It's a big ol' bubble.
People think they will be worth more tomorrow than today, and it becomes increasingly more difficult to make new ones, so there is a effectively a finite source.
I trade cryptocurrency and Bitcoin is going bonkers right now. It's only skyrocketing because CME futures are launching in 11 days and this created a short-squeeze where:people on the sidelines got major fear-of-missing-out disease (FOMO) short-sellers got squeezed and then squeezed again when 12,500, 15,000, and 17,500 got broken through
This will fall back down to more reasonable levels soon enough and I'd say it will lose half its value in the next week or so but still close the year above $10k.
They said this at $500
Note what I said and didn't say. I said it would fall back down to more reasonable levels. I didn't say it was going to collapse and stay there.
Bitcoin has had plenty of corrections, even this year with 40% corrections.
You can't go from $10k to $20k at multi-billion dollar levels - and stay there without ever correcting even if temporarily. Assets do not continue going hyperbolic without falling back prior to their next climb.
Yeah. Cause the taxpayers are required to bail those fuckers out.
I don't understand how cryptocurrencies gain their value. Can someone post a brief explanation?
it becomes increasingly more difficult to make new ones, so there is a effectively a finite source.
Like a gold standard or tulip bulbs, then? If there is a finite source, then doesn't that prevent an expanding economy? At some point, if day to day purchases were to become increasingly cumbersome, doesn't that ensure it's collapse?
a reason why Bitcoin cant be a stable currency
It costs $4 for a transaction to go through reasonably fast. They can supposedly increase the number of transactions per block, but it'll require Bitcoin to split again, and who knows how that'll go. Even with that though, it's still not necessarily "cheap" for transactions in an overall sense. Compare to merchant fees for credit cards, which are in the 20-40 cent range, or cash which is essentially free unless someone pays in pennies.
Anyway, you don't want high fixed friction costs on everyday purchases when you're creating a currency, because who the heck wants to buy a $5 footlong for $9? (In b4 /sub/hailcorporate)
Yes, and eventually, I dont see a reason why Bitcoin cant be a stable currency/investment. However right now, no one (or not many) have an idea when it will get to the point where it costs much more to make a bitcoin than it is actually worth. Everyone is going crazy with a financial instrument they dont understand, and there is a lot of factors that may be artificially driving up the cost, and those factors are not accurately quantifiable.
i mean, one of those had a hand in almost collapsing the entire economy; so there is that.
You're only a damn fool if you think there's something wrong with what you're doing. Mutual funds are safe bets with modest expected gains and that's not going to change.
Crytop is not. Crypto will be big. But picking who those winners and losers will be? Good luck. It's the .com bubble. Big things will emerge out of it, but a lot of stuff is going to sink when it jumps into the waters and doesn't figure out how to remain afloat. Bitcoin is positioned strongly, but it's not necessarily going to be the ultimate winner if it doesn't figure out it's scaling situation soon enough.
"The market can remain irrational longer than you can remain solvent."
The salient point that I'd make to him is that until he actually cashes out, he has not realized any income.
If he wants to gamble, great. But not only has he not left the casino, his money is still on the table!
Right after Jamie called bitcoin a fraud, JP morgan got in trouble for fraud....
Well, it wont be used by ordinary people for day to day purchases
Then it's not a currency in any real sense.
but $4 transaction is not a problem if you are dealing with international trade worth billions.
No, but volatility (in any direction) is a major problem for that. Also international money laundering regulations are a thing, so it'd raise the question of why someone needs to use Bitcoin to transfer billions (or even millions) for legitimate business.
"I trust an organization fined multiple times a year for financial fraud more than math" -investors, apparently.
And they were right, it crashes and then months later recovers. Bitcoin has gone a very long time since it's last sustained crash...
Bitcoin is a bubble. Most of the investors are fools who don't have any clue what it really is. There are several other cryptocurrencies based on better technology. In a year or two bitcoin will be worth a few hundred at most.
Can't wait for all the morons who invested their life savings in it to lose everything.
This feels so incredibly bubbly. I know a guy who claims he is a bitcoin millionaire though so part of me feels like I'm a damn fool for continuing to invest in traditional mutual funds.
Wait, bonds? How are bonds a bubble?
sure, but anyone would bet on jpmorgan than bitcoin surviving.
Going to be fun when it pops.
RemindMe! Two years
Bitcoin is a bubble. Most of the investors are fools who don't have any clue what it really is. There are several other cryptocurrencies based on better technology. In a year or two bitcoin will be worth a few hundred at most. Can't wait for all the morons who invested their life savings in it to lose everything.
Yes, the currency where every single transaction is broadcast to everyone in the world is used for undetectable transfers.
meh. not as stable though.