TIL a pull back from an all time high to levels from 2 days ago is a crash.
Bitcoin ?
- Thread starter 11sec Guy
- Start date
- Status
TIL a pull back from an all time high to levels from 2 days ago is a crash.
It caught a lot faster than I expected.
I jumped the gun.
I bet a lot of people shit their pants, ~20% drop in a few hours.
Currently at $10,150...an increase of $150 over breaking the 10K mark less than 48 hours ago. Explain "crash" to me please.
Last edited:
Volatile is a far more accurate term.
Because oil is traded internationally in dollars. China and Russia have been scheming for years to derail this, and their newest thing is gold backed exchanges. We'll see how that plays out.
How many of you have heard of Silk Road?
Think that contributes to the extreme jump in value?
Think that contributes to the extreme jump in value?
Just looked what happened......housing market....crash......oil markets through the roof....money needed to speculate quietly increased and amounts it controls decreased.....crash......silver and gold run up but the stock market rebounds..........crash. Stock market is just about overdue for a crash itself.
Sounds like a lot of mis information and people who don’t trade stocks or currencies. Yes there is a risk, anything can go to ZERO.. just like Enron. But if you’re a trader that is capable of using a stop loss then why not ride the greatest bull run in history. Astonishing amounts of money can be made if people do their homework.
Sent from my iPhone using Tapatalk
Sent from my iPhone using Tapatalk
Nuthin goes straight up. The odds are it falls to 800 before it hits 16000
So in my mind, there has to be a bust, and it has to bust hard? A bitcoin should only be worth a dollar, because if it costs more than a dollar, why don't i just use a dollar to buy whatever i want instead of a bitcoin...
Maybe not strictly 1:1, but there has to be some sort of fixed ratio at some point. The only reason bitcoin has a lot of value now is because people are artificially inflating (or actually inflating, depending on how you want to look at it) the value.
If a person buys their bitcoin for $1 and sells it for $10, everyone freaks out because he made $9 and more people start to buy. The people that bought for $10 can now sell for $50 and everyone freaks out because they made $40 and more people start to buy. The people who bought for $50 can now sell for $200 and everyone freaks out... you see the pattern here, and it certainly cant sustain forever.
Sure, a few people made some money, but eventually it will get to a point where the supply will outweigh the demand, and and that point they're virtually worthless. Even if they can be used as currency at that point, who is going to buy something for "dollars on the penny" essentially?
Maybe not strictly 1:1, but there has to be some sort of fixed ratio at some point. The only reason bitcoin has a lot of value now is because people are artificially inflating (or actually inflating, depending on how you want to look at it) the value.
If a person buys their bitcoin for $1 and sells it for $10, everyone freaks out because he made $9 and more people start to buy. The people that bought for $10 can now sell for $50 and everyone freaks out because they made $40 and more people start to buy. The people who bought for $50 can now sell for $200 and everyone freaks out... you see the pattern here, and it certainly cant sustain forever.
Sure, a few people made some money, but eventually it will get to a point where the supply will outweigh the demand, and and that point they're virtually worthless. Even if they can be used as currency at that point, who is going to buy something for "dollars on the penny" essentially?
How? Maybe I don't get the whole bitcoin thing, but what is giving them value other than demand? The price, or "value," of things don't just increase? If there is a fixed number of them, the price (or value) will continue to rise until demand levels out, that's economics 101?
At the rate things are going though, using bitcoin as a currency seems foolish because the value is going through the roof, but eventually it will have to taper correct? And at that point when people stop using it as an investment means and start using it as currency, it wont be worth nearly what you paid for it, so... what then?
The 1 to 1 with the dollar was what I was referring too.
Sent from my XT1254 using Tapatalk
Sent from my XT1254 using Tapatalk
Right, i just meant there has to be some sort of fixed ratio of worth. Maybe not, i suppose no currency is "fixed" in relation to other currency.
My thought process when making that statement was that at the way things are currently going it will be cheaper to pay with USD than bitcoins, virtually rendering bitcoins worthless as anything other than an investment tool, but if they become worthless as currency then they become worthless as an investment tool... I just don't get the whole thing, but i'm a pretty fickle and conservative investor. I like to put my stock (no pun intended) in tangibles.
You sound as ignorant as my uncle when I was talking about traveling to Europe and mentioned the currency conversion. "Why isn't a dollar with a euro, I mean a dollar is a dollar, and a euro is a euro."
I get what you're saying, but you're not explaining it correctly.
Say you can buy a Lambo for $300k USD. At this minute, 1 Bitcoin = $10k USD; so you would need 30 Bitcoins to buy the Lambo today.
Whether you paid in USD or Bitcoin, you're still paying $300k for the Lambo.
The issue I have with Bitcoin is that it's not regulated, which is why a lot of people are interested in it. The unfortunate side of unregulated currency, is that it is VERY volatile to the market. Hell, yesterday it droped 20% in 30 minutes.
EDIT: To further touch on things I don't like about it. If you were to buy the Lambo today for 30 Bitcoins, and the Bitcoin price went up to $20k USD tomorrow, now you more or less purchased the Lambo for $600k USD instead of the $300k because of your lost opportunity.
It could go the other way though, and you could end up paying $150k instead of $300k.
It's just not stable enough to be used as currency, in my opinion.
The bit coin needs to correlate to something in the tangible world of assets. Bubbles are not assets.
Exactly why people like physical gold and silver.
Thank you for putting my thoughts into words a little better. That's more or less what i was getting at, or trying to at least.
- Status
Users who are viewing this thread
