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Crypto crash deepens, stocks slip

reuters.com

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Re: Crypto crash deepens, stocks slip

#431

Post by symlinkk »

XorNot wrote: post #188
fny wrote: post #41

Earlier quoted context omitted.

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.

What a bizarre opinion to have on an IT website. “Software is worthless, it’s just expended energy, you can’t use it for anything, whereas I can melt down gold and make earrings with it”

Re: Crypto crash deepens, stocks slip

#432

Post by pilingual »

__jem wrote: post #302
NovemberWhiskey wrote: post #277

Earlier quoted context omitted.

> Bitcoin pricing is on a log scale. Dropping to $36k from $50k is not a concern on this scale. What is that even supposed to mean?

This has to be one of the funniest financial things I've heard. "Uhhh, you know when your account dropped 50%? Actually that is only like 10% if you pretend it's a log scale." Unfortunately for them, USD is not on a log scale and they'll be disappointed to discover that when they try to cash out.

I'm not discussing trading here, in which case you would be absolutely right. Trading using a log chart would be absurd.

I'm talking about long term positions. Cost averaging over time means you are immune to such a massive swing.

Re: Crypto crash deepens, stocks slip

#433

Post by diabeticApe »

not_jd_salinger wrote: post #281
scsilver wrote: post #247

Earlier quoted context omitted.

Thats the thing, they arent currencies, they are assets that can act like currencies when convenient.

> hey arent currencies, they are assets The irony here of course is that the only way that Crypto currencies would meet any standard definition of an asset would be if they were functioning currencies. Going with Investopedia's straightforward definition "An asset is a resource with economic value", how is a non-currency crypto coin in any way a resource or possess economic value?

Simple. Gold is an asset that is not used as currency but provides the holder with certain desired benefits and the asset can be liquidated if needed. Crypto is similar in that it prodives a financial vehicle that posesses certain properties. Im not saying they should all be thought of as digital gold but that lile gold, they provide value not only in thier price tag but in some inherent property that provides value to the user (this property varies wildly from crypto to crypto and is what makes each project distinct and unique.

Re: Crypto crash deepens, stocks slip

#434

Post by imtringued »

notsureaboutpg wrote: post #319
johnwheeler wrote: post #145

Earlier quoted context omitted.

To me, the argument that fixed supply is a good thing has always been worrisome. People just parrot that viewpoint without asking whether some amount of Keynesian economics is useful, because you know, government is evil. It got us out of the Great Recession and it’s been 12 years. Maybe the consequences haven’t fully manifest, but another Great Depression would have been guaranteed hell.

>People just parrot that viewpoint without asking whether some amount of Keynesian economics is useful, because you know, government is evil. This just isn't an accurate portrayal of any of the serious criticisms of Keynesian economics. >It got us out of the Great Recession and it’s been 12 years. Maybe the consequences haven’t fully manifest, but another Great Depression would have been guaranteed hell. It feels lik…

>As wealth gaps widen, as inflation rises, as our debt grows,

I will take this opportunity to throw this link up: https://fredblog.stlouisfed.org/2018/11/how-expensive-is-it-...

Re: Crypto crash deepens, stocks slip

#435

Post by onemoresoop »

paulpauper wrote: post #407
onemoresoop wrote: post #402

Earlier quoted context omitted.

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.

BTC was was 10k last fall. It grew 6x till a month ago. That is 6x. Now after the drop it's still 4x from that 10k figure. I didn't claim it doubled in a week, other coins with a smaller cap did and not one or two, a whole lot of them. Lots of people made fortunes of this hype. Sure, a lot of people also lost a lot and that makes volatile markets very dangerous if you don't know what you're doing.

Re: Crypto crash deepens, stocks slip

#436

Post by Ekaros »

Qub3d wrote: post #414
Ekaros wrote: post #370

Earlier quoted context omitted.

Is tether even a Ponzi scheme? My understanding is that returns are 0. And it's "pegged" to dollar, so you can't even make any money by buying it... Ponzi scheme would mean that some investors were getting returns...

Its a fraud in that the money/gold/intrinsic fiat that is supposed to be backing it has not been credibly proven to exist, at least at a value matching the current amount of USDT in supply. --- Let's say I decide to make NerdBucks. I offer to sell you n NerdBucks for n dollars, 1-to-1, and tell you I will always buy those NerdBucks back at the same price. This is how NerdBucks get "pegged" to a dollar -- if someone w…

I'm not oppose to calling it fraud or scam.

I'm in general just against using Ponzi scheme to describe things that are not systems where previous investors are promised and paid profits with later investors money.

BTC is bubble or mania. But not really Ponzi. Tether is even less so, it's carnival token...

Re: Crypto crash deepens, stocks slip

#438

Post by zaptrem »

BenoitEssiambre wrote: post #66
stephc_int13 wrote: post #8

I don't know why, it is probably highly irrational, but I always rejoice when the Bitcoin crashes.

I mean the technology is highly damaging to society in a whole bunch of ways, damaging the environment, supporting fraud and ransomware, used for money laundering, funding crime, and if it gets integrated into the financial system like some want it to be, it could even destroy human civilization: https://benoitessiambre.com/specter.html (even Douglas Adams tried to warn us 40 years ago). So it's a relief when it look…

As a crypto miner/holder/user since 2011, that article was really great.

I think blockchains (esp. programmable ones) have or will have significant real value in making markets more efficient and transactions lower friction, but right now blind speculation is driving 99% of the market. IMO while this brings lots of useful funding to speed along development, it could also endanger the true purpose of the tech.

Re: Crypto crash deepens, stocks slip

#439

Post by asjdflakjsdf »

pradn wrote: post #292
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…

It doesn't seem like anyone believes cryptos are supposed to be currencies any more. All the talk around them is around them being a new, exciting, and potentially very lucrative investment class. If you go to Coinbase's front page, you see that you can buy and sell them, like you can with Robinhood. It's not trying to be a PayPal. The currency-ness does serve an important purpose. It helps bring in investment for th…

Doge is picking up steam in that regard. It has so many problems though

Re: Crypto crash deepens, stocks slip

#440

Post by mullingitover »

adventured wrote: post #334
hellow0rldz wrote: post #270

Earlier quoted context omitted.

You know... what I am curious, does this logic make sense? Why wouldn't a given % be allocated to lotto tickets?! Quite curious from a risk/reward portfolio formula.

The argument to not buy lottery tickets, is if you have no need of the return so it's not worth giving up the 5% of your portfolio that could be reliably generating returns for you. Software engineers for example are easily capable of reliably earning six figures in the US, outside of the Bay Area. With stock compensation their earnings potential is that much higher. It's a solid multi-millionaire track if you grind…

Lottery tickets are a mechanism for taxing hope.
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