Posted on 01/01/2021 7:51:20 AM PST by AggregateThreat
The figures underscore what many have described as an ongoing liquidity squeeze in Bitcoin, where large buyers suck up any available supply and remove it from circulation, sending it to cold storage for long-term hodling.
As Cointelegraph reported, the phenomenon was already visible in November, but December saw a clear increase in demand from Grayscale and other institutional entities.
(Excerpt) Read more at cointelegraph.com ...
I’m conflicted. I have some Bitcoin and love watching my wallet soar, but I also want to upgrade my graphics card for a reasonable price.
That’s just not analysing the situation carefully...
Care to expound on your comment?
Something that has no intrinsic value, like paper or virtual currency, eventually relies on its value by the backing of the “institution” that issued it. Dollars are universally accepted as the most stable* currency. It is backed by what is currently the world’s most stable government which controls resources and military prowess unequaled by any other issuer. Who or what stands behind Bitcoin? If you had to pack your bags and flee someplace, which would you prefer? Dollars? Or, Bitcoin?
*Stable...The Obama administration doubled the world’s supply of dollars twice and then added another $87 billion’s worth of dollars every month to the economy for several years. This was in a futile effort to stimulate an economy that he had quite literally killed by failed economic policies. Out of fear their money could be seized at any moment, as was shown by the “secured” bondholders in the GM disaster, institutions and private investors kept their holdings in cash. This led to the Trump economy once Obama was out of office. Several years of pent-up demand and what would have been natural growth took place in just four years instead of the previous eight. You’d think they’d learn, but politics “trumps” reality every time.
I have been mining with one machine for about 2.5 years. I have had about 0.23 bitcoin. Yesterday, I sold half making $3700. I still have 0.12 figuring if it does go to the moon, I’ll still be able to make money, but if it bottoms out, I’ve already made money.
Initial investment for the miner was $970. I have no overhead as my electricity is included in my rent. Not a bad ROI.
brilliant.
“...no inherent value, but tell that to the billions of dollars flowing in to it right now...”
I see the madness of crowds and smell the heady scent of tulips.
Electronic money is only as trustworthy as the power grid.
No thanks.
It really comes down to who has the guns and missiles, right?
Because bitcoin and the US dollar both lack true value.
Although the US dollar was backed by metals in my lifetime.
God, gold, guns, and guts...
I would not bet the ranch, but I would bet my lawn mower.
When you cook or bake during the winter you are either heating your house for free, or baking free.
Bitcoin mining, the new home cooking during winter.
Currency isn’t backed by the institution that issues it. It’s backed by people’s willingness to take it in exchange for goods and services. Nobody cares who puts it out, what matters is who will take it. As long as you believe you can trade a currency for stuff you want you will be willing to take that currency for stuff.
Haven’t seen that kind of manipulation since Nelson Bunker Hunt cornered the silver market in the 1970’s. As most responsible investors realize Bitcoin is selling “fresh air in a can”. Even with China trying to make their crypto the reserve currency of the world so arms and drug dealers don’t have to use dollars, the scam is not going to work. There is no legitimate use case for anonymous currency transactions.
They stopped mining with graphics cards about 7 years ago. They use ASIC machines now. They can also be used to heat your warehouse. LOL.
With my ASIC (mining machine), if it didn’t sound like a jet engine, the exhaust fan could heat my entire downstairs...lol.
Maybe those miners should learn to code.
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