Crypto selloff … Looks like a (pseudo ?) bank-run on crypto?
Bitcoin June futures at $22,930
The whole crypto market went from $3 trillion down to $1 trillion.
"Pacifism is a shifty doctrine under which a man accepts the benefits of the social group without being willing to pay - and claims a halo for his dishonesty." ~Robert A. Heinlein
Posts: 26758 | Location: dughouse | Registered: February 04, 2003
My first thought was that crypto isn't backed by anything, but then again what's backing the dollar? After all, they are federal reserve notes where the fed is printing money like mad.
If you understand the 4 year cycle on bitcoin them this was predicted. I sold off back when it was over 60k thankfully. Right now and until the end of this quarter is when you should be buying though.
Originally posted by bryan11: My first thought was that crypto isn't backed by anything, but then again what's backing the dollar? After all, they are federal reserve notes where the fed is printing money like mad.
You're correct in that nothing but belief that someone else will exchange something of value for either crypto or the dollar. On the other hand, the creation of more crypto is supposedly controlled by an algorithm while the creation of more dollars has no limits.
"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
Posts: 20180 | Location: The Free State of Arizona - Ditat Deus | Registered: March 24, 2011
My first thought was that crypto isn't backed by anything, but then again what's backing the dollar?
The US government actually has physical assets.
Do any of these crypto currencies have anything at all physically? Isn't it all a bunch of ones and zeros on a computer? At least you could hold a tulip bulb.
"Pacifism is a shifty doctrine under which a man accepts the benefits of the social group without being willing to pay - and claims a halo for his dishonesty." ~Robert A. Heinlein
Posts: 26758 | Location: dughouse | Registered: February 04, 2003
My first thought was that crypto isn't backed by anything, but then again what's backing the dollar?
The US government actually has physical assets.
None of which back the US dollar in any way. The dollar is solely backed by the "full faith and credit" of the US, which at this point means next to nothing. The only thing holding up the dollar is some remaining 'perception' that its still worth something. When that's gone, so is the US as we know it.
----------------------------- Guns are awesome because they shoot solid lead freedom. Every man should have several guns. And several dogs, because a man with a cat is a woman. Kurt Schlichter
Just for giggles I bought $500 in Dogecoin last year at around .30. It went up to .50 for a short time and is now sitting at .05. I don't guess it'll be going up again anytime soon.
Oh well. Don't gamble with anything more than you want to lose.
________________________________________________________ "Great danger lies in the notion that we can reason with evil." Doug Patton.
Posts: 20803 | Location: Montana | Registered: November 01, 2010
The dollar is solely backed by the "full faith and credit" of the US,
Well, which would you put more full faith in?
An entity with billions of dollars worth of physical assets, or something on the internet?
I get what you're saying, but there's a huge difference. It's the same reason if I went into a bank to get a signature loan I'd have better luck than the homeless guy.
Originally posted by Ryanp225: If you understand the 4 year cycle on bitcoin them this was predicted. I sold off back when it was over 60k thankfully. Right now and until the end of this quarter is when you should be buying though.
Hit me once, shame on you,hit me twice, shame on me. Anyone dumb enough to stay in crypto ought to lose their money. Look into it and see how people are being ripped off. It's not the new gold, it's not investing. It's a scam and most people lost but still have not learned.
Crypto is a pyramid scheme. The smart ones got out at the peak. Those who waited too long will be walking around shirtless.
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Yep - a Ponzi scheme. The top of the pyramid has already pulled their profits. Maybe the system can milk a few more dollars, but a bunch of people are gonna be left with nothing
The idea behind decentralized finance and Reggie Middleton's patents make sense. Crypto currency can be an equivalent to cash and used for many transactions without involved a middleman that takes a cut. Or several cuts.
Few people that buy crypto actually hold it themselves, so they're depending on a middleman and basically reproducing the banking system with all their cuts. I wouldn't expect the whole financial industry to not fight decentralized finance in any way they can.
The crypto selloff is a symptom of a bigger problem we're seeing. The value of all assets (real estate, stocks, art, baseball cards, and, very much, crypto) has been pumped up since at LEAST the 2008 recession (if not before), buy the fed pumping cheap, easy liquidity into the economy. Interest rates have been near zero for a long time now. All this money had to find a home. So people who had access to all this cheap cash bought any assets they could find. So everything got pumped up.
Thanks to the flood of cheap Chinese consumer goods, and a flood of cheap frakked oil and gas, this didn't impact consumer prices for a long time. But between pandemic induced supply chain issues and labor shortages, and the Ukraine war, that has ended, and consumer prices are now skyrocketing. This means the fed, at long last, has to yank hard on the money chain. Without all that cheap cash floating around, asset prices are looking inflated and are coming down. Crypto and the stock market are the clearest sign of this, but this also has to be hitting he real estate market. The latter has been somewhat protected because supply is somewhat constrained. But that won't last too long.
