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No, they are selling BTC because markets are crashing, they need the cash for other things. BTC will trend perfectly inline with stock valuations as a function
by jollybean 4y ago
No, they are selling BTC because markets are crashing, they need the cash for other things.
BTC will trend perfectly inline with stock valuations as a function of excess liquidity, kind of indicating they are not what they are supposed to be.
They are a fun speculative instrument, when things get tough, people stop pretending and move onto other things.
That may change, but unlikely.
I see a future crypto 'mapped' to the real world in the future some how, not fully but only partically decentralized, that could work.
- PKop 4y ago>No, He said virtually the same as you..
- jollybean 4y agoPeople are not getting out of crypto to pay for milk and bread, they are getting out because it's falling and they want to put their money in other things. I said 'pay' I meant to say 'invest'. BTC should be counter cyclical to stocks, but my bet is that they won't be. It'll be up during 'fun times' and down during 'scary times' whereas by design it should be the opposite. That could change if something about BTC becomes institutionalized, i.e. everywhere starts accepting BTC for Oil or something but I doubt that will happen.
- danuker 4y agoWell, they are certainly not moving to stocks. How long are they going to wait until reinvesting their cash, with inflation at 8.6% per year?
- jollybean 4y agoYes, you're right, I'm lazy in my thinking. Probably not stocks, but maybe actually some value stocks. My point is just that BTC is not a safe haven from stocks.
- mattwilsonn888 4y agoPeople always wonder when Bitcoin will decouple from the stock market, but the real odd phenomenon has been the use of stocks to escape inflation.
- rightbyte 4y agoWhy is that odd? All these record profits surely are due to inflation? Which ends up in stock value?
- mattwilsonn888 4y agoIt's not an IQ test - its just odd. The de facto reason to buy stocks is to invest in production - not to escape inflation in a pure sense.