6 ms·

Well that definitely contributed, but that alone didn't cause the crash. There was irrational price rise in the last few weeks for certain cryptocurrencies(Ripp

Well that definitely contributed, but that alone didn't cause the crash. There was irrational price rise in the last few weeks for certain cryptocurrencies(Ripple, Tron) and this is part of the correction. Also, The market as a whole should get away with global averages and depending on one website to track everything. I wrote an article on it if someone is interested - http://coinsocial.io/2018/01/09/its-time-for-cryptocurrency-investors-to-dump-global-average-prices-and-embrace-local-exchange-prices/ http://coinsocial.io/2018/01/09/its-time-for-cryptocurrency-...

frgtpsswrdlame 9y ago
>There was irrational price rise in the last few weeks for certain cryptocurrencies(Ripple, Tron) and this is part of the correction. What makes their increase 'irrational'?
- vthallam 9y ago
  When you are betting on Bitcoin or Ethereum, you are betting on the technology, developer community, ecosystem and the adoption. With Tron, there's hardly a product and Ripple while seems to have some successful pilots, is still far from realizing the dream of replacing the FIAT currency among banks.
  - solipsism 9y ago
    Your biases are showing. There's no reason someone can't place a bet on Ripple's "technology, developer community, ecosystem and the adoption".
    - vthallam 9y ago
      May be.Really, In the current scenario, you can't like avoid any implicit bias, like even if you don't mean it. That's why in my comment, I didn't explicitly comment on Ripple's product or team. Also, a bet is one thing, but the get rich quick scheme going on in the market with new investors is another. I still hold some Ripple if that breaks any bias, and I think the correction was unavoidable.
  - module0000 9y ago
    >> When you are betting Full stop. You are trading or investing - if the word "betting" passes through your brain, stop now. The public surge of interest in crypto currencies is a redistribution of wealth from retail speculators to professional speculators. You aren't betting on the technology, developer community, ecosystem, or adoption anymore. At this point, you are betting you aren't the last one to the party.
    - notyourday 9y ago
      Do you know what is a bet gone wrong? It is investment.
    - joering2 9y ago
      I think you took his word too literally. When I read it, it simply means you put your hopes into something. I am betting that my new relationship with be futile and bring me happiness. Doesn't mean I went to see bookie about it.
    - rdlecler1 9y ago
      Buffett calls investments bets all the time. Let’s call it what it is.
    - PhasmaFelis 9y ago
      When you play the stock market (telling phrase there), are you not making a bet that your stock will increase in value?
      - tomkarlo 9y ago
        Not necessarily, and not in the long term. You can buy stocks with no expectation they will increase in value (or even maintain value) if the dividend yield is high enough. And stocks have value because of this - the assumption in any stock, even one currently without a dividend, is that eventually it will pay out some form of a dividend to its holders. You may buy a stock hoping it will will rise in value, but that rise is predicated on the eventual delivery of cash via dividends or some other mechanism of distribution. Contrast that with say, Gold, where in fact it costs money to hold and there's no expectation it will ever generate any kind of dividend.
- nrhk 9y ago
  They were irrational because if you analyzed all the coins in the top 100-200 you'll realize that it was primarily cheaply priced coins that were making the outsized gains and a lot of it can be attributed to market psychology. It feels better to own 200 of something you don't understand than 0.00159. But at the end of the day returns are returns and it makes no difference if you have 200 of a coin or 0.00159.
  - frgtpsswrdlame 9y ago
    Isn't the worth of any crypto-currency down to market psychology though? By that metric any price movement is irrational.
    - TheSpiceIsLife 9y ago
      Economics is a social science. It could be argued very few things have intrinsic value. It could be argued all markets are down to purely human psychology. Birds, for example, don't really care how much you paid for those 3000 tonnes of wheat, only that there's a hole in one of the train carriages transporting it.
  - spraak 9y ago
    That's mostly true, but it doesn't completely work. 200 of something with a low market cap with the potential to gain 200-4000% is way better than 0.00159 of something with a large market cap and low likelihood of doubling. E.g. a random altcoin vs bitcoin today
- alistproducer2 9y ago
  In Tron's (TRX) case, the project's whitepaper is plagiarized [0] from Filecoin's, and the CEO (Justin Sun) dumped 6 billion tokens [1] after pumping the price by announcing "partnerships" that turned out to be him hiring developers. TRX is the literal definition of a shitcoin, yet the price pumped 10x in less than 10 days. [0]: http://www.trustnodes.com/2018/01/08/trons-whitepaper-copied-plagiarized http://www.trustnodes.com/2018/01/08/trons-whitepaper-copied... [1]: https://www.reddit.com/r/CryptoCurrency/comments/7oky82/justin_sun_of_trx_did_not_cash_out_any_of_the_34/ https://www.reddit.com/r/CryptoCurrency/comments/7oky82/just... (search page for "buttcoinbanker" to find relevant comment)
  - pedrocr 9y ago
    >TRX is the literal definition of a shitcoin, yet the price pumped 10x in less than 10 days. So a "shitcoin" with a 9B$ market cap? We really are living in a brave new world of financial disruption...
    - ufo 9y ago
      Yes. This is also why Market Cap is a problematic metric in the cryptocurrency space.
      - pedrocr 9y ago
        What's wrong with it? Seems like a perfectly normal metric for coins just like for stocks and bonds.
        snoman 9y ago
        I'm just guessing that it's because it's not a stock or a bond. I don't ever hear what the market cap is for the yen, or any other currency.
        ateesdalejr 9y ago
        That's because they can always print more. There's no cap.
- s73ver_ 9y ago
  What makes their increase rational?
deleted 9y ago
[deleted]

frgtpsswrdlame 9y ago

>There was irrational price rise in the last few weeks for certain cryptocurrencies(Ripple, Tron) and this is part of the correction. What makes their increase 'irrational'?

