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You must not have been following cryptocurrency for that long. This sort of thing happens every 2-3 years. This isn't a wild, unforseen crazy market calamity, t

You must not have been following cryptocurrency for that long. This sort of thing happens every 2-3 years. This isn't a wild, unforseen crazy market calamity, this is your run of the mill downturn, this ones mild so far actually. You're only hearing more "bloodbath" talk because the news covers it nowadays, and the news loves to exaggerate bad things and make them sound worse because that's how they keep the lights on.

halfmatthalfcat 4y ago
The previous dips though haven't been this leveraged though. Over the past couple years the amount of opaque and highly leveraged instruments against crypto has ballooned. There's a lot more on the line this time around imo.
nemo44x 4y ago
I’ve held BTC since 2011 so I think I get it. My point is the industry around it collapsing. It’s not just crypto crashing but the industry built around it collapsing at scale. This isn’t Mt.Geox level - this is .com level.
- friend_and_foe 4y ago
  But it's not collapsing at scale... not yet anyway. It's just one exchange, a big one but just one going under. It's scams and rug pulls predictably going under, same story as the last cycle. The only difference is that the news is covering it, it makes it seem like a bigger deal than it is. And you want them to go under. When the scams stop going under is when you have a real problem, because that means the entire industry is in fact a scam.
  - halfmatthalfcat 4y ago
    The path toward Binance and Tether's ultimate collapse is not hard to see, which would almost guarantee the collapse of the whole system.
    - friend_and_foe 4y ago
      Why would it collapse the whole system? These blockchains run themselves, the ones worth a shit anyway. They were here before these companies, there's nothing fundamental that prevents them from being around after. I am not really convinced of Tether having trouble anymore. I've been hearing it for years. They seem to have gotten lucky and cleaned up their act before collapsing, every time they do an audit or anything the last few years they show full collateral backing their assets in circulation. With regard to binance, I couldn't tell you one way or another, but they've survived more than one cycle so they probably know what they're doing.
      - nemo44x 4y ago
        I think you’re over thinking it. The .com crash didn’t affect the internet being around. But it decimated the eco-system of that era.
        friend_and_foe 4y ago
        Did it? Or did the cruft just fall to the wayside where it belongs. From my recollection the panic lasted a year and within 5 years the companies that were part of it actually doing interesting things were valued much higher than at the peak of the bubble. All it decimated were hype merchants and their lemmings. Hopefully the same is true here. I think it will be.
deleted 4y ago
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Philip-J-Fry 4y ago
It seems like a fundamental flaw in their business model rather than a market downturn. This seems like a bigger deal to me because FTX is part of then new wave of crypto companies that were supposed to be legitimising crypto. And even they can't stay afloat. It's just a matter of time before the next crypto giant falls.
- friend_and_foe 4y ago
  Every time there's a bull market a hundred new operations spring up. And some of them always present themselves legitimately, and most of them always fail when the downturn comes. This is a run of the mill downturn, it happens every single time. A ton of "crypto giants" don't survive the downturn, every single time.
throwawaylinux 4y ago
Did news corporations only switch to this ambulance-chasing model in the past 2-3 years since the last "downturn"?

halfmatthalfcat 4y ago

The previous dips though haven't been this leveraged though. Over the past couple years the amount of opaque and highly leveraged instruments against crypto has ballooned. There's a lot more on the line this time around imo.

nemo44x 4y ago

I’ve held BTC since 2011 so I think I get it. My point is the industry around it collapsing. It’s not just crypto crashing but the industry built around it collapsing at scale. This isn’t Mt.Geox level - this is .com level.

friend_and_foe 4y ago
But it's not collapsing at scale... not yet anyway. It's just one exchange, a big one but just one going under. It's scams and rug pulls predictably going under, same story as the last cycle. The only difference is that the news is covering it, it makes it seem like a bigger deal than it is. And you want them to go under. When the scams stop going under is when you have a real problem, because that means the entire industry is in fact a scam.
- halfmatthalfcat 4y ago
  The path toward Binance and Tether's ultimate collapse is not hard to see, which would almost guarantee the collapse of the whole system.
  - friend_and_foe 4y ago
    Why would it collapse the whole system? These blockchains run themselves, the ones worth a shit anyway. They were here before these companies, there's nothing fundamental that prevents them from being around after. I am not really convinced of Tether having trouble anymore. I've been hearing it for years. They seem to have gotten lucky and cleaned up their act before collapsing, every time they do an audit or anything the last few years they show full collateral backing their assets in circulation. With regard to binance, I couldn't tell you one way or another, but they've survived more than one cycle so they probably know what they're doing.
    - nemo44x 4y ago
      I think you’re over thinking it. The .com crash didn’t affect the internet being around. But it decimated the eco-system of that era.
      - friend_and_foe 4y ago
        Did it? Or did the cruft just fall to the wayside where it belongs. From my recollection the panic lasted a year and within 5 years the companies that were part of it actually doing interesting things were valued much higher than at the peak of the bubble. All it decimated were hype merchants and their lemmings. Hopefully the same is true here. I think it will be.

deleted 4y ago

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Philip-J-Fry 4y ago

It seems like a fundamental flaw in their business model rather than a market downturn. This seems like a bigger deal to me because FTX is part of then new wave of crypto companies that were supposed to be legitimising crypto. And even they can't stay afloat. It's just a matter of time before the next crypto giant falls.

friend_and_foe 4y ago
Every time there's a bull market a hundred new operations spring up. And some of them always present themselves legitimately, and most of them always fail when the downturn comes. This is a run of the mill downturn, it happens every single time. A ton of "crypto giants" don't survive the downturn, every single time.

throwawaylinux 4y ago

Did news corporations only switch to this ambulance-chasing model in the past 2-3 years since the last "downturn"?