Posted on 06/15/2022 3:49:36 AM PDT by dennisw
Cryptocurrencies including Bitcoin are plunging amid market panic today Bitcoin fell nearly 8% to nearly $20,000, its lowest value in seven months
Market has been spooked by US Federal Reserve plan to hike rates
Cryptocurrencies including Bitcoin are crashing in value again in a new digital currency plunge as spooked traders frantically sell off assets before the US Federal Reserve is expected to raise interest rates today.
Bitcoin fell this morning to a new 18-month low as the recent tumble in crypto markets showed no sign of letting up.
The world's largest cryptocurrency fell as much as 7.8% to $20,289, its lowest since December 2020, before rebounding slightly. It has lost around 28% since Friday and more than half of its value this year. Since its record high of $69,000 in November, it has slumped about 70%.
Smaller cryptocurrencies, which tend to move in tandem with bitcoin, also fell. Ether, the second largest token, has tumbled more than 15% to $1,017.20 this morning, a new 15-month low, then similarly bounced back slightly.
Meanwhile, US stocks also fell amid as expectations of sharper US Federal Reserve interest rate hikes as inflation soars heaped pressure on risky assets and rattled global markets.
Today is the latest in a series of crashes for Bitcoin, which has seen it drop more than 60 per cent in value over the last seven months and wiped hundreds of billions of dollars off the entire cryptocurrency market this week.
Cryptocurrencies have been hit hard after US crypto lender Celsius froze withdrawals and transfers between accounts, stoking fears of wider fall-out in digital asset markets already shaken by the demise of the terraUSD and luna tokens last month.
(Excerpt) Read more at dailymail.co.uk ...
People who speculate are those getting hammered. BTC is a long-term investment. I still have BTC. I have no doubts that BTC will continue to drop as the Whales and Investment Firms/Banks and those with excess capital continue to buy it up.
So why not sell all your bitcoin and buy back later at lower prices? No- Because you would have to pay capital gains taxes? Though my understanding is that many or most BitCoin, Ethereum, etc. owners buy and sell in a way that the IRS cannot keep track of them, to tax them. No need to say which category you fit into.
I do see a lot of cockiness from people who believe in NFT’s and Crypto’s. Not a good trait in salespeople.
I never understood the allure of an NFT, with right click and save available.
When BitCoin peaked at $67,000 last November, I would say to my buddies, “Look at that effin’ Bitcoin!!!”. I was pissed I never bought any. No need for that now. Those crypto bastards!!! have been sucking the life out of AU, which is a much better SHTF investment. Even FRNs hidden under your mattress are a better investment than crypto currencies these last four months.
“Everyone here doing their victory dance over the death of crypto will see this cycle again,”
I don’t lump bitcoin into crypto as a whole. I always say bitcoin is a hobbyist designed coin that has serious design flaws for scaling out to the size needed for wide use, which other professionally engineered coins won’t have. BTC will slowly die off and those coins will be in use.
It’s no different than saying stock X is doomed. That does not mean stocks and the stock market are doomed.
People confuse one particular crypto coin, i.e. bitcoin with cryto. Same as confusing one penny stock with the broad stock market. A lot of the current crypto coins are like bad flash in the pan penny stocks. Shoot up like a rocket, but those company’s product or business plans were flawed and they crash, unlike world class stocks like Apple, or Intel, or...
Crypto is like stamp collection, except there are not stamps, but some bits in some computers.
It is collectible, worth whatever people will pay for it.
Real value=$0.0.
Basically people investing in crypto are
1) Criminals and similar types. It is conceivable and easy to ship overseas. E.g. Russian oligarchs have tons of money in crypto.
2) Crazy speculators, hoping to get the timing right.
3) Mislead innocents.
Yeah, I am aware that Bitcoin and Ethereum are better structured and more responsible than the crypto fly by nighters. Many have made tens of millions by inventing then pimping their crappy, home brewed cryptos.
The new cryptos sold for lower, people friendly, penny stock prices, while BitCoin was in the stratosphere.
To be fair, can anyone give a concise definition of what a Federal Reserve Note is? You have a normalcy bias because it has been around your entire life so you don’t question it. Pretend you were explaining Federal Reserve Notes to an alien. How would you do that?
How many of the Federal Reserve notes that you spend have actually touched your hands?
How are they created?
Once created, how do they get put into circulation?
Where do they get their value?
etc, etc, etc...
Can you give a “simple concise definition” for Federal Reserve Notes?
I simply ascribe to “Whole-Coiner” psychology and believe that it will someday in the next few years be worth $200K, and by 2029 it will be on the verge of $1M USD. That said, I think there is a possibility with the Biden economy it can still drop to $14K or evern $8K, thus keeping my powder dry for buying opportunities.
I almost bought 10K of Dogecoin at about $.20, but couldn’t wade through the steps on my phone to register and buy.
Today it is at 0.054.
Silly me.
I agree with you, but good luck explaining it to the Luddites on FR. Godspeed.
Thanks!
“and believe that it will someday in the next few years be worth $200K, and by 2029 it will be on the verge of $1M USD.”
So what if better coins are introduced and get more wide scale usage? The first computer, car, gizmo is rarely the one that is standing years later, as competitors make new, better, cheaper widgets.
P.S. That will happen. Those will be used and bitcoin will be in a Crypto Coin museum.
Hopefully y’all sold your craptocurrency about 10 days ago ...
I own some random numbers. Some are generated from pass phrases (deterministic), others were just randomly generated. All of my random numbers can be put through a complex one-way function to produce an address. My address is in the blockchain because someone assigned value (# of bitcoin) to my address. They assigned it from their address, and they did it by signing the transaction using their random number which only they know.
Chicken and egg. How did they get theirs? Many were created years ago. But new addresses owned by miners are assigned value, automatically, every 10 minutes, when the miner completes a task and gets lucky competing against other miners. Those bitcoin are created from thin air by the algorithm. But the algorithm is well-designed and vetted so it can't be gamed. The task that the miners complete is to perform all the bitcoin transactions and record them in the block chain. All the transactions are validated by all miners so again, it can't be gamed.
All it amounts to is a way to immutably record transactions. The transactions are nothing more than transferring various amounts of bitcoin from some addresses to other addresses. The bitcoin themselves have utterly no existence other than that record (the blockchain). They have utterly no value other than a buyer is willing to send something of real value to a seller with some bitcoin in the blockchain. The seller uses his random number to transact the bitcoin from his address to the buyer's address.
I think what many crypto-coin investors ignored is that many of their co-investors were not “true believers”, like them, but just speculating and with speculating what is gaining popularity can be a good buy - for while.
But then when the other markets started getting hit, many cryto-coin investors were also in those markets, and taking losses. They began selling their cryto-coin to cover their losses in other markets, some made on margin.
The big affect is that cryto-coin “true believers” were under the impression that crypto-coin investing was a hedge, a hedge against inflation, a hedge against the shenanigans of the Federal Reserve and a hedge against the conventional investment markets. I think that idea was only ever possible in a world where all cryto-coin investors have no stock in anything else. But that is not the real world. In the real world cryto-coin investing will be just another market, but not an isolated one and one not sheltered from big financial macro trends that wil hit all investing in some way.
I traded all my Terra coin for Gwenyth Paltrow NFT farts. I’m sitting pretty.
“So what if better coins are introduced and get more wide scale usage?”
so would make future “coins” “better” over current “coins”?
“Bitcoin is an electronic payment system that does not require trust or third party mediation.”
well, aren’t the millions of “miners” third party mediators, given that all the miners actually do is verify new transactions on the blockchain?
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