One of the things I think it shows, is that there are some very wealthy people out there, who are able and willing to invest in this.. I also think it confirms that intrinsic value is less important than we think.
The entire crypto space is overblown in terms of market value. Most people buying it have no idea what it is, they just like green bars. But notice that it's happening on the normal stock market as well.
A big crash would irrationally discredit the technology in popular culture for a few years, because critics will point at the morons (or are they just people who can smell the imminent collapse of our financial system?) buying random coins trying to get rich. That's a problem because now is a crucial time for "choosing sides" so to speak. If crypto gets disowned by popular culture then it might get bagged and thrown into a closet by proponents of centralization (states, corporations).
Perception is important right now, but as long as it doesn't get snuffed out by politicians it'll keep evolving - and people will just buy in again after the crash.
So I'd say this: it's bad if crypto is the only market that crashes.
Doge was a joke coin made to mock the moonboys of bitcoin. It's not as valuable because tens of thousands of new coins come into existence every block. It was designed to be inflationary on purpose specially so that it would remain worthless.
However. It's still a digital medium of exchange so it still retains some utility (even though most people don't care).
if someone sells an nft of an original digital work of art it’s absurd and dumb tulips. if someone sells an nft of their fart. it’s even more absurd and tulipy. both have happened.
In 10-15 years when this bubble bursts doctors will make a lot of money fixing the broken bones from the mob of people rushing to say they told you so.
It seems ridiculous on its face and it doesn’t seem to be stopping. It feels like the entire financial/monetary system is on really shaky foundations when so much wealth is created out of something with no actual utility. We are way past the point of the shoe shine boy giving stock tips now. How much longer it goes seems like it will increase how hard the crash eventually is.
But then again, I bought a helio ocean over the original iPhone so...
Have you considered the possibility that the bubble which bursts is "fiat money", and the utility being provided by these "stores of value" currencies (such as Bitcoin) is merely "escape from inflation"? The story--also right now on Hacker News--of Turkey is extremely relevant: the expectation of governments is that they can arbitrarily inflate the currency supply, which is effectively a tax on holding that currency; the more people who realize they can avoid that tax by merely storing their money in a safe external asset, the harder it is for governments to use that mechanism to raise funds.
... which itself is extremely interesting if you leave aside its "dog" icon: it has the same UI as BTC, it is based on the same software, but with more digits (no need for satoshis as the smaller unit), lowest prices (people do not want to own fractional number of a coin like 1/100 of a BTC, they want integers), widely available on most exchange due to having existed for a long time...
There is a strong usecase, at least as strong as LTC.
Parent is using inflation of fiat as an argument for crypto which doesn't apply to Dogecoin. It doesn't matter to me if the mascot for a coin is a literal butthole.
Yes, most of HN normies can't understand crypto, but more worriying is that a few people in the business seem to have a problem with DOGE.
All that matters is that it fills a need and keep growing. I am thinking of getting back in crypto, because I see a very bright future for DOGE as a 3rd coin: BTC for store of value, ETH for ??something?? (smart contracts), and a 3rd one as an medium of exchange not tethered to fiat.
I do not buy the argument of USDT or something stuck to fiat as a modern MOE. XRP had a half believable story (if used for international remittance).
Now LTC/BCH/DOGE are fighting for the same spot.
> It doesn't matter to me if the mascot for a coin is a literal butthole.
Even if I'm pro crypto, /r/Buttcoin is my favorite place online . I never start a day without reading buttcoin, for the quality of the various analysis, as opposed to the "it's just tulips and beanie babies" I get from HN
Bitcoin is already storing over $1.1 trillion of the world's wealth which would currently put it in the top 10 global assets [1], as well as the top 10 global currencies based on M1 money supply [2]. It is also the best performing asset over the past 10 years [3]. It appears to already be a store of value.
> BTC's price went up and it still can't be used as cash
No coiners as usual seem to ignore that Yens or Euros (or even gold bars!) can't be used as cash in the US.
To all the people complaining they can't use BTC as cash to buy food or clothes: give me just 1/10 of a bitcoin (or 5000 Euros or ...) and I will give you food (a good meal!) and clothes (I'll even throw in free shoes!)
10-15 years? The market may be able to sustain irrationality a long time, but I don’t don’t think we have that long until this particular fever breaks. Look at all the IPO’s and spacs going on, everyone is cashing in while they still can, I’ll be amazed if we last 4.
When things are volatile but are on a strong upswing, I'd recommend buying in using DCA and keep adjusting stops at whatever level you're comfortable with (I use 90% for crypto atm.). You're right it's gonna burst - every free market does Eventually. But when does it burst? Will it burst before cash? Before stocks? Before gold? Before bonds? Who knows. So I just put 20-30% in each, put in stops, and sleep calmly through it.
They scammed so much money they can buy any legislation, any prosecution, any audit several times over and continue for 10 more years. Look what happened to BCCI, one of the biggest banking scandals of the nineties.
Yep. It's no fun watching other people invent fake money and having it come true. I'll always be jealous that I could have been the one to invent JfengelBucks and somehow get people to accept them.
But I basically view it like any other tech lottery. I knew Sergey Brin in high school and was on the math team with him. I coulda been that guy, but I wasn't. Lots of us were as smart and capable as Mark Zuckerberg, but we weren't Mark Zuckerberg.
People who guessed that BTC would become the next hula hoop... good on ya. I hope you use your profits well and live a good life with 'em.
Real estate is also at all time highs (depending on location, but in general).
Precious metals are not on track to beat inflation.
Treasury bonds are not on track to beat inflation.
The rates even on high yield savings accounts also do not beat inflation (and are relatively very low).
