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Bitcoin and cryptocurrency prices have fallen sharply over the last few days

forbes.com

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Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days

#251

Post by SuoDuanDao »

tomp wrote: post #249
SuoDuanDao wrote: post #243

Earlier quoted context omitted.

What's the window on that question? I believe that QE has baked hyperinflation into the USD cake by now, that doesn't mean I expect it to hit main street by June.

Has it? QE has been happening for the last 10 years already, and inflation hasn't (in products; asset prices have inflated though).

Precisely. My interpretation is that we would have had a deflationary cycle over the last decade had it not been for QE. Main street prices have remained fairly stable, but it looks to me like assets have priced in a strong future currency devaluation. I still think that devaluation is likely to happen.

Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days

#252

Post by unhashable »

unhashable wrote: post #225
gerikson wrote: post #157

Earlier quoted context omitted.

In my opinion: the latter.

You think the internet is going to be compartmentalized before USD is devalued? Fed is printing $4T this week!

Update: Fed just committed to unlimited liquidity injections through money creation. USD debasement is now a guarantee.

Welcome to the new normal.

https://twitter.com/apompliano/status/1238463895095869440?s=...

Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days

#253

Post by c22 »

SkyBelow wrote: post #134
kaikai wrote: post #50

Earlier quoted context omitted.

You don't have to transport a heavy metal, instead all you have to do is ensure an electrical grid, fully functional internet access, and a distributed network of other people! I'm not sure that's any easier than carry around metal :P

It isn't, it is more difficult, but it is a different kind of difficult. That is why both have a place, and will continue to do so until a social collapse, at which point only gold will remain. But until such a point, bitcoin exists as sometime harder to trade than gold in some ways and easier in others. It also borrows a bit from fiat currency in that it only has value because we agree to give it value (at least gre…

I'm not convinced that the total social collapse of modern society will result in a state where either bitcoin or gold hold much value.

Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days

#254

Post by Balgair »

unhashable wrote: post #10

It's a common misconception that Bitcoin is a safe haven. It's not. Not even Gold is a safe haven during a liquidity crisis. In sharp downturns, cash is king. Think of Bitcoin and Gold as call options on the entire global monetary system. If Govs become insolvent, Bitcoin and Gold is there. If the masses lose faith in central banks, Bitcoin and Gold is there. If central banks debase currencies too quickly, Bitcoin an…

Deep Aside: EconTalk's episode on Richard Davies' Extreme Economies is really really good (and long!).

The section on how Angola Penitentiary's underground economy changed overnight from Cigarettes to Ramen/Mackerel and Bitcoin-like-cyphers is amazing stuff.

https://www.econtalk.org/richard-davies-on-extreme-economies...

Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days

#255

Post by darawk »

ppf wrote: post #99
darawk wrote: post #46

Earlier quoted context omitted.

It depends on the nature of the crisis. In a monetary crisis, yes, probably. But this is a bit different than that.

If there is any correlation between current events and bitcoin price, then we have both a monetary and an existential crisis happening. What other crises would bitcoin be useful in?

Purely as an asset Bitcoin is probably a good hedge against inflation of the dollar. If you expect high inflation, owning Bitcoin is probably a reasonable way to protect against that.

Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days

#256

Post by pas »

unhashable wrote: post #155
pas wrote: post #120

Earlier quoted context omitted.

> That is the staying power of scarcity via well known stock to flow ratios. Could you please explain this sentence? What is a stock to flow ratio? How/why is the well-knownness of it matters? How scarcity builds on top of this?

https://medium.com/@100trillionUSD/modeling-bitcoins-value-w...

Thanks! Pretty interesting, and great graphs!

I don't know why you are getting downvoted :(

Also, why would the price go up in May after the halving? Why would people just start to buy BTC? Okay, sure the graph say it will, and negative interest rates and so on. But gold seems to hold better. ( https://fred.stlouisfed.org/graph/?g=qlDu ) Maybe it's just because BTC is not hundreds of years old and this shock led people to cater to their primal instincts and hoard papers about shiny things.

We shall see.

Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days

#257

Post by anon73044 »

unhashable wrote: post #88
Ididntdothis wrote: post #78

Earlier quoted context omitted.

Nothing is backing up bitcoin. Almost nobody is using it to pay for things. If bitcoin went away I don’t think the regular economy wouldn’t notice anything. Only speculators would notice.

Totally. Bitcoin is not a medium of exchange (cash). It’s not useful for payments. Bitcoin is currently a bet that digital scarcity will bring back the concept of saving (SoV) so that people don’t have to invest in equities just to protect their purchasing power. Only the people making this bet will be affected if Bitcoin fails. The monetary system will keep moving forward unaffected. If Bitcoin succeeds, eventually…

>Totally. Bitcoin is not a medium of exchange (cash). It’s not useful for payments. That seems entirely contrary to Satoshi Nakamoto's original intent for Bitcoin.

>Abstract. A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.

Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days

#258

Post by webninja »

ackbar03 wrote: post #184

I've been trying to avoid looking at my bitcoin portfolio lol. I agree the volatility in its price makes it far from ideal as an alternative currency. That being said what keeps me invested (a relatively small portion) is looking at places like Venezuela and a few other pockets of areas where the monetary system has collapsed or undergone hyper-inflation, bitcoin is being used as a means of exchange, albeit still rat…

I hold a small amount of it and BSV as a hedge against the Fed flooding the market with liquidity too. Emphasis on small amount.

Crypto usually rallies when the Fed undergoes extensive QE for a long period of time but the current popular crypto’s have flaws.

Re: Bitcoin and cryptocurrency prices have fallen sharply over the last few days

#259

Post by OGWhales »

csomar wrote: post #241
OGWhales wrote: post #204

Earlier quoted context omitted.

I saw that the large majority today was lost on longs, with shorts being much less active. Do you believe it’s likely that the crash was intentional with the large exchanges pushing the price down on various exchanges to make money off the leveraged longs? Obviously panic plays into this as well. I’m not one to get involved in any type of trading personally, as I don’t trust myself, so this is outside of my space. Pl…

> I saw that the large majority today was lost on longs, with shorts being much less active. Given that Futures now have the most open interest, I'd say the long/short ratio is practically equal these days in Bitcoin land. > Do you believe it’s likely that the crash was intentional with the large exchanges pushing the price down on various exchanges to make money off the leveraged longs? No. Only bad traders will say…

Do you really not see what bitfinex is doing?… it’s almost painfully obvious they are manipulating the market.
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