, gold, where high prices mean people will eventually start digging mines, BTC supply is entirely price-inelastic. The only thing that determines BTC price is demand. And over the past 13 years, we've seen reflexivity at work: The price has gone up, so more people want it, so the price goes up further, a…

While you have a point regarding fixed supply, I think bitcoin is more than just a KBC. The ability to do uncensorable (or at least uncensorable without truly absurd computing power) global financial transactions is a really amazing thing and I think it definitely has "intrinsic" value, insofar as any value is "intrinsic" and not the result of social interaction. The energy consumption is definitely bothersome but ov…

Isn't Bitcoin absolutely terrible at transactions, though? It's too slow to ever be used as a cash alternative. Why wouldn't an alternative cryptocurrency fill that void then leave Bitcoin with no actual value at all?

Re: Crypto crash deepens, stocks slip

#184

Post by woeirua »

Everyone should take some time now to learn about Tether, the high likelihood that it is in fact a Ponzi scheme, and that it poses a big systemic risk to the crypto exchanges and therefore the markets themselves [1].

People have been sounding the alarm on Tether for a long time now, but we’re finally getting some hard evidence now to back the allegations [2].

Don’t say you weren’t warned.

[1] https://mobile.twitter.com/smdiehl

[2] https://ag.ny.gov/press-release/2021/attorney-general-james-...

Re: Crypto crash deepens, stocks slip

#185

Post by thebean11 »

paulpauper wrote: post #152
dogman144 wrote: post #143

Earlier quoted context omitted.

As the supply is fixed, this is a very illogical take.

alt coins. BTC dominace used to be 90%+. now way lower . BTC holders get no royalties from blockchain being copied

how can you possibly make the claim that BTC was diluted vs the market cap of other coins being net new value?

Re: Crypto crash deepens, stocks slip

#186

Post by robjan »

tippytippytango wrote: post #146
halfmatthalfcat wrote: post #87

Earlier quoted context omitted.

For me, it's because the hype isn't around the technology (which is the interesting part and for the most part, why we're on HN), it's around the speculation. From the outside, looks like a bunch of gamblers constantly getting each other off on whether their bets will make them millionares. It's just...sad...at a level.

If crypto dies you will have to find a new group of people to feel superior to to feed your ego.

A very common saying in the crypto world to "no coiners" is "have fun being poor". They are eating their words.

Re: Crypto crash deepens, stocks slip

#187

Post by woeirua »

javier10e6 wrote: post #118

Crypto is DE-CENTRALIZED. As long as there are people out there that rather trust a ledger produced by a collection of de-centralized computers than a ledger held by a private institution/government (closed) its value will remain useful/practical.

Really because some outrageous percentage of the mining power is centralized in China.

Re: Crypto crash deepens, stocks slip

#188

Post by XorNot »

fny wrote: post #41
coldcode wrote: post #28

Earlier quoted context omitted.

But at least gold has some inherent value, crypto is just math that is worth whatever the buyers/sellers think it should be. Stock in a company that stays in business will never go to zero as the company always has some value due to having revenue, but crypto has no real world floor (though unlikely to actually get to zero since someone will always buy).

Gold does not have inherent value either. It's price is determined purely by a market and there are no other pricing mechanisms. You can't use discounted cash flow. You can't use comparables. You can use raw materials. It's a straight up rock that people price.

It's still an actual rock though.

Cryptocurrency is less then that. Cryptocurrency is expended energy. You can't use a cryptohash for anything. Whereas I can melt down gold and make earings with it.

Re: Crypto crash deepens, stocks slip

#189

Post by paulpauper »

loeg wrote: post #70
jmacd wrote: post #11

As an outside observer, who has no crypto holdings at all, but is very deeply invested in the public stock market with a heavy weight on technology stocks... this doesn't look like a crash to me at all. It just looks like some steam being let off and old investors cash out and new investors get more comfortable with how much and where to invest. I consider crypto currency as it is to be an elaborate Ponzi scheme (per…

Totally agree. The S&P500 is at the lowest it's been ... since one week ago (quite literally: May 12). And before that, April. A 1.5% decline isn't a crash.

yup. why do so many people in personal finance recommend index funds? because being down 1.5% in a week sure beats being down 30% in a day

Re: Crypto crash deepens, stocks slip

#190

Post by inter_netuser »

arcticbull wrote: post #174
inter_netuser wrote: post #112

Earlier quoted context omitted.

That's because Bitcoin is very tightly held, and the amount of tradeable float is very very small compared to holdings. This results in outsized volatility, as it is still a developing market. 1T for a global currency is very small. We'll see how it behaves at 10T.

> That's because Bitcoin is very tightly held, and the amount of tradeable float is very very small compared to holdings. By the diamond-est of hands: those who lost their keys.

I see you often comment on Bitcoin negatively, curious why?
Post reply on HN