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 ...
No there isn't and it's clear you don't understand Bitcoin at all. There are about 21 million bitcoins that can ever be mined and about 17 or so mil have already been found. The supply of bitcoin is fixed at 21 mil. It's supply and demand and the supply is limited.
I have no idea what you are trying to say.
Are you using a random word generator?
Governments hate that they don’t have a nice slice of the pie.
by asking that question, you have demonstrated that you know nothing about bitcoin
What is the definition of money/currency?
What determines the value of it?
I would like to ask these geniuses that.
I was speaking of the top 20 economies in the world and their currencies.
While it is true that fiat money like the US dollar is not backed by tangible assets like gold or silver, the dollar at least has the backing of a erstwhile stable government and economy. Bitcoin is pure vapor. However, the value of all fiat money is tied to the economic and monetary policies of the government issuing them. Printing money and inflating the money supply always devalues the currency. Zimbabwe and Venezuela are good examples. Sadly Biden is doing the same to the US dollar.
Before you get yourself off with your comments…you might want to take just a few minutes to understand what you are talking about. Your ignorance on this subject is breathtaking,
Golds only source of value is its durability and… SCARCITY.
It’s labor value is near meaningless other than it’s difficulty to obtain which is, BTW, true of Bitcoin now.
Actually - I haven’t used cash at all in the past year and all my transactions have been through a credit card (either with a swipe or via internet transaction). That makes fed “currency” just as much “vapor”.
Now it’s true that Bitcoin doesn’t have the backing of a government behind it - but that’s a nature of currency used for trade and that ADDS value to the “coin” of the realm.
Without a government backing it and especially with governments attacking it - Bitcoin could go poof tomorrow whereas you’ll always have some value in the US Dollar… maybe… try trading for some Bolivars in Venezuela now.
Who backs your currency kids ?
At one point tulips were exceeding expensive
—”What is the definition of money/currency?
What determines the value of it?”
Great questions and fun too!
Now if we can have some time with the legendary ‘One Armed Economist’? I think he may have passed?
IMO...Select several explanations for the value of money and listen carefully, you will hear Johnny Mathis in the background (Feelings...) IMO it is a component in most definitions.
Is Bitcoin a commodity, a currency, or both?
If crypto coins are a fiat currency lacking a government, they have no intrinsic value. (Yes the Chinese and other planned crypto coins are government-issued.)
IMO it has a market led price, and nothing more.
Here is a bit on Adam Smith Value Theory that I posted above:
“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?
If they are fiat currencies their intrinsic value is ZERO.
That said, some have more value than others. (Yes I know)
Total 100% agree!
This should be cut and pasted on about half or more of the responses on this thread.
And no need for Truman’s legendary economist.
—”Golds only source of value is its durability and… SCARCITY.”
Not exactly.
In just a few minutes one can move a magnet around in loose dry earth and find iron quickly.
Here in DuPage County Il, I have taken a pan of loose sand and water, worked it carefully for a few minutes.
With some luck and bright sun, you may see a few minuscule flakes of gold.
“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”
I do know nothing about bit coin.
FIRST!
I’m not attempting to troll or prove how dumb I am.
I ENJOY THIS TOPIC and like to hear other views, like RJ’s succinct definition above.
—”That makes fed “currency” just as much “vapor”
I see that has a false dichotomy.
The problem is that the correct response would be long and complicated. Also WAY beyond my ken.
Yes, everyone jokes about the “full faith and credit” phrase, but there is something to it.
The history of a mostly stable dollar.
Past performance is not indicative of future results!
But it can be a helpful indicator.
Pls, see #98 and associated comments.
While I don’t necessarily disagree with their findings, I’m not sure I would accept Deutsche Bank’s word on anything.
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