This one is kinda under the radar, right now anyway…
Crypto’s having a terrible, horrible, no good, very bad month, and it could get worse before it gets better, experts said.
Cryptocurrencies have cratered this month, losing more than $1 trillion in value in recent weeks. Bitcoin’s dropped to the lowest level since April and is on track for its worst month since 2022. It’s down more than 33% from its all-time high above $126,000 in early October, which officially pushes the digital unit into bear market territory defined as at least 20% lower than the record high.
Bitcoin’s now down about 10% this year, and likely will see more selling which could mean its first annual loss since 2022, experts said. At 1:29 p.m. ET, Bitcoin was down 3.18% at $83,776.81.
Full article, HERE from USA Today.
Ironically, apparently AI and high valuations of companies like NVIDIA, along with rumblings of a stock bubble have exacerbated the fears of overvaluation of all of the crypto currencies…
Considering that there really isn’t any actual backing for Bitcoin or any other crypto that I’m aware of, I’m frankly surprised it’s taken this long for the fall to start…
The real question is, how far will it fall?
There really isn’t any backing for the dollar either though…
Or the Euro, the Pound sterling etc etc.
No dog in that fight.
Never understood the appeal, except for a Ponzi scheme.
X2
I haven’t yet figured out exactly what they’re trading, other than electronic promises, which are as tenuous as the mist on a winter lake.
Exactly. It is electronic “currency”. What happens if/when the power is cut, say from an EMP?
-JLM
I never understood the appeal. It’s kind of like Beanie Babies or any other collectible.
All- I see you think much the same as I do…
The backing for the dollar, Pound, Euro, etc is the ability of respective governments to stick a gun up your nose and hand over more of your wealth.
Nobody can do this for Bitcoin. Karl Denninger (www.market-ticker.org) reckons Bitcoin is ultimately a zero.
From my observations crypto currency values are a group hallucination, they are worth what somebody will give you for them. If you don’t have access to the internet they have a useful value of zero, and their fundamental purpose seems to be to launder money.
Lots of scams today have the mark take their cash to a bitcoin ATM then send the purchased tokens to a wallet the scammers control. Goodbye money unless you have a government actually take action against the criminal ring behind it.
Considering that crypto only has values because of wishful thinking and fairy dust it’s amazing it reached the “values” it has. But then one can say the same thing about the Dollar….
I know nobody here remembers “The Tulipomania”, but most have probably heard of it.
cf: https://www.history.com/articles/tulip-mania-financial-crash-holland
That stupidity had MORE backing it than does Bitcoin.
Sendarius,
Tulipomania was not actually a thing. If you read the article you linked to there isn’t much evidence that it ever actually happened. The original account was based on satirical articles poking fun at the greed of humans, and it persisted because it makes a good story about how stupid people are. The evidence that it actually happened, however, doesn’t exist.
The paper dollar bill has a note printed on it “This note is legal tender for all debts, public and private”. That is a promise that the government will enforce its acceptance. For instance, a business cannot force me to use their credit card if I can pay in cash.
Also, taxes in the U.S. are denominated in dollars. If I don’t pay with dollars I will lose my property. I need dollars pay to register my vehicles which gives me access to the roads. So even though the paper money is not backed with precious metals, it IS backed by the access to resources (even resources that you thought were yours) that they “buy” you.