Bitcoin, ‘Reliable Store Of Value,’ Collapses 20% In 48 Hours

Bitcoin, ‘Reliable Store Of Value,’ Collapses 20% In 48 Hours

Bitcoin collapsed on Monday, although "collapse" is a relative term when you're talking about something that's quadrupled over the space of a year. At one point, "digital gold" was on track for its biggest two-day slide since March. But don't fret too much, because Guggenheim's Scott Minerd said it's just a "setback" -- a "flesh wound," if you're a Monty Python fan. "Bitcoin's parabolic rise is unsustainable in the near term," he said, in a tweet timestamped eight minutes to midnight on the e
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5 thoughts on “Bitcoin, ‘Reliable Store Of Value,’ Collapses 20% In 48 Hours

  1. When I was on the floor and otherwise involved with open-outcry commodities 50 years ago we used to say in our lighter moments – which came very often back then – that we would trade any shit they put up there, “as long as it stuck to the wall” Bitcoin fails to reach that standard as it isn’t even real, it is hypothetical – it doesn’t exist, Many of us learned to trade with the dogs or the trotters – is Bitcoin a step up or just anorther mechanical rabbit?

  2. I can’t tell whose capital is plunging faster – Bitcoin’s or trump’s…

    Personally, I’ve been at least willing to take a speculative flyer on Bitcoin, but not trump – he always struck me as having guaranteed downside. It’ll be interesting to see if either comes back by 2024.

  3. I have been a vocal opponent of btc for a long time. If institutional adoption is really here to stay, i could conceive of it replacing fiat ccy in certain applications. My main concern is whether gov’t makes this illegal. I think they should, don’t get me wrong, but i am really not sure they will. At 100bn market cap, it could be ignored, but can the same be said at 1tn? How about 10tn? At what point does it become ‘too big to fail’? With the interconnectedness of the globe, is it really possible that something wipes out the electrical grid and destroys the blockchain? Doubtful. My line of reasoning also makes me look less favorably at gold. There’s no good reason why the gold/silver ratio is 76:1; that is purely market driving the price with no fundamental basis. Silver is also pretty rare, is more useful, and most production is used up in industry (something like 400 of 600mm oz annual production gets used up, then 100mm oz for jewellry, and 100mm oz in funds/ETFs). Greater fool, ‘scarcity’, fiat debasement… Tough questions, honestly. The conversation is less straightforward than it was a year ago.

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