Posted on 05/12/2022 2:41:40 AM PDT by Mount Athos
The world's second largest cryptocurrency Ethereum has joined the cryptocurrency crash - plummeting in value by 20 per cent over the last 24 hours.
Cryptocurrencies have sharply declined in value during the past few days as fears for the global economy spread and investors start to sell off risky assets.
However investors in more traditional stocks are also hurting, with US tech stocks also plunging in recent weeks including Amazon which has fallen 30 per cent in a month.
Ethereum has now lost more than half of its value this year, Bitcoin has shed a third of its value since January and Luna with 98 per cent of its value wiped out overnight with suicide hotlines pinned to the currency's Reddit page as a result.
Popular digital currency exchange Coinbase warned users could lose all of their money if the company goes bankrupt - after the downturn led to a 27 per cent fall in its share price.
The crypto downturn has wiped more than $1.5trillion of value from the markets but investors will still be hoping that prices will be able to recover as they have done in the past.
However, unlike previous crashes, experts think that this latest drop in prices could prove permanent due to broader fears about global recession.
(Excerpt) Read more at dailymail.co.uk ...
Tulip bulb manias are fun for all until the wilting and pedals start falling off.
BTC futures hit $25k this morning.
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Never understood what’s the value in bitcoins...
You only lose value if you sell. Crypto-currency isn’t going anywhere. One country has actually adopted it as official currency.
I think it was always a scam. The only thing it was ever used for as money was years ago when people bought illegal drugs. After it blew up it was only used for speculation, get rich quick scams, money laundering and ransom payments.
There is an old story about the market craze in sardine trading when the sardines disappeared from their traditional waters in Monterey, California. The commodity traders bid them up and the price of a can of sardines soared. One day a buyer decided to treat himself to an expensive meal and actually opened a can and started eating. He immediately became ill and told the seller the sardines were no good. The seller said, “You don’t understand. These are not eating sardines, they are trading sardines.”
Ping!
They have accounts. Every Bitcoin has a unique ID number.
People who bought Coinbase stock might lose all their money.
But, if your Bitcoins all have unique numbers, how can someone else spend them?
Dunning-Krugerrands are above and beyond criticism.
And don’t ask too many questions, either, as the standard answer is: “If you don’t understand blockchain, I ain’t got time to try and explain it to you. All you need to know is that it WORKS, and that Bitcoin is the future!”
LOL! The downturn could prove permanent! You’ve just gotta love the fear porn they are peddling. Does anybody think the price downturn in stocks in permanent? Its basically the same thing. Of course those who haven’t bothered to study or learn why crypto currencies are will spout the usual “tulip bulbs....1s and 0s” ignorance.
Crypto is still in its early stages and is still quite volatile. As such it is subject to brutal downturns....before it has head spinning upturns. It has gone through this several times before. I and everybody I know in crypto is not panicking. Quite to the contrary, we are diving in and scooping up as much as we can at these prices. This represents a wonderful buying opportunity.
I forgot to add about Coinbase....yes it had a downturn after making staggering profits last year. Yes it “could” go belly up though its very very far from doing so and has major financial backing. Yes if it does and you leave a bunch of your crypto on the exchange you could lose it in that case.
Solution? Don’t leave your crypto on the exchange. You shouldn’t be doing that anyway. As the old saying in crypto goes, not your keys, not your coins. That means if you want your coins to be secure hold them yourself in a crypto wallet or even better still in a cold storage wallet like my Nano X Ledger.
“Never understood what’s the value in bitcoins...”
Do you understand the value in fiat currency?
I understand when the government prints more money without the means of backing it up causes inflation but what backs up hitting. Sounds more like a pyramid scheme.
The same way you lose your money if you hold it in a bank and the bank goes belly up. You sign a contract when you join saying they can make you an unsecured creditor if you agree to use their services.
This is what the banks were before the FDIC. That’s where crypto is.
Hitting=bitcoin
Unless you are very foolish, you will choose a bank that is insured by FDIC.
Coinbase is in the trading business.
Why would Coinbase be lending out your Bitcoins, unless someone else is shorting your Bitcoins, and driving down their value?
Not that it matters, since this is a roaring crypto bear market, no short seller would have a problem replacing the Bitcoins he borrowed from your account.
If you have cash in your Coinbase account, and your cash disappears, how does Coinbase explain that, except for criminal fraud or theft?
The warning in the SEC filing was legally required. It doesn’t mean Coinbase is going bankrupt. Also, after buying coins on the exchange, you should transfer them to your own wallet. If you do that, they’re safe.
This is much ado about nothing, and I’m buying more.
“All you need to know is that it WORKS, and that Bitcoin is the future!””
There will be crypto money in the future but that doesn’t mean bitcoin or any of these hobbyist created coins will be there.
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