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When inflation across the world becomes high like Turkey, crypto currencies will become unstoppable. When atomic swaps start to take off, there will be no way t

When inflation across the world becomes high like Turkey, crypto currencies will become unstoppable. When atomic swaps start to take off, there will be no way to stop these currencies with regulations.

listenallyall 5y ago
I don't think you are wrong, there is plenty of logic that would lead one to believe this. However, every major crypto is down 40% or so while the US is reporting its highest inflation prints since the 70s. By your logic, these currencies should be at all time highs, instead, they seem more correlated with the NASDAQ recently and actually negatively correlated with inflation.
- anm89 5y ago
  Think about what happened to crypto and other inflation hedges in march 2020. They got ahnilated worse than equities in the initial risk off and then out performed ever since. I think that's where we are now. If there is a market sell off, crypto is along for the ride initially. the question will be what it looks like from there.
  - opportune 5y ago
    I don’t think this deserves to be downvoted. Crypto is an asset class. During uncertainty and sell offs almost all assets sell off in tandem due to either deleveraging or flight to safety (of cash), and crypto isn’t special here. Over long horizons, the argument that crypto is a hedge against inflation or weakened purchasing power of fiat currency makes sense. But during acute corrections that matters very little, especially since very few people are actually paying for real world goods using crypto.
  - listenallyall 5y ago
    Inflation wasn't a problem in March 2020 -- at least it wasn't a primary concern at that time. As you said, first crypto sold off (just like stocks) and then rallied aggressively for the next 20 months or so (just like stocks). Bitcoin's entire existence has been during a major extended bull rally in stocks -- it's never been tested during a market crash or bear market like 1999 or 2008.
- opportune 5y ago
  This is because of deleveraging. Since more people use crypto as speculation (including leverage) rather than for payments or store of value, interest rate increases result in net outflows
- kayamon 5y ago
  The dollar price of many cryptos is being manipulated by things behind the scenes, e.g. exchanges pretending they've bought Bitcoin when they haven't, or stablecoins messing with the market.
jsiepkes 5y ago
They are not using Bitcoin as legal tender. They are simply using it to speculate with. Just like everyone else is doing with Bitcoin.

listenallyall 5y ago

I don't think you are wrong, there is plenty of logic that would lead one to believe this. However, every major crypto is down 40% or so while the US is reporting its highest inflation prints since the 70s. By your logic, these currencies should be at all time highs, instead, they seem more correlated with the NASDAQ recently and actually negatively correlated with inflation.

anm89 5y ago
Think about what happened to crypto and other inflation hedges in march 2020. They got ahnilated worse than equities in the initial risk off and then out performed ever since. I think that's where we are now. If there is a market sell off, crypto is along for the ride initially. the question will be what it looks like from there.
- opportune 5y ago
  I don’t think this deserves to be downvoted. Crypto is an asset class. During uncertainty and sell offs almost all assets sell off in tandem due to either deleveraging or flight to safety (of cash), and crypto isn’t special here. Over long horizons, the argument that crypto is a hedge against inflation or weakened purchasing power of fiat currency makes sense. But during acute corrections that matters very little, especially since very few people are actually paying for real world goods using crypto.
- listenallyall 5y ago
  Inflation wasn't a problem in March 2020 -- at least it wasn't a primary concern at that time. As you said, first crypto sold off (just like stocks) and then rallied aggressively for the next 20 months or so (just like stocks). Bitcoin's entire existence has been during a major extended bull rally in stocks -- it's never been tested during a market crash or bear market like 1999 or 2008.
opportune 5y ago
This is because of deleveraging. Since more people use crypto as speculation (including leverage) rather than for payments or store of value, interest rate increases result in net outflows
kayamon 5y ago
The dollar price of many cryptos is being manipulated by things behind the scenes, e.g. exchanges pretending they've bought Bitcoin when they haven't, or stablecoins messing with the market.

jsiepkes 5y ago

They are not using Bitcoin as legal tender. They are simply using it to speculate with. Just like everyone else is doing with Bitcoin.