chat

8529 readers

277 users here now

Chat is a text only community for casual conversation, please keep shitposting to the absolute minimum. This is intended to be a separate space from c/chapotraphouse or the daily megathread. Chat does this by being a long-form community where topics will remain from day to day unlike the megathread, and it is distinct from c/chapotraphouse in that we ask you to engage in this community in a genuine way. Please keep shitposting, bits, and irony to a minimum.

As with all communities posts need to abide by the code of conduct, additionally moderators will remove any posts or comments deemed to be inappropriate.

Thank you and happy chatting!

founded 4 years ago

MODERATORS

SexUnderSocialism@hexbear.net

Sulvy@hexbear.net

oscardejarjayes@hexbear.net

Wakmrow@hexbear.net

Bitcoin is quietly imploding (hexbear.net)

submitted 5 days ago* (last edited 5 days ago) by Assian_Candor@hexbear.net to c/chat@hexbear.net

51 comments fedilink hide all child comments

Down 14% in the last month. Still way above its actual value (0) but headed in that direction.

I'm guessing cost of living is driving a lot of hodlers to liquidate. You have to imagine most of the money in this thing is institutional though so maybe it won't matter that much.

Inflation is driving the cost of commodities up but BTC seems to move in the opposite direction. This is meaningful bc the value prop of BTC as an inflation hedge would suggest the opposite, and BTC overweight portfolios will underperform the diversified commodities basket. If this persists it's only matter of time before we also see some institutional unwinding

I don't follow that market super closely but it's interesting nonetheless. It seems these big corrections happen from time to time as well so could just be more of the same. Still one wonders if we are starting to see some structural covariance.

you are viewing a single comment's thread
view the rest of the comments

[–] Assian_Candor@hexbear.net 21 points 5 days ago* (last edited 5 days ago) (2 children)

One of my lathe predictions was a Bitcoin bailout. Bc there's no intrinsic value there we could easily see a sudden rush for the exits. This will be one to keep an eye on in the coming weeks

TARP for libertarians while we cut snap benefits would be S-tier contradictions. This would be the administration stupid enough to do it. But who are we kidding, the Democrats would do it too

[–] InevitableSwing@hexbear.net 10 points 4 days ago* (last edited 4 days ago)

One of my lathe predictions was a Bitcoin bailout.

I figure during Trump 2.0 - there might be one of two crypto bailouts. One, a bailout for crypto in general. All the companies will say they are facing the current crisis and they'll feed like starving hogs at the glorious bailout trough filled with 10s of billions of dollars. Two, a bailout of select companies decided upon by Trump.

Either way - Trump will make billions simply because he's the president.

[–] infuziSporg@hexbear.net 7 points 4 days ago (2 children)

How would a Bitcoin bailout be conducted... like the FDIC but for crypto? That structure only has the reason to exist for USD holdings. Bailouts are done to companies which Bitcoin is not. What are they going to do, something identical to ensuring a minimum payout for call options, on a currency that doesn't really have everyday use?

[–] ZWQbpkzl@hexbear.net 9 points 4 days ago

Trump was talking about making a Strategic Reserve for Bitcoin during his reelection campaign. The US is already a major holder of Bitcoin just from asset forfeiture, but they were talking about having the US government explicitly invest in bitcoin for the treasury.

So no its not a proper bailout but it is effectively a way to bail out the Bitcoin market by buying any major dips. Think of the the US buying up oil when its price went negative.

[–] FuckyWucky@hexbear.net 7 points 4 days ago* (last edited 4 days ago)

My guess : They can set a price say 1 BTC = $100k and have anyone sell their bitcoin there.

Then no one wants to sell it on market for less than $100k since they can just go to the window for the floor price. At worst the Government ends up owning all the Bitcoin in existence (unlikely) ie 21 million, the bitcoiners get $2.1 Trillion I think (most of it is a transfer from the gov since they wouldn't have been able to sell it for anywhere near 100k otherwise).