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Bitcoin Tumbles as Cryptocurrencies Join Global Equities Selloff

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(Bloomberg) -- There were no good spots for investors to hide in Thursday’s global equities rout, as cryptocurrencies joined the selloff.

Bitcoin, the largest digital currency, fell almost 7 percent to the lowest since mid-August, before paring its loss to 5.1 percent as of 8:08 a.m. in New York, according to prices compiled by Bloomberg. The Bloomberg Galaxy Crypto Index tumbled 10 percent, headed for a third day of losses.

Rival coins Ether, XRP and Litecoin retreated 11 percent to 13 percent.

“The global sell-off in equities has indeed spilled over to the crypto space,” said Ryan Rabaglia, head of trading with cryptocurrency dealing firm OSL in Hong Kong. “The days of crypto being the safe-haven play and having a high degree of detachment from the rest of the world are seemingly diminishing.”

Increased institutional attention on the cryptocurrency space has led to greater correlation with traditional assets, although this trend is not expected to last, he said.

There is some speculation of Japanese day traders selling to satisfy margin calls on stocks. Bitcoin is positively correlated to many stock indexes in Asia. That’s where the biggest declines are on Thursday, with China’s Shanghai Stock Exchange Composite Index tumbling 5.2 percent. While Bitcoin has mostly stayed above $6,100 this year, some analysts are watching out for a lower resistance level.

“With the 2018 low of $5,800 being tested a number of times, our sights are set at that level for all further sell-offs,” Rabaglia said.

The biggest stock sell-off since February rolled from the U.S. through Asia Thursday, with most benchmarks across the region tumbling at least 3.5 percent. Concern about the impact of the U.S.-China trade war, 10-year Treasury yields touching a 2011 high and the Federal Reserve’s monetary tightening are all contributing to market nervousness.

Cryptocurrencies have given up more than $600 billion in value from a January peak as the boom in initial coin offerings last year fades further into memory. Mainstream adoption of digital currencies has failed to materialize this year amid a series of exchange hacks and increased regulatory scrutiny.

Click here to see how Bitcoin stacks up with some of history’s greatest bubbles

“It is clear by now that Bitcoin and other cryptocurrencies represent the mother of all bubbles,” Nouriel Roubini, chairman at Roubini Macro Associates and a professor at NYU Stern School of Business, said in prepared testimony for a U.S. Senate Banking Committee hearing on cryptocurrencies and blockchain scheduled Thursday in Washington. “No asset class in human history has ever experienced such a rapid boom and total utter bust and implosion.”

In a scathing testimony, Roubini argued the blockchain technology that underpins Bitcoin and other cryptos is “the most over-hyped and least useful technology in human history” and “nothing better than a glorified spreadsheet or database.”

Coinbase Inc., one of the world’s largest crypto exchanges, took an even bigger hit than the broader market, according to data collected Tribe Capital. The fintech-focused venture firm said it found the number of monthly U.S. customers buying and selling on the platform in September declined about 80 percent from December, when the price of Bitcoin reached its all-time high of nearly $20,000.

https://finance.yahoo.com/news/bitcoin-tumbles-cryptocurrencies-join-global-113813680.html

 

 

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I have a question about Bitcoin.  I hope this is the right place to ask my question.  (If not, please direct me to the correct forum.)

 

In trying to learn about cryptocurrency, I understand that Bitcoin is valuable because there are only 21,000,000 of them.

 

However, I have read that 135 Satoshi = .01

There are 12,700 Satoshi in $1.00

And Bitcoin has 100,000,000 Satoshi.

 

In other words, the dollar can only be broken up into 100 pennies, but Bitcoin can be broken up into tons of Satoshi.

So how can Bitcoin be worth so much?   I don't understand it.  What am I missing?

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23 minutes ago, Floridian said:

I have a question about Bitcoin.  I hope this is the right place to ask my question.  (If not, please direct me to the correct forum.)

 

In trying to learn about cryptocurrency, I understand that Bitcoin is valuable because there are only 21,000,000 of them.

