It baffles me how a unit of account became a store of value. I'm not surprised it turned out not to be.
Bitcoin Falls Below $20k
51–60 of 83 posts
Re: Bitcoin Falls Below $20k
#52Funny nobody talks about the collapse of the stock market here on HN.
Because:
a.) we are not at pre-corona levels yet and
b.) most of the highly valued companies which are publicly tradable will continue to provide value to the world or their customers, contrary to the crypto crap.
Re: Bitcoin Falls Below $20k
#53Everything seems to be underperforming. Most tech stocks are at their 2020 levels or headed towards it. Almost all tech IPOs in the last year are down. With everything being down, how is Bitcoin's performance an outlier?
It was worth $30,000 nine days ago. Have stocks lost a third of their value in the last 10 days?
Re: Bitcoin Falls Below $20k
#54Modern crypto has to be the most ostentatious display of our generation’s detachment from reality and laze. I pray the big players pumping these like penny stocks on a much grander scale are eventually held accountable. While digital currency and decentralized finances are ideas societies should explore, modern crypto has served no other purpose than to funnel drug money and fund North Korea. I hope a crash becomes a reminder to at least some people that actual “value” involves natural resources being extracted and prepared with a lot of time and ingenuity required by humans, not thin air.
Re: Bitcoin Falls Below $20k
#55Funny nobody talks about the collapse of the stock market here on HN.
Funny how this is just whataboutism...
Re: Bitcoin Falls Below $20k
#56Earlier quoted context omitted.
This particular level ($20K) is actually very interesting. Because it's the top from the previous bull run. And cryptobro TAs everywhere were parroting incessantly the mantra "Bitcoin never falls below the top from the previous bullrun". Well, oops.
> Because it's the top from the previous bull run. And cryptobro TAs everywhere were parroting incessantly the mantra "Bitcoin never falls below the top from the previous bullrun". Well, oops. So world events impacting the entire economy should have no effect on bitcoin whatsoever? That seems a little reductive.
According to cryptocurrency maximalists, the value of crypto should go up relative to fiat in times of uncertainty, it'd protect you from inflation, be a store of value in case of war, help transactions cross-borders and cross-sanctions, etc.
All bullshit but that was the peddling going on for years, I don't think it's entirely reductive given how the cult tried to propagandise itself.
Re: Bitcoin Falls Below $20k
#57Earlier quoted context omitted.
Russia has huge surplus of foreign cash right now. If anything, I would expect billionaries to get into crypto, since what would you hodl instead: Russian Rouble and risk its volatility? USD in bank and risk its freezing? Physical printed USD? Not available in sufficient quantities.
How a Russian billionaire can get in crypto now? All he can is to suck all bitcoins on local markets, I can not see any possible connection between US miners and Russian buyers with dollars.
It doesn't have to be that direct. I mean, if we're taking billionaires, they have connections in various industries - I'm sure they could organise some services/shipments from China to be paid in rubles on one side and crypto on the other. If it's worth doing for them for the future, they can setup discounted pay-in-btc gateways today. As far as I know, Chinese market is still not restricted for them. Same for India.
Re: Bitcoin Falls Below $20k
#58Earlier quoted context omitted.
Bitcoin is not supposed to behave like a stock.
Exactly this. If the great promise of crypto was that it would just be another market asset, then the comparison with stocks is fine. It's that all the great promises of crypto being different, better, than the 'fiat currencies' and centralized stock exchanges. If you called bullshit on it they condescendingly accused you of just not getting it. This crash shows that it was all bullshit and still is.
I don't think you've quite got it yet.
Re: Bitcoin Falls Below $20k
#59When you see people you think are not as smart as you get rich via crypto, it is very natural to think that you should go at it, too. Fortunately, about 10-12 years of stock market investing showed me a lot of patterns. There will be stories, there will be wondrous companies that seem to grow magically and yet what lies beneath is most critical. Cash flow and the embedded estimate in the market cap vis-a-vis this cash flow (reverse DCF). W.r.t crypto, I never could fathom a cash flow or what a certain value for a bitcoin actually represented. I took a pass (probably my profits would have been 3x at max with BTC at $20k) , but useful to remember this when another new fangled thing makes others rich.
Re: Bitcoin Falls Below $20k
#60Funny nobody talks about the collapse of the stock market here on HN.
Because: a.) we are not at pre-corona levels yet and b.) most of the highly valued companies which are publicly tradable will continue to provide value to the world or their customers, contrary to the crypto crap.
> a.) we are not at pre-corona levels yet
We are if we account for inflation.