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Good luck with that. Usually there's a exodus from speculation the minute things get hairy in the market. Nobody speculated in crypto right?
by matt_wulfeck 9y ago
Good luck with that. Usually there's a exodus from speculation the minute things get hairy in the market. Nobody speculated in crypto right?
- KasianFranks 9y agoLike there was in 2008/09 when most people in the world lost confidence in banking systems followed by the bailouts and Quantitative Easing.
- JumpCrisscross 9y ago> in 2008/09...most people in the world lost confidence in banking systems You mean when everyone sold securities, moved to cash, and bought Treasuries, CDs and bank deposits?
- KasianFranks 9y agoAnd Bitcoin Ref: http://www.wealthdaily.com/articles/eurozone-turning-to-bitcoins/4102 http://www.wealthdaily.com/articles/eurozone-turning-to-bitc...
- JumpCrisscross 9y ago> And Bitcoin Given Bitcoin's "capitalisation" failed to hit even $10bn until well after the crisis [1], it's safe to say that more capital moved, in almost any single U.S. state, from stocks to corporate bonds, than from anything to Bitcoin. Being optimistic about the future of a technology is fine. Being delusional about its history is not. [1] https://blockchain.info/charts/market-cap https://blockchain.info/charts/market-cap
- KasianFranks 9y agoIgnoring correlations to market downturns and ignoring the data is delusional https://www.google.com/search?site=&tbm=isch&source=hp&biw=1805&bih=1310&q=bitcoin+2009&oq=bitcoin+2009&gs_l=img.3..0l3j0i8i30k1l2j0i24k1l2.2107.5386.0.5795.14.14.0.0.0.0.92.888.12.12.0....0...1.1.64.img..2.12.882.0.vNYA7BPPSCU https://www.google.com/search?site=&tbm=isch&source=hp&biw=1...
- JumpCrisscross 9y agoBitcoin came into existence in 2009. Nobody was buying Bitcoin in 2008 because it did not exist in 2008. We don't have data to support the claim that people would rush Bitcoin amidst stock market crashes. We do have data supporting the claim that they rush into traditionally safe assets, i.e. insured bank deposits and Treasuries. Regarding Cyprus, wealthy Cypriots--by and large--bought German and Greek government bonds, not Bitcoin.
- KasianFranks 9y agoThe crash came into existence in 2008 and Bitcoin began to rise in 2009. https://www.washingtonpost.com/news/the-switch/wp/2014/01/03/five-years-of-bitcoin-in-one-post/?utm_term=.c51d1c8658eb https://www.washingtonpost.com/news/the-switch/wp/2014/01/03...
- JumpCrisscross 9y ago> Bitcoin began to rise in 2009 Bitcoin came into existence in January of 2009. What was it supposed to do? Start stealing its owners' money and go negative? Also, everything rose in 2009. The S&P 500 was up 23%. Bonds were up, commodities were up...that's what happens after you scrape past a global financial meltdown. Sure, Bitcoin was up like five thousand percent, but that's the difference between a tens of millions and hundreds of billion in market capitalisation, things that are very volatile and things that are not, and venture versus mature.
- KasianFranks 9y agoEverything rose but not before everything crashed in 2009: https://www.google.com/finance/historical?cid=626307&startdate=Jan+20%2C+2009&enddate=Jan+20%2C+2011&num=30 https://www.google.com/finance/historical?cid=626307&startda... Those who've hedged with crypto's as a trading vehicle are likely to win again during the next inevitable downturn.
- gaetanrickter 9y ago
- bousaid 9y agoPeople are downvoting you, but you're not wrong. Bitcoin is legitimately seen as an alternative to gold. So it's not crazy to expect people to buy BTC when shit hits the fan in the fiat markets.
- dkonofalski 9y agoNo it's not. The only people that view Bitcoin as an alternative to gold are the people buying/trading in Bitcoin. No one else is that delusional.
- deleted 9y ago[deleted]
- velodrome 9y ago> Bitcoin is legitimately seen as an alternative to gold. Bitcoin may be an alternative to gold but it is not the same. 1) Gold has intrinsic value. 2) Gold is a tangible asset.
- hervature 9y agoGold having intrinsic value is a straw man argument for it being different than Fiat currencies. Consider this thought experiment. You are going to live by yourself in the forest for a month. Would you rather have A) a weeks worth of food or B) 1 oz of gold. I think this highlights there is no intrinsic value or at least much lower than what people claim. Obviously, there is place for gold in electronics and circuitry, but aside from specialized applications, the need for gold is pretty low. Now, I know that I've committed a straw man argument myself by using a contrived example. To that, I'll say that the only "value" one has by having gold in the real world is that other people will trade you for it. But this is exactly the opposite of intrinsic value. The value of gold being entirely fabricated by people's desire to hold it.
- JumpCrisscross 9y agoGold's price is not supported by its instrinsic value, I'll give you that. But the "forest" test is absurd. By that definition computers, chemotherapy and candy have no instrinsic value. Gold's value comes from its (a) millennia-long history of stably holding value across cultures and technological domains and (b) its tangibility and physically-enforced scarcity. Its intrinsic value is a fraction of its market value, in part because the inflated price deters lots of uses.
- icedchai 9y ago2008 was great. Everything was on sale, and I doubled down on my stock investments...
- stouset 9y agoWith money from where? If your money wasn't in the market, you might have been lucky with timing but statistically if you replay that scenario, you're losing out on gains by not just parking your money in the market in the long run.