Bitcoin - a decentralised digital currency

2,183 posts in this topic

Well.. maybe if it dips below 30,000 for too long, there is a good chance it will trigger a sell off...

 

the chickens have come home to roost!

Screen Shot 2021-06-11 at 5.57.11 PM.png

0

Share this post


Link to post
Share on other sites

It seems that China has forbidden any banks to allow accounts to interact with cryptocurrencies, and so a significant amount of Chinese mining operations have shut down.

 

This looks like a great opportunity for more decentralized mining locations, pushing the possibility of a 51% attack from China even farther away from reality.

0

Share this post


Link to post
Share on other sites

Down to 27k€ now. I think the big sell off will take a few months, if not up to 2 years. Of course if EU or Biden suddenly do something similar to what China did, then it drops really fast.

0

Share this post


Link to post
Share on other sites

??

32,532.90 United States Dollar
Jun 21, 3:39 PM UTC · Disclaimer
     
   
 

 

 

 

 

 

 

Also in the news

 

"Bitcoin price crash: Technology company buys half a billion dollars of crypto as market collapses"

 

Quote

Technology company MicroStrategy has spent almost half a billion dollars on bitcoin, even as the market continues to collapse.

Michael Saylor, MicroStrategy’s founder and chief executive, said that it had spent $489 million in cash on its 13,005 new bitcoins. It now holds 105,085 bitcoins, worth about $3.3 billion at current prices.

 

The new bitcoins were bought at an average price of around $37,617, Mr Saylor said in a tweet. The same announcement was made in a post to MicroStrategy’s investors, on its website.

 

At the same time, Mr Saylor posted a tweet that seemed to urge bitcoin holders to keep their belief even as the price fell.

...

In the hours after the announcement, the value of MicroStrategy’s new investment continued to fall. At the time of publication, just a couple of hours after Mr Saylor’s tweet, the price had dropped to under $33,000, down almost 13 per cent on MicroStrategy’s purchase price.

 

That represents a loss of more than $60 million on MicroStrategy’s investment.

https://uk.finance.yahoo.com/news/bitcoin-price-crash-technology-company-151453575.html

 

Seems utterly mad, or am I missing something?

0

Share this post


Link to post
Share on other sites

He is probably still in the black, as he bought most of it much lower.  His average purchase price should be around $15k, compared to $30k now.

But yes, it's stupid to buy it now. And he took a $1B loan to buy it.

 

0

Share this post


Link to post
Share on other sites
On 21.6.2021, 17:58:08, MikeMelga said:

He is probably still in the black, as he bought most of it much lower.  His average purchase price should be around $15k, compared to $30k now.

But yes, it's stupid to buy it now. And he took a $1B loan to buy it.

 


He is still in black. I saw somewhere his average is something like

$24-$25K. But its really not genius to bet whole of a 32 year old  $480 Million  company on BTC 

 

0

Share this post


Link to post
Share on other sites
21 minutes ago, Goodbye_BlueSky said:


He is still in black. I saw somewhere his average is something like

$24-$25K. But its really not genius to bet whole of a 32 year old  $480 Million  company on BTC 

 

 

He's sitting at the blackjack table, winning the odd hand here and there, but losing money steadily. So he goes to the ATM, maxes his credit line, and bets the farm on the next hand.

 

Write your own conclusion.

2

Share this post


Link to post
Share on other sites
2 hours ago, El Jeffo said:

 

He's sitting at the blackjack table, winning the odd hand here and there, but losing money steadily. So he goes to the ATM, maxes his credit line, and bets the farm on the next hand.

 

Write your own conclusion.

the analogy doesn't fit.  Games of chance are either win/lose.  With bitcoin, you own the coin and it's value fluctuates.

0

Share this post


Link to post
Share on other sites
11 minutes ago, catjones said:

the analogy doesn't fit.  Games of chance are either win/lose.  With bitcoin, you own the coin and it's value fluctuates.

 

It is also wildly inaccurate in "losing money steadily". But some people are not too concerned with reality, if it goes against their beliefs.

0

Share this post


Link to post
Share on other sites

Bitcoin crash wipes out nearly all the cryptocurrency's gains for 2021

 

Quote

The price of bitcoin continues to swoon, sliding below $30,000 in early trading on Tuesday and giving up nearly all of the digital currency's gains for the year, according to Coindesk.