 

However, I have read that 135 Satoshi = .01

There are 12,700 Satoshi in $1.00

And Bitcoin has 100,000,000 Satoshi.

 

In other words, the dollar can only be broken up into 100 pennies, but Bitcoin can be broken up into tons of Satoshi.

So how can Bitcoin be worth so much?   I don't understand it.  What am I missing?

Because your buying something that is not real. It has no physical properties like a dollar. I know it’s hard to grasp, I am still trying to as well, but I do have a little bit of Bitcoin. 

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2 minutes ago, 8th ID said:

Because your buying something that is not real. It has no physical properties like a dollar. I know it’s hard to grasp, I am still trying to as well, but I do have a little bit of Bitcoin. 

 

You're buying something that's not real?   

 

This sounds like the explanation I got from a very brilliant attorney friend.  He told me that he was taught in college that Bitcoin is only worth what they say it's worth.  It's not "backed" by anything.  I realize that the dollar is also not backed by anything, since Nixon took us off the gold standard in 1971.

 

I just don't understand what makes Bitcoin so valuable if it's worth can't be compared to the dollar, and there is no profitable business they are running, or any other means of gaining in value.  Is the only reason it goes up because people buy it?  And the only reason it goes down because people sell it?

 

There's got to be some big piece I'm missing here.

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The dollar is only backed by faith in our governments ability to pay it's debts. It really isn't backed by anything. It keeps devaluing year after year and our government is just letting it happen slowly until it finds another solution because fiat currencies only usually last around 47 years until inflation gets too high. Our government can keep printing as many dollars as it wants to making our currency worth less and less over the years. 

 

Bitcoin is digital. The codes will always be in the system. It's value is also backed by the faith that people put into that system.... but there will only be a certain amount of Bitcoin ever made. Less than 1% of the population owns Bitcoin currently. Only a very small percentage of the world's population will ever be able to own the total amount of Bitcoin that will ever be made. Bitcoin is continually upgrading it's technology to be a relevant store of value and as the years go on and the more people that want Bitcoin will make the price rise. Eventually the rich supposedly will be clamoring to own 1 Bitcoin and there are many speculations saying in 10 years from now 1 Bitcoin may be worth from $10 million to $100 million. Not financial advice from me but I feel like taking a risk on it sounds good to me. Supposedly owning 28% of a Bitcoin will put you in the 1% someday but who really knows. 

Edited by Rmc10
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1 hour ago, Floridian said:

There's got to be some big piece I'm missing here.

 

I'm with you Floridian, I don't get it either. I do know it is very manipulated if you watch it day to day and accounts get hacked a lot. It is purely smoke and mirrors. I think like anything it is worth a small risk, but I wouldn't bet the house on it. Right now it is the wild west and if it becomes regulated the big opportunity will be gone. 

The thing I don't like about it that most people are not thinking about is this.... How much money, cash or precious metals do you have stashed? I mean money that no one knows about. With digital money you have no privacy. None. Go buy some gold with your bitcoin and there will be a digital trail. The idea that you can make money under the table, or a little on the side mowing or plowing snow will be gone. If digital becomes the currency, they will know everything about you and your expenses... 

 

B/A

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2 hours ago, Floridian said:

You're buying something that's not real?   

Yep...I know, its crazy isn't it. Thats why I only have a couple hundred in it. I do not trust it enough right now. If I can make a few bucks...great! Its just like the dinar, don't put more in it than you are willing to lose. Its an investment.

 

1 hour ago, Rmc10 said:

Not financial advice from me but I feel like taking a risk on it sounds good to me. Supposedly owning 28% of a Bitcoin will put you in the 1% someday but who really knows. 

Thats why I have a little of it. If it can make me a few extra bucks then it is worth it.

 

37 minutes ago, bostonangler said:

Right now it is the wild west and if it becomes regulated the big opportunity will be gone. 

