Stock bubble I can understand. There's a ton of fundamentals and a ton of speculation that fuels stock bubbles. The fundamentals provide a solid launchpad for the rocketships. And when the rocket burns out, the fundamentals provide a reasonable baseline around which the rocketship can plummet. Crypto bubble seems to be based on sound blockchain fundamentals, but also on a ton of speculation. What's the fuel powering the crypto rockets? What are the fundamentals driven baselines for some of the more popular crypto currencies? Can someone please provide some DD about the crypto space? Help me make sense of this brave new world. #crypto #moon #bitcoin #eth #doge
Pump and dump. Money laundering. Tax evasion. Take your pick. On the legal side, there is no PDT and say it is the wild west with HFT, even for single users. With my regular broker, if I want to manually or algo trade, I can only do a few hundred trades per day, even with a large margin account. Otherwise, I'll be labeled a professional and have to pay for lots of things, like market data, fees and commissions for each transaction, etc.
Crypto is fundamental threat to the US government. There is a big difference between Money(USD) and crypto. USD has the US army backing it. Crypto threatens US influence over the world. The ones pumping it are more likely early adopters who want the demand to skyrocket
To play the devil's advocate, just the threat that crypto provides to USD makes it useful for US' adversaries. They have been trying to undermine USD for decades without success. Now they have found the weapon. And their armies will back crypto in the same sense that you used for the USD.
Yes. No doubt. That's why I said it is a threat to USD. I won't be surprised if the Bitcoin creator is the Russian government or Chinese government!
Somebody said this happened earlier. There was a chart when in 1600's there was such an unexplained bubble. Except it wasn't crypto back then, but some sort of exotic flower.
Finite and low supply unlike fiat. Exceptions, shitcoins like Doge (130 billion supply) - the price action on that is just due to uninformed and easily manipulated masses + viral hype. But, the same shit happens in the stock market (GME, AMC etc don't have the "fundamentals" to support their mcap, basically any penny coin pump and dump schemes, etc).
The willingness to accept doge in exchange of goods and services gives doge some value. The rate of mining puts a floor on its exchange rate. As long as the marketplaces' acceptance of doge keeps pace with the mining rate, doge will not devalue below a certain exchange rate. I just can't figure out what that bottom might be. With GME and AMC we know that they'll only get to zero if they go bankrupt. So AMC might get there sooner than GME based on current financials. But neither will reach there without giving us lots of warning signs and enough time to get out. Or they could turn around and justify the valuation. Either way we'll be able to evaluate it in the future.
Good points
Whales and fomo.
These are yin and yang. There is an imbalance in the force.
There is an imbalance due to lack of central authority and personal accountability. I hope there is some way to control whales manipulation through blockchain. Maybe develop a new "whale control" protocal
Crypto and fundamentals don’t belong in the same sentence, other than if you are saying it lacks any. Basically people pumping their coin of choice mixed with greed, FOMO and greater fool at work.
My foolish friends have minted millions while I work hard on improving my "impact" for this halfs performance review.
I know someone who bought two houses no loan.
Tech Industry
9h
2006
Job market is brutal for SWEs 🥲
Health & Wellness
20h
799
Misdiagnosed As a Child
Tech Industry
27m
207
Chinese coworker complained about my rising sun shirt?
India
21h
1810
I hope none of you ever gets a GC
Personal Finance
19h
688
Here are three stats about how your money is increasingly useless after the most recent inflation report
Crypto originally rose because a bunch of techies and anti-establishment types attached themselves to the underlying tech and the opportunities it presented. Since then, crypto has primarily surged based on FOMO and pump-and-dump schemes.
This, currently crypto is just FOMO especially all the new crypto currencies being added every day