Bitcoin plunges another 10% after near-collapse of major exchange: FTX is hit by $6BILLION in withdrawals over 72 hours amid panic over its financial health as it strikes bailout deal with arch-rivals Binance

UK Daily Mail ^ | November 9, 2022 | Jack Wright and Keith Griffith

[C19fan]

Cryptocurrencies have tumbled in a wild 72-hour market panic over the near-collapse of one of the world's biggest digital assets exchanges and a hostile takeover by its larger competitor sparked by a public squabble between rival billionaires.

[Chode]

those what made a fortune aside, crypto is not an investment...

[Boogieman]

“exhanges do things like lend against items stored with them...”

Sure, banks do that too, but at least the banks are insured by the feds to some degree if such risky behavior leads to catastrophic losses. I don’t think the same is true with these crypto exchanges.

[Boogieman]

“Imagine a private party being able to issue currency without any supervision.”

But they’re not issuing currency. It just doesn’t meet the definition.

Even our modern state-issued currency barely meets the definition, and only because it has the backing of a legitimate government who people have some confidence in. Crypto has absolutely no backing at all, so once people notice it’s a mirage, they’re nothing more than collectibles.

[Truthsearcher]

That’s my point. It’s not really currency but people are believing that it is, it’s only backing is the integrity of the people running the exchanges.

And we are shocked that for most people their integrity is for sale, particularly when we are talking about huge sums of money involved.

[I want the USA back]

Fiat “currency” that’s exchangeable for another fiat currency that’s based on the good faith and credibility of the US government.

[Chode]

other than the miners making money, it is simply a means of exchange across platforms and creditors, specially if you don’t want others eyeing your transactions, nothing more...

anybody that bought it as an investment will be lucky if it doesn’t zero out

[Vermont Lt]

Crypto is the least of your worries in an EMP world.

[Theoria]

The weird part of cryto, was during cheap electricity, the price for btc was say 70k. Now, with inflation, crypto has fallen with rising energy prices. That one is odd to me. Rising prices to ‘mine’ would have created higher prices and limited production. Perhaps it doesn't work like that. Strong usd sure has knee capped btc, etc.

[Chode]

the only variable is the electric cost and all machines run 24/7/365

[CapnJack]

“A crash in the fake currency market. Is that a bad thing?”

No ... as long as it takes a bunch of Gen “Z”ers and Millennials along with it.

[Jumper]

This in part is a result of a bank run. Just saying.

[Jumper]

FTX ownership leveraged heavily his company and it resulted in a classic run.

[Wildbill22]

If you agree that crypto is a high risk investment, and it crashes, then you should be happy.

I own it, and am still buying at bargain basement prices, and if you don’t believe in it then try to understand if you back off into seeing the bigger picture you would see if you bought it 14 years ago it is still a really good investment.

If you bought it even recently, dollar cost averaging, you would still be ahead of any other investment.

Don’t risk what you can’t lose, but ‘no guts, no glory’.

[Jumper]

I mined Eth from 2017 until the end. I own 4 BTC. My children each have one BTC.

Let the good times roll. All the world banks are purchasing BTC. It will make those who hold it rich.

[neefer]

The weird part of cryto, was during cheap electricity, the price for btc was say 70k.
That's because the price of electricity doesn't impact mining as much as we're told. Bitcoin (but not all crypto) moves to where the electricity is cheap. It's not a local currency. Trader University recently published an excellent video about the electricity lies surrounding Bitcoin: Bitcoin And The Energy Morality Police

Now, with inflation, crypto has fallen with rising energy prices.
The value of most assets has also dropped. (except some real estate which is not a liquid asset) Stock futures had a big sell off. It's the nature of inflation, not crypto. The "only" solution by the Feds is higher interest rates which will soon cause the housing market to drop in value too.

Rising prices to ‘mine’ would have created higher prices and limited production.
I feel I'd have to write a book about Bitcoin to refute this statement. Let's just say, I'm married to an IT guy and we run a Bitcoin node. If electricity became an issue, we'd distill plastic and run a generator to keep the node up and possibly mine. If Bitcoin "crashes" to $10K, he and I will get into an argument about which guns I'm pawning to buy more "funny money." That's a bear market price enthusiasts would love to buy at. Bitcoin is here to stay. Subscribe to Trader University on YouTube if you want to learn more. Matthew is a wealth of knowledge.

[avkillick]

The CEO is a huge Democrat donor (top four in the country)

[Theoria]

Thanks for the info. I will certainly stay in my lane. Never invest in something you[I] don’t understand. Glad it’s working out for yall.