Crypto Currency Thread (Vol.2)
Discussion
jammy-git said:
I thought a large part of the issue driving this (at least the most recent crashes) were other cryptos collapsing and/or things like Coinbase laying off staff causing a lack of confidence to ripple through the market.
No. It's because stocks are in tatters and BTC follows the NASDAQ, and all the other cryptos follow BTC.To be fair $2Tn hasn’t been lost from crypto.
Plenty of people hodl’ing and a good chunk out there was probably bought at much lower prices.
And much won’t be sold if it was bought in the last 18 months.
The loss isn’t real until it’s realised. It’s a notional loss.
I’ve lost £££ this year notionally, but I’m still up well over 1000% and have take well over 1000% in profits.
It’s a daft headline.
Plenty of people hodl’ing and a good chunk out there was probably bought at much lower prices.
And much won’t be sold if it was bought in the last 18 months.
The loss isn’t real until it’s realised. It’s a notional loss.
I’ve lost £££ this year notionally, but I’m still up well over 1000% and have take well over 1000% in profits.
It’s a daft headline.
Mr Whippy said:
To be fair $2Tn hasn’t been lost from crypto.
Plenty of people hodl’ing and a good chunk out there was probably bought at much lower prices.
Not to mention a good chunk that would have been mined for much less than it costs to mine today. I might be wrong but I think that around 70% of the total number of bitcoins that can ever exist had been mined by 2016 (when it was worth around £500 per coin and there were ~15 million in circulation).Plenty of people hodl’ing and a good chunk out there was probably bought at much lower prices.
I'd be interested to know what the production / purchase cost to hodlers of all bitcoin that exists today is, compared to the current price of all bitcoins at £16K per coin.
I suspect that the difference will be huge. Well done to anyone who bought low and sold high.
Mr Whippy said:
The loss isn’t real until it’s realised. It’s a notional loss.
The majority of people will have bought BTC recently. Their BTC worth has gone done considerable, that is a loss, as everyone in finance understands, hell The Times Rich List is based on net worth.
Edited by Ouroboros on Saturday 18th June 15:16
Ouroboros said:
Mr Whippy said:
The loss isn’t real until it’s realised. It’s a notional loss.
The majority of people will have bought BTC recently. Their BTC worth has gone done considerable, that is a loss, as everyone in finance understands, hell The Times Rich List is based on net worth.
Will the stable coins be able to payout? I think even the most committed fan of Crypto knows they won't/can't.
Andy 308GTB said:
The bigger concern for BTC and the whole Crypto market is if there is a mass exodus.
Will the stable coins be able to payout? I think even the most committed fan of Crypto knows they won't/can't.
the good thing about tether is , to quote Tether, there ''secret sauce''. The fact what underwrites Tether is unknown but they had 4.2 billion cash against circa70 billion USD in circulation . The rest seems to be made up, of potential IOUs to itself.Will the stable coins be able to payout? I think even the most committed fan of Crypto knows they won't/can't.
No one cared when everyone got Lambos, now everyone is in Ladas, bums are getting squeaky.
A month ago Tether gave 7.6 billion back to institutional investors, makes you wonder where the cash came from?
Edited by Ouroboros on Saturday 18th June 17:26
Ouroboros said:
the good thing about tether is , to quote Tether, there ''secret sauce''. The fact what underwrites Tether is unknown but they had 4.2 billion cash against circa70 billion USD in circulation . The rest seems to be made up, of potential IOUs to itself.
No one cared when everyone got Lambos, now everyone is in Ladas, bums are getting squeaky.
If Tether pops it's curtains for everyone and the cryptos go to 4 digits or less. The Tethers created out of thin air are the reason why BTC is (was) the price it is. Most people regularly trading cryptos (including multi-billion dollar hedge funds) will park their cash in a stable coin when in between trades so if the arse falls out of Tether it'll get ugly real quick, which will have huge knock-on effects across the world.No one cared when everyone got Lambos, now everyone is in Ladas, bums are getting squeaky.
Edited by Ouroboros on Saturday 18th June 16:14
It's worth reminding people that Coinbase (who "own" the Circle stable coin USDC - the next biggest after Tether) recently changed their T&Cs to state that if they go bankrupt, you lose everything held with them. And that change came just before the crypto markets crashed a couple of months back. My spidey senses suspect that they know there's an upcoming shtstorm and are getting their ducks lined up to protect themselves for when it all falls apart and the baying mobs come after them with their pitchforks.
I often have large amounts parked in stables and I don't like it as I keep seeing them de-peg by worrying amounts when the crypto markets take another bath. But there isn't really anywhere else to put your money within the crypto space and I don't trust stuff like PAXG.
I’m out for the time being. Sold today for what I paid several years ago.
Should I have sold 3 months ago… yep.. but I didn’t.
It was always an experiment for me and for now I’m back to break even to see if / when it comes back.
I feel we’re in uncharted territory here with crypto and the economy.
I’ll be watching every day for the right time to get back in. I fear that might be years, or even never.
Should I have sold 3 months ago… yep.. but I didn’t.
It was always an experiment for me and for now I’m back to break even to see if / when it comes back.
I feel we’re in uncharted territory here with crypto and the economy.
I’ll be watching every day for the right time to get back in. I fear that might be years, or even never.
Mr Whippy said:
I thought Tether just took dollars and issued Tethers, and left the dollars as collateral so it’d be stable and tethered?
Nope70 billion Tethers was backed by 4.3 billion cash, 65 billion was made up of bonds etc which no one knows off.
These were the facts released by Tether from the New York lawsuit.
But don't worry, an accounting firm from the Cayman Islands gave them the all clear.
InformationSuperHighway said:
I’m out for the time being. Sold today for what I paid several years ago.
Should I have sold 3 months ago… yep.. but I didn’t.
It was always an experiment for me and for now I’m back to break even to see if / when it comes back.
I feel we’re in uncharted territory here with crypto and the economy.
I’ll be watching every day for the right time to get back in. I fear that might be years, or even never.
a few people I know have either cut their losses today and sold what they have, a few others I know who bought extremely early and made a lot of money (never selling more than 50% though) sold their remaining btc (still in huge profits)Should I have sold 3 months ago… yep.. but I didn’t.
It was always an experiment for me and for now I’m back to break even to see if / when it comes back.
I feel we’re in uncharted territory here with crypto and the economy.
I’ll be watching every day for the right time to get back in. I fear that might be years, or even never.
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