Why is Bitcoin "digital gold" crashing right now?

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JSnowWinterfell said:
Cash offers privacy, that is not replicated in digital currencies. It is one of the major differences in the technologies between digital and physical.
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It depends on the digital currency. There are digital currencies that offer privacy such as ZCash and Monero. Bitcoin is psuedo-anonymous. There are protocol updates waiting in the wings that could be applied to make it truly anonymous. In the meantime, users can use something like CoinJoin to avail of greater anonymity. Bitcoin digital wallets like Wasabi and Samourai come with CoinJoin built in.
 
Bloomberg's Crypto Outlook - June 2020 edition.

In its report, Bloomberg acknowledge the "maturation of Bitcoin toward a digital version of gold".
"Bitcoin is the benchmark crypto asset and is increasingly becoming a digital version of gold".
"Bitcoin is winning the adoption race as the gold-like store of value."
 
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This thread has been great reading , thanks to @tecate for his explanations and @Duke of Marmalade who extracted the information by strict questioning. I have been spending a lot of time over last month or so learning all I can on cryptocurrencies. I have been converted well kind of , I am now going to keep an equal weight of my porfolio in Bitcoin as I do Gold. I think the key is read this thread but do your own research these threads can be great but the internet is a strange place for debate , if in a pub ( remember them days) @Duke of Marmalade might concede that @tecate is right but generally that doesn't happen in internet exchanges.
 
Sorry Fella, I will never see any substance in btc. At least not until mainstream economists start to embrace it, I do respect experts in their field.
I note your conversion but I suspect that it is not driven by a conviction that btc will fulfil its intended role as a global transactional currency. Rather I would surmise that you have satisfied yourself that whatever is driving its price will continue to do so and in a possible diversification of mainstream assets. In other words, you are not too concerned about its fundamentals, just its price trajectory. The hedge fund guys who have seen a role for it certainly seem to view it in that light or even as a speculation. But for fundamentals I rely on my own judgement and on those of the experts in the field.

If I ever do meet tecate in a pub, I will be glad for a 2 meter social distancing. I would not be an equal in any physical confrontation
 

Yeah your right I don't care too much for it's fundamentals I think its at a place now where I can't forsee it falling to zero , maybe it started it's life as a bag of hot air but I like it now .
Do I think it's wise to have a portion of your investment in Bitcoin ? Yes
Do I think it will still be around in 20 years ? Yes
I'm not too keen on keeping gold in my portfolio but it's seen as a safe haven so I hold some for diversification. I will hold Bitcoin for similar reasons , physical gold is hard to buy and store , I do think Bitcoin can fill a void in the digital gold space.
 
Duke of Marmalade said:
If I ever do meet tecate in a pub, I will be glad for a 2 meter social distancing. I would not be an equal in any physical confrontation
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I wouldn't dare touch a hair on yer head yer Dukeness, lest the forces of the Dutchy of Marmalade would have me in irons.

Tell you what, if Bitcoin goes to zero as you propose, I'll fork out some of that Covid infested money for a couple of pints for his Dukeness. When it goes to $20k, you can do the same, paying in Bitcoin.
 
Fella said:
Do I think it will still be around in 20 years ? Yes
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Hi Fella

Can you explain your reasoning?

It is a bag of hot air. It has lasted astonishingly long but it can't defy reason for 20 years.

Even if you think that there is some merit in an untethered cryptocurrency, why should it be Bitcoin?

Brendan
 
Brendan Burgess said:
Hi Fella

Can you explain your reasoning?

It is a bag of hot air. It has lasted astonishingly long but it can't defy reason for 20 years.

Even if you think that there is some merit in an untethered cryptocurrency, why should it be Bitcoin?

Brendan
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Well I think it was tricky to get it to this stage but the hard work is done now, almost everyone has heard of Bitcoin and most people accept it as having a value.
Enough people are using it now as a digital gold or alternative storage of wealth or whatever you would like to call it that the likelihood of it crashing to a worthless figure is slim to none.
I would expect the first few years of anything new to be very volatile , I think that's what we saw with Bitcoin. How do you value a BOHA. ? I think going forward it will become less volatile. Of course Bitcoin started as nothing it was worthless but it is now it is accepted as been worth something the same way gold is accepted as been worth something , you could argue gold is worthless if everyone valued it as 0 it would be worth 0 . But we don't we like gold because it's rare and expensive. If everyone valued gold at zero it be zero . Stuff is worth what we value it at.
i prefer Bitcoin over other crypto's because it's the most well known so least likely to fail imo.
 
Fella said:
But we don't we like gold because it's rare and expensive.
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Rarity and expense probably contribute to the price of gold.

But it's appearance in jewelry and industry is very important.

I wonder if people who compare BTC to gold have every seen gold jewelry or ornaments?

Your reasoning would have had you buying tulips during tulipmania.

Brendan
 

But if people didn't like gold in jewelry would it still be that expensive?

The conversation has been done to death now I don't want to keep going over old ground .
It's why I suggest people do there own research because it's no and it's not clear cut either way.
It's clear you don't like Bitcoin and see it as a BOHA.
Your going to keep saying it's worthless and like tulips , I'm going to argue it's worth what people are willing to pay for it , people see it as a having value .
I think the most likely thing is Bitcoin is around in some form for good , its price stabilises and it becomes a more mainstream store of wealth . I absolutely do not forsee it going to zero or worthless . Therefore I'm going to take a stake in Bitcoin.
 
Fella said:
It's clear you don't like Bitcoin and see it as a BOHA.
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On the contrary, I love Bitcoin.

If people are prepared to pay $15,000 for something which is worth nothing, I can make money out of it.

While it has been done to death, I was interested to see why you changed your mind on it.

Brendan
 
Brendan Burgess said:
On the contrary, I love Bitcoin.

If people are prepared to pay $15,000 for something which is worth nothing, I can make money out of it.

While it has been done to death, I was interested to see why you changed your mind on it.

Brendan
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I haven't really changed my mind , if you check back all my posts on Bitcoin I've consistently said "something is worth what people are prepared to pay for it".
The thing is why try to compare Bitcoin to something else ?, it's not gold ,its not art , its not digital gold and its not tulips. So these debates end up comparing it to gold and they go around in circles about Gold having value and been used in industry or whatever. You can't compare Bitcoin to anything else its a new technology I do think it has a place and offers an alternative to government backed money.

I changed my mind on actually owning Bitcoin because I felt like the price was far too volatile at the start , if you look at Bitcoin now over the last year or so it hasn't actually moved that much. I also didn't know how to buy Bitcoin and wasn't interested in finding out.

I don't think you can say you can make money out of it. You made one or two ? succesful trades shorting Bitcoin which could of went either way. I don't think your actively making money shorting Bitcoin ? There is no way to make money out of something people are prepared to pay 15000 for that remains at 15000 indefinitly .
 
52 week high 13,796 52 week low 4,106 This is meant to be a currency for heaven's sake, a store of value.
Fella you're a smart cookie, anyone who can beat the bookies impresses me on that front. But that comment suggests to me that you are trying to convince yourself to be part of the cult.
 
Brendan Burgess said:
That's what surprised me about Fella buying BTC. It's clearly worth nothing. And he has been taken in by the mania.

Brendan
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Well I'm also surprised by yourself Brendan .
The statement it is clearly worth nothing is 100% wrong , but you keep quoting it as fact.
It is clearly trading at a value above zero.
Your statements about making money from Bitcoin because people are happy to pay 15000 for something worth nothing is based on one example of how you made a trade that you nearly lost on. You are clearly not making any money outside that trade on the back of this worthless coin.
 
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