Bitcoin drops below $ 30K. Bitcrash or a BitBust?

[Sohail Shuja]

Neither....... just another healthy correction on it's way to higher grounds....... don't be surprised if it hits even 15k or lower but in the long run, you'll still be a lot safer when compared to dollar value.... this isn't the first correction, won't be the last however it's not for the weak hands......
I'm safe unless it hits $750 lol

But in fact I was looking at the YoY yield and as compared to the value last year (around 29K), it still has some potential.

But many of my friends are going to the doctors for meds of depression and anxiety, specially the ones who invested around 6 months ago. ???

 

[Sohail Shuja]

Never invest in something you have no understanding of and never invest money you cannot afford to lose or freeze for months..... simple as that...

Yes, thats the key. Always take Bitcoin as a side investment, unless it establishes itself as an accepted form of tender to buy Govt issued bonds.

 

[arifkarim]

Yes, thats the key. Always take Bitcoin as a side investment, unless it establishes itself as an accepted form of tender to buy Govt issued bonds.

Buttcoin is not an investment. It's a ponzi scheme run by Tether (USDT) coin

The Tether Ponzi Scheme - SingleLunch

www.singlelunch.com

 

[c'estmoi]

Invested $200, got out at $250. All good.

 

[Sohail Shuja]

Buttcoin is not an investment. It's a ponzi scheme run by Tether (USDT) coin

The Tether Ponzi Scheme - SingleLunch

www.singlelunch.com

Well, there is one good point in the article, which is that in cases of stocks investment, the companies do buy back at the face value if no one else in the market buy the shares.

Having said that, people also invest in the stocks of Gold, Silver and other commodities, which are not controlled by any organization in particular.

BTC is somewhat an unregulated "digital commodity".

 

[Sohail Shuja]

Invested $200, got out at $250. All good.

You Rock MAN !!!!
More power to you.... but by the way, are you talking about BTC?

 

[arifkarim]

Well, there is one good point in the article, which is that in cases of stocks investment, the companies do buy back at the face value if no one else in the market buy the shares.

Having said that, people also invest in the stocks of Gold, Silver and other commodities, which are not controlled by any organization in particular.

BTC is somewhat an unregulated "digital commodity".

But you fail to understand the concept of demand. If Tether is printing USDT coins out of thin air and using them to purchase real Bitcoins, then it's creating artificial demand, raising up the price of digital commodity. It's market manipulation and fraud.

 

[Sohail Shuja]

But you fail to understand the concept of demand. If Tether is printing USDT coins out of thin air and using them to purchase real Bitcoins, then it's creating artificial demand, raising up the price of digital commodity. It's market manipulation and fraud.

Well, the impression I got from the article is that it is about Tether and their "Stablecoin" system, which manipulates the BTC market. They create a supply and demand pressure on BTC to manipulate its rise and fall.

The author is of the opinion that there is no value addition in the chain of BTC, now that point needs consideration and a debate, since it is the data miners who are paying the electricity bills in dollars and that seems to be the only value addition in the chain of BTC. However, in stocks, the bills paid for their trade in the market, e.g. NYC having its digital portal etc. also spend a lot of money to maintain their servers and digital transactions etc. Wonder from where that money pours in or is adjusted?

 

[arifkarim]

The author is of the opinion that there is no value addition in the chain of BTC, now that point needs consideration and a debate, since it is the data miners who are paying the electricity bills in dollars and that seems to be the only value addition in the chain of BTC.

Normal Fiat currencies such as dollar, euro has real demand. Countries need them to conduct business with each other. Same is not the case with Bitcoins. There is no real demand because there is no one really using bitcoin as normal currencies. Hence it has become speculative bubble doomed to fail

 

[Sohail Shuja]

Normal Fiat currencies such as dollar, euro has real demand. Countries need them to conduct business with each other. Same is not the case with Bitcoins. There is no real demand because there is no one really using bitcoin as normal currencies. Hence it has become speculative bubble doomed to fail

Since the gold standard system was abolished, every Government is like a BTC trader, the only difference is that those tenders are controlled and traceable, whereas what makes BTC more attractive is its free market and non traceability.

