Bitcoin Hits All-Time High 66
Bitcoin surged over 9.2% to an all-time high of over $74,200 on Tuesday evening as early results showed favorable outcome for Republican candidate Donald Trump, who has promised crypto-friendly policies if he wins.
Oh. Yay. (Score:3)
Rich cunts get richer. I am so happy for them.
Puff Puff Pass... (Score:1)
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It's not imaginary. It's a scam. All crypto is intentionally deflationary. A deflationary mechanism is written into the code of every crypto currency. It doesn't have to be; it's clearly a conscious choice. Similarly, all national currencies are explicitly inflationary. Central banks exist largely to keep inflation between 1-3%. Over time, the valuation of a coin increases while the valuation of national currency used to buy the crypto decreases. This isn't a problem in traditional currency trading as tradi
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"A deflationary mechanism is written into the code of every crypto currency."
Deflation isn't a scam. A currency either deflates as the underlying economy grows or new currency is issued causing inflation. With a deflationary currency the holders of the currency all proportionally share the growth to reflect the increased value/spending power but with an inflationary currency you have to pick people to give the new money.
Neither is a scam and either works just fine.
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Currency is a medium of exchange and not a store of wealth. Securities are a set abstraction of material goods that have underlying value represented by the security for the purposes of facilitating trade. Instead of trading pork bellies for bushels of wheat directly, you trade each for currency and then trade that currency for the end product you want. It provides flexibility and efficiency to trade as you don't have to create a market for every trade. If your currency is experiencing price deflation, then
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"Currency is a medium of exchange and not a store of wealth."
Tell it to gold.
"If your currency is experiencing price deflation, then there is an insufficient supply of currency to facilitate all the trade currently attempting to take place in your economy. This forms an artificial constraint on trade, depressing the entire economy. Deflationary currency makes the whole economy poorer."
Yes, we all know the entirely theoretical argument for inflationary over deflationary systems and there are entire nations a
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No major economy has been on the gold standard since America quit it. America was the last to quit as it was acting as a backstop as the theory of fiat currency was, successfully, put to the test in world markets. The gold standard has been dead for nearly a century now.
And let's look at that history. The Great Depression ended at different times in different economies. It almost always ended just after the country went off the
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"You don't know how Bitcoin works. There is an explicit limit on how many Bitcoins there are."
You do not know Bitcoin works. There is no such thing as 'a bitcoin', there is a limit to the number of whole units of bitcoin (the plural of bitcoin is bitcoin, not bitcoins) but the only limit on fraction of bitcoin is an arbitrary decimal place. For the purpose of increasing units of trade available to pass around it doesn't matter if they are logically bigger or smaller. But to make it easy to understand for pe
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Not only is there a cap to the number of coins, there's also a cap to the maximum subdivision of coins allowable on the chain. There are finite limits on the currency. That is artificial scarcity in every meaning of those words. And, as an explicitly deflationary instrument, this means the liquidity crisis is both built in and inevitable.
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t's not imaginary. It's a scam. All crypto is intentionally deflationary. A deflationary mechanism is written into the code of every crypto currency. It doesn't have to be; it's clearly a conscious choice. Similarly, all national currencies are explicitly inflationary.
BUT...Every new coin that the crypto- bros mint and promote has its own money supply. Though each currency is internally deflationary because of its limited supply, the endlessly proliferating currencies add up to an inflationary crypto market. This is the bubble that one day will pop.
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But the pool of actual currency used to buy those coins is shrinking because they're all deflationary. If any coin is both inflationary and allows trading for other, deflationary coins, it's liquidity is quickly eaten by other parties using it as an exit node from deflationary coins to reserve currencies they can actually use in the real world. Which is why no one does that. Which is why all stable coins quickly become unpegged and why they don't simply only issue as many coins as they have dollars. It's al
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Commodity futures can go negative. The commodities themselves still have value. For example, when oil futures went negative a few years ago, that was only due to overproduction. But you could still either turn oil into petrochemical products like fuels (gasoline, diesel, kerosene), plastics, asphalt, etc and sell those for a profit. You could also simply store it for six months and then sell it at a profit; which many people in fact did, making a lot of money in the process. When the price of a crypto coin
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The snag is that most crypto "currencies" have stopped being currencies and are instead treated as medium to high risk investments. Sure, you could treat stocks and bonds as currency, but nobody sane does that. Similarly, nobody sane uses Bitcoin to buy a a baguette (except those ransomware guys).
Currency is used in day to day trading, but also stored away in banks. So yes, if the price of the USD doubled overnight, it would look extremely good to the people with bank accounts at first, but it would caus
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The snag is that most crypto "currencies" have stopped being currencies and are instead treated as medium to high risk investments. Sure, you could treat stocks and bonds as currency, but nobody sane does that. Similarly, nobody sane uses Bitcoin to buy a a baguette (except those ransomware guys).
Currency is used in day to day trading, but also stored away in banks. So yes, if the price of the USD doubled overnight, it would look extremely good to the people with bank accounts at first, but it would cause enormous upsets in the economy. Why buy bread when you can stick it in the bank and let the value rise (solving the obesity epidemic), don't buy the house this year but just wait.
Remember the US gold rush, Klondike gold rush? The people who got really wealthy were those who sold good and services to the miners at inflated prices.
I actually made this point in response to someone else.
A security that doesn't securitize an asset is almost axiomatically a scam.
Re: Oh. Yay. (Score:2)
Re:Oh. Yay. (Score:5, Insightful)
There was nothing stopping you from buying in when it was cheaper. That's been a major appeal of crypto: high risk investing for the everyman. Stuff this high risk (outside of obvious traps like lotto and sports book) is usually restricted to accredited investors.
