Why is Bitcoin "digital gold" crashing right now?

Fella

Frequent Poster
Messages
494
Not much of a "currency" if you can't pay your bills with it! Any sign of the general population using it to like, purchase something?

Seems to me that Bitcoin is, since 2013, stuck in the speculative stage.
I have on occasions thought about buying Bitcoin "digital gold " just for a bit of fun , but it just seems easier to buy gold .Bitcoin seems unnecessarily complicated to me and I've read about it a few times and thought meh that just seems like hard work.
I'm still in my 30's and I find it complex (maybe that says more about me !)
I think it needs to be simplified if the general population are to start using it.
 

tecate

Frequent Poster
Messages
641
Not much of a "currency" if you can't pay your bills with it! Any sign of the general population using it to like, purchase something?
Seems to me that Bitcoin is, since 2013, stuck in the speculative stage.
This particular thread is concerned with the notion of digital gold. Use as means of exchange and unit of account are other use cases. The fact that its not all pervasive in this moment for use as a day to day currency this very day doesn't mean that it won't be.

Fella said:
I have on occasions thought about buying Bitcoin "digital gold " just for a bit of fun , but it just seems easier to buy gold .
Gold will continue to have its place in portfolios that are not ready for digital assets. With bitcoin there is of course greater risk as its formative but there's a case to be made to gain a certain level of exposure to that risk as the potential upside is far greater than gold.

Fella said:
Bitcoin seems unnecessarily complicated to me and I've read about it a few times and thought meh that just seems like hard work.
I'm still in my 30's and I find it complex (maybe that says more about me !) I think it needs to be simplified if the general population are to start using it.
You're absolutely right. The usability issues with bitcoin are well known and there's a hive of bright minds working on making bitcoin more easy to use. That it has such problems right now doesn't mean that they can't be solved - it just may take some time to iron out, like so many applications of technology and innovation in the past.
 

Firefly

Frequent Poster
Messages
3,140
This particular thread is concerned with the notion of digital gold. Use as means of exchange and unit of account are other use cases.
If was used by the general population to buy stuff & pay bills it probably wouldn't be crashing....
 

Firefly

Frequent Poster
Messages
3,140
Ok, everything has crashed... equities, gold, silver, bitcoin, oil.
Equities aren't used to buy stuff by the general population
Gold isn't used to buy stuff by the general population
Silver isn't used to buy stuff by the general population
Oil isn't used to buy stuff by the general population

I meant currencies.....
 

tecate

Frequent Poster
Messages
641
I meant currencies.....
The discussion is about 'digital gold'.

As regards FIAT currencies, check any FIAT currency attached to an economy that's disproportionately oil-based. They're all down. Check any currency against the world reserve currency - they're all down against it.

The US dollar has been debased 2512% since 1913. The printing has gone into overdrive - so you can expect that process to continue. #QEInfinity Meanwhile, Lebanon has gone into sovereign default. Ecuador and Italy are close to following it.
 
Last edited:

Duke of Marmalade

Frequent Poster
Messages
2,534
Semantics your Dukeness. If bills have to be paid, bills have to be paid. Remember you're talking about highly leveraged positions in equities needing to be covered.
I'm going to buy your explanation that bitcoin's failure to act as digital gold is because the bitcoin community are steeped in leveraged positions. It fits in with a theory that bitcoin is nothing more than a playground for speculators. It serves absolutely no other purpose. One almost feels sorry for criminals who have been duped into thinking that it is a suitable vehicle for their hard earned, if ill gotten, gains.
 

tecate

Frequent Poster
Messages
641
I'm going to buy your explanation that bitcoin's failure to act as digital gold
There's been no such comparative failure. You know that already.

because the bitcoin community are steeped in leveraged positions.
I'd encourage you to review previous posts on this thread. Links have been provided to market commentators confirming that there has been a scramble towards covering losses in the conventional markets.
As regards the bitcoin community 'being steeped in leveraged positions', do you have actual facts to back up that statement? Leveraging comes from the conventional markets. Some use of same has seeped in to the crypto world. However, the difference is that within the crypto sphere, there will be no lender of last resort should that happen to a significant extent and go badly wrong. Many proponents of crypto welcome such a correction if it's ever needed as it will only happen the once.

It fits in with a theory that bitcoin is nothing more than a playground for speculators. It serves absolutely no other purpose. One almost feels sorry for criminals who have been duped into thinking that it is a suitable vehicle for their hard earned, if ill gotten, gains.
Tell us how you really feel, your Dukeness. :-D
According to a recent report, just 1% of bitcoin transactions in 2019 were attributed to illicit activity.
 
Last edited:

tecate

Frequent Poster
Messages
641
That assuages my concern for that much maligned, and rightly so, community.
The Duke of Mar-malaise has spoken.
However, my fears for the sovereign integrity of your Dukedom are not assuaged given recent utterances...

Federal Reserve: "We have infinite cash"
Bank of England: "Unlimited quantities of money"
European Central Bank: "There are no limits"

Update 25/03: FT article -> 'The Federal Reserve has gone well past the point of 'QE Infinity'.
Bitcoin doesn't have a buyer of last resort. If it had, many here would ridicule the hell out of it. I don't see one mention from BTC naysayers addressing the ills of the conventional financial system.
 
Last edited:

RobFer

Frequent Poster
Messages
78
I'm going to buy your explanation that bitcoin's failure to act as digital gold is because the bitcoin community are steeped in leveraged positions. It fits in with a theory that bitcoin is nothing more than a playground for speculators. It serves absolutely no other purpose. One almost feels sorry for criminals who have been duped into thinking that it is a suitable vehicle for their hard earned, if ill gotten, gains.
For criminals, cash is always king.
 
Top