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Bitcoin Sinks to $41,000 Amid ‘Extreme Fear’
- jqpabc123 5y agoTime to print more Tethers and "loan" to whales so they can buy more bitcoin. At what point do individuals catch on to this blatant manipulation/scam? At what point does government step in and audit "stable coins" as securities which is exactly what they purport to be?
- mccorrinall 5y agoPretty sure that most “whales” are net short like every other trader.
- jqpabc123 5y agoWhat makes you so sure about that? This could all be the result of whales cashing out of crypto and into fiat. In other words, this could simply be the "dump" phase of the recurring "pump and dump" scam.
- mccorrinall 5y agoThat’s exactly what I said. Most traders currently sit on cash to meet the margin requirements for short selling crypto assets.
- nathias 5y agoWhich one? I hope Tether nukes so we can all switch to synthetic stable coins.
- kangaroozach 5y agoCan you explain this?
- nathias 5y agosynthetic (or alghoritmic) stable coins achieve stability without a third party
- poontang1 5y agoBitcoins price is primary moved by the cash settled futures market (CME) - like most other commodities. Its barely correlated to tether printing and anyone who actually follows crypto markets knows that.
- kasey_junk 5y agoI don’t follow crypto at all so this isn’t about Bitcoin futures but for most cash settled commodities on the CME the exchange traded futures aren’t the main driver of prices, real commodity impacts are. The futures market are an input into the commodity prices but rarely the biggest.
- cmevidence 5y agocme volume is tiny, can you cite your claim? I have not heard anyone claim that before, given the majority of option volume is on cryptocurrency exchanges which are operating using usdt. edit: here's the source I'm using to understand cme volume vs binance etc. https://www.theblockcrypto.com/data/crypto-markets/futures/volume-of-bitcoin-futures-monthly https://www.theblockcrypto.com/data/crypto-markets/futures/v... which shows binance is the highest volume, which is usdt as seen here: https://www.binance.com/en/futures https://www.binance.com/en/futures
- Spivak 5y agoHuh, but stablecoins are basically banks with a funny system for tracking account balances. Who's investing in a stablecoin they expect to go to the moon?
- BobbyJo 5y agoSomething can be a security and not an investment. I would consider tether a security, but not an investment.
- dcolkitt 5y agoThat's not what the Howie test says. In US law a security requires the expectation of earning a profit.
- BobbyJo 5y ago'Security' is an English word that exists outside US law, and refers to contracts in a more general sense than strictly 'investment'. I don't think OP was using the word that way, hence my response. The comment I was responding too seemed to add meaning that I didn't read in the OPs comment. I may be wrong, but it was my intent to clarify based on my own reading.
- cmevidence 5y agopeople don't "invest in" stable coins, but stable coins are used as a fiat equivalent on an exchange: people buy and sell into stable coins (or, more accurately, buy and sell into USDT because Tether is >90% of stable coin volume). As such, if Tether (the organisation) want to pump up the price, they can print lots of tether and use it to buy assets.
- lelandfe 5y ago> This is bitcoin’s biggest weekly rout since November
- 8bitsrule 5y agoI remember when bitcoins were a dime. I thought about getting a hundred. The next time it hits a dime, I won't hesitate.
- 323 5y agoI remember when TSLA stock was 4 dollars. The next time it hits that price, I won't hesitate.
- newsbinator 5y ago> Second, the unrest in Kazachstan How is it possible in 2022 for Forbes to publish articles with words underlined in red squiggly lines?
- dcolkitt 5y agoForbes.com is not an edited magazine. It's essentially a blog hosting platform.
- amath 5y agoI have a hard time trusting the research that the author did with misspellings like this :).
- alborzb 5y agoThey're not wrong though. 18% of the worldwide mining capacity of Bitcoin is in Kazakhstan, plenty of other sources without spelling mistakes, such as CNN [1] have cited this. [1] https://edition.cnn.com/2022/01/07/investing/bitcoin-mining-kazakhstan-protests-impact-intl-hnk/index.html https://edition.cnn.com/2022/01/07/investing/bitcoin-mining-... [Warning: this link has a background video auto-play]
- vmception 5y agoThe network will continue to function at any price and has done so continuously for over a decade looking forward to deeper technology discussions as tiktokers go back to working at McDonalds
- Ologn 5y ago> network will continue to function What are transaction fees, still $20 USD average like they were in April? Also, there is a backlog of transactions, so it can be days to get a transaction done. Some currency.