 

Bitcoin reached a high of $64,829 in April, while other cryptocurrencies also soared. Ethereum topped $4,100 in May, up 466% for the year at the time, but has since sunk to less than $1,900. The sharp swings underscored the speculative nature of cryptocurrencies since their emergence in recent years, with factors such as a recent regulatory crackdown in China and various tweets by Elon Musk sending their value careening unpredictably. 

 

Proponents of cryptocurrencies have touted their upside as investments as well as their potential utility in global commerce. Wall Street banks including JPMorgan Chase and Goldman Sachs have allowed clients to invest in bitcoin. Cathie Wood, the CEO of ARK Investments and a prominent crypto booster, in November predicted that the price of bitcoin could reach $500,000.

 

Yet the roller-coaster trading has also brought warnings from financial analysts.

 

"When investing in cryptocurrency, it's important to remember that volatility is the name of the game," Bankrate.com analyst James Royal said in an email. "Volatility is magnified, on the upside and downside, by the fact that the price is driven heavily by trader sentiment, and traders can quickly swing from rabid optimism to gloom and doom."

 

Well, put your eggs in an unregulated basket...

Oh, but wait, help is on the way!

Bitcoin Nudges Up as Regulatory Risks Linger

 

Quote

Cryptocurrencies were slightly higher on Wednesday as traders grappled with the likelihood of more regulation. Bitcoin is up about 1.9% over the past 24 hours, giving up about half of Tuesday’s relief rally, suggesting that buyers are starting to take profits. 

“It’s too early to tell if this is ‘the’ bottom or just a temporary floor before more downside. The lack of any upside catalyst (beside some contrarian oversold metrics) remains the biggest hurdle for cryptos to bounce back,” Elie Le Rest, partner and co-founder of crypto hedge fund ExoAlpha, wrote in an email to CoinDesk

 

3

Share this post


Link to post
Share on other sites

Maybe it is time that the Biden Administration tames the cryptocurrency Wild West.

 

Quote

Now, the era of unregulated crypto appears to be ending. Regulators are focused on the crypto markets, and investors should expect increasing oversight. This is good news: Regulators appear to recognize the unique characteristics of crypto assets and the need to balance innovation and investor protection.

 

The Securities and Exchange Commission began to regulate crypto securities with a 2019 Framework for “Investment Contract” Analysis of Digital Assets, which provided guidance on which crypto assets are securities. The SEC has not been shy about acting on this guidance, bringing enforcement actions against allegedly unregistered crypto securities like XRP, Kik, and Gram.

 

Signs are good that the SEC’s relationship with crypto will include some collaboration going forward. SEC Commissioner Hester Pierce’s openness to blockchain-based investments has earned her the nickname “Crypto-Mom.” Whether her initial proposal of a three-year safe harbor before crypto securities are registered is ultimately implemented, Pierce is a model for regulators concerned about squelching innovation. She has criticized the SEC’s focus on enforcement, comparing them to the invention of roller skates. “Rather than provide useful guidance on safety standards and functional braking technology, we simply sue skaters for breaking mirrors,” she said.

 

President Joe Biden’s nominee for SEC chair, Gary Gensler, appears similarly open-minded. Gensler has taught courses at MIT on blockchain technology, calling it a “change catalyst.” In a previous term as chair of the Commodity Futures Trading Commission, Gensler reformed the over-the-counter derivatives market without undermining its vitality. He is now similarly positioned to shepherd a more mature blockchain industry.

 

Other federal agencies have sought to protect investors by going after bad actors. The CFTC, which has regulatory authority over crypto commodities such as Bitcoin and Ethereum, has brought crypto enforcement actions under the Commodities Exchange Act. In its recent complaint against tech entrepreneur John McAfee and his bodyguard Jimmy Gale Watson Jr., the CFTC alleged a pump-and-dump scheme that exploited McAfee’s fame to inflate the value of crypto assets like dogecoin. This enforcement action would not be groundbreaking in a traditional market. But in the crypto world, it signals that the CFTC is prepared to take action against those it believes are engaging in market manipulation.

