Bitcoin price falls 15% following launch of ETFs
ft.com
ft.com
Also, it's always good too look at the big picture: https://bitcoin.zorinaq.com/price/ And, yes, a log-chart is the only proper way to look at an asset that gains/loses orders of magnitudes over the years.
since the start of 2024, leveraged tech ETFs have gained, and BTC has fallen a lot
There is no reason to hold BTC when , controlling for volatility , TECL & TQQQ have more upside, less risk. Speculators hoping to get rich with crypto would be better off with the 3x tech funds. Bitcoin has a recurring habit of dumping 10% in a week for no good reason, while the Nasdaq chugs along to new highs or flat. No good.
They care about price movements over 3 decades.
My company works with franchise restaurants in countries with hyper inflation and they use it to hedge their local currency when buying hard goods.
It's definitely being used by people for various purposes, but Bitcoin forks are much easier to spin up than alternate scarce chemical elements.
Hell, if it did this maybe we would have more uses for it. That would be cool.
Including the recent drop, if you bought bitcoin a year ago, you'd be up 71.77%; the 5-year return is 995.26%.
If I’d bought Beanie Babies or Stanley Cups at a very particular point in time, I might be up 1,000% at another very particular point in time.
If I’d bought Bitcoin in 2021, I might still be down almost 50%.
None of this answers the question “Why would I want to buy Bitcoin?”
Of course it is. If you bought Bitcoin five years ago, you'd be up about 1000% and could sell. That's actionable.
Long term Bitcoin investors believe it'll be significantly higher in the years to come.
If you bought $1000 worth of bitcoin in 2013, it would be valued at over $2 million at the end of 2023 [1].
[1]: https://www.goodfinancialcents.com/bitcoin-annual-returns/#b...
2023 gains already being erased fast after such a huge loss in 2022.
Including the recent drop, if you bought bitcoin a year ago, you'd be up 71.77%; the 5-year return is 995.26%.
BTC post 2017 returns are worse than QQQ including dividends.
Second, you could give your bitcoin to a third party with a website that said you really had that much bitcoin. You forwent the promises of security, and you still couldn't buy anything with it, but at least you could now speculate in it.
Now, you can hold your claim to bitcoin buy buying a fund that owns the bitcoin.
The very existence of the ETFs and their enormous value show how far we are from the original idealisim into wherever we're at now. And... you still can't buy anything with bitcoin.
I've been in the FOSS community for 25 years, and I could see and feel an entire generation of contributors missing in action for a good long while. Legions of young folks thinking they had found the ticket to convert their nerdiness into money, status and sex. The crypto-induced brain drain from arguably more useful SW was enormous. And I saw very little of it happen for noble reasons.
Of the nodes that have the blockchain (which there are less than 6000) 50% is cloud hosted: https://ethernodes.org/network-types
it's the ftx bankruptcy selling into liquidity and a cyclical kind of sell the news local top.
Not someone who's been paying attention to Bitcoin and knows you can't compare it to a stock, especially one that became the poster-child for corruption and how the financial system can be manipulated.
> Stock indexes have a century-long history of recovering. Bitcoin? a decade.
Certainly no asset has been declared "dead" [1] more times than Bitcoin has in its first 15 years--the white paper was released October 2008 and the Bitcoin blockchain went live January 2009.
Bitcoin has dropped at least 15% in a single day many times; that's to be expected for a new asset class the vast majority of people don't understand. Once things settle down, Bitcoin will continue to do what it's been doing since 2009—increase in value compared to fiat currencies. The 15% drop over a couple of weeks is inconsequential.
The concern now is grayscale will keep dumping , so people are selling into this fear, creating additional selling on top of the Grayscale selling in anticipation of more Grayscale selling.
For the first time, people have the ability to express short interest in Bitcoin. Sure, there are sketchy credit markets inside of the various cryptocurrency exchanges, but soooo sketchy. The biggest was FTX, for example.
But now organizations and individuals can actually express short interest in Bitcoin. Ideally the ETFs would be redeemable in kind, rather than the cash-settled ones that are all that the SEC will allow, so there may be disconnects to the spot price, but this is very exciting for long-time Bitcoin believers like myself (as opposed to hodlers) because price stability is the goal.
I do believe the true price is Zero, like most crypto currency has gone to over time.
It dies, and there's no underlying value to liquidate. You bought some cryptographically signed number that no one wants anymore.
Much like: you bought a slip of paper that's effectively a Nancy Pelosi/Mitch McConnell's Chuck-E-Cheese token that gets conjured out of thin air to the tune of trillions whenever the next mega-omnibus fraud bill that no one even reads anymore needs to be financed.
And this is done precisely because the tax burden of all these wars and social programs would be indefensible if it they were actually levied against the voters through taxation. Even billionaires can't finance this size of govt, you could confiscate all their wealth and that only works once. So they go with the invisible tax of currency devaluation, which robs everyone in the present and kills saving which robs people in future.
Face it: every fiat currency is on a one-way trip to zero. Every currency in world history has that fate.
You could proclaim "GOLD STANDARD" I guess, and it might be better, or probably even worse. The big problem is that God filed all the gold under NOT USA. If South Africa wanted to devalue our currency then, they could mine a whole bunch of gold and put it on the market.
If you're going to have a currency valued on something tangible, it needs to exist only in the US, something we can control.
Also if you want to own gold, BUY GOLD! No one's stopping you! It has an intrinsic value in both jewelry and electronics! No need for this crypto nonsense!
The demand for money is highly variable and roughly correlated with economic activity (just think of 2020!), so with the supply fixed, large swings will always occur even (and especially) in a world where Bitcoin really becomes a usable currency.
You may be right about big swings as demand for money fluctuates, but we need functioning credit markets in Bitcoin for that to even be an option. This is still very far in the future.