BTC has remained a tender for payments all over the world, at least from the past seven years. Many organizations are paying or accepting payments in BTC, which creates a real demand for it. The organizations/individuals doing transactions in BTC do not want their Governments to peep into their financial position and levy taxes. Thats the attractions which is missing in the Fiat.

Likewise, you may compare the case with an rganization/individual asking you for a barter trade rather than a monetary transaction. Lets say you sell me something and I offer to pay in Gold or Silver or maybe Oil. It still is a trade and a transaction, without involving any Government's legal tender. It is also untraceable and if you are successful enough, it is also not taxable while resting in your "closet".

Likewise, BTC is a digital commodity, comparable to Gold and Silver. However, as I said earlier that the point of consideration is that there is no real value addition in the chain, but the miners are constantly adding up to the price of BTC due to their electricity bills.

This point needs a careful consideration, since in the commodity markets, the production and consumption pattern is not ignored and it also plays a role in determining their market value. Whereas, in BTC, this is missing.

 

[arifkarim]

Since the gold standard system was abolished, every Government is like a BTC trader, the only difference is that those tenders are controlled and traceable, whereas what makes BTC more attractive is its free market and non traceability.

BTC has remained a tender for payments all over the world, at least from the past seven years. Many organizations are paying or accepting payments in BTC, which creates a real demand for it. The organizations/individuals doing transactions in BTC do not want their Governments to peep into their financial position and levy taxes. Thats the attractions which is missing in the Fiat.

Likewise, you may compare the case with an rganization/individual asking you for a barter trade rather than a monetary transaction. Lets say you sell me something and I offer to pay in Gold or Silver or maybe Oil. It still is a trade and a transaction, without involving any Government's legal tender. It is also untraceable and if you are successful enough, it is also not taxable while resting in your "closet".

Likewise, BTC is a digital commodity, comparable to Gold and Silver. However, as I said earlier that the point of consideration is that there is no real value addition in the chain, but the miners are constantly adding up to the price of BTC due to their electricity bills.

This point needs a careful consideration, since in the commodity markets, the production and consumption pattern is not ignored and it also plays a role in determining their market value. Whereas, in BTC, this is missing.

Problem with BTC is volatility. If everybody was using digital currency for transaction, then it was sufficient to use stable coin USDT. So why Bitcoin? Because it's not normal currency. It's a speculative asset that rapidly changes value. So it is not practical to use it for transactions. If I bought 1 BTC 3 months ago, its value in USD is already halved by now. Reverse would happen if BTC went up 100 percent. So BTC is not suitable for transactions and trade but it is fine for speculation

 

[Sohail Shuja]

Problem with BTC is volatility. If everybody was using digital currency for transaction, then it was sufficient to use stable coin USDT. So why Bitcoin? Because it's not normal currency. It's a speculative asset that rapidly changes value. So it is not practical to use it for transactions. If I bought 1 BTC 3 months ago, its value in USD is already halved by now. Reverse would happen if BTC went up 50 percent. So BTC is not suitable for transactions and trade but it is fine for speculation

I do get your point. You say that since there is no central control, hence there is volatility in the prices of BTC. Right?

Yes, it is true that the ups and downs in the BTC prices will always be there. That is why I raised the point that who is actually paying for the BTC miners electricity bills? It is the losers in the market. See, in this chain, the only flaw is that the electricity bills keep mounting up on its prices and at the end of the day, someone has to pay those bills.

So when the market crashes, the losers basically pay those electricity bills. That is why its market is very unpredictable.

However, volatility of market prices is also an inevitable phenomenon of other commodities as well. Remember last year when the oil prices plunged to negative?

 

[arifkarim]

I do get your point. You say that since there is no central control, hence there is volatility in the prices of BTC. Right?

