Posted on 05/08/2022 8:50:35 PM PDT by lasereye
Bitcoin continues to fall, extending its losses from the past week.
The largest cryptocurrency by market value dropped 4% in the last 24 hours, according to CoinGecko, breaching a key support level and hitting a daily low of $34,406.
It’s currently trading at around $34,519, down 9% in the last seven days and down 40% year to date.
Ether, the second-largest, is also in the red, down 6% in the last day and down 7.4% in the last week.
Overall, the cryptocurrency market is taking a hit, down 4.2% in the last 24-hours.
Though weekends are typically bad for Bitcoin and cryptocurrency in general, this nosedive comes after the Federal Reserve indicated it would raise interest rates by half a percentage point on Thursday, which sparked a stock-market selloff.
Bitcoin and other cryptocurrencies are increasingly moving in sync with tech stocks.
“Bearish sentiment continues to prevail as the Fed looks to slow down inflation at all costs. This has led to stronger correlations between stocks and crypto over the past six months,” crypto market analysis firm IntoTheBlock wrote in its Friday newsletter.
Lucas Outumuro, head of research at IntoTheBlock, told Fortune last week that “until the market starts looking past the impact that [quantitative tightening] and raising rates will have, I find it difficult for Bitcoin to establish a broader up-trend.”
(Excerpt) Read more at finance.yahoo.com ...
They changed relative to other currencies which are also not backed by anything. You're confusing the question of being stable relative to other currencies with the question of why it has any value in the first place. If a currency must be backed by something to be worth anything then virtually all currencies would be worth zero.
No one is arguing that currencies have no useful purpose. Go read the link provided to know how currencies are valued.
And the useful purpose is why currencies are worth something.
No kidding, but the whole discussion here is about what that worth will be in the future. Is anyone saying the US dollar has no worth today? Is anyone saying bitcoin has no worth today?
A person going to the market in Venezuelan to buy chicken doesn’t care about the bolivar’s forex exchange rate against other currencies. They care that the government devalued the bolivar another 20% that week, and the bolivars in their possession LOST VALUE by that amount when buying chicken.
If you mean BitCoin Cash the max rate is still pathetic, only increased it by by 8X. And no one pays attention to it because it has not scaled out widely enough to cause a problem. As ridiculous as claiming some options exchange that could only handle 1000 trades per minute is now ready for Wall Street because it can now do 8,000.
I love seeing people write bitcoin’s epitaph…again. LOL.
The haters just give the rest of us more time and bandwidth to buy in.
In another 3 years when it’s trading closer to $300k-$500k, it’ll dip down again 50%. “Crypto is dead. Again!” Rinse, repeat.
What’s the max transaction per second rate on Lightning Network transactions?
Doesn’t matter since that is just a hack to fix a design flaw. Doesn’t change the true underlying rate.
So, it kind of does matter.
“Crypto is dead. Again!” Rinse, repeat. “
You make the big mistake of confusing crypto being dead with bitcoin being dead. Other coins will overtake it. The first of anything rarely is the one standing years later. Newer, better competitors overtakes the initial first stab at something.
I'm not mistaking anything. I'm quoting directly from an above the line link on Drudge from earlier today in The Spectator:
As far as bitcoin being overtaken, maybe. The card association rails (Visa, MC, etc.) are essentially 70 years old, even though they've been upgraded over the years on both the hardware and networking side. Even with cool new things like PayPal and Apple Pay and other alternatives, they're still the majority of transactions in the US (similar rails in other countries but different schemes based on the same tech).
As a speculative asset, I don't see anything overtaking it in my lifetime, but who knows? That's what makes it fun.
If there's something better, I look forward to buying in.
Haha gold has NO passive income. Gold is just a value pot.
By passive income I refer to something like coinbase wallet. There you get income but it is not in cash. It is simply added to your account. That is well and good if you cash out before the Ponzi scheme goes belly up.
Go look at any stats on coin capitalization. Just in the last two years alone, bitcoin has fallen from 60% to 40%, and the big guns have not even gotten on the playing field yet.
“As far as bitcoin being overtaken, maybe.”
So if you’re invested in btc and expecting $500,000 years from now, it does matter.
The value of US $ comes from power & ability of government to collect taxes from productive operations, wages, property etc. Crypto has no power that I know of.
It has the power of greed, an extremely strong power. Fools will throw billions of dollars at some oddball coin, just because they think some some greater fool will pay more in the future. The market capitalization comes from wild speculation, not utilitarian value as a payment method.
BTC May futures trading @ 30K, way below the price in this article’s title of 34K.
Most of that (probably 90% of the non-bitcoin market cap) are:
*ETH and ETH forks (probably in anticipation of the Flippening, which still hasn't happened and probably won't in the near future), and otherwise offer different use cases with digital contracts and NFTs
*Stablecoins, which are inherently not speculative assets, yet build network and market support for blockchain payments
*transactional-joke coins like Doge and SHIB, which are actually useful for smaller ticket transactions, but are useless as a speculative asset
I see all of the above actually building support for bitcoin being the crypto asset king.
As a mechanism for transactions, we'll see. Big ticket, luxury, and real estate are already exploding in bitcoin transactions, and downstream mid-small ticket retail is getting on board. It's still 60% of the transaction volume that we see, even without widespread Lightning support.
Bitcoin trading volume peaked s few years ago has been trending lower and lower. Not is not a sign of health and growth.
You’d have go be insane to do a transaction in real estate such as building a new house in BTC. For example, if you were a builder and 6 months ago were expecting $600k (contract for 10 btc) for a new house, today at closing you are getting $300k.
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