Crypto double blow

[Old Greg]

Interesting. I wonder why. With stock markets record breaking falls, why wouldn't BTC be seen as somewhere to avoid that? Not fiat. Not tied to any economy. hmmm

Has no intrinsic value.

[scooterscot]

Bitcoin will come back up. But where is the bottom? I used to think bitcoin was like gold, a place to move money in crisis. In the past it often was , particularly in the third world. Clearly it is not like gold. It’s not like currency. Gold is still the only safe place in a crisis, up 30% since Corona was announced

Gold (not the spot contract) the stuff you can touch with your hand & Bitcoin and entirely different asset classes from the equities and are now showing extreme volatility.

Gold is dropping like a brick and is going to $1300 - are you okay with that? I actually think the bottom for gold will be around $700

Why is it falling? Cause people need the money. And I think that's going to be the case like ever other recession we enter when society gets cash strapped.

Bitcoin will not suffer as much as gold just because the market capital compared to gold is tiny.

[scooterscot]

Interesting. I wonder why. With stock markets record breaking falls, why wouldn't BTC be seen as somewhere to avoid that? Not fiat. Not tied to any economy. hmmm

I would say because like Gold, people needed the money. However the crypto market is tiny. So so tiny compared to the sums sloshing around on the reppo markets. The fall was just panic by speculators.

In 1929, 74, 87, the stock market did not have circuit breakers like today. The Crypto market is 24//7, you could see the panic without end. Unlike stock markets that only open during the waking day of that country, the global crypto market is a new beast.... it challenges / changes the way people think. Overnight desks will become a thing of the past in no time at all once the financial system is transferred to the blockchain. Exciting times ahead.

[scooterscot]

Has no intrinsic value.

Just like the paper one dollar bill.

[Old Greg]

Just like the paper one dollar bill.

You just said people were selling gold because they needed the money.

[DimPrawn]

Just like the paper one dollar bill.

You can wipe your arse on a $1 bill, that's got to be worth something these days....

[scooterscot]

You just said people were selling gold because they needed the money.

Money = a current medium of exchange

that's anything anyone wants it to be, and that's becoming less and less the dollar. Russia, China, they've both reduced their exposure to it over the last 10 years

[AtW]

Just like the paper one dollar bill.

Paper or electronic dollars are the only valid means of paying US taxes - this creates big intrinsic value by itself, never-mind most of worlds commodities priced in dollars

[AtW]

Money = a current medium of exchange

that's anything anyone wants it to be, and that's becoming less and less the dollar. Russia, China, they've both reduced their exposure to it over the last 10 years

So they reduced their US holdings in favour of EUR, and so what?

[jamesbrown]

You just said people were selling gold because they needed the money.

Scootie can’t come to to phone right now. He’s self isolating in the Swedish sauna at the Thistle hotel. It’s taking all his concentration not to slip in his own faeces and shoot himself in the face.