Bitcoin’s Big Letdown: Is Crypto Cracking Under Pressure?

[redeye]

After the dramatic crash over the past few weeks, also in the crypto market, it‌ seems pretty clear to me that crypto has totally failed at being superior to the‍ traditional financial system.

The idea behind Bitcoin came out of some financial crisis, right? The⁠ whole point was to have something of value when the stock markets crash, that’s basically⁤ the story as I understand it.

Now we’ve got Trump messing with the global economy,⁣ which kind of mirrors the 2008 financial crisis, and Bitcoin clearly isn’t holding up.

Is this a sign of weakness? I mean, gold is going up again these days, sure,⁢ some minor dips here and there, but nothing close to how dramatic the drops in︀ Bitcoin and the rest of the crypto market have been.

 

[thomasparra]

I think you misunderstand cryptocurrencies and especially BTC.

From what I understand, speaking with various‌ BTC investors, they believe the value of BTC will always go up as there is‍ limited supply (hardcoded, hence it is impossible for the supply to increase). It is all⁠ about adoption. As it increases, its price will automatically increase against fiat governmental currencies. These⁤ short term market fluctuations you are currently seeing (both UP and DOWN like right now)⁣ are just noise, and do not reflect the long term direction.

Besides, it is still⁢ pretty much at an all time high today. In the past 5 years the price︀ of BTC has been lower that the current price maybe 95% of the time?

Gold is historically (i.e. in the past 5000 years) the ultimate reserve of value. Since Ancient︁ Egypt (-3000 before Christ). It is not going to go away just like that.

 

[cherry]

BTC was not designed to be an investment that goes up︄ in price. It also wasn't designed to be a digital gold.

 

[thomasparra]

If BTC does‍ not go up in price, it very much likely means that BTC is losing value⁠ against fiat currencies, and proves that BTC is not a reserve of value.

 

[JohnnyDoe]

[No content provided]

 

[void]

a significant portion of BTC is currently held in paper hands (same applies to all‌ the bulls**t crypto projects, just way bigger portion) - what you see are these hands‍ trembling

just another week like many before

 

[cherry]

Technical analysis is like reading tea leaves‌ even at the best of times, but you literally had to warp space & time‍ in order to achieve that trend line.

 

[drysponge]

its not obvious crypto in general has‍ had a dramatic crash (as far as crypto goes), btc has not
idk what being⁠ a "superior" financial system is even meant to mean in this context, being worth more?⁤
not at all, the point of bitcoin︀ is just the software, the decentralised ledger, any value ascribed to it from correlations with︁ other markets is voodoo
in what way

 

[Martin Everson]

If people are concerned when they see their investment have a bad day, week or‌ year then investing is probably not for you 🙁. If you cannot stomach unrealized losses‍ walk away from investing. You cannot get concerned over every massive pull back or massive⁠ gain unless their is some fundamental change affecting what you invested in. With no fundamental⁤ change in whatever you have invested in just ignore the movements.

When I say fundamental⁣ change I mean pending bankruptcy, technological obsolescence, sanctions, fraud or loss in underlying market share⁢ and competitive advantage of the product etc. If none of those are present just ride︀ it out.

P.S We have seen this with both stocks and now crypto that reacting︁ to the market without seeing a fundamental change will result in a realized loss. And︂ as always only invest what you can afford to lose it makes investing less stressful.︃

 

[JackAlabama]

liquidity pulling out and you dump first whats easiest to liquidate.
Bitcoin has no tarriffs,︃ is global, has no dump orange man as ceo of its territory, no opening hours,︄ no kyc bs, and is censor restiant and you can own it outright if your︅ country and bank goes bankrupt (risk is highly elevated here).

 

[Wellington]

Only answer is to print, its following Liquidity air-pocket, followed by Tariffs, but the only‌ answer is print, therefore, down today up another day.

 

[thomasparra]

This is not technical analysis, simply a price chart representing the⁠ (exponential) upward trajectory of BTC since inception.

 

[W Fish]

Exponential curve is a straight line on a logarithmic scale. 😛

 

[void]

interesting opinion... why do you think so generally?

 

[cryptofriendly]

As China has already mentioned to stay strong and fight the tariffs with printing new‌ liquidity, and the US lowering the rates and doing a new QE in the next‍ 24 months, it would be a smart move for anyone to buy bitcoin and escape⁠ the fiat inflation and debasing of their currency. I hope that everyone will realize it⁤ soon, so that the halving cycle still keeps working.

 

[drysponge]

why bitcoin as the vehicle for this

 

[void]

no counter-party risk,‌ no borders, no tariffs, no way to inflate the supply, no trading hours, no CEO/company/foundation‍ controlling it, ....

 

[drysponge]

this still doesnt answer‍ why bitcoin, these are features of many cryptos.
and the goal is to "escape the⁠ fiat inflation", replacing inflation risk with crypto volatility, questionable.

 

[cryptofriendly]

Lower inflation rate‌ than gold, can't be faked, and this year actually became so much recognized and even‍ legit enough for government mafia to adopt it as a reserve currency.

What else would⁠ you suggest? There isn't any other crypto with a bigger network of validators, longer history,⁤ no rug-pull risk, lower inflation, bigger network effect than BTC.

Smart contracts, better tech, upgrades⁣ etc. don't matter regarding value preservation - look at ETH -> it gets continuously upgraded,⁢ even had negative inflation at a point (no idea where it's now at, got rid︀ of my last ETH at $3600 when it became clear that it's not heading to︁ 7K, and never looked back)., and it's getting smashed, coz there is more and more︂ competition -> substitution.

What else can you use as a store of value - gold,︃ silver, diamonds, uranium, platinum, oil, microchips, paper fiat money, etc? You can get more of︄ all of them with time through mining/manifacture- at a higher inflationary rate than BTC.

And their use case can disappear - as pretty much all of them can be substituted︅ with something else - see platinum/palladium for vehicles.

 

[drumtraks]

What it was‍ designed for and what it actually became are two very different things.