Yes, it is true that the ups and downs in the BTC prices will always be there. That is why I raised the point that who is actually paying for the BTC miners electricity bills? It is the losers in the market. See, in this chain, the only flaw is that the electricity bills keep mounting up on its prices and at the end of the day, someone has to pay those bills.

So when the market crashes, the losers basically pay those electricity bills. That is why its market is very unpredictable.

However, volatility of market prices is also phenomenon with other commodities as well. Remember last year when the oil prices plunged to negative?

I have no problem with Bitcoin and its miners as long it has real demand. USDT has been manipulating Bitcoin demand for years and since all crypto currencies follow the price of bitcoin, once bitcoin is manipulated, all are manipulated. If USDT is removed from the crypto currency market and real dollars were used to purchase Bitcoins, then all this artifically created volatility would be gone

 

[Sohail Shuja]

I have no problem with Bitcoin and its miners as long it has real demand. USDT has been manipulating Bitcoin demand for years and since all crypto currencies follow the price of bitcoin, once bitcoin is manipulated, all are manipulated. If USDT is removed from the crypto currency market and real dollars were used to purchase Bitcoins, then all this artifically created volatility would be gone

Look, it happens with all the other commodities and currencies in the world of stocks and trade.

Ishaq Dollar inflated the market value of PKR by pumping in the USD into the market. JKT inflated the sugar prices by hoarding. These are all malpractices which had been prevalent throughout the history of each and every commodity in the market.

 

[arifkarim]

Look, it happens with all the other commodities and currencies in the world of stocks and trade.

Ishaq Dollar inflated the market value of PKR by pumping in the USD into the market. JKT inflated the sugar prices by hoarding. These are all malpractices which had been prevalent throughout the history of each and every commodity in the market.

Yes and since the price of bitcoin is manipulated, miners are only getting inflated returns. Once USDT is unable to create more artificial demand, price of bitcoin would crash, bankrupting the miners

 

[Sohail Shuja]

Yes and since the price of bitcoin is manipulated, miners are only getting inflated returns. Once USDT is unable to create more artificial demand, price of bitcoin would crash, bankrupting the miners

just one disagreement...... it is not the miners who are paying, it is the BTC holder who pays, when the market crashes and he has to sell out at lower prices. The difference of prices is adjusted in the electricity bills.

Therefore, the miners will keep reaping the fruit until BTC is on the charts. Only its owners will keep paying the price. This is the paradox, which needs proper evaluation.

 

[arifkarim]

just one disagreement...... it is not the miners who are paying, it is the BTC holder who pays, when the market crashes and he has to sell out at lower prices. The difference of prices is adjusted in the electricity bills.

Therefore, the miners will keep reaping the fruit until BTC is on the charts. Only its owners will keep paying the price. This is the paradox, which needs proper evaluation.

There is always a psychological barrier in the market. Elon Musk drove up the price of Bitcoin to new levels and now China is helping to crash down the prices back to former levels. It may crash further as crackdown on miners continue

 

[Sohail Shuja]

There is always a psychological barrier in the market. Elon Musk drove up the price of Bitcoin to new levels and now China is helping to crash down the prices back to former levels. It may crash further as crackdown on miners continue

Yes, this is all part of the game. Prices on stocks rise on speculation.... Elon Musk created a demand for the BTC and now China is crushing it. But BTC has already seen two to three extreme crashes before this as well.

 

[c'estmoi]

You Rock MAN !!!!
More power to you.... but by the way, are you talking about BTC?

Yea BTC

 

[Iconoclast]

But in fact I was looking at the YoY yield and as compared to the value last year (around 29K), it still has some potential.

But many of my friends are going to the doctors for meds of depression and anxiety, specially the ones who invested around 6 months ago. ???

Tell ye friends to either forget about it for a couple of years or keep going to the doctor....
one of my friend, sold his btc at around 58k and bought it back at 32k...... almost doubled his btc so you see those who are experienced are in good hands whether the market is going up or down....