 

Federal prosecutors have also unveiled enforcement actions in the crypto sphere. The CFTC and the United States Attorney for the Southern District of New York recently brought coordinated actions against BitMEX. The CFTC filed a complaint alleging that BitMEX had executed futures transactions without appropriately registering and ignored know-your-customer obligations. At the same time, federal prosecutors indicted BitMEX executives for alleged violations of the Bank Secrecy Act. Days after initiating this prosecution, the Department of Justice published “Cryptocurrency: An Enforcement Framework,” emphasizing more than a dozen different statutes that the DOJ could use to prosecute crypto-related crimes. The DOJ made clear it intends to police the digital asset space, and there is no reason to believe the new administration will abandon this push.

 

Investors should regard these enforcement actions as positive steps. Enforcement disincentivizes manipulation, which benefits the manipulator at the expense of honest traders; more enforcement should therefore bolster investor confidence. Crucially, neither the CFTC nor the DOJ has attacked crypto itself. Instead, each has focused on allegedly illegal actions that threaten the integrity of crypto markets.

 

The Biden DOJ's  Ransomware and Digital Extortion Tax Force has already shown that it can and will reach into cryptocurrency accounts and take the money. That was for illegal activity, but how long will it be before they reach in and take the money from tax dodgers?

4

Share this post


Link to post
Share on other sites
2 hours ago, AlexTr said:

but how long will it be before they reach in and take the money from tax dodgers?

 

One would think that that is their ultimate goal.

2

Share this post


Link to post
Share on other sites
4 minutes ago, Goodbye_BlueSky said:

How stable and well-backed are Tether and BUSD in reality ?

 

Tether is a scam.

Quote

Tether has lost the privilege of the benefit of doubt a long time ago. Here is how tether’s Ponzi scheme likely works:

  • All their commercial debt is to the related exchanges (Binance, FTX, Bitfinex – see below) or their affiliated shell companies.

  • Tether make new USDT out of thin air and send them against a dollar-denominated loan to these affiliates

  • The affiliates use the new USDT to put market buy-orders for crypto, putting them on the new USDT on market

  • Crypto goes up in value because of the new demand pressure. This overcollateralizes the affiliated loans, justifying more loans.

  • Rinse, repeat.

 

They're creating billions and billions of dollars out of nothing and it's being used to prop up other cryptos, notably bitcoin and Etherium.

3

Share this post


Link to post
Share on other sites

All cryptocurrencies other than Bitcoin have varying degrees of centralization that prevent them from being legitimate.

Stablecoins are the ultimate example of centralization, which is why the digital Euro/Pound/Dollar fall into the same bucket of being scams.

0

Share this post


Link to post
Share on other sites
13 minutes ago, El Jeffo said:


I once heard from a Finance expert that every ponzi/pyramid scheme ends when people realises it is a ponzi, and that the crypto bubble is probabaly the first ponzi/pyramid scheme where people aren't caring even when they relize it "looks, sounds and smells like a pyramid/ponzi".

Anyone who says USD/EUR/Pound are ponzi would argue that these states aren't legitim and their ability to give currency and to tax aren't legitim. But I think thats another way of thinking. And I see no one complaining when BTC prices gets pushed up by so called "ponzi stable coins"

0

Share this post


Link to post
Share on other sites
4 minutes ago, Goodbye_BlueSky said:

Anyone who says USD/EUR/Pound are ponzi would argue that these states aren't legitim and their ability to give currency and to tax aren't legitim.

 

This is a wild stretch of reasoning. The central banks are not owned or controlled by the governments, so these two things have nothing to do with each other.

0

Share this post


Link to post
Share on other sites
21 minutes ago, MadManEarle said:

All cryptocurrencies other than Bitcoin have varying degrees of centralization that prevent them from being legitimate.

Stablecoins are the ultimate example of centralization, which is why the digital Euro/Pound/Dollar fall into the same bucket of being scams.

 

In which MME nearly gets it.

 

Bitcoin is still real to him, dammit.

1

Share this post


Link to post
Share on other sites
1 minute ago, MadManEarle said:

 

This is a wild stretch of reasoning. The central banks are not owned or controlled by the governments, so these two things have nothing to do with each other.


I hear a little of "Rothschild" or "The Jews Control The World" conspiracy here. I know theoretically Central Banks are Independent.
But to say that USD, Fed, US Govt/People and USA aren't tied closely is "a very very wild stretch of reasoning". 

1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now