Major fall in BTC price (16th Jan)

Now at $8500 and continuing to drop.

Bloomberg believe it will drop to $7500 over the next few days, looks like bubble is bursting.
 
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azerogo said:
Bloomberg believe it will drop to $7500 over the next few days,
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But they really have no idea. None of us has any idea. We know the destination, but we don't know the route there or the timing.

It has staged recoveries in the past and could well do so again before it crashes to zero.

Brendan
 
 
The basis upon which the Indian finance ministry is to take measures against crypto is “Late last year, the finance ministry dubbed them a ponzi scheme. “There is a real and heightened risk of investment bubble of the type seen in ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money,” the ministry had said. “Consumers need to be alert and extremely cautious to avoid getting trapped in such ponzi schemes.”


“The government will now either come out with a legislative mechanism or make suitable amendment in existing legislation to ensure that dealing and trading in cryptocurrency is made illegal and to penalise entities and individuals who are involved in their trade and circulation,” said Monish Panda, founder of Monish Panda & Associates law firm. “We will have to wait and watch as to what will be the final framework of such legislation.”

So if considering my own situation, it would appear from the Indian governments perspective, that I as an individual I should be penalized for engaging in the trade and circulation, through buying and selling, of bitcoin?

On the other hand, perhaps I am one of those 'investors' that could be exposed to losing their hard-earned money?

It would be interesting to know what am I? A perpetrator of crime or a potential victim of crime? Hardly both?
 
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About 2 weeks ago one of the price forecasters i follow said to expect to see a full pull back of December's price rise.
Which looks to be what is occurring.

It's pretty impressive, Bitcoin.
What other open source project, coded by mere volunteers, creates a $416,224,385,082 market and has the most powerful nations and banks fretting.
 
Gordon Gekko said:
.....I have encountered some morons over the last number of weeks who have borrowed to buy this garbage and whose entire wealth is tied up in it....
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Completely nuts !

Having borrowed and gone to Vegas to play cards, would have made more sense to me (as worst case, they'd have had a holiday and probably been comped a few drinks etc ;))
 
Gordon Gekko said:
It’s below $9k now ($8,800).

I have encountered some morons over the last number of weeks who have borrowed to buy this garbage and whose entire wealth is tied up in it.

Madness, but they’re like a cult and think that nobody “gets it”.

Guess what? That Kool Aid was actually poison.
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Who was the idiot that lent out the money?
I mean I can only imagine it was a recognised financial institution that could lend amounts to the value of an individual's 'entire wealth'?

As foolish as you think those are who borrow to invest in Bitcoin (I agree, borrowing to invest in Bitcoin is foolish), it can't be as stupid as actually lending the money to invest in it, could it?
 
MrEarl said:
Completely nuts !

Having borrowed and gone to Vegas to play cards, would have made more sense to me (as worst case, they'd have had a holiday and probably been comped a few drinks etc ;))
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I agree, but I would consider the lender even nuttier, wouldn't you?

Who is in control of these lenders? Is there any oversight at all?
 
MrEarl said:
Having borrowed and gone to Vegas to play cards, would have made more sense to me (as worst case, they'd have had a holiday and probably been comped a few drinks etc ;))
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And the same grouping of morons would just as easily do that - or sign up to whatever the next get rich quick plan is marketed at them. That is not the fault of cryptocurrency.

A couple of weeks ago, a work colleague contacted me having clicked on some click-bait or other that was packaged with the 'bitcoin' buzzword implicated in it. She must have made contact in some way and there was some boiler-room sales guy on the phone to her in no time. She knew I had invested in Bitcoin and asked my advice....which was to stay the hell away!

These vermin feed off of peoples lack of knowledge. It has nothing to do with bitcoin or cryptocurrency - that's just the manner in which they packaged their scam on this occasion. No doubt they are remodelling that already to something else now that there has been a major price correction in the cryptocurrency world.

The news this week that facebook were prohibiting bitcoin related adverts was presented as bad news. How the hell was it bad news! All those ads were to do with scams like the one above. It doesn't reflect poorly on bitcoin or cryptocurrency generally.
 
Brendan Burgess said:
That is a very good point. I presume it was secured on their home?
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Brendan

We came out of our fixed mortgage last September. We decided to switch lender to avail of preferential 'new business' rates offered by lenders. We didnt do anything it about it until January.
We are going with the bank account that holds our joint a/c for last 18yrs and holds my current a/c that my wages are paid in to for 20yrs odd.
Our loan to value ratio is 35%. Our mortgage to income is almost 1:1.

