Wow. Bitcoin is almost $1,500

[destrekor]

I get what you're saying, but most assets don't suddenly get banned from being traded by the 2nd largest economy in the world and a big source of capital (credit cards) on the same day. The senate hearings on crypto are coming soon, too. The bounce could take a while to come, and it could be small.

Well it's not quite like that - China already instituted a crypto trading ban, but that ban was against local exchanges. Now they've just made it illegal to trade on crypto exchanges that are hosted on foreign soil.

As for not allowing purchase on credit, well, that's just intelligent. You can't buy lotto tickets on credit, you can't buy stocks on credit, or any similar assets as far as I'm aware. But yeah, the combined weight of that news on top of everything else, that's definitely having an effect on the market, to put it mildly.

 

[FelixDeCat]

Bitcoin and stock market crashes, burns.

DOW down another 700 pts, BTC -$1250 to $6750.

 

[ultimatebob]

Bitcoin and stock market crashes, burns.

Except that the stock market is only down 2 1/2% today (so far). Bitcoin is down, what... 25% so far?

 

[preslove]

Well it's not quite like that - China already instituted a crypto trading ban, but that ban was against local exchanges. Now they've just made it illegal to trade on crypto exchanges that are hosted on foreign soil.

As for not allowing purchase on credit, well, that's just intelligent. You can't buy lotto tickets on credit, you can't buy stocks on credit, or any similar assets as far as I'm aware. But yeah, the combined weight of that news on top of everything else, that's definitely having an effect on the market, to put it mildly.

Yes, so chinese money that was contributing to demand in non-chinese exchanges is now going away. Negative price pressure

People have been buying lots of bitcoins on credit cards and making money because of the steep price increases. This has contributed to bubble. As banks ban bitcoin purchases from their credit cards, this makes future big bumps less likely.

What happens to bitcoin if the price falls bellow the cost to mine one?

 

[DrMrLordX]

China is doing what it does best - stamping out monetary expatriation. China's nouveau riche wants to export money/assets as quickly as possible, and crypto was seen as one way to do that.

I am not 100% sure that the China ban is necessarily a bad thing for the crypto market (outside of projects like NEO and NEM, maybe). China was the source for most of Bitcoin's hash power before mining was effectively banned there. The banning of Bitcoin mining operations on mainland China helps keep that particular blockchain decentralized. Might help with BCH as well. Additionally, I do not think that many Chinese Bitcoiners necessarily saw it as a "good investment". Their motives seemed quite different than Korean, Japanese, and American HODLers. Chinese crypto-buyers are the ones who appeared most likely to dump in any kind of bear market, assuming they had positioned assets overseas where they could be kept there (instead of pulled back into the mainland banking system).

What happens to bitcoin if the price falls bellow the cost to mine one?

With mining systems, there's an equilibrium point (particular to the individual blockchain in question) where mining becomes unprofitable if/when some party or other tries to bring online more hashpower. Miners shut down equipment at that point. There's no uniformity to who shuts down their equipment, or for how long. It's sort of like a game of mining chicken: people keep mining until they can't bear the power costs any longer. Those who can afford to stress of continued zero-sum-gain mining the longest get to keep their rigs running while others drop out of the competition.

You won't have a situation where mining becomes unprofitable for everyone, all at once. Just a few people drop out here and there until difficulty comes down and there is a new equilibrium. I've been through that with ETH, and I'm sure BTC miners have experienced it as well.

Right now, China is still going through the motions of hunting down the last vestiges of domestic BTC mining operations and shutting them down. A lot of equipment is apparently being shipped to Canada to avoid the mining ban. Some of that equipment will sit idle before coming back online (some of it may never come back online). ​

 

[ponyo]

This fake stock market drop is good for bitcoin and crypto.

 

[ponyo]

We just saw tradable bottom on Bitcoin and crypto IMO. $7,250 current price. I expect bounce to close to $10k.

