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Crypto crash deepens, stocks slip

reuters.com

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Re: Crypto crash deepens, stocks slip

#51

Post by unyttigfjelltol »

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…

It's worse than a Ponzi. Crypto lost its marginal USD buyers, which were victims of ransomware extortion schemes. The correlation now is exposed for everyone to see.

Re: Crypto crash deepens, stocks slip

#52

Post by defaultname »

cheaprentalyeti wrote: post #18
sulunia wrote: post #3

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

I only say this about 1% of the time I read stuff like this, and it's still too much: _Bitcoin doesn't use GPUs to mine with_. It's been custom ASICs for the last eight years or so. I think.

Bitcoin is the high water that floats all the other boats in crypto. When BTC drops, they all drop. So their core point is certainly valid.

Not to mention that BTC-specific ASICs are a big reason there is a chip manufacturing squeeze. Millions of completely useless, power gobbling devices.

Re: Crypto crash deepens, stocks slip

#54

Post by enkid »

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…

How do you differentiate the infrastructure from the technology? The technology drives the infrastructure.

Re: Crypto crash deepens, stocks slip

#56

Post by ProjectArcturis »

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, and on and on.

There's no reason this can't happen in reverse. As in previous crashes, once the price starts going down, more people want to sell.

Really just an interestingly pure experiment in group psychology.

Re: Crypto crash deepens, stocks slip

#57

Post by mumblemumble »

Stubb wrote: post #17
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…

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…

It's neither. A defining feature of both pyramid schemes and Ponzi schemes is centralized control of the ledger and who is allowed to participate. And a defining feature of cryptocurrencies is, at least theoretically, the lack of such centralized control.

I understand that people feel like there's something fraudulent going on with crypto. Given the sheer density of fraud and scamming surrounding crypto, it's hard to argue with that. But trying to make one's argument seem more concrete by picking the name of some well-known class of fraud and blithely using it to describe crypto in general is counterproductive. It muddies the waters, and makes it more difficult to have an organized discussion by removing clarity from the language we have to discuss these things.

The urge to do so should be resisted for the same reason that we should resist the urge to try and make arguments involving statistics seem more authoritative by just guessing at numbers when we're not sure of them. False precision is, well, false.

Re: Crypto crash deepens, stocks slip

#58

Post by TimJRobinson »

cheaprentalyeti wrote: post #18
sulunia wrote: post #3

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

I only say this about 1% of the time I read stuff like this, and it's still too much: _Bitcoin doesn't use GPUs to mine with_. It's been custom ASICs for the last eight years or so. I think.

Apps like Nicehash mine the most profitable shitcoin using your GPU and convert it to Bitcoin. When the market pumps people buy up cards and use it to make good money.

Re: Crypto crash deepens, stocks slip

#60

Post by thefounder »

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…

You may find out that the stocks you hold dear will crash just as bitcoin. If you think bitcoin is a ponzy scheme think about the stock market as well. The stocks(most of them) are not traded on roi anymore. Long gone is that period.
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