Posted on 01/22/2022 8:23:11 AM PST by millenial4freedom
An already dramatic crash in the crypto markets has become yet more drastic, with bitcoin and other digital currencies losing hundreds of billions of dollars from their value.
Bitcoin has now fallen 16.8 per cent over the last week. Other coins have seen even more dramatic losses: ethereum is now down 25 per cent.
That follows what was already the worst start of the year for bitcoin in history. After hitting a record high of almost $68,000 in November, it is now worth under $36,000.
(Excerpt) Read more at finance.yahoo.com ...
I first read about Bitcoin when it was $13. What I read about it going up because of the fixed maximum number of BCs turned out to be true. Like you, if I had bought some then I would have cashed out a long time ago.
Losing 50% when you expect to make 1000% is a big difference.
Digital gold = I think not can you imagine the lines outside your local coin dealer if gold were on sale for 50% off?
Back when silver was $40 an oz, I’d pull out this roll of ten silver dollars and say, Back when we were in high school (early 70’s) you would put these in dollar slot machines. These were worth ten bucks. Back in 1920 they were worth ten bucks. Now they are worth $400. It’s not that they became so valuable. It is that the money (dollars) in which we measure their value have lost so much value.
It makes me sick.
Bitcoin is going to ZERO in the next few years. It is a hobbyist designed coin that has some fatal flaws and will be replaced by central bank coins designed from the ground up to scale out to the extent required. The first auto companies did not go to become the ones that scaled out nation wide like Ford. This is the same scenario. Bitcoin = dodo bird.
No, you would make a tremendous investment manager. You could print up a glossy ad that says exactly what you said above about generating a 10% profit. Simply add the following to CYA and you're good to go: "Past performance doesn't indicate future returns. This is not an investment solicitation. Before investing, consult with your financial and tax advisors." ;)
“It is that the money (dollars) in which we measure their value have lost so much value.”
Wrong way to look at it. Do you get paid the same weekly wage as when that silver was $40? Is your house worth the same as when that silver was $40? Are your stocks worth the same as when that silver was $40? The answer to each of those is “No, they all increased as more dollars went into circulation as the economy grew bigger”,
“People sure seem happy to put lots of their money into something that could be worth nothing overnight”
the very definition of a bubble ...
“Its downward pressure is probably accelerated by people trying to sell it off.”
the very definition of a crashing bubble ...
“It always cracks me up when people say it’s better than “fiat” money.”
what cracks me up is that cryptotrash is ALWAYS quoted and traded in U.S. dollars here, you know, that completely worthless fiat currency that folks can use to buy and sell anything and everything their heart desires ...
“So I guess I’d make a lousy investment manager.”
absolutely not: you can NEVER go broke taking a profit ...
“Crytos currencies like bitcoin losing 50% of their value in less than 3 months would seem to indicate a FAIL on that metric.”
that and the fact that you can’t use them at the local laundromat or carwash ...
Again-its very simple; history and the investors risk tolerance. Its not that difficult. People make millions in high risk stocks and people lose $$$ as well.
What level would be too high?? For me i wouldn’t buy over $32K. Someone else may not buy over $3200.
“Sounds like a pyramid scheme on steroids”
jumps up and down waving hands: call on me, call on me; i vote pyramid scheme ...
every time there’s massive, excess and unproductive money sloshing around in an economy, there’s a mad rush of said excess money to the next big thing ... and EVERY time, said next thing explodes in price, followed by an explosion of the bubble in said thing ... said thing is different each time; in the past, there’s been bubbles in tulips, stocks, dot.coms, and houses ...
but there’s an important value to said bubbles and bubble collapses because they remove the excess money from the economy. unfortunately, the naive, ignorant, and stupid are always left holding the bag, while the knowledgeable, wealthy, wise, and yes, insiders make out like bandits ...
and cryptotrash is the thing this time that will be the primary vehicle for deflating the monetary excess ...
I have noticed that the charts of most cryptos are identical. That is the price may be much different (e.g., $40K/BTC but less than a quarter for Dodgecoin), but they move in almost exactly the same manner. Same percentage gains/losses. That always seemed off to me.
You can see it, touch it...sometimes I have to fix it but by God it never vanishes overnight.
I have dabbled in RE and it’s a pain in the butt. It kept me up at night far more than most investments.
Over my lifetime, I have had one really large RE windfall, two modest profits, two break evens, and two losses. The windfall was great, but also kind of dumb luck. Due to a transfer, I brought at the right place at exactly the right time. In hindsight, the best place to buy LE ever was CA in the post war era. Sadly, I did not live there.
My favorite investments have been some good performing no load mutual funds (Fidelity and Janus are my faves) and a few good dividend paying stocks. I love watching my qualified dividends rolling in.
A little bird told me they watched someone get wiped out to the tune of $37 million shorting the Ethereum market yesterday.
The value of Bitcoin is easy to determine—it is a function of the orbit of Uranus.
;-)
Whoa nelly. The idea of flipping is to buy cheap and sell fast. Before the taxes come due or winter arrives. And I never put tenants in the houses. I don't do extreme sports and if I did I'd start with jumping from planes. Gravity is friendlier than the average tenant.
Exactly. It is because the money is worth less and less as time goes on. Based on your last sentence, you and I are saying the same thing from different angles.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.