Significant problems in the crypto world
Pretty low. When’s the big rebound coming?
posted by Ironman92Pretty low. When’s the big rebound coming?
2024 when the bitcoin halving happens
posted by justincredible2024 when the bitcoin halving happens
I’m rooting for bitcoin. I don’t have any but I have a good friend who is very frugal and he put almost his whole savings and a lot of his stock money in . Yea think he’s down 86k cash
We're seeing the same dip from late 2017 into late 2018 ($20k to $3500). Given bitcoin is on a 4 year halving cycle (meaning the amount of bitcoin mined in each block is cut in half thus the programmed scarcity) it makes sense we're seeing a similar pattern 4 years later. This isn't new, and it'll happen again in 4 years (hopefully from $250k to $75k or so).
posted by geeblockI’m rooting for bitcoin. I don’t have any but I have a good friend who is very frugal and he put almost his whole savings and a lot of his stock money in . Yea think he’s down 86k cash
I like your friend.
posted by justincredibleWe're seeing the same dip from late 2017 into late 2018 ($20k to $3500). Given bitcoin is on a 4 year halving cycle (meaning the amount of bitcoin mined in each block is cut in half thus the programmed scarcity) it makes sense we're seeing a similar pattern 4 years later.
The halving cycle would have absolutely nothing to do with the price of bitcoin, no more than the number of shares having anything to do with market cap of a company. Stop reading anyone telling you otherwise - they either don't understand asset pricing or are being intentionally misleading. And even if it did, when such events are known & expected they are already incorporated into the price.
It's price is determined solely by what people are willing to pay for it. That's why it keeps crashing when confidence and exuberance waiver. The fact it has crashed 4-5X and come back makes it unique among bubble markets. But I doubt it will be significant in 10 years, which means at some point the "next" crash will be the last and it never recovers.
posted by geeblockI’m rooting for bitcoin. I don’t have any but I have a good friend who is very frugal and he put almost his whole savings and a lot of his stock money in . Yea think he’s down 86k cash
Sorry, but your friend may need an intervention.
More than 5-10% of your money in crypto (which is still a multiple of what most experts would advise) is moronic. No words to describe the stupidity that puts it all in a single crypto rather than diversified across at least 10 others. Although there may not be much risk reduction with crypto diversification.
Diversification is the real key to wealth generation and preservation. Your friend would be well-served to understand that.
posted by gutThe halving cycle would have absolutely nothing to do with the price of bitcoin, no more than the number of shares having anything to do with market cap of a company. Stop reading anyone telling you otherwise - they either don't understand asset pricing or are being intentionally misleading. And even if it did, when such events are known & expected they are already incorporated into the price.
It's price is determined solely by what people are willing to pay for it. That's why it keeps crashing when confidence and exuberance waiver. The fact it has crashed 4-5X and come back makes it unique among bubble markets. But I doubt it will be significant in 10 years, which means at some point the "next" crash will be the last and it never recovers.
Ok
posted by gutSorry, but your friend may need an intervention.
More than 5-10% of your money in crypto (which is still a multiple of what most experts would advise) is moronic. No words to describe the stupidity that puts it all in a single crypto rather than diversified across at least 10 others. Although there may not be much risk reduction with crypto diversification.
Diversification is the real key to wealth generation and preservation. Your friend would be well-served to understand that.
I have gold.. like gold at my house
Diversification in crypto is a bad idea. Buy bitcoin or nothing. If you can point to a founder or creator it’s a bad idea and likely an exit scam.
But we’ve had this talk before and neither one of us has or will change our minds.
And buying nothing isn’t a bad idea. Actually don’t buy bitcoin. Definitely don’t buy bitcoin.
Talk about worlds apart.....
I haven't read either link, but based on the first headline I'll say that the FTX crash ultimately means nothing to bitcoin. It's not the first crypto casino to collapse and won't be the last. That place was pretty much a shit show from the drop and everyone involved deserves everything coming their way.
Meanwhile, every 10 minutes, a new block in mined and the bitcoin network chugs along without a care.
posted by justincredibleDiversification in crypto is a bad idea.
This is horrible investment advice always and everywhere. I mean, tell me crypto is a shitty investment without saying crypto is a shitty investment.
Also, institutions are getting burned on these exchange meltdowns. And they start pulling back is a huge headwind for all of crypto.
Saw a blurb over half of holders are underwater, which again is fully expected from unsophisticated investors lacking basic risk management. But those people wash out, and you have to hope for a new batch of suckers to give away their hard earned cash, because crypto remains a zero-sum game.
posted by gutThis is horrible investment advice always and everywhere. I mean, tell me crypto is a shitty investment without saying crypto is a shitty investment.
Also, institutions are getting burned on these exchange meltdowns. And they start pulling back is a huge headwind for all of crypto.
Saw a blurb over half of holders are underwater, which again is fully expected from unsophisticated investors lacking basic risk management. But those people wash out, and you have to hope for a new batch of suckers to give away their hard earned cash, because crypto remains a zero-sum game.
Yes, crypto is a shitty investment. That's what I've been saying.
I'm weary of all crypto because I have yet to find another soul on this earth who can explain it to me in anything approaching common sense language.
posted by Dr Winston O'BoogieI'm weary of all crypto because I have yet to find another soul on this earth who can explain it to me in anything approaching common sense language.
I'll try to explain bitcoin as simply as possible. Let me know if this helps or is still too high level.
