the cryptocurrency bubble ?

[VitaMan]

Many advise to sustain the high current prices, more interest and usage needs to start. The other hand says if cryptos become popular, the governments will outlaw it, as they must have control of the money supply, for many reasons.


Discuss

[Fizley]

Look I don't understand the whole crypto currency and how it works.

One thing I remember about the 2008-2012 housing crisis was everybody seemed to be jumping into the Market to buy a house.

I remember I went to get a haircut, and the three barbers had gone together to buy a house and they were asking me for me recommendations on repair people to complete repairs at the house they were planning to flip.

I knew at that point everyone was getting into flipping houses. Sure enough nine months later the housing market collapsed.

Crypto currency has been in the news so much. I have seen people on FB talk about how it's easy money. I don't understand Cypto but with all the news, the FB posts about easy money. Too risky for me at this point.

[ShahOfTexas]

You don't need to understand crypto to make $.

Look at the charts on coinmarketcap dot kom for "BTC", you'll see big alligator teeth: higher highs, then it craters.

Next time it craters buy, and sell it as soon as the chart resembles this time in history, because it's about to sh1t the proverbial financial bed again.

[VitaMan]

Now Wall Street funds based on crypto currency, and crypto credit cards are coming out.


That usually signals it is close to the end.

[bf0082]

Originally Posted by VitaMan

Now Wall Street funds based on crypto currency, and crypto credit cards are coming out.


That usually signals it is close to the end.

yea, and the internet bubble of 2000 was the end of the internet

[DesWad]

Bitcoin is a store of value just like the other cryptos. I'm not going to go buy a new car with $50,000 worth of stored value in collectable stamps, art, or gold. I wouldn't go buy a new car with $50,000 worth of bitcoin either. It's most valuable use is the security it provides though an internet transaction. The only people making money there are the bitcoin miners. This could be a sustainable service forever but the price of bitcoin itself is in a bubble...that is unless a country or countries peg their currency to it.

[bf0082]

Originally Posted by DTickler

Bitcoin is a store of value just like the other cryptos. I'm not going to go buy a new car with $50,000 worth of stored value in collectable stamps, art, or gold. I wouldn't go buy a new car with $50,000 worth of bitcoin either. It's most valuable use is the security it provides though an internet transaction. The only people making money there are the bitcoin miners. This could be a sustainable service forever but the price of bitcoin itself is in a bubble...that is unless a country or countries peg their currency to it.

nice opinion, probably the worst definition of what it is imo.

What we don't know because it was 100 years ago, when the gold standard was dropped people didn't trust "paper currency" so gold certificate program, the silver certificate program was created to transition the faith of government backed worthless money.

Bitcoin is the same and the opinion about it holding value, like a gold investment is true, that it will only be 21 million coins ever and its the most popular coin due to who owns them.

When more businesses move real cash like Tesla did (1.5B$) off their books in exchange for Bitcoin it gives the product the backing of Corporate Investment, which lets face it, is a better control than Countries who operate yearly budgets in the red each year.

The last opinion fails because the profit in mining the coin has almost come to its end, with only 11% left to be mined and the time and energy to mine the remaining 11% the last coins mined will be done at a loss unless the value keeps going up.

Is it possible to sustain demand of an item, 21 million of those items of over $100,000 each for the long term, Highly unlikely. The national average for a 30 year mortgage is apx. $100,000 meaning only the top 5% of USA earners and maybe a few percentage more for world earners can afford to invest that much into an item and without demand the supply willing to be sold as the price increases will always create a lower value in the long term, the race to see what the bubble reaches is what will reward the first people in, like any Demand based Collectible or investment.

The highest prices if bitcoins exceed $150,000 a coin will be the bubble and the fall to $75/100$K will be the longterm sustainable value which will satisfy the supply vs. the demand over the next few decades.

What the average person needs to know about monetary policy, the wealthy control all the money and the rules on how money works, so there will always be controls and laws created to keep those in power wealthy. Like all investments, they are a ponzi scheme as where the early get rewarded and those last in, lose everything. The stockmarket is the same set up.

As long as the wealthy and the people of power own and trade anything, it will have value, when they decide to sell to those who have no power, the value is zero.

[DesWad]

the only reason to use bitcoin is its secure transaction. PERIOD.

miners will always create new coin. call it bitcoin, bitcandy, bit whatever. The way Bitcoin itself is mined is not infinite so they change the program and the name. The process is infinite.

As you say, all investments are a ponzi scheme. lots of truth to that.

[VitaMan]

Not all investments are a ponzi scheme. If you invest in a business that produces goods and services, earns money, and keeps growing, it will always become more valuable to the owners.

