Posted on 05/19/2021 8:12:16 AM PDT by Red Badger
Bitcoin and other major digital assets sank on Wednesday after China warned investors against cryptocurrencies.
Virtual currencies can't be used to conduct business as they don't have real value, China's central bank said.
A price drop below $30,000 for bitcoin wouldn't be surprising, a senior market analyst said.
Bitcoin and other digital currencies plunged on Wednesday after the People's Bank of China announced digital tokens can't be used as a form of payment by financial institutions.
Bitcoin fell as much as 31%, to $30,016.83. Binance Coin fell 32% to $337.27, dogecoin fell 30% to 36 cents, and Ethereum's ether fell 44% to $1,918.773 at intraday lows.
Virtual currencies shouldn't be used in the market as they are not supported by real value, three Chinese payment industries said on Tuesday.
Bitcoin continued its week-long slide first sparked by Elon Musk's climate-related concerns over its mining process. Billionaire Mike Novogratz predicted bitcoin will consolidate somewhere between $40,000 and $50,000 for up to six weeks after Musk's criticism of its energy use.
(Excerpt) Read more at markets.businessinsider.com ...
I do not understand bitcoin. It seems to me to be vapor money.
That about sums it up.................
Of course paper folding money doesn’t have real value either, but it is accepted for paying bills because the government says so. The same government that issues paper folding money from time to time so as to dilute its purchasing power without telling anyone.
In the USA, our dearly beloved federal officials are waiting and watching bitcoin. When they feel the time is right they will swoop in with a ton of regulations that show us that they believe all money belongs to them, and we deserve only what they choose to give us.
That’s about 50% drop from it’s high’s.
I’m thinking the FED announcement on Fed crypto was the nail in the coffin. But totally forseeable.
At the end of the day, any medium of exchange is only worth its consensus value. Whether it’s gold, silver, wampum, BTC, tulip bulbs, or the USD, they’re all the same.
Y uan
EBT, Debit Cards and Credit cards are ‘money’ that is just ones and zeroes in a bank computer somewhere.
How is this any different than Bitcoin, Ethereum and others?........................
> I do not understand bitcoin. It seems to me to be vapor money. <
Some folks have made the argument that bitcoin is simply a hedge against paper currency. As the dollar falls, the value of bitcoin should increase. Well, if that’s true there’s going to be a ton of bumps along the way.
Maybe I’m just too unsophisticated to see the sense in doing that. It seems more like a pyramid scheme to me.
And as you noted, you’re really not holding anything with bitcoin. It’s just a bunch of zeroes and ones. At least during the tulip craze you owned something real, namely tulips.
At least fiat money is backed by bullets.
As if fiat currencies created by governments have "real value."
But China simply said what they have been saying for years.
Chart: https://www.coindesk.com/price/bitcoin
According to that chart, the lowest it got was just a brief blip in the $30,600 range, and only very briefly.
“At least fiat money is backed by bullets.”
And the taxing authority on a 20 trillion economy in the case of the US dollar.
Did you happen to notice that the 1040 form for 2020 had a question about bitcoin on it?................
EBT, Debit Credit cards “How is this any different than Bitcoin...?”
You have to burn a whole lot less coal to get the former.
“I’m thinking the FED announcement on Fed crypto was the nail in the coffin. But totally forseeable.”
The major central banks ignore hobbyist crypto coins right now because they are like a gnat on an elephant in the grand scheme of things. But the moment that gnat gets large enough to irritate the elephant, it is a goner. That day will soon be approaching. China’s elephant got irritated. India’s is starting to get irritated. The rest to soon follow.
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