The bitcoin network is essentially a distributed ledger of all transactions that have been validated by the network. Ownership of those transactions can be proven cryptographically, so only the person in possession of the private key can do anything with it. This means, if you hold your own keys it can't be taken from you, but if you lose your keys it's gone forever. Also, if the transaction is valid it cannot be censored or stopped by anyone.
Every 10 minutes or so a batch of transactions that have been broadcast to and validated by the network get bundled up into a "block" and added to the ledger (or "chain", thus "blockchain") and distributed to every node on the network. This creates an immutable history of all transactions that have ever occurred on the bitcoin network that can be verified by anyone on the network. This means, if you run your own node on the network you can always verify that your bitcoin actually exists.
Each block that is added to the blockchain also includes a pre-determined amount of new bitcoin that is controlled by whoever "mined" it. That just means they were the lucky one that created the block that was added to the blockchain. This gives miners the financial incentive to join the network. Every 4 years the amount of new bitcoin mined in each block is cut in half. Once the last bitcoin is mined (around 2140) there will never be another one created. This scheduled is programmed in and cannot be modified so it's impossible to "print more" bitcoin.
This ultimately gives you a verifiably secure and verifiably scarce digital asset that you can't be stopped from using and it cannot be taken from you*.
The alternative, in the near-ish future, is the CBDC, or Central Bank Digital Currency. This is what kicks off the dystopian nightmare you've read about and watched in movies and tv shows your whole life. Imagine a digital currency that the gov't controls and can lock you out of at any point for any arbitrary reason they deem acceptable. This means if they don't like what you're buying or who you're buying it from, your money is no good.
Most other crypto operate much like a CBDC would, at least in that they are controlled by a single entity and cannot be verified the same way bitcoin can.
I like to think of the bitcoin network as a "Federal Reserve" with monetary policy that cannot be changed and can be audited by anyone at any time.
It's a reserve currency for the digital age, more or less.
posted by justincredibleI'll try to explain bitcoin as simply as possible. Let me know if this helps or is still too high level.
The bitcoin network is essentially a distributed ledger of all transactions that have been validated by the network. Ownership of those transactions can be proven cryptographically, so only the person in possession of the private key can do anything with it. This means, if you hold your own keys it can't be taken from you, but if you lose your keys it's gone forever. Also, if the transaction is valid it cannot be censored or stopped by anyone.
Every 10 minutes or so a batch of transactions that have been broadcast to and validated by the network get bundled up into a "block" and added to the ledger (or "chain", thus "blockchain") and distributed to every node on the network. This creates an immutable history of all transactions that have ever occurred on the bitcoin network that can be verified by anyone on the network. This means, if you run your own node on the network you can always verify that your bitcoin actually exists.
Each block that is added to the blockchain also includes a pre-determined amount of new bitcoin that is controlled by whoever "mined" it. That just means they were the lucky one that created the block that was added to the blockchain. This gives miners the financial incentive to join the network. Every 4 years the amount of new bitcoin mined in each block is cut in half. Once the last bitcoin is mined (around 2140) there will never be another one created. This scheduled is programmed in and cannot be modified so it's impossible to "print more" bitcoin.
This ultimately gives you a verifiably secure and verifiably scarce digital asset that you can't be stopped from using and it cannot be taken from you*.
What to stop buying up a bunch before it’s all halved every 4 years?
posted by justincredibleI'll try to explain bitcoin as simply as possible. Let me know if this helps or is still too high level.
The bitcoin network is essentially a distributed ledger of all transactions that have been validated by the network. Ownership of those transactions can be proven cryptographically, so only the person in possession of the private key can do anything with it. This means, if you hold your own keys it can't be taken from you, but if you lose your keys it's gone forever. Also, if the transaction is valid it cannot be censored or stopped by anyone.
Every 10 minutes or so a batch of transactions that have been broadcast to and validated by the network get bundled up into a "block" and added to the ledger (or "chain", thus "blockchain") and distributed to every node on the network. This creates an immutable history of all transactions that have ever occurred on the bitcoin network that can be verified by anyone on the network. This means, if you run your own node on the network you can always verify that your bitcoin actually exists.
Each block that is added to the blockchain also includes a pre-determined amount of new bitcoin that is controlled by whoever "mined" it. That just means they were the lucky one that created the block that was added to the blockchain. This gives miners the financial incentive to join the network. Every 4 years the amount of new bitcoin mined in each block is cut in half. Once the last bitcoin is mined (around 2140) there will never be another one created. This scheduled is programmed in and cannot be modified so it's impossible to "print more" bitcoin.
This ultimately gives you a verifiably secure and verifiably scarce digital asset that you can't be stopped from using and it cannot be taken from you*.
I appreciate you trying, but I don’t understand this at all. My questions are probably too numerous to list, but I’ll try one at a time:
Are “private keys” synonymous with bitcoin currency?
posted by Dr Winston O'BoogieI appreciate you trying, but I don’t understand this at all. My questions are probably too numerous to list, but I’ll try one at a time:
Are “private keys” synonymous with bitcoin currency?
If you don't think too much about the technical piece of it, does the distributed ledger make sense?
Basically just a big database of who owns what that anyone can verify and it cannot be counterfeited or changed. That, plus the digital scarcity, are the big breakthroughs with bitcoin.
As for the private keys, yes, consider those your "currency" because you need the private keys to move or "spend" your bitcoin.
posted by Ironman92What to stop buying up a bunch before it’s all halved every 4 years?
Price goes up.