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Crypto crash deepens, stocks slip

reuters.com

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Re: Crypto crash deepens, stocks slip

#401

Post by [deleted] »

intotheabyss wrote: post #360
AnIdiotOnTheNet wrote: post #221

Earlier quoted context omitted.

Ok, if that's the case why should we start using it now? What's the advantage other than fomo-driven speculatory gambling?

The advantage eventually will be easier ways to get funding for startups or businesses of all kinds. You need highly liquid markets in order to facilitate global finance at scale so that's where it's starting today. Rebuilding all of the financial primitives onchain. Why? Because composability of contracts onchain results in higher velocities of money; higher than whats possible in traditional finance. Imagine a worl…

[deleted]

Re: Crypto crash deepens, stocks slip

#402

Post by onemoresoop »

paulpauper wrote: post #189
loeg wrote: post #70

Earlier quoted context omitted.

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

But when other vehicles give you 2x in a week while the index a mere .5% the angle changes. It really depends on what the appetite for risk really is.

Re: Crypto crash deepens, stocks slip

#403

Post by imtringued »

phist_mcgee wrote: post #98
lottin wrote: post #80

Earlier quoted context omitted.

Because the only utility it has is that it appreciates over time. Of course, until it no longer does, then becomes worthless.

And that I can send money worldwide to anyone at any time with no middleman.

This mostly matters for avoiding capital controls. Those shouldn't exist in the first place.

Re: Crypto crash deepens, stocks slip

#404

Post by throwaway894345 »

imtringued wrote: post #349
throwaway894345 wrote: post #306

Earlier quoted context omitted.

> I consider crypto currency as it is to be an elaborate Ponzi scheme (personal view) Off topic, but as someone with very little understanding of economics and no stake in cryptocurrency, I don't understand where "legitimate currency" ends and "Ponzi scheme" begins. I get that a Ponzi scheme is one which produces little or no value, and the majority of "earnings" are just wealth redistribution from the bottom of the…

>I don't understand what legitimate value ordinary currency produces. You can exchange your local government currency for services and goods. With Bitcoin you first have to convert them into a local government currency and then buy services and goods. This only works because those local government currencies exist in the first place. I'll pull this out of nowhere and say that 95% of the value of Bitcoin is derived fr…

> You can exchange your local government currency for services and goods. With Bitcoin you first have to convert them into a local government currency and then buy services and goods. This only works because those local government currencies exist in the first place. I'll pull this out of nowhere and say that 95% of the value of Bitcoin is derived from government currencies by that I mean the reason Bitcoin is valuable is that you can exchange it for government currencies.

So to be clear, bitcoin becomes "legitimate" when some critical mass of vendors accept it? This seems to imply that once the ponzi scheme becomes big enough it becomes legitimate (provided of course that we accept that btc is a ponzi scheme), which feels counterintuitive?

Re: Crypto crash deepens, stocks slip

#405

Post by onemoresoop »

suifbwish wrote: post #265
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…

Bill Gates is getting divorced. I think that is bigger news than Elon Musk not accepting crypto for Tesla’s

Bill Gates divorcing is not as big of a story as Bill Gates' connection to Epstein coming out recently. In my eyes he dropped more than the cryptos did

Re: Crypto crash deepens, stocks slip

#406

Post by gruez »

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.

That's like saying uber shares are infinite because you can start your own ridesharing startup and issue more shares.

Re: Crypto crash deepens, stocks slip

#407

Post by paulpauper »

onemoresoop wrote: post #402
paulpauper wrote: post #189

Earlier quoted context omitted.

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

But when other vehicles give you 2x in a week while the index a mere .5% the angle changes. It really depends on what the appetite for risk really is.

bitcoin never went up 2x in a week except before 2013 . bitcoin hardly done much since jan 2018.

Re: Crypto crash deepens, stocks slip

#408

Post by jakeva »

intotheabyss wrote: post #376
echelon wrote: post #354

Earlier quoted context omitted.

What does that even mean?

It means that ETH which is a decentralized cryptocurrency can be used as a collateral for an algorithmic stablecoin called RAI that adjusts its price based on the price of ETH from a Uniswap price feed and a PID controller and arbitrage. To mint RAI you need to deposit ETH. The goal of RAI is to create a stablecoin which dampens the price movements of ETH over long periods of time.

The fact the community felt the need to invent a "stablecoin" isn't terribly reassuring

Re: Crypto crash deepens, stocks slip

#409

Post by allendoerfer »

boringg wrote: post #313
sigstoat wrote: post #229

Earlier quoted context omitted.

> When at any point as an engineer or a scientist have you observed large exponential growth to be sustainable in any context??? what on _earth_ do you think 6-7% a year is? that's exponential growth. > SPY is up 50% since 2019 (pre covid crash). [...] 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,…

Human population growths, mosquito populations growths. Sustainable for a certain amount of time. You need to time bound your question. Nothing is sustainability on an endless time scales - the stars burn out and collapse on themselves.

The universe is pretty big. It also has 3 useful dimensions. Earth has basically only two and one very narrow one.

I think we can keep going for quite some time.

Re: Crypto crash deepens, stocks slip

#410

Post by diabeticApe »

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…

While i agree that this is not really a crash as much as a long overdue correction, i have to respectfully disagree with your point about cryptos being little more than a ponzi scheme. Unfortunately the ones that have been getting most attention (Bitcoin, Doge, Ether) have been a poor representation of what the crypto space has been brewing thse past couple of years. I would highly recommend looking into DeFi projects such as AAVE or maybe a better representation of whats possible with Smart contracta on Cardano or Solana. There are a lot of "shitcoins" but there are also a few innovative gems that are going to make a major difference over the next decade imo.
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