The thing I don't like about it that most people are not thinking about is this.... How much money, cash or precious metals do you have stashed? I mean money that no one knows about. With digital money you have no privacy. None. Go buy some gold with your bitcoin and there will be a digital trail. The idea that you can make money under the table, or a little on the side mowing or plowing snow will be gone. If digital becomes the currency, they will know everything about you and your expenses...

BA, you are right sir. Here is another thing some might not think about. It is digital and if someone decides to turn it all off, what are you gonna do with the "money" that was invested? Its gone and you lose.

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You can't turn it all off... just like you can't turn off the internet. The codes that make up the cryptos are permanent. 

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1 hour ago, 8th ID said:

Here is another thing some might not think about. It is digital and if someone decides to turn it all off, what are you gonna do with the "money" that was invested? Its gone and you lose.

 

I believe you are right, 8th ID.

 Just as they can turn off your credit cards, debit cards, bank accounts, or internet service. they can turn off your cryptocurrency.

Think about EMP (electro-magnetic pulse) attacks by the Chinese, Russians, or whomever. Having everything "digital' is not such a great idea.  

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1 hour ago, Rmc10 said:

You can't turn it all off... just like you can't turn off the internet. The codes that make up the cryptos are permanent. 

 

Yes, they can turn it all off.

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It's no different than having digital money in a bank Flo. The banks can only cover a small portion of our money in our accounts with cash. That's why anything over $10,000 takes a while to get in cash and why the banks do not like to disburse that much cash to individuals even if we supposedly "own" it. If the banks fail we are only covered for a certain amount by the FDIC in each account. With cryptos as long as you keep your recovery passwords/keys/ect. you will always be able to recover it even if the internet temporarily goes down. Being brave and being first on a trend can yield great rewards. This is why the risk takers get rich and the rich stay rich and everyone else stays poor. I've been doing research on cryptos for over 2 years now and have been doing a lot of trading so I feel confident about my statements. Fidelity and the other financial big wigs would not be getting in right now like they are and like they have been if cryptos were not going to be the future of currency. Do what you will but don't knock it when someone tells you something that they know when they've asked the same questions to and have found the answers to. Biggest thing with crypto right now is do not forget, lose, or destroy the passwords or you lost all your coins forever. Once the investment firms work on custody issues and get insurance to protect them they will start buying/selling/trading cryptos for clients and this is when the institutional money will come in and there will be highs never seen before in crypto. The big wigs have been buying in this whole year while things are low and setting themselves up for success. This year has been the year to accumulate cryptos. Again this is all in my opinion but that's my beliefs on things. 

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1 hour ago, Rmc10 said:

It's no different than having digital money in a bank Flo. The banks can only cover a small portion of our money in our accounts with cash. That's why anything over $10,000 takes a while to get in cash and why the banks do not like to disburse that much cash to individuals even if we supposedly "own" it. If the banks fail we are only covered for a certain amount by the FDIC in each account. With cryptos as long as you keep your recovery passwords/keys/ect. you will always be able to recover it even if the internet temporarily goes down. Being brave and being first on a trend can yield great rewards. This is why the risk takers get rich and the rich stay rich and everyone else stays poor. I've been doing research on cryptos for over 2 years now and have been doing a lot of trading so I feel confident about my statements. Fidelity and the other financial big wigs would not be getting in right now like they are and like they have been if cryptos were not going to be the future of currency. Do what you will but don't knock it when someone tells you something that they know when they've asked the same questions to and have found the answers to. Biggest thing with crypto right now is do not forget, lose, or destroy the passwords or you lost all your coins forever. Once the investment firms work on custody issues and get insurance to protect them they will start buying/selling/trading cryptos for clients and this is when the institutional money will come in and there will be highs never seen before in crypto. The big wigs have been buying in this whole year while things are low and setting themselves up for success. This year has been the year to accumulate cryptos. Again this is all in my opinion but that's my beliefs on things. 

 

I certainly agree with your statement Rmc10, when you said "Being brave and being first on a trend can yield great rewards."

That is so true.  

 

I think I may be worrying about things that cannot be avoided, such as EMP attacks and the like.  I guess if, God forbid, something like that happens, it would change life as we know it.  Not only regarding crypto, but regarding everything else too.  