 

[ultimatebob]

This fake stock market drop is good for bitcoin and crypto.

I don't know, man... that 1,000 point drop looks pretty real to me right now

 

[FelixDeCat]

We just saw tradable bottom on Bitcoin and crypto IMO. $7,250 current price. I expect bounce to close to $10k.

10k? Who is going to pay $10k right now?

 

[Ns1]

I don't know, man... that 1,000 point drop looks pretty real to me right now

Thanks Obama.

 

[FelixDeCat]

I don't know, man... that 1,000 point drop looks pretty real to me right now

The stock market is a bubble right now.

 

[ponyo]

I don't know, man... that 1,000 point drop looks pretty real to me right now

Which is really nothing.

10k? Who is going to pay $10k right now?

No idea. But when people are scared and negative, I like to take opposite side of the trade. Not that I'm trading. I've zero skin in the crypto game.

I see lot of scared people in crypto and lot of "I told you so" crowd showing up now the crypto is in bear market. Reversal is coming soon.

The stock market is a bubble right now.

Way bigger bubble than crypto bubble IMO.

 

[Hugo Drax]

Except that the stock market is only down 2 1/2% today (so far). Bitcoin is down, what... 25% so far?

And you can hedge your position via options.

No such thing in bitcoin.

 

[Zeze]

I'm tempted to get out so that I can buy back in when it's lower.

But I don't want to go through all that headache/nerves if I take that action.

 

[preslove]

Denominated in bitcoin, the stock market is up

 

[Hugo Drax]

I'm tempted to get out so that I can buy back in when it's lower.

But I don't want to go through all that headache/nerves if I take that action.

How deep are you hopefully it was a small wager 100-1000 dollars tops.

 

[Printer Bandit]

 

[IronWing]

With the rise of black pools, the circuit breakers are a bit pointless.

 

[destrekor]

Which is really nothing.

No idea. But when people are scared and negative, I like to take opposite side of the trade. Not that I'm trading. I've zero skin in the crypto game.

I see lot of scared people in crypto and lot of "I told you so" crowd showing up now the crypto is in bear market. Reversal is coming soon.

Way bigger bubble than crypto bubble IMO.

Buy the fear. Trading 201 in a nutshell.

 

[destrekor]

And you can hedge your position via options.

No such thing in bitcoin.

Actually there are.

First, bitcoin futures are trading on two options exchanges (CBOE and CME), and there is margin trading on some of the larger crypto exchanges.

 

[destrekor]

I'm tempted to get out so that I can buy back in when it's lower.

But I don't want to go through all that headache/nerves if I take that action.

I've kept thinking about that, but fuck it, I'll HODL this bag. It's still in the green long-term, even if some of my more recent trades are in the red and overall portfolio value has dropped significantly from the highs, by somewhere in the whereabouts of 50% right now. Sucks, but the moment I go to try and hedge and/or cash out, the trading pairs will flip on me. And honestly I feel I've missed the boat on that, I'm putting my money behind the ride out the storm and catch the up slope later idea, as I don't think we're going much lower. It's fought strong at the 8k support level and it hasn't dropped like a rock yet.

There's honestly probably just as much pressure to FUD the hell out of crypto right now so more people can catch the next wave or ride it all over again. That's what my tinfoil hat is picking up right now.

 

[Ns1]

<7k now. Guess it's time to verify my coinbase account...

 

[FelixDeCat]

With the rise of black pools, the circuit breakers are a bit pointless.

Dats raciss!

 

[FelixDeCat]

<7k now. Guess it's time to verify my coinbase account...

It has been under $7k several times today. Where have you been?

/confused simley.gif

 

[DaveSimmons]

One difference between today's stock market fall and cryptocoin's:

If you buy and hold an S&P 500 index fund over years, you're just betting that the 500 largest US corporations will as a group continue to make money over the long term. Bets don't get much safer than that.

With coins, you're hoping they continue to exist at all despite those 500 largest corporations and their ability to take the same tech and create their own.