why is bitcoin crashing?

[Anonymous]

Anonymous wrote:Bitcoin is engineered money; a revolutionary innovation. It's here to stay and will only increase in value over time.

I don't tell people to buy bitcoin. I suggest that they learn about it and come to their own conclusions.

Here's a starting point, for anyone genuinely interested:
https://youtu.be/YtFOxNbmD38?si=_e94F5L1-yBZLk3A

I dedicated 20 minutes to figuring out the utilitarian pitch for bitcoin once and I couldn’t even come close to squaring that with the valuation so I didn’t buy any. But I’m not mad at people who did and I don’t think they’re idiots. It’s not stupid to speculate on other people buying it.

[Anonymous]

Anonymous wrote:This is your periodic reminder that crytocurrency has no use except for speculation and crime. None whatsoever. Thank you for your attention to this matter.

Exactly. It’s basically a Ponzi scheme.

[Anonymous]

Anonymous wrote:It’s a purely speculative asset. Imagine if people paid money to participate in the equivalent of “hot potato”. I don’t know about this crash, but in the last crash 95% of buyers lost money.

That said, Bitcoin does this all the time. It’s almost a cycle at this point. Fall 50% and then rise 200%. I might get in at the bottom, say $60k

I assume the strategic bitcoin reserve will step in and bail everyone out by mass buying and pushing up prices. And of course unlike TARP, there wont be any record of who received the funds.

[Anonymous]

When credit cards were first introduced many people were resistant and argued against them in similar ways. I’m agnostic on btc but it has real potential as currency replacement, it also has significant volatility and unknowns.

[Anonymous]

Anonymous wrote:When credit cards were first introduced many people were resistant and argued against them in similar ways. I’m agnostic on btc but it has real potential as currency replacement, it also has significant volatility and unknowns.

Crypto can be either an investment vehicle or a stable currency replacement. It can't be both.

[Anonymous]

Anonymous wrote:When credit cards were first introduced many people were resistant and argued against them in similar ways. I’m agnostic on btc but it has real potential as currency replacement, it also has significant volatility and unknowns.

Nothing the fluctuates by 5% each day can be a currency replacement. A digital dollar or stablecoin can be a currency replacement...those would use the blockchain, but I don't think BTC or any crypto currency is necessary.

People who actually conduct business transactions and are paid in crypto (usually Etherium) usually just immediately convert it into $$$s and take the cash.

[Anonymous]

People have realized its value is for drug dealers and kidnappers.

[Anonymous]

I'd question any investment that is marketed at kiosks at convenience markets.

It is kind of like the lottery for lower wage earners.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Bitcoin is engineered money; a revolutionary innovation. It's here to stay and will only increase in value over time.

I don't tell people to buy bitcoin. I suggest that they learn about it and come to their own conclusions.

Here's a starting point, for anyone genuinely interested:
https://youtu.be/YtFOxNbmD38?si=_e94F5L1-yBZLk3A

A currency that constantly gains value sounds great, but it can actually paralyze an economy.

When deflation takes hold, people stop spending and "HODL" instead, waiting for prices to drop further.

This shift grinds economic activity to a halt—because why buy today what will be cheaper tomorrow?

Right. "Money" that "increases in value" isn't money. Which is fine; lots of things increase in value and aren't money. But if it's not money, then what is it? It's the right to assign a name to specific randomly generated number. Just like naming a star at the self-proclaimed "official" star registry company.
https://starregistration.net

[Anonymous]

Anonymous wrote:The rubes who would have been buying BTC are buying all things AI, which is also driving up cost of mining hardware and electricity. Lots of headwinds and no greater fools.

Expensive computing makes Bitcoin more valuable, because it's harder to make, not less valuable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I can’t believe that at this point people don’t understand bubbles and boom & bust cycles. OP do you really not understand this? Please stick to index funds until you get a better understanding of the basics.