There is a concern that USD may be devaluing, due to all the money printing that has happened in 2020 and 2021.
I agree diversification is good, and I don't think it's good to be 100% invested in crypto, but I'm just curious how you would allocate your portfolio if you were in that situation.
Good video. Peter Lynch does also say at some point in the video that he looks at what's happening now. I do think it is worth considering that some of the current asset classes are possibly in bubble territory, and some asset classes don't have high enough returns to preserve purchasing power. Historically, the stock market has done well, over time, no disagreement there.
Right. But we don't get new fake money very often. Fake money becomes real money when people agree to it. People try all the time and fail. Someone succeeded.
This time without even a chunk of dirt, which is usually required for a fake money to work. The people on the same dirt agree to use that fake money with their neighbors, usually as part of an agreement not to beat each other up. It's not necessary, and in fact anyone can make a new one at any time. And they do. It just usually doesn't work.
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[ 2.8 ms ] story [ 102 ms ] threadA big crash would irrationally discredit the technology in popular culture for a few years, because critics will point at the morons (or are they just people who can smell the imminent collapse of our financial system?) buying random coins trying to get rich. That's a problem because now is a crucial time for "choosing sides" so to speak. If crypto gets disowned by popular culture then it might get bagged and thrown into a closet by proponents of centralization (states, corporations).
Perception is important right now, but as long as it doesn't get snuffed out by politicians it'll keep evolving - and people will just buy in again after the crash.
So I'd say this: it's bad if crypto is the only market that crashes.
That’s a best case scenario. The cascading effect of any asset bubble popping extends outward like the ripples of a stone in a pond.
Besides the unrelated draw downs to cover losses, it also has a psychological effect that pulls new money from entering non-risk free asset classes.
However. It's still a digital medium of exchange so it still retains some utility (even though most people don't care).
The Doge was pumped based on Elon's tweet and purely hype.
This pump may be suitable for those who profited from the currency, but generally, it is terrible for the market.
It seems ridiculous on its face and it doesn’t seem to be stopping. It feels like the entire financial/monetary system is on really shaky foundations when so much wealth is created out of something with no actual utility. We are way past the point of the shoe shine boy giving stock tips now. How much longer it goes seems like it will increase how hard the crash eventually is.
But then again, I bought a helio ocean over the original iPhone so...
There is a strong usecase, at least as strong as LTC.
All that matters is that it fills a need and keep growing. I am thinking of getting back in crypto, because I see a very bright future for DOGE as a 3rd coin: BTC for store of value, ETH for ??something?? (smart contracts), and a 3rd one as an medium of exchange not tethered to fiat.
I do not buy the argument of USDT or something stuck to fiat as a modern MOE. XRP had a half believable story (if used for international remittance).
Now LTC/BCH/DOGE are fighting for the same spot.
> It doesn't matter to me if the mascot for a coin is a literal butthole.
Even if I'm pro crypto, /r/Buttcoin is my favorite place online . I never start a day without reading buttcoin, for the quality of the various analysis, as opposed to the "it's just tulips and beanie babies" I get from HN
Store of value is a meme invented by influencers on Twitter. They did a damn good job too.
[1] https://companiesmarketcap.com/assets-by-market-cap
[2] https://www.lopp.net/m1/rank.html
[3] https://finance.yahoo.com/news/bitcoin-becomes-best-performi...
No coiners as usual seem to ignore that Yens or Euros (or even gold bars!) can't be used as cash in the US.
To all the people complaining they can't use BTC as cash to buy food or clothes: give me just 1/10 of a bitcoin (or 5000 Euros or ...) and I will give you food (a good meal!) and clothes (I'll even throw in free shoes!)
The same offer applies for a gold bar!
Yen and Euros can be used as cash in Japan and the Eurozone, though.
And, yeah, gold bars mostly aren’t money, either (there was a time when that may have been different, but...)
In this week alone they've printed 4 Billion USDT (totally backed money).
In one year they've printed 43 billion.
Can't wait for the crash, hopefully the market doesn't stay irrational longer than I can stay solvent.
But I basically view it like any other tech lottery. I knew Sergey Brin in high school and was on the math team with him. I coulda been that guy, but I wasn't. Lots of us were as smart and capable as Mark Zuckerberg, but we weren't Mark Zuckerberg.
People who guessed that BTC would become the next hula hoop... good on ya. I hope you use your profits well and live a good life with 'em.
Honestly I don't know why, having reached FU wealth, you wouldn't sell and diversify in to every other asset class going. That's what i'd do.
The stock market is at all time highs.
Real estate is also at all time highs (depending on location, but in general).
Precious metals are not on track to beat inflation.
Treasury bonds are not on track to beat inflation.
The rates even on high yield savings accounts also do not beat inflation (and are relatively very low).
There is a concern that USD may be devaluing, due to all the money printing that has happened in 2020 and 2021.
I agree diversification is good, and I don't think it's good to be 100% invested in crypto, but I'm just curious how you would allocate your portfolio if you were in that situation.
https://youtu.be/nE7A-qb3QBI
All money is fake money. It's been 10 years man, there's no excuse to not understand this by now.
This time without even a chunk of dirt, which is usually required for a fake money to work. The people on the same dirt agree to use that fake money with their neighbors, usually as part of an agreement not to beat each other up. It's not necessary, and in fact anyone can make a new one at any time. And they do. It just usually doesn't work.
>Bitcoin Plunge Reveals Possible Vulnerabilities In Crazy Imaginary Internet Money https://www.theonion.com/bitcoin-plunge-reveals-possible-vul...
The whole thing's slightly nuts.