:wojak-nooo: b-b-buy the dip! muh perfect time to buy!
I know that you are making fun of it, but that is exactly what people are going to do. It will spike again on retail buyers. You could probably make 2 or 3 time your money but you have to time selling before the crash, which you have no way of predicting and reacting to because of how large and slow the BC transactions can be.
My cringey techbro dad decided to send me a little bit of bitcoin for Christmas over cashapp. Since I didn't buy it, I didn't need it, and I was very drunk, in my infinite wisdom, I left it in my wallet to see If i could make a few extra bucks. That night it went down $8. Now I'm down $80. I deserve it tbh.
If it's any consolation I was friends with a pretty decent guy in high-school that bought Bitcoin when it was like $20. He almost immediately became an insufferable crypto fash that last time I checked spends most of his time complaining about how he can't find a trad wife who agrees with him that feminism is a disease.
Man, I feel lucky that the only Bitcoin guy I know saw it as a scam, but early enough into it that he could still make money, made a couple 10s of thousands, got out, and then just bought a house that he JUST lives in, doesn't rent out.
Just hold on to it, it'll go back to where it was and then you should sell it. This is pretty much a regular cycle of incredible losses and growth, mostly to the benefit of the largest stakeholders.
I choose to believe that this is a direct result of people seeing that folding ideas video.
Can someone more hooked into finance guess at why this is happening? The putative value of these things has always been entirely based on speculation, mainly by people with huge sums of money they use to mark the value of their own assets. Why would you stop grading your own homework, if you had the choice? Is there some crypto regulation in the works that's gonna suddenly introduce a bunch of tax exposure? Is the "crypto backlash" media phenomenon having consequences for non-crypto assets of major players? Is Elon Musk betting on the gold standard now?
I thought crypto was supposed to behave like gold, where when stocks tank, gold prices rise.
It’s supposed a hedge against many things. In reality, it has been fully captured by finance and is completely tied to the general stock market. No hedges here
This is the reality of it. The same big players who move the stock market move the crypto markets, they just organize under different names.
To piggyback on this, the reason this is the case is that crypto has no intrinsic value. So when the market is up and investors have lots of money, they can throw money at crypto too, and crypto goes up. When the stock market goes down, people have less equity and they aren't going to sell real capital to buy crypto.
It's why rolexes and pokemon cards have been up too. People have so much money, they don't know what to do with it. When the market goes down, that's less the case. Fewer buyers and lower bids means price goes down.
Also, Crypto in general has gotten quite inflated, due to lack of other investment opportunities in traditional assets, especially since the Pandemic has made a bunch of people somewhat nervous about profit-opportunities going forward. And in general there was sort of a glut of "good investments" being made even before the pandemic, with investors putting their money into increasingly stupid projects, such as WeWork and other start-ups. Since people didn't have a good place to park their money, in a way that wouldn't expose them to emormous risk themselves, they ended up backing crypto, after seeing a bunch of complete hucksters ride that wave and get off at the right moment. Thus, everyone with excess capital ended up placing that capital in some kind of crypto, which pumped the price even further. obviously that shit is unsustainable as fuck, as the recent tumbles have shown.
That's kind of what I'm getting at. Why do they feel different about something that's so incredibly easy to magic up dollar equivalents out of?
As Dan Olson correctly pointed out in his big ass video on crypto last week, cryptocurrency is a Bigger Fool scam - it utterly relies upon new suckers appearing and injecting their dollars into the crypto market, buying coins off holders for more than the holders originally paid for them.
Though the speculative value of bitcoin has grown massive of late, there's a fundamental problem at the core of it - its totally worthless if you can't convert it into dollars. And the higher the value gets, the more difficult it is to covert coins into dollars in a timely fashion (important because bitcoin is incredibly volatile and its value swings wildly overnight, meaning its slow-moving transactions aren't secure or reliable). This is why cryptobros are evangelists - they need to convince an ever-increasing amount of suckers that the value is going to keep flying to the moon, so they (the early adopters) can cash out.
This is why bitcoin is little more than a series of ever-larger bubbles that pop spectacularly every few years - a speculative frenzy draws in enough new buyers that the whales can cash out all at once, which also tends to trigger a panic and the value of bitcoin to crash hard. But then the cycle begins again, the new holders have to start their own preaching so they can eventually cash out at a higher value than they bought in (or, alternatively, they're just ruined).
Lot harder to trade crypto in countries that are looking to tax it.
India has nabbed 1000's of folks in India last year trying to dodge taxes with crypto.
People selling for tax bills
Russia floating a ban which cases some panic selling
Bad astrology set up
Whales dumping to get a better entry price for long term holders/institutions.
Whales dumping to liquidate leverage traders and help get better prices for institutions/whales
Fed announcing the end of QE and having an effect on all risk markets
The thumbnail looks almost like an animorphs sequence to me, but then you zoom in and it actually just is a bunny rabbit. Is that just me?
So glad that a couple of months ago I didnt listen to my friend who couldnt explain what crypto was but said that I needed to get on it right away
Lol I had a friend try two weeks ago to convince me that we needed to get in on it while we still can
I was like dude, you are the rube they're waiting to hand the bag off to.
At this rate the USA is the only country still buying into this crap
