Crypto crash deepens, stocks slip

Post by taylodl » Wed, May 19, 2021, 2:49 PM UTC

tadzik_ wrote: post #33

kllrnohj wrote: post #26

Earlier quoted context omitted.

Bitcoin & Ether are both down -40% from a week to a month ago. Both of those are, in theory, large enough that investors "letting off some steam" shouldn't move them that much. If $SPY dropped 40% we'd all call it a crash. This isn't that different. Also unlike the stock market, crypto is under the delusion of being a viable currency. If USD or Euro dropped even 20% we'd start questioning if it's a recession, much le…

> 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.

Post by randomsearch » Wed, May 19, 2021, 2:50 PM UTC

Mc_Big_G wrote: post #178

cromka wrote: post #106

Earlier quoted context omitted.

> Cryptocurrency market is extremely volatile. This isn't that far from normal. I think you inadvertently confirm OPs point. Cryptocurrencies with their volatility cannot replace regular currencies.

This makes no sense. 1 BTC still equals 1 BTC.

Post by arcticbull » Wed, May 19, 2021, 2:51 PM UTC

coldcode wrote: post #28

Stubb wrote: post #17

Earlier quoted context omitted.

Crypto isn't a Ponzi scheme. A Ponzi scheme is form of fraud where funds from recent investors are used to pay (fictitious) profits to earlier investors. Say the ringleader claims a 10% profit. An early investor had deposited $100 and wants their $100. The ringleader had blown that investor's $100 on coke and hookers and gives him $110 from new investors. Crypto is more accurately a pyramid scheme. But then so are pr…

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).

Post by aabbcc1241 » Wed, May 19, 2021, 2:51 PM UTC

singularity2001 wrote: post #124

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…

The supply is infinite if you take the whole crypto space: You can create as many BTC#3 EGold-plus ... as you wish, and future generations will.

Post by jasonlaramburu » Wed, May 19, 2021, 2:51 PM UTC

distances wrote: post #180

jasonlaramburu wrote: post #155

Earlier quoted context omitted.

I wonder what % of our Economic stimulus was used to buy crypto, and how much of that money has simply disappeared over the past 24 hours.

It wouldn't disappear, money is just changing hands. Bitcoin doesn't add or destroy any value, it's just a speculative way of zero-sum trade. When you buy bitcoin, someone else gets your money.