Posted on 05/20/2021 3:53:55 PM PDT by DUMBGRUNT
"Bitcoin: Trendy is the last stage before tacky," quoting the late fashion icon Karl Lagerfeld.
"Bitcoin: Trendy is the last stage before tacky," quoting the late fashion icon Karl Lagerfeld.
“All it took for the cryptocurrency to fall out of style was one tweet and a Chinese government statement,” she wrote.
This is why Labouré says “the value of bitcoin is entirely based on wishful thinking.”
Bitcoin’s (BTC-USD) price plunged 28% this week, this most recent meltdown spurred by an announcement from China and an Elon Musk tweet. The controversial crypto is now losing even more love on Wall Street a day after UBS’s CIO Mark Haefele questioned the need to own bitcoin in a portfolio.
In a note published Thursday, Deutsche Bank analysts joined the conversation with a research note entitled "Bitcoin: Trendy is the last stage before tacky," quoting the late fashion icon Karl Lagerfeld.
“What’s true for glamour and style might also be true for bitcoin,” wrote Deutsche Bank’s Marion Labouré after the latest plunge. “Just as a ‘fashion faux pas’ can happen suddenly, we just received the proof that digital currencies can also quickly become passé.”
In Labouré’s estimation, something has snapped in the cryptocurrency market in the past three months.
“All it took for the cryptocurrency to fall out of style was one tweet and a Chinese government statement,” she wrote.
On May 12 CEO Elon Musk tweeted that Tesla (TSLA) would stop accepting bitcoin for payment due to environmental concerns.
This is why Labouré says “the value of bitcoin is entirely based on wishful thinking.”
Especially, Labouré says, because central banks and governments are likely to begin regulating crypto by early next year — as well as potentially launching their own, like the Federal Reserve’s or China’s digital currency.
(Excerpt) Read more at finance.yahoo.com ...
Something has value if people agree that it does. That’s the only requirement.
—” The value of bitcoin is based on it having a permanent quantity limit, unlike the US dollar.”
How does that work with an unlimited number of Cryptocurrencies’?
Gresham’s law, “bad money drives out good”, will kill the lot of them off.
The Turkish bitcoin exchange worked out so well?
While there is an infinite number, it takes time to mine (validate) them, and that development time is calculated into the value of the existing coins. Bitcoin mining requires an Application-Specific Integrated Circuits (ASIC) hardware device which is expensive and consumes a lot of electricity. It can take months to a year to overcome the ASIC and electricity cost to start earning profit.
Keep in mind that governments have an infinite number of zeros and ones they can inject into a financial system. They can be easily and fraudulently shown to exist as "value" in multiple locations. With cryptocurrencies, at least each coin is serialized and takes its financial history with it.
No disagreement, except there, is no underlying value with bitcoin.
“Smith’s theory of value was very similar to the later utility theories in that Smith proclaimed that a commodity was worth whatever labor it would command in others (value in trade) or whatever labor it would “save” the self (value in use), or both. However, this “value” is subject to supply and demand at a particular time”
No diamond mine with dwarfs laboring to pick out the diamonds? The labor theory of value!
What is the intrinsic value of a crypto coin?
Some computer humming day and night creating heat?
Pls see #43
“ How does that work with an unlimited number of Cryptocurrencies’?
The vast majority will never catch hold and will dwindle into oblivion
While BTC has taken a LOT of hits this week, from Musk’s dumping it, denegrating it, central banks dissing unregulated cryptos, “hidden” ransoms paid to the tune of $5M to $90M, and lots of smaller stories, it is defying gravity hovering in the low $40k range.
It’s like the DOW this year - there is no real good news in the economy under BidAn/Caballa, yet it hovers well above $33K, also defying gravity.
Not sure what to make of that... it’s kinda baffling.
It sure is and at $40,000 each there is a whole lot of people thinking "I wish I would have bought some bitcoin".
Douche Bank can Suck it.
Paper money has no value underlying it but the Fed Reserve, so. But you are right about it not being an asset like a product. Its an encrypted currency.
I’d say the only way for us to avoid inflation is for productivity to rise, and for that stocks are a better recourse. But if the Market crashes then the money supply disappears too, so.
—”Does he think gold has value because it has some necessary purpose to life?!”
Pls see #53
If only that heat could be converted to electricity, we’d have the makings of perpetual motion... and perpetual energy.
Evidently you are grammatically/mathematically impaired.
A bitcoin can be divided into smaller portions, like a dollar can be divided into pennies.
Doesn’t increase the number of bitcoins.
—”Something has value if people agree that it does. “
Only when they are on both sides of a transaction.
Zillow may show your house with a value of X.
Means nothing until you close the deal and the check clears.
Three or four of these "Tulips" could buy you a Ferrari.
—”The vast majority will never catch hold and will dwindle into oblivion”
And Gresham’s law will drive the remainder into oblivion.
—”Not sure what to make of that... it’s kinda baffling.”
Any action involving humans tends to go in that direction.
Gresham’s law says undervalued money will drive out overvalued money.
You may be correct.
We shall see!
It's much easier to mine an once of gold right now than to mine one bitcoin. The supply of bitcoin is fixed forever at 21 million. It's supply and demand and if the global demand remains and continues expanding even at a slow but steady pace bitcoin will reach a staggering price level.
So it's a lot of wishful thinking alright. Mostly by people who wish they would have bought some bitcoin.
But....all is not lost if you feel you missed out. What many people don't even realize is you don't need to buy whole bitcoin at 40K. You can buy a fraction of a bitcoin. If you want just $100 in bitcoin you can do that very easily. When bitcoin hits 120k your $100 will be worth $300 or if it goes down to 20k your $100 would be worth $50. It's just like any other investment.
—”Evidently you are grammatically/mathematically impaired.”
Why yes, of course, I happen to be a simple Dumbgrunt.
That said, you seem to miss the point about the many DIFFERENT cryptocurrencies. Not division of any specific coin.
And YES, it would increase the total number of different coins.
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