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

41–50 of 688 posts

Re: Crypto crash deepens, stocks slip

#41

Post by fny »

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).

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.

Re: Crypto crash deepens, stocks slip

#42

Post by theandrewbailey »

sulunia wrote: post #3

I just wanted to be able to buy a GPU without paying exorbitant prices because miners.

If it was like last time (2018), prices remained higher than what they should have been for months after. Then Nvidia got the message about how much people were willing to spend on GPUs, and overpriced their RTX 2000 cards.

Re: Crypto crash deepens, stocks slip

#44

Post by End_the_Fed »

This is what a healthy market looks like, without circuit breakers, without Powell stepping in, without the POTUS making emergency statements to contain the panic. Price discovery at its finest.

When you buy crypto you are effectively voting with your wallet against the Fed and all those phony protection systems

Every day more and more people are understanding the machinations of the Fed.

BTFD

Re: Crypto crash deepens, stocks slip

#45

Post by phist_mcgee »

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).

Silly comparison. Crypto holds value for its utility. Why do you seem to think that its utility will just vanish?

Re: Crypto crash deepens, stocks slip

#47

Post by paulpauper »

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…

30% decline in a day is a crash by any definition

Re: Crypto crash deepens, stocks slip

#50

Post by Retric »

zpeti wrote: post #20
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…

My personal take: There might well be ponzi schemes on top of the bitcoin infrastructure, but the technology behind bitcoin is not a ponzi scheme. It might well be that a lot of people are crazed over it and want to buy bitcoin and push up the price, but that's because there is something here with cryptocurrency. It definitely is a new way of accounting, and it could potentially be a hedge against the fiat system. Th…

At the purely technical level, Bitcoin’s current transactions per minute heavily limit it’s utility. The original goal was solving micro transactions which crypto coins could do, they just need to scale to ~100 Billion transactions a day +/- orders of magnitude.

Unfortunately, miners benefit from the current artificial limitations. Which demonstrates an inherent issue with crypto currency, miners and users have very different goals yet only miners get a vote.

Post reply on HN