[bf0082]

Originally Posted by VitaMan

Not all investments are a ponzi scheme. If you invest in a business that produces goods and services, earns money, and keeps growing, it will always become more valuable to the owners.

the percentage of businesses that can continue to grow, and earns profits has a limited amount of time, the typical business dies after 100 years.

See the businesses over 100 years old, their stock doesnt move.

any publically traded company's stock, whether they earn profits or not will hit close to zero if there are all sellers and no buyers of that stock.

[Fizley]

Originally Posted by bf0082

the percentage of businesses that can continue to grow, and earns profits has a limited amount of time, the typical business dies after 100 years.

See the businesses over 100 years old, their stock doesnt move.

any publically traded company's stock, whether they earn profits or not will hit close to zero if there are all sellers and no buyers of that stock.

Definitely dont understand your comment about the stock market, but on average the S&P 500 returned 9% over the past 10 years.

https://www.businessinsider.com/pers...-market-return

[orallvr69]

Interesting that nobody here is looking at the big picture. In case you haven't noticed, our monetary system is about to collapse. It will be replaced by crypto. It really isn't that much of a secret when you see CEOs of various crypto companies rubbing elbows with people from the IMF, the Federal Reserve (they attend meetings with them). That is why our politicians don't care at all about the coming collapse of the dollar. What they have been doing since the early 2000 (worse every year, with 2020 being THE worst) in "printing" money like they have done while running up the debt.

It probably won't be Bitcoin but I doubt Bitcoin will collapse as a result. Bitcoin has hit another all time high today and seems to be holding pretty steady over $60,000 for now. Some experts expect it to go to $100,000 by the end of the year, and $500,000 over the next 5 years.

It may be XRP, which has risen from $1.05 to $1.48 in the last 24 hours. The SEC is in an unwinnable lawsuit against Ripple (the XRP creator) and the price jump is interesting given that there has been no settlement yet. Coinbase delisted them last year due to the lawsuit. Some have expected XRP to jump once the lawsuit is over but why is it going up today after being around $.27 to $.54 over the last year?

Other possibilities for the dollar replacement: IOTA, XLM, XDC, ALGO.

All of these coins have gone up over the last year. It wouldn't be a bad idea at all to throw some money in some of these coins. Some are fractions of a penny in price. Take XDC for example. Currently it is worth $0.074819 but it is up 10478% for the year. A $100 investment could have yielded $10K if I am doing that math right. You could skip a few blow jobs and make some money on an investment. You could pay for many more blow jobs in the future.

So, people are concerned about this stuff being "outlawed". Funny how we talk about that while signed into eccie, eh? Regardless, the IRS wants to know about your dealings in this stuff so they are likely to regulate it. Notice it showing up on tax forms yet? It is there and will go from one question to several, to many.

And to the people who don't know enough and plan to do something in the future... Well, don't wait too long. The Biden admin and the leftists are ensuring a quick collapse. They spent over $10 TRILLION dollars in the last year for "COVID relief" and such. Only this month have they started to talk about raising taxes. Why? There is no way in hell we can ever pay this debt off with taxes, even if they take everything. The economy is crippled and we are increasing dependents, paying to not work, and "printing" money $1.99999 trillion at a time. What is the point of raising taxes? Does anyone think the Congress won't be dreaming up any more ways to spend money this year? It is only April and they have done it twice.

Just so you know what a trillion is:

A billion seconds is 31.69 years

A trillion seconds is 31,689 years

wolframalpha.com is your friend for the calculation

I almost forgot to mention. Not too long ago, if a bank knew you were playing with crypto you would be banned. Guys like Teeka Tawari, Tyler and Cameron Winklevoss, were not allowed to open accounts due to the heavy regulations in the banking industry. It was the same rules they did to prevent drug dealers from using banks. Those rules have been relaxed and as other posters here have mentioned, banks, Paypal, credit card companies are all jumping on board.

[bf0082]

oralvr69, you fail to realize that the other currencies are doing way worse that the USA Dollar, so in retrospect we are the best thing out there and will continue to be the worlds strongest currency until they adopt a single united world currency.

[orallvr69]

If anything, the US dollar is the "bubble". I don't much care about "other currencies" - that's their problem, other than this:

I didn't say it in my post yesterday but Biden is being pressured by people like Henry Kissinger to embrace a global government. If other countries monetary systems are also collapsing then they will look to government to "save" them even though it is their own governments (like ours) fucking them over.

In Venezuela, for example, their inflation is so bad (2665% in January, 2021) that they immediately convert their paychecks to crypto (I think many of them use Dash). They do this because their already small paychecks lose value so fast that it loses it's value before it can be spent for necessities.

[bf0082]

Currency is backed by government and military, you have nothing to fear about the US dollar.

US dollar is no bubble, it’s backed by 700 billion yearly military budget.