time honored tradition to post this video when crypto crashes
https://www.youtube.com/watch?v=BkX2NAKFM5Q
bonus:
https://www.youtube.com/watch?v=Fn310KaOxnU
BitCoin is not linked to Gold?
People exit passive investments, i.e. investments that don’t actually earn money, in times of rising inflation/interest rates. If the asset is not actively earning money then it is not a good hedge against inflation, also most passive investments are dependent on low interest rates or easy money to fuel their growth and are thus frequently ‘speculative’.
Kleptocurrencies are an interesting sideshow to and a symptom of the massive bubble in all asset markets. The inception of the mania in non-fungible tokens will eventually be seen as a sign that the top was finally in view and was about to crest.
What? Your long string of ones and zeros is worth less? Who’d a thunk?
Its about $33,600 right now. Expect it to go a bit lower. The Stock Market has a massive selloff coming.
What will I do? Keep my powder dry and then jump in and hoover up a bunch more crypto when that happens. The market is steadily adopting crypto currency. As long as you have the stomach to HODL during the downturns, you can do extremely well in this asset class.
Bitcoin is the ULTIMATE FIAT CURRENCY, backed by absolutely nothing! A greater fool “thing”. Some ignorant cryto fanboys will jump in and say it’s backed by “work”. Who gives a damn. That is as idiotic as saying some rock sitting 1 mile deep in the earth’s core is worth $35,000 because it took a lot of “work” to drill a mile down and get it. The currencies of countries are backed by those countries. An Amazon or Walmart plastic gift card is not “worthless” just because it is nothing but 1/10th of a penny of plastic. Those companies back it’s face value.
It is always amusing to me to watch the dyspeptics, knownothings, and bluehairs (sometimes you hit the trifecta and get all 3 in one person!) slam crypto.
I TRIED to buy BTC when it was less than a dollar. It was so abstruse and difficult that I just gave up and put the money in silver. It has done “ok” but nothing like the meteoric rise bitcoin has seen. I did wind up buying in at 9,000 USD and change. So, yes, I am a holder. I still trade it.
In today’s “everything bubble” I try to hedge against the certain coming implosion of the US dollar (actually all state backed fiat currencies) by holding gold and silver as my primary hedge. I have been buying these since 2003 and will likely buy more as funds permit. I diversify, as any person who cannot divine the future does. That means I buy bang sticks and lead, foodstuffs, things which became rare in Argentina, Venezuela, Zimbabwe, and Ukraine during recent hyperinflations (toilet paper, soap, socks, underwear, alcohol, condoms, water filters, etc etc). I download youtube vids and keep them on DVDs and old hard drives. On my list is a generator and building a wood gas generator. If we have another dip in gas prices before the inflationary boom I would like to buy a thousand gallon propane tank.... you get the picture.
Crypto currency is a hedge against the destruction of fiat. The destruction of fiat IS coming and most of your IRAs and pensions are tied to equities and will become worthless. Frankly, most people will starve. Crypto will have utilitarian value in that it will provide a medium/mode of exchange when your crowd of flag waving idiots finally realize that chanting “USA USA USA” won’t fill their empty bellies, nor is anyone going to come and save them from the violence. In the mean time, the wild money printing we have is going to lead to violent swings. My advice is to buy some dips, get your crypto off the exchanges and off the internet entirely, and don’t obsess over the daily price swings. You should buy a little, but maybe 5-10% of your savings.
If you trade it, then it doesn’t matter and you either understand how to make money trading it like any other speculative instrument or (more likely) you would be better off going to Vegas, since most folks aren’t disciplined enough to be successful in that venue.
For the record, I plan to buy a little BTC (I trade it leveraged, which means I buy futures) if it gets down into the 28K level. As I have gotten older, I take less and less risk trading, which means the price needs to be so extreme it is like money laying in the corner screaming “come pick me up!”
Your mileage may vary
bitcoin is currently in the dump cycle. Look for the pump cycle to start shortly.
Buy low sell high, there are always new folks buying in to give you their money.
They say that some who win big lottery jackpots continue to play after the win.Not me...I'd be done once I cashed that big check.
Bitcoin becoming a playground for day traders and large institutional traders buying in and treating it as a “risk on” asset (trading in lock step with the NASDAQ). Adds to volatility and they are missing the point of Bitcoin.