Cryptocurrencies Part III - We ran as if to meet the Moon

[BreadManPanarin]

Where's the bottom? I've heard people saying 45K is possible.

It is a good time to get back in and buy again. DCAing probably the best strategy though.

Trying to time the bottom is foolish fiat behavior imo. I think we’re seeing the final big shakeout before the credit cycle-driven bull run starts in earnest. If I had any meaningful sidelined capital i would be deploying it like it is March of 2020, personally. But I am often wrong. (And I do stick by my $45k bottom by end of 2024 prediction from a month or two ago, as the hard landing at the end of the credit cycle was always extremely obvious from a historical standpoint.)

 

[TheBeard]

It’s wild BTC is now under 50. What a tailspin.

 

[BreadManPanarin]

It’s wild BTC is now under 50. What a tailspin.

Back down to prices not seen since 5 months ago. The horror!

Jokes aside, if you want to see something wild just wait until the Fed goes full r-tard and starts flooding the market with liquidity again.

 

[Bocephus86]

Can I ask a dumb question? A reference to a solid TLR resource works for me too:

What makes Crypto (BitCoin specifically) an investment? I understand gold and silver since, for some reason beyond me, many people see value in those metals. But, as far as I understand, Bitcoins are a representative token for a block-chain process that is mostly unused? I get key tokens and handshakes, and I mostly understand how the world of that has worked for years. Why does:

1. A different / better way to secure that communication result in something 'worth' money, outside of investing in the institution that controls that handshake
2. A nebulous 'thing' hold value, beyond other people thinking there is value there too

The US dollar is basically useless, other than the US saying it has value. That second statement is carrying a giant point though: The US government is saying that thing has value. If we get to a point that that statement carries no weight, the Crypto coin means nothing too, since we've descended into the wild west.

I guess, in short, I just don't get it. But I want to understand.

 

[thebestnic]

Trying to time the bottom is foolish fiat behavior imo. I think we’re seeing the final big shakeout before the credit cycle-driven bull run starts in earnest. If I had any meaningful sidelined capital i would be deploying it like it is March of 2020, personally. But I am often wrong. (And I do stick by my $45k bottom by end of 2024 prediction from a month or two ago, as the hard landing at the end of the credit cycle was always extremely obvious from a historical standpoint.)

Always cute when crypto people use the term fiat as a pejorative but are obsessed with its price in usd

 

[thebestnic]

Can I ask a dumb question? A reference to a solid TLR resource works for me too:

What makes Crypto (BitCoin specifically) an investment? I understand gold and silver since, for some reason beyond me, many people see value in those metals. But, as far as I understand, Bitcoins are a representative token for a block-chain process that is mostly unused? I get key tokens and handshakes, and I mostly understand how the world of that has worked for years. Why does:

1. A different / better way to secure that communication result in something 'worth' money, outside of investing in the institution that controls that handshake
2. A nebulous 'thing' hold value, beyond other people thinking there is value there too

The US dollar is basically useless, other than the US saying it has value. That second statement is carrying a giant point though: The US government is saying that thing has value. If we get to a point that that statement carries no weight, the Crypto coin means nothing too, since we've descended into the wild west.

I guess, in short, I just don't get it. But I want to understand.

If you understand gold it's similar. There is a maximum supply of 21 millions Bitcoin that will ever exist so it does have value if enough people believe in it as a store of value.(Can't be printed to infinite). It should give a similar return to gold though in the long run: real rate of 0 if you don't believe society will collapse(and I agree with you in a wild west scenario doubtful crypto will be what people use)

 

[Bryanbryoil]

Are there any threads about stocks on this sub?

 

[The Crypto Guy]

Are there any threads about stocks on this sub?

There is one in the lounge.

 

[McGarnagle]

If some of these candidates' tax proposals like jacking capital gains up to 45% or taxing unrealized gains ever make it to light, then there's going to be a huge rush to put everything into self-custodial crypto. Ostensibly it's only for the top of the top tax bracket, but the largest boats leave the biggest wakes in the market.

 

[2CHAINZ]

Let's goooooooooo

 

[BreadManPanarin]

Always cute when crypto people use the term fiat as a pejorative but are obsessed with its price in usd

I suppose you have a better idea on how to mark the progress of an asset’s monetization than comparing it to the current global unit of account?

In any case, when I say “fiat” as a pejorative I mean very short-term focused, high time preference, not patient or focused on the long game, etc. I think this is accurate because the fiat world we’re living in has caused people to think in this manner. Everybody just wants to get rich quick by trading shitcoins and stocks rather than saving in superior money and getting more wealthy over the long haul.

What makes Crypto (BitCoin specifically) an investment? I understand gold and silver since, for some reason beyond me, many people see value in those metals. But, as far as I understand, Bitcoins are a representative token for a block-chain process that is mostly unused? I get key tokens and handshakes, and I mostly understand how the world of that has worked for years. Why does:

1. A different / better way to secure that communication result in something 'worth' money, outside of investing in the institution that controls that handshake
2. A nebulous 'thing' hold value, beyond other people thinking there is value there too

The US dollar is basically useless, other than the US saying it has value. That second statement is carrying a giant point though: The US government is saying that thing has value. If we get to a point that that statement carries no weight, the Crypto coin means nothing too, since we've descended into the wild west.

I guess, in short, I just don't get it. But I want to understand.

If you’re truly interested to learn and understand then a good start would be to learn about history and economics. Once you understand why gold and silver are desired then it becomes much easier to understand why Bitcoin is desired. At the end of the day Bitcoin is just a better form of gold, because it is fixed in supply unlike gold and because it can be transacted around the world online rather than being a dumb rock that you need to store in a vault. It is more scarce, more easily secured, more transportable, more divisible, and just all around better - unless your goal is to make jewelry or something.

 

[2CHAINZ]