vthallam 9y ago
When you are betting on Bitcoin or Ethereum, you are betting on the technology, developer community, ecosystem and the adoption. With Tron, there's hardly a product and Ripple while seems to have some successful pilots, is still far from realizing the dream of replacing the FIAT currency among banks.
- solipsism 9y ago
  Your biases are showing. There's no reason someone can't place a bet on Ripple's "technology, developer community, ecosystem and the adoption".
  - vthallam 9y ago
    May be.Really, In the current scenario, you can't like avoid any implicit bias, like even if you don't mean it. That's why in my comment, I didn't explicitly comment on Ripple's product or team. Also, a bet is one thing, but the get rich quick scheme going on in the market with new investors is another. I still hold some Ripple if that breaks any bias, and I think the correction was unavoidable.
- module0000 9y ago
  >> When you are betting Full stop. You are trading or investing - if the word "betting" passes through your brain, stop now. The public surge of interest in crypto currencies is a redistribution of wealth from retail speculators to professional speculators. You aren't betting on the technology, developer community, ecosystem, or adoption anymore. At this point, you are betting you aren't the last one to the party.
  - notyourday 9y ago
    Do you know what is a bet gone wrong? It is investment.
  - joering2 9y ago
    I think you took his word too literally. When I read it, it simply means you put your hopes into something. I am betting that my new relationship with be futile and bring me happiness. Doesn't mean I went to see bookie about it.
  - rdlecler1 9y ago
    Buffett calls investments bets all the time. Let’s call it what it is.
  - PhasmaFelis 9y ago
    When you play the stock market (telling phrase there), are you not making a bet that your stock will increase in value?
    - tomkarlo 9y ago
      Not necessarily, and not in the long term. You can buy stocks with no expectation they will increase in value (or even maintain value) if the dividend yield is high enough. And stocks have value because of this - the assumption in any stock, even one currently without a dividend, is that eventually it will pay out some form of a dividend to its holders. You may buy a stock hoping it will will rise in value, but that rise is predicated on the eventual delivery of cash via dividends or some other mechanism of distribution. Contrast that with say, Gold, where in fact it costs money to hold and there's no expectation it will ever generate any kind of dividend.
nrhk 9y ago
They were irrational because if you analyzed all the coins in the top 100-200 you'll realize that it was primarily cheaply priced coins that were making the outsized gains and a lot of it can be attributed to market psychology. It feels better to own 200 of something you don't understand than 0.00159. But at the end of the day returns are returns and it makes no difference if you have 200 of a coin or 0.00159.
- frgtpsswrdlame 9y ago
  Isn't the worth of any crypto-currency down to market psychology though? By that metric any price movement is irrational.
  - TheSpiceIsLife 9y ago
    Economics is a social science. It could be argued very few things have intrinsic value. It could be argued all markets are down to purely human psychology. Birds, for example, don't really care how much you paid for those 3000 tonnes of wheat, only that there's a hole in one of the train carriages transporting it.
- spraak 9y ago
  That's mostly true, but it doesn't completely work. 200 of something with a low market cap with the potential to gain 200-4000% is way better than 0.00159 of something with a large market cap and low likelihood of doubling. E.g. a random altcoin vs bitcoin today
alistproducer2 9y ago
In Tron's (TRX) case, the project's whitepaper is plagiarized [0] from Filecoin's, and the CEO (Justin Sun) dumped 6 billion tokens [1] after pumping the price by announcing "partnerships" that turned out to be him hiring developers. TRX is the literal definition of a shitcoin, yet the price pumped 10x in less than 10 days. [0]: http://www.trustnodes.com/2018/01/08/trons-whitepaper-copied-plagiarized http://www.trustnodes.com/2018/01/08/trons-whitepaper-copied... [1]: https://www.reddit.com/r/CryptoCurrency/comments/7oky82/justin_sun_of_trx_did_not_cash_out_any_of_the_34/ https://www.reddit.com/r/CryptoCurrency/comments/7oky82/just... (search page for "buttcoinbanker" to find relevant comment)
- pedrocr 9y ago
  >TRX is the literal definition of a shitcoin, yet the price pumped 10x in less than 10 days. So a "shitcoin" with a 9B$ market cap? We really are living in a brave new world of financial disruption...
  - ufo 9y ago
    Yes. This is also why Market Cap is a problematic metric in the cryptocurrency space.
    - pedrocr 9y ago
      What's wrong with it? Seems like a perfectly normal metric for coins just like for stocks and bonds.
      - snoman 9y ago
        I'm just guessing that it's because it's not a stock or a bond. I don't ever hear what the market cap is for the yen, or any other currency.
        ateesdalejr 9y ago
        That's because they can always print more. There's no cap.
s73ver_ 9y ago
What makes their increase rational?

deleted 9y ago

[deleted]