For this, the bank which we have been customers with want us to verify our identity (in fairness I think it is a newish regulatory requirement to re-verify id after x amount of years).
They require, passports, payslips, bank statements of all other active accounts, mortgage statements, credit card statements, life assurance details, salary certs etc.

We are not even borrowing any money!

How anyone could enter a financial institution and borrow their entire wealths worth to invest in bitcoin is beyond me?

Either the banks are back to their reckless, feckless ways and should be shut down before we all have to pay, again, or... Im missing something in these stories?
 
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Isn't there is a transfer of wealth occurring right now, by keeping interest rates artificially low?
It's basically transferring from savers to borrowers.

incentivizing people to pursue credit while punishing savers.
 
jman0war said:
Isn't there is a transfer of wealth occurring right now, by keeping interest rates artificially low?
It's basically transferring from savers to borrowers.

incentivizing people to pursue credit while punishing savers.
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That - and currency debasement on steriods - is another reason why I went down the road of placing some savings in BTC.
 
My jitters are over.

Didnt take long, but admittedly I got somewhat spooked at the rate of price decline coupled with the ramping up of the negative media stories.

I had to remind myself what I understood bitcoin to be and why it is here.
As soon as my profits are delivered I expect to start buying in again.
 
I'm also considering buying in again - but at a sane proportion this time - no more than 10-15%..and with that, I'm thinking in terms of diversifying 50/50 between bitcoin and ethereum. I simply don't know enough about any other coins to consider them (albeit that whilst folks here think that btc is rubbish, most altcoins are complete pump n dump material). I'm waiting for the whole tether situation to be clarified / dealt with first though.

The rest of my earnings I'm going to try and figure out how to invest in stocks. That's a whole new ballgame for me - as I've never dabbled in that - will have to get up to speed. Hopefully I'll do a better job with stock picks than those that selected them recently because they had 'blockchain' in the name!
 
tecate said:
I'm thinking in terms of diversifying 50/50 between bitcoin and ethereum. ...
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I'm far more of a fan of Ether than Bitcoin tbh. I've zero funds in Bitcoin and don't see myself ever buying Bitcoin again, while I currently have a small holding in ETH, which I am now very tempted to increase. (Anyone interested in a little background in Ethereum might like to have a read of this ).

I also hold a small monetary amount in about a dozen alt currencies, it's very small in financial terms, and I intend just let it sit for 6-9 months and see how they go.

tecate said:
The rest of my earnings I'm going to try and figure out how to invest in stocks. That's a whole new ballgame for me - as I've never dabbled in that - will have to get up to speed. Hopefully I'll do a better job with stock picks than those that selected them recently because they had 'blockchain' in the name!
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I find investing in equities quite interesting, and while I don't claim to know it all, I have put some time into it and enjoyed learning a little, then trying to profit from what I was learning.

My understanding of the rules on AAM is that we cannot discuss individual shares, but I think we are okay to discuss the principals of investing (hopefully Mr. Burgess or one of the Mods might confirm here in due course). Assuming that I am correct, would be delighted to participate in a discussion on same over on a new thread.
 
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MrEarl said:
I find investing in equities quite interesting, and while I don't claim to know it all, I have put some time into it and enjoyed learning a little, then trying to profit from what I was learning.
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I like that. I lost a considerable sum of money on shares during the crash, it was a bad time. But in the long-run it opened my eyes to learning as much as I can about finance and economics.
Im certainly no expert, but I find it more fullfilling now to decide my own financial strategy rather than pay someone to decide it for me.
 
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TheBigShort said:
....Im certainly no expert, but I find it more fullfilling now to decide my own financial strategy rather than pay someone to decide it for me.
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Agreed, and like you I also took some pain late last decade, although I continue to pay professionals to assist with some investments (part of my pension for example).
 
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MrEarl said:
Agreed, and like you I also took some pain late last decade, although I continue to pay professionals to assist with some investments (part of my pension for example).
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Agreed. It would be folly to dismiss all expertise as there are complexities to understanding all of finance that are simply beyond me.
But the scope for independent research and self analysis now is huge. It opens alot options.
 
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