Cryptocurrency

Jeremy

CF Founder
Staff member
Bookie
Feb 28, 2006
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I don't post much that is bearish on crypto because by and large it's FUD. However, this isn't FUD. This is really sad because many people (approx 16 billion supply) put their life savings into the UST "stablecoin". The native token Luna, a top 10 coin, is down 98% in 2 days and UST has completely lost it's peg to the dollar and currently trading for 33 cents. Personally, I have always been bearish on algo stablecoins because of the potential for this kind of failure. Someone in one of my crypto groups already mentioned of a known suicide because of this. This is where regulation is welcome. Not to stifle the innovation of the space, but to ensure people who participate understand the risks.


Agree. I've only been active in Crypto for about 5 long months, but to me, stable coins have no advantage over a traditional fiat savings account and a bunch of additional risks. Never understood people that kept value in them, I would only see them useful for a funds transfer mechanism.
 

2122

Well-Known Member
Mar 21, 2021
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This recent headline probably didn't help matters:

Warren Buffett wouldn’t buy ‘all of the bitcoin in the world’ for $25: ‘It doesn’t produce anything’​

 
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Big Daddy Kang

Active Member
Mar 20, 2021
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I don't post much that is bearish on crypto because by and large it's FUD. However, this isn't FUD. This is really sad because many people (approx 16 billion supply) put their life savings into the UST "stablecoin". The native token Luna, a top 10 coin, is down 98% in 2 days and UST has completely lost it's peg to the dollar and currently trading for 33 cents. Personally, I have always been bearish on algo stablecoins because of the potential for this kind of failure. Someone in one of my crypto groups already mentioned of a known suicide because of this. This is where regulation is welcome. Not to stifle the innovation of the space, but to ensure people who participate understand the risks.

Life savings? 1-800-bets-off. Maybe uncle joe will bail out crypto and pay off their student loans.

snark, snark.
 
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JustAnotherTimeline

Well-Known Member
Jul 29, 2021
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This recent headline probably didn't help matters:

Warren Buffett wouldn’t buy ‘all of the bitcoin in the world’ for $25: ‘It doesn’t produce anything’​


Lol, buffet has been a Bitcoin bear for years and literally nobody cares what he thinks about the matter. If he would have purchased BTC he would have been wayyy more wealthy then he already is.
 
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cyclone1209

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Nov 5, 2010
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No market is doing well right now. Perfect time to buy and continue to buy for traditional stocks and crypto currency’s.
I've bought CRPT which is an elf that plays on companies involved in crypto: like Coinbase and other companies like that. So I'm indirectly involved with it.

I just don't know if the pitch for what Crypto is, is totally legit. They say its a "store of value" and an inflation hedge.

- it moves in lockstep with the Nasdaq 100. (when nasdaq is up, it has higher highs ; when nasdaq is down it has lower lows). So it trades in the same direction of tech stocks. That would make me nervous if I had a big holding in it.. but it is going to survive. There's too many big players in it now.
 

melt

Active Member
Apr 5, 2006
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Chicago, IL
Lol, buffet has been a Bitcoin bear for years and literally nobody cares what he thinks about the matter. If he would have purchased BTC he would have been wayyy more wealthy then he already is.

That doesn't make him wrong. Bitcoin still has no real value. It doesn't produce anything, it doesn't do anything except waste tons of energy. It's a terrible way to purchase goods. It's a terrible currency because it's so extremely volatile. It's only value at all is a tool for speculation.
 

JustAnotherTimeline

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Jul 29, 2021
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That doesn't make him wrong. Bitcoin still has no real value. It doesn't produce anything, it doesn't do anything except waste tons of energy. It's a terrible way to purchase goods. It's a terrible currency because it's so extremely volatile. It's only value at all is a tool for speculation.

1. If you understood the history of money you would understand the value proposition of bitcoin
2. It has value because people think it does. Just like anything else.
3. Bitcoin is becoming more and more renewable. It also harnesses wasted energy. I have went over this ad nauseum before so I will refrain from the details.
4. The argument that it doesn't produce anything so it doesn't have value is completely indefensible.
5. Try sending someone 100k using our legacy system. Then send it in bitcoin. I'll be enjoying a drink by the pool while you are arguing with some bean counter at the bank asking you to source your funds. Case and point.

The only thing I will agree with you on is that as much as I would like to say it is an inflation hedge and risk off asset, it isn't. It trades as a risk on speculative asset.
 

JustAnotherTimeline

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Jul 29, 2021
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I don't but was on my watchlist, I keep a 25% stop loss on any crypto and on the sidelines for buying any currently since everything tanking.

I sold all my alts awhile ago. So I just have BTC right now. I am really hoping for a massive capitulation in the market. Maybe BTC can wick down to 15-20k so I can pick up some more.
 
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melt

Active Member
Apr 5, 2006
286
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Chicago, IL
1. If you understood the history of money you would understand the value proposition of bitcoin
2. It has value because people think it does. Just like anything else.
3. Bitcoin is becoming more and more renewable. It also harnesses wasted energy. I have went over this ad nauseum before so I will refrain from the details.
4. The argument that it doesn't produce anything so it doesn't have value is completely indefensible.
5. Try sending someone 100k using our legacy system. Then send it in bitcoin. I'll be enjoying a drink by the pool while you are arguing with some bean counter at the bank asking you to source your funds. Case and point.

The only thing I will agree with you on is that as much as I would like to say it is an inflation hedge and risk off asset, it isn't. It trades as a risk on speculative asset.
1. Ok so explain it to me then because it has zero value to me.
2. Yea great, it's like all other currencies in the world except it carries a ton of downside risk, and is incredibly unstable.
3. Becoming more renewable is not an argument against it being a giant waste of energy. It would still be a giant waste of energy if it was 100% renewable because that energy bitcoin is wasting could be spent on something actually productive, like powering homes. A credit card transaction uses 1/500,000th of the amount of energy a bitcoin transaction takes and it takes way less time.
4. It's completely indefensible, except you didn't even try to argue against my assertion. What value does bitcoin provide?
5. Great, something that maybe 0.1% of the world is ever going to do in their lifetime. I did send $70,000 in money when I bought my house, and it took me very little effort. I went to my bank, gave them the info for the title company, and it was all done. Now tell me how much it costs to send $50 to someone in bitcoin because it costs me $0 and takes like a minute, and that is something people do every day.
 
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cyfanbr

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Dec 13, 2013
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Link below for a YouTube video, but it is also available in podcast format for those interested. Good job explaining what happened in the crypto markets the past few days (aka the luna saga and the depegging of their stable coin). Ultimately, there were some read flags here, but still sucks for those involved.