 

So thanks for your post above and I'm going to try not to worry about things I can't change, and I will study more about cryptocurrency.  😊 

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I've been in this for a few yrs now, it's very very deep dark world. Worthless ? No it's worth something, that's the block chain.... Data. The block chain is going to change the world. It's the internet 2.0 i personally like other coins vs BTC itself. Dash, horizen (Zencash), staketnet (XSN) to name a few. each coin (project) is different. Just my .02 cents it's worth looking into, I taught myself alot, started out knowing NOTHING, now I'm running (and built) miners, staking coins, have masternodes and secure nodes. Don't think it's too late to get in either, we r in the early stages, next month bakkt is coming out which is basically the NYSE there's going to be alot of big money coming in. Again this is just my .02 cents, do your own research. :)

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@gixxerfrog is right.........first educate yourself on the blockchain..........blockchain will revolutionize technology today, much like the internet did in the 90's........it is the future.....

 

Here is a start for those interested........

 

 

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36 minutes ago, coorslite21 said:

@gixxerfrog is right.........first educate yourself on the blockchain..........blockchain will revolutionize technology today, much like the internet did in the 90's........it is the future.....

 

Here is a start for those interested........

 

 

 

Thanks, Coorslite21.  This was very informative.  😊

 

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after doing my research i just found out how big this really is going to be. i invested in Dash - which was Dark coin at that time, i was buying it at about 5$ a coin back then. - not knowing ANYTHING just saying hey i wanna get into this crypto game let me throw a few bucks here n there. after seeing my money double in about a yr (a little less - got side tracked from work/life) saw it doubled and i started looking into it and when i started, darkcoin moved to dash and it started to go up.... and up.... and up.... and up reaching 1000$ per coin. - i am kicking myself for only throwing what i did at it at that time and not doing my research back then when i first was buying it. but it wasnt too late then as i am still very well up on my portfolio (blockfolio).  it is still not to late to get in on this, we are still in the early stages - but in my eyes the train is going to be leaving the station, and quick. - just my .02 cents. i just cant tell you guys to read up on it, dont take my (or coorslite) words for it.  i started out on dash - they have a bunch of youtube videos - Amanda is her name - breaks down "blockchain" and many other things in the crypto space very well. I also use the discord app on my phone/computer to chat with many ppl - i HIGHLY HIGHLY HIGHLY recommend this its free and very informative. i have met a bunch of ppl who have helped me set up a mining rig and masternodes etc. if u find a decent coin/community they even give u tips - random tips = free coin/ MONEY. i still remember a guy was drinking alittle on a friday night, dash was doing pretty well... he tipped everyone back then was like 5$ i think each - there was like 10 of us. so 50$ to all of us...now when dash hit 1000$ i think that tip was worth just above 100$ - i cant remember the exact amount he tipped us but i remember it being close to 100, when dash hit 1000$. but  thats besides the point - they - the people on discord chat rooms are so helpful.  i have trouble myself from time to time updating my masternodes and they are there to always help if u need them. i personally like the dash community - not just because it was my first coin i bought but the people in the chat rooms (i usually stay in the general chat or the alt coin chat) they always give everyone a heads up if they find a new and interesting coin - or hey... stay away from this coin, it sounds like a scam etc..... so thats just my .02 cents.

 

again i will warn you - it can get very deep... its a deep dark world, the more and more i looked into this finding ways to earn more crypto instead of buying it - such as staking/mining/masternodes etc. it kept getting darker and darker etc. lol. and i think thats 1 thing that scares people - its already confusing - blockchain... what? lol now ur talking about masternodes and staking and mining.  you can still make lots and lots of money just by buying a coin and holding, but theres just so many more ways to earn crypto. masternodes are passive income so thats what i personally like :). feel free to ask me anything and i will try to help on here (or in the discord app- user name is the same on the discord app)

 

heres a link to the dash discord chat room if anyone is interested - https://discord.gg/PABdT3

 

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