You're being an ass. Bitcoin is different than most boom and bust cycles.

The last boom and bust was the crash of 2007/8, and that had a very very specific underlying cause that had been been flagged for years..... mortgage backed securities, ever increasing home prices that seemed economically unsustainable by those buying them, fraud in the real estate lending market, adjustable rate mortgages flipping.... there were so so many real and tangible economic indicators that we knew at the time were likely propping up the market and would come down. After the crash, we could do post-mortems and understand.

Most crashes have similar.

Bitcoin is different. It seems to have meaningless value. It has no inherent value other than the value people arbitrarily ascribe to it.

There may be more to it. I think that's what we're asking here. But if there is, it's certainly not just "hey markets always go up and down arbitrarily"

The closest this one seems is like the 2000 dot com crash, where people were publicly investing in companies based on ideas before any products had been built or designed, before any customers were signed up, and before any revenues were generated. Same kind of concept that people were betting on nothing . Only difference is that you were at least petting on an idea in 2000. So as an investor, you might have thought pets.com had a better business idea than askjeeves.com, which might have driven your investment decision. But crypto doesn't even have that.

So please enlighten us.

I agree that it has no inherent or productive value. I don't invest in it at all.

But the argument is that it will eventually be the world reserve currency. Just as much of the U.S. dollar's value today is based on its status as a world reserve currency. This status is quickly eroding and, the argument goes, BTC is no worse than USD and in some ways more protected from manipulation.

Look at the price over the past 10 years and explain how that's more protected from manipulation than the USD?

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is your periodic reminder that crytocurrency has no use except for speculation and crime. None whatsoever. Thank you for your attention to this matter.

This.

When you own stock, it is in a company, and the share value is based on some combination of earnings, growth potential and dividend AND MEMES. When you own a commodity like gold, you own the commodity or a paper representation of said commodity.

Crypt? What is it? Its value is based on....MEMES. Nothing underpins its value. Nada. It is total vaporware. Sure, people have made money on it, but that is because a sucker is born every minute.

FIFY HTH

[Anonymous]

Today Bitcoin is stabilizing at its "return to safety" price: $69,420

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I can’t believe that at this point people don’t understand bubbles and boom & bust cycles. OP do you really not understand this? Please stick to index funds until you get a better understanding of the basics.

You're being an ass. Bitcoin is different than most boom and bust cycles.

The last boom and bust was the crash of 2007/8, and that had a very very specific underlying cause that had been been flagged for years..... mortgage backed securities, ever increasing home prices that seemed economically unsustainable by those buying them, fraud in the real estate lending market, adjustable rate mortgages flipping.... there were so so many real and tangible economic indicators that we knew at the time were likely propping up the market and would come down. After the crash, we could do post-mortems and understand.

Most crashes have similar.

Bitcoin is different. It seems to have meaningless value. It has no inherent value other than the value people arbitrarily ascribe to it.

There may be more to it. I think that's what we're asking here. But if there is, it's certainly not just "hey markets always go up and down arbitrarily"

The closest this one seems is like the 2000 dot com crash, where people were publicly investing in companies based on ideas before any products had been built or designed, before any customers were signed up, and before any revenues were generated. Same kind of concept that people were betting on nothing . Only difference is that you were at least petting on an idea in 2000. So as an investor, you might have thought pets.com had a better business idea than askjeeves.com, which might have driven your investment decision. But crypto doesn't even have that.

So please enlighten us.

I agree that it has no inherent or productive value. I don't invest in it at all.

But the argument is that it will eventually be the world reserve currency. Just as much of the U.S. dollar's value today is based on its status as a world reserve currency. This status is quickly eroding and, the argument goes, BTC is no worse than USD and in some ways more protected from manipulation.

Look at the price over the past 10 years and explain how that's more protected from manipulation than the USD?

top 100 addresses hold about 14% to 15% of all Bitcoin.

[Anonymous]

It’s make believe.