"Churning"by brokers.perhaps!!The vast majority of alts are still well below all time highs. SOL which has been on a rip lately is roughly $200 below all time high.
It is all relative on when you enter the market, those entering in 2021 are probably still nursing losses, those that got in a decade ago are probably doing alright
I know most of my trades would have been better if I had just HODL'd instead of swapping in an out of alts.
"If crypto is not the answer to our money problems, what is?" Good FT article
- Thread starter Brendan Burgess
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It's mainly based on a belief in the economic soundness of the state(s) backing the currency. Up to a point that's psychological as well, but it's backed up by objective criteria (productivity, stability, debt, etc). Regarding crypto, its value is purely a function of a belief in its value, but that belief is self-referential. People believe it has value because they see other people acting as though it has value, but there's no underlying economic reality to it.
The only edge fiat has is the use of force. There's nothing else. Do we know how much fiat is in circulation at a given time? If you're to tag in those items you mention above, then we can tag in maths for bitcoin. Transparent and fixed supply, known circulation, etc.
I continued to buy sol all the way down to $8 when other people wrote it off, and it's up 674% YTDThe vast majority of alts are still well below all time highs. SOL which has been on a rip lately is roughly $200 below all time high.
It is all relative on when you enter the market, those entering in 2021 are probably still nursing losses, those that got in a decade ago are probably doing alright
I know most of my trades would have been better if I had just HODL'd instead of swapping in an out of alts.
The fact that supply is fixed doesn't give it any underlying value. It just makes some people think that it's valuable (because they falsely equate scarcity with value) and thereby creates a self-fulfilling proposition. But like any mental bubble it easily implodes once it's punctured.
When you say bubble, are you referring to bitcoin or crypto?
Any non-fiat instrument
I brought up transparency and fixed supply as you've tried to make some sort of distinction between fiat and bitcoin through mention of these items ->
So if you're taking those items into account, then you can take transparency/fixed supply into account relative to Bitcoin. Bitcoin is backed by maths.
Its been said that neither have any intrinsic value. I'd say that the only edge fiat has is that people are forced to use it. On the lack of intrinsic value of Bitcoin, I'd be inclined to challenge that assertion - given that it is a monetary network as well as a form of money and a store of value.
Bubble? Hasn't that bubble been punctured multiple times? What 'bubble' can you point to that's reinflated multiple times?
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Ok so after 14 years and being the best performing asset of the last decade, you still think bitcoin its a bubble? Wow
I'm also curious, if bitcoin and crypto is all a bubble, what do you invest in?
Nothing exciting I'm afraid. Fixed term savings accounts and AVCs. By the way, I'm not saying people can't make money with crypto. It's just that they need to time their exits really well.
I put in a moderate, not life changing, amount at the top into bitcoin. 50% loss. Not selling. Not buying. Probably staying slightly in the game to keep me humble. Lost 50% on other similar speculative, not life changing amount, share investments. Gained slightly (probably just matched inflation) on more considered larger investments elsewhere. I have to consider/advise/act on cash investment, not tax efficent, with my wife soon, probably USA shares.
It always happens. There’s always a crash with crypto. It’s essentially a pyramid scheme, which is why there’s 20 different versions of crypto currency out there
The thing though is that there’s only one version of Euro and one version of the Dollar. There’s institutions and you can make all payments with them. With crypto there’s many different versions, many who are clearly valued due to speculation, and they don’t have a firm backing. It’s essentially gambling with your chances using them
For the past 6+ years here, the discussion has centered primarily around bitcoin rather than "crypto". They're two very different considerations. Bitcoin is no pyramid scheme. It fails the definition of a pyramid scheme before you even start to assert such a thing.
There are many fiat currencies in the world, and at any given time, there's a list of them being devalued to an extent such that they're vaporizing people's life savings. Pick any point in the timeline of the history of fiat money and show me when this wasn't happening in the world.
If you mean there's only one fiat in Ireland, that's a decision taken over your head and forced upon you. When was choice ever a bad thing for society?
Fiat currency is backed by nada since the gold standard went away. In relative terms, fiat is the big experiment here. It's not had that long of a history.
DazedInPontoon
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Periodic status update for posterity: Almost 19.6m bitcoins have now been mined, which is 93.3% of eventual supply. The next halving of mining rate will be around mid-April. Supply increased by 1.75% over the last year, will increase 1.09% over the next year - the last year that it will ever increase by more than 1%. The current price is $42.7k per bitcoin.
In March of last year in post #271 I said:
In post #262 I said:
In March of last year in post #271 I said:
I stand by what I said then, and I'm glad I acted on it. What I didn't anticipate as soon as then has been the recent ETF approvals, which is more good news. Looking like this will probably be a great year for Bitcoin.
In post #262 I said:
The only thing that gives me pause in terms of my optimism for Bitcoin in the short term is that while McWilliam's bitcoin obituary at 16k marked the bottom perfectly, I fear if in a similar vein his recent "Bitcoin is back, Why?" podcast which I can only describe as an eating contest of humble pie and confusion may signal a local top.
Duke of Marmalade
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Max (that's what his buddy calls him in the podcast is not my expert of last resort by any means. Nonetheless there is a lot in this podcast which suggests he has been reading my posts and I guess I too have egg on my face over my predictions for its price. I would skip to about 8.32 in the podcast unless you want to listen to a lot of waffle about Benjamin Franklin.
Of course he is right that bitcoin can never, ever be the World's reserve currency. I think our resident High Cultist agrees with that but there are grown men (not aware of any women) who do argue that this will be the case.
DazedInPontoon
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Well if DmW is reading this, don't take my jibes too seriously. I can respect him for making that pod instead of ignoring it, but I think he still doesn't quite understand.
DazedInPontoon
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Since the 4th halving happened in the early hours of the morning today it seems like a good time for another of my 'Periodic status update for posterity' to follow my prior one:
Almost 19.7m bitcoins have now been mined, which is 93.75% of eventual supply. Supply increased by 1.73% over the last year, and will now increase by 450 btc per day which is 0.85% over the next year. The current price is $63.8k per bitcoin.
The ETFs which launched in January initially held 620k BTC from the conversion of GBTC trust and its holdings to an ETF. Since then an additional 210k BTC has been bought by the ETFs. MicroStrategy now owns 214k BTC.
Almost 19.7m bitcoins have now been mined, which is 93.75% of eventual supply. Supply increased by 1.73% over the last year, and will now increase by 450 btc per day which is 0.85% over the next year. The current price is $63.8k per bitcoin.
The ETFs which launched in January initially held 620k BTC from the conversion of GBTC trust and its holdings to an ETF. Since then an additional 210k BTC has been bought by the ETFs. MicroStrategy now owns 214k BTC.