Comment by criddell
17 days ago
Would you say the same thing about Bitcoin? Will that house of cards all fall in the next crisis/downturn/depression?
17 days ago
Would you say the same thing about Bitcoin? Will that house of cards all fall in the next crisis/downturn/depression?
Hasn’t it crashed in every economic downturn and financial panic so far?
Not really, no.
A decade ago it was under $1000 and has never been that low since. It's peak price is only about 2x the current price.
Isn’t a 50% reduction pretty bad?
And being higher over 10 years has little to do with it if acts counter cyclical to stocks and other assets.
7 replies →
There is some misunderstanding of what a crash really is. It doesn't necessarily mean that things get written down to 0 or some arbitrary level because everything has a price at which someone will buy.
Even companies have some value after a crash and you could make a case that at some arbitrary point it was worth $x and since the crash didn't cause the company to crater to below $x it has not "crashed". Even companies filing for bankruptcy have some residual value above what they might have been founded on - it doesn't mean the company hasn't gone bankrupt.
1 reply →
I personally think Bitcoin will eventually peter out, and that it's fairly risky as it has definitely been pushed by vibes and promotion and everyone wanting to get in on it
I mean that can apply to anything. There's nothing intrinsic about gold that makes it valuable other than it's rare, but there's plenty of things that are relatively rare that aren't valuable. Yes there's industrial uses of gold but that's not why we as a society and a species treat it as valuable
Maybe bitcoin is the new gold and will hold value forever, and as more serious people get into it, it will lose its volatility and be less subject to the vibes shifting and there being a run on the market. Maybe not
It is different from Elong stocks, though, because the myth of Satoshi aside, it's not exactly a cult of personality like his companies are
To me the difference is that BTC's continued value isn't predicated on the actions of one person, who has continually proven himself to be childish, mercurial, and dishonest.