- vmception 5y agoNo, they’re not. https://ycharts.com/indicators/bitcoin_average_transaction_fee https://ycharts.com/indicators/bitcoin_average_transaction_f... About $2 if you are in a rush, and yes potentially days if you use a lower transaction fee if you are not in a rush. you can always try and then replace the tx if you become rushed. About 1/100th of that if you have a lightning channel open already, I think
- Ologn 5y agoWell you're right, $2 is better than $20 Still skeptical about Bitcoin myself
- vmception 5y agoYeah i figured it wasn’t really about the transaction fees but I didn’t want to prematurely risk writing a strawman argument that wasn’t presented
- thesausageking 5y agoIt's amazing that you can send $100m to anyone in the world with a phone, anytime day or night and it costs $2. And it's direct to the other person; no banks or payment processors. I don't get all of the negativity HN has towards Bitcoin. This simple ability is so amazing and scifi to me.
- devops000 5y agoCoinbase stopped buyback Bitcoins before their IPO. It was approximately the date of BTC's peak.
- scotty79 5y agoIt needs to drop by another 75% to match price from two years ago. Or by about 60% to drop below previous ATH from 2017
- nmfisher 5y agoBasically my prediction for the long-term. I should bookmark this comment so I can revisit in 2032 to see how right/wrong I was.
- asdfsd234234444 5y ago
- moneywoes 5y agoDo we know what Tether is backed by now?
- dustintrex 5y agoHot air.
- dandanua 5y agoby never ending number of idiots
- RichardHeart 5y agoThis is good for the environment!
- martin_a 5y agoFunny how _the_ decentralized alternative to fiat money is shaking under some riots in a former soviet state. Oh wait, 18% of the worldwide mining capacity (and therefore control) is placed in that state? Doesn't look that decentralized and crisis-safe to me...
- thebean11 5y agoChina had a much higher percentage when they banned mining, and things turned out okay for Bitcoin..
- deleted 5y ago[deleted]
- martin_a 5y agoDoesn't really make it any better in the end. More and more states will probably ban mining, so power will be more and more concentrated and you'll have to hope that some dictator/president is not going to pull the big internet plug.
- thebean11 5y agoMaybe, China bans a lot of things. I don't really consider that evidence (in either direction) that it will be banned elsewhere.
- meowfly 5y agoHaving lived in China, there is very weak enforcement of a lot of laws (it varies from province to province). I'm skeptical that the crypto ban has actually stopped most mining.
- cableshaft 5y agoIt didn't stop those miners, it just forced them to move out of China (mostly to the US). And it clearly did temporarily stop it as that was happening, as a look at any bitcoin hashrate graph[1] will show, because it halved shortly after the ban was announced. And according to the University of Cambridge, that has a bitcoin electricity consumption index tracker, they have a visualization of the countries contributing the most to the hashrate, and you can see China go down to basically zero in July 2021 and stay that way (see the 'Evolution of network hashrate' chart[2]). [1] https://bitcoinmagazine.com/markets/bitcoin-hash-rate-full-recovery-china-ban-close-to-new-all-time-high https://bitcoinmagazine.com/markets/bitcoin-hash-rate-full-r... [2] https://ccaf.io/cbeci/mining_map https://ccaf.io/cbeci/mining_map
- llaolleh 5y agoThe store of value argument is such baloney. Value is derived from supply and demand. Demand can always go to zero.
- akmarinov 5y ago> Kazachstan They could've at least bothered getting the name of the country right...
- hffft 5y ago
- BrissyCoder 5y ago"Bitcoin and cryptocurrency prices continue their sell-off, with bitcoin briefly bottoming just shy of $41,000. This is bitcoin’s worst weekly drop since November. The world’s #1 cryptocurrency now shed 37% of its value from the $58,000 peak." How does the author get 37% out of these numbers? Just another moron like 99% of people in this space.