Posted on 01/22/2022 12:47:10 PM PST by Scarlett156
The week’s crypto crash has hit an astonishing round number, Bloomberg points out: it’s now lost more than $1 trillion — that’s trillion with “t,” a staggering sum — in value since late last year.
Bitcoin alone lost more than 12 percent of its value on Friday and dropped to its lowest level since July of 2021, bottoming out at a wretched $34,000 at press time. That means that since a peak in November, it’s lost more than 45 percent of its value. Other coins have lost the same, if not more, value in the same time period.
Bloomberg reports that this marks the second largest decline ever in the currency’s history, according to Bespoke Investment Group.
“It gives an idea of the scale of value destruction that percentage declines can mask,” Bespoke analysts told Bloomberg. “Crypto is, of course, vulnerable to these sorts of selloffs given its naturally higher volatility historically, but given how large market caps have gotten, the volatility is worth thinking about.”
The current crypto crash is especially astonishing when compared to one of the darkest days is US history — October 29, 1929, commonly known as Black Friday — when the stock market crashed, taking about $14 billion in wealth down with it By the end of 1929 only a few months later, the losses totaled around $40 billion.
For context, $40 billion in 1929 dollars — lost in a similar time frame to the current crypto crash — adds up to about $600 billion in 2022’s dollars. That means the current crypto market crash has lost more than the losses in 1929 that spurred the Great Depression of the 1930s.
Given those flabbergasting figures, it’s worthwhile to consider how the crypto world could try to tamp down its signature volatility.
(Excerpt) Read more at futurism.com ...
*gets an error message*
*waits patiently*
Dunning-Krugerrands.
You cannot destroy wealth. Crypto is just more of the “imaginary bull**** wealth”...intagible assets are not assets at all, just deception.
Crypto and Gold & Silver Ping.
I just got my Compaq Presario rigged for Bitcoin. I’m gonna be rich!
I admit I’m a doofus, but what is the value of crypto-currency based on? What is it tied to? I’m just confused.
But people do really get their real bank accounts wiped out. (Of course, we would always argue about whether money in the bank is real or not!)
You've heard of "fiat money" which is based on the faith and credit of t
The way it was explained to me was like this:
Let’s say you go across the Sea to mine for A precious rock.
On the way back the rock falls overboard. You still own the Rock but it’s at the bottom of the Sea.
Since you own it, you can sell it to somebody else willing to buy it.
That’s what you’re buying when you buy bitcoin.
No I am not kidding.
“Verified transactions.” So haha!
I don’t understand the concept of crypto-currency either. It seems to be based on nothing.
Yes. The real value of Bitcoin = $ 0.000 !
You've heard of "fiat money" which is based on the faith and credit of the United States? When crypto-currency is based on NOTHING.
Buying opportunity - I buy more at every downswing. Its volatile and not for “nest egg” funds.
Is it designed to up and up and then crash ? LOL
Apparently you really do understand the concept of crypto-currency. When the SHTF try buying a loaf of bread with "crypto-currency". If that doesn't work, try a cabbage patch doll.
I cannot imagine thinking that I owned something that someone, whose reputation and character are unknown to me, sold to me for hard cash and I can’t see it or touch it. Maybe I would buy it if I could tell him I’m a Nigerian princess with a 10 million inheritance that I can’t get my hands on right now and he’d have to sell “it” based on my claim.
Imaginary currency is unstable? Who’d a thunk it? Next, they’ll be telling us that fiat currency is subject to inflation. Pffft.
Crypto always smelled too much like tulips to me.
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