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The only ones who didn't profit, are the ones who bought high and sold low. And there's been a lot of those.
Re: Oh. Yay. (Score:2)
S&P 500 is up 82% over Biden's administration. People were already willing to invest. I say this as a BTC holder.
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Some people, yes. If you're lower middle class, you probably see the stock market as something for your retirement account. Plus 82% is not big by cryptocurrency market standards.
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The last peak was March when it hit $74k. If you bought then, it's been a wash.
Re: Oh. Yay. (Score:2)
Slight loss, inflation adjusted.
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The biggest appeal of crypto by far is the criminal market. Black markets, con men, scammers, money launderers, etc. Those true believers who think it's just a currency are the tiny minority.
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Tiocfaidh Ãr là my friend. Our day will come.
Theres only so much looting a planet can endure before its children get vengant.
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Not just more an adminstration more friendly to crypto currencies, but an administration also more friendly to scams. Of course their value will go up!
When the value of a thing is predicted on Trump (Score:5, Insightful)
that should tell you something of the true value of that thing.
Re: When the value of a thing is predicted on Trum (Score:3)
It's not. It's common for Bitcoin to rise after presidential elections. This is likely because the four year Bitcoin halvening cycle syncs up to the presidential election cycle and because elections tend to deliver gains to risk on assets.
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A liar, cheat, and convicted felon is in favor of it.
Bitcoin: (Score:2, Insightful)
Bitcoin is the digital currency equivalent of Donald J. Trump:
All pumped (and trumped) up as being "massively valuable & successful", wrapped in a thin layer of golden-orange luster. The slightest scratch of the surface reveals what's truly underneath: a stinking piece of shit.
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A stinking piece of shit worth over $70k. Lol.
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That dude doesn't even post here anymore.
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Bitcoin sucks, I'm not "Pyrite Pete". Even Ethereum has jumped the shark. They're worth a lot, but technologically they're stagnant. Blockchain is moving on without them.
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You kids don't get it. Technological advancement would mean simplification not additional functionality. The last thing you want to with a currency is massively increase the attack surface and vulnerability probability by adding complexity aka functionality.
Re: Pyrite Pete's failed prediction (Score:2)
"technologically they're stagnant"
The continued development of the Lightning Network (a layer 2 protocol built on the layer 1 Bitcoin Blockchain) seems to suggest otherwise.
You don't generally want your money to rapidly evolve. $1.5T is too much value to just fiddle with.
Like when we developed SWIFT and credit cards as secondary layers on top of USD, while USD has only had a small handful of changes made to it since it's conception (Bretton Woods and greenbacks are the only tweaks I can think of).
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Heard a guy talking about Bitcoin in a bar:
He said: "Fiat currencies are obsolete. They're total crap."
His friend: "Really? Like what currencies?"
Guy: "Anything - the Euro, the Yen, even the USD - all crap."
Friend: "Uh Ok; so like, what's Bitcoin's worth then?"
Guy: "Each coin is worth north of $75K right now."
Friend: "What?! $75K?? As in USD??"
Guy: "Yeah - over $75K USD each"
Friend: "Wow. Bitcoin sure is a lot of crap!"
Rug (Score:5, Insightful)
Remember to get out before the rug is pulled.
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aaah. There's the rub.
bitcoin is (Score:1)
Bitcoooiiinnn (Score:2)
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Re: At what cost?? (Score:2)
My cost basis is around $3k.
People miss the point (Score:2)
Who sells bitcoin at a loss and why? When the price goes down I suspect the only people selling are people who bought at or below that price. Eventually it hits a point where there are no sellers who bought at that low price. Then it goes back up with the process reversed with people only making bitcoins available to buy when it is at or higher than the price they paid.Anyone wanting to buy needs to pay at least that price.
If you buy a bitcoin and hang on to it long enough its likely you will be able to se
Re: People miss the point (Score:2)
Lots of people looking at it as a get rich quick scheme. They completely ignored it until it starts to rise rapidly, so they buy in near the top hoping to get rich, but when the bubble pops, they either need to get out because they put their life savings in it or took out debt to buy it, or they freak out and sell at a loss.
It's ridiculously easy to make money investing in Bitcoin for 4+ years. Once you start trying to make money on shorter time scales is when people get into trouble.
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they put their life savings in it or took out debt to buy it, or they freak out and sell at a loss.
I am sure there are people who do this, but not enough to drive the market price. The pattern with Bitcoin is that it goes up to new records and then drops but never to the previous record low. In other words, it is constantly ratcheting up over time. There is an absolute floor where there are not enough people willing to sell at a lower price to let the market drop any further. And then as even those absolute bottom price people sell off, the price creeps back up.
In theory people lose a lot of value when
5000BTC (Score:1)
What's the problem? (Score:2)
XAUBTC (Score:3)
Not really; the Dollar continues to tank as 23% of tax money is now only spent on Federal interest. That number will tick ever higher on a polynomial curve no matter who is elected.
You can buy 1/3 the number of Happy Meals with BTC today than at its last ATH.
Follow XAUBTC as a proxy.
https://www.tradingview.com/sy... [tradingview.com]
Re: XAUBTC (Score:2)
Taxes only make up like 17% of the GDP, so the effect is smaller than you might think.
Also, interest rates are notably high right now; once they drop so too does the amount of interest paid by the government. And inflation is free money for those who are in debt; as the value of dollars go down, so too does the debt load of the government.
Were a looong way from interest on government debt being a major impact on the economy.
Much bigger negative impact on the economy has been caused by things like tariffs an