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Crypto crash deepens, stocks slip

reuters.com

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Re: Crypto crash deepens, stocks slip

#441

Post by shiado »

jk7tarYZAQNpTQa wrote: post #276
shiado wrote: post #12

Looks like the liquidations are stopping. Funding rates are finally negative https://www.bybt.com/FundingRate I would expect the exchanges to have 'problems' while the big boys load back up for cheap. BIG shorts are closing. https://www.tradingview.com/symbols/BTCUSDSHORTS/

ELI5?

Perpetual swaps are most of the crypto market by volume. Here is a guide explaining them

https://www.bitmex.com/app/perpetualContractsGuide

Throughout the last week of price declines the rates have stayed positive meaning longs were still paying shorts, implying continuous buying pressure, likely by those trying to time a bottom. But after this mega nuke the leveraged long traders got liquidated. When you clear out leveraged traders it becomes harder to move the price as fewer will be liquidated accelerating price changes. To summarize, retail investors lose in crypto because they take big risks with small money with big leverage and the big boys with big money then flush them out and the crypto lifecycle begins again making the whales richer and more capable of manipulating the market the next time.

Re: Crypto crash deepens, stocks slip

#442

Post by Androider »

Ekaros wrote: post #370
woeirua wrote: post #184

Everyone should take some time now to learn about Tether, the high likelihood that it is in fact a Ponzi scheme, and that it poses a big systemic risk to the crypto exchanges and therefore the markets themselves [1]. People have been sounding the alarm on Tether for a long time now, but we’re finally getting some hard evidence now to back the allegations [2]. Don’t say you weren’t warned. [1] https://mobile.twitter.c…

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...

A Ponzi scheme doesn't require a return. Tether is paying out existing investors with new investor's money, while skimming and investing the reserve in risky assets.

Here's a good write up of the recent disclosures and the bag of shit that is Tether's reserves: https://www.mymoneyblog.com/tether-stablecoin-risk.html

"Instead of 100% risk-free, short-term, liquid assets, Tether is less than 7% risk-free, short-term, liquid assets. Commercial paper? Backed by whom exactly? Fiduciary account? At which remote offshore bank owned by a third-party? They could be pointing to a half-eaten sandwich and calling it collateral."

Re: Crypto crash deepens, stocks slip

#443

Post by jondwillis »

randywaterhouse wrote: post #19

And, as usual, Coinbase is also down at the moment [0]. Don't have a super-strong opinion on the crash itself (or whether we should call it a crash given crypto's volatility)--but it does seem peculiar that the exchanges in the space tend to drop when things get rough. [0] https://status.coinbase.com as of 13:51 UTC status was "intermittent downtime" and "delayed withdrawals"

decentralized exchanges on EVM-compatible proof of stake chains are still cheap, available, and fast.

e.g. xdai

Re: Crypto crash deepens, stocks slip

#444

Post by thehappypm »

I think an important Achilles' heel of cryptocurrencies is just how hoarded they are. Whales -- in general, they're just early adopters -- own huge swathes of the total amount of crypto out there. If we were to actually move to a world where crypto is used as currency, we'd have trillionaires who "earned" their wealth simply by being early adopters. Government issued currencies can solve this through taxation or more generally through monetary policy.

Re: Crypto crash deepens, stocks slip

#445

Post by jondwillis »

tubbyjr wrote: post #428

So much nocoiner butthurt in here lmao. Yes, it's down 50%, yet I'm still a multi-millionaire thanks to holding, from a small mining stint a couple years back, $0 invested directly aside from mining machines (GPUs I would have bought anyways for gaming). With how it's progressed, I never have to sell. My employment income is zero, and I can't get any mortgages cuz of this... no problem, I can literally use crypto to…

What have you used to synthetically underwrite your own mortgage?

Re: Crypto crash deepens, stocks slip

#446

Post by thehappypm »

mam3 wrote: post #366
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…

1/ a lot of people really DO believe in decentralized currency 2/ a lot of people are acutally using it as a store of value / currency: from drug dealers to people in states with failed economy such as venezuela or turkey, to chinese people wnating to somehow escape the system. 3/ btc is a gateway currency to other more useful currencies surch as eth / monero / zcash 4/ How is the "no profits / revenue" makes any sen…

The drug dealer argument is the only actual use for bitcoin out there. How exactly does a dirt-poor Venezuelan acquire BTC to trade?

Re: Crypto crash deepens, stocks slip

#447

Post by notyourday »

gruez wrote: post #395
Grustaf wrote: post #328

Earlier quoted context omitted.

Sea shells have intrinsic value, cryptos don't.

What's the difference between: * seashell (intrinsic value: $0.01, market value: $100.00) * seashell token (intrinsic value: $0.00, market value: $99.99)

When no one wants to pay you anything for your seashells, you are stuck with the seashells.

Re: Crypto crash deepens, stocks slip

#448

Post by thehappypm »

thebean11 wrote: post #185
paulpauper wrote: post #152

Earlier quoted context omitted.

alt coins. BTC dominace used to be 90%+. now way lower . BTC holders get no royalties from blockchain being copied

how can you possibly make the claim that BTC was diluted vs the market cap of other coins being net new value?

Everyone who is buying Dogecoin right now is not buying BTC. That reduces the value of BTC.

Re: Crypto crash deepens, stocks slip

#449

Post by thebean11 »

onemoresoop wrote: post #423
thebean11 wrote: post #185

Earlier quoted context omitted.

how can you possibly make the claim that BTC was diluted vs the market cap of other coins being net new value?

> how can you possibly make the claim that BTC was diluted vs the market cap of other coins being net new value? It makes some sense to me. When BTC was smaller in capitalization it was easier to double your money. Now smaller coins attract dollars that otherwise would have pumped up BTC so growth stagnates. BTC was considered the most stable of them all and I now find those claims somewhat dubious, they're all extre…

> When BTC was smaller in capitalization it was easier to double your money.

Do you mean perceptually, or in actuality?

Re: Crypto crash deepens, stocks slip

#450

Post by jondwillis »

krono wrote: post #64
randywaterhouse wrote: post #19

And, as usual, Coinbase is also down at the moment [0]. Don't have a super-strong opinion on the crash itself (or whether we should call it a crash given crypto's volatility)--but it does seem peculiar that the exchanges in the space tend to drop when things get rough. [0] https://status.coinbase.com as of 13:51 UTC status was "intermittent downtime" and "delayed withdrawals"

I very clearly recall Coinbase structurally having these outages back in 2017/2018 as well. Always when big price movements are about to happen, but often before the volume spike. Nothing but funny coincidences I'm sure.

happened back in 2013/4 as well
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