Digital currency Bitcoin hits new high before losing S$200 in value in one day

[weijian]

Sounds like a (crypto)bank run.

Major crypto lender Celsius freezes withdrawals as markets tumble

In a blog post, the company said it had frozen withdrawals, as well as transfers between accounts, “to stabilise liquidity and operations while we take steps to preserve and protect assets”.

https://www.businesstimes.com.sg/garage/...ets-tumble

[weijian]

Well, most VBs are skeptical of bitcoin (me included). But I am all for experimentation as that means progress.

We all know the downsides of using bitcoin as a medium of exchange, from theory. In practice, it looks like it is working (at least in a bull market since mid 2019) on a small scale basis. Would be very interesting to observe how it works on a country wide scale (El Salvador is as big as Singapore in terms of population)

There is definitely a case for El Salvador to go digital as most El Salvadorans work in the United States and their remittance costs are astronomically high (as high as mid teens). But I am not sure that bitcoin is the solution. For this experiment, we will know whether it works down the road in another 6-12 months' time (earlier than my original expectations)

IMF urges El Salvador to remove Bitcoin as legal tender

The directors "urged the authorities to narrow the scope of the Bitcoin law by removing Bitcoin's legal tender status," according to a statement from the International Monetary Fund. The officials "stressed that there are large risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection" and with issuing Bitcoin-backed bonds.

https://www.businesstimes.com.sg/governm...gal-tender

Judging at this denial, it probably isn't working, and everything will unravel soon. I believe most El Salvadorians are sane enough to ignore their Gov, continue to work in US, and keep their wealth in USD.

What will the crypto crash mean for 'bitcoin nation' El Salvador?

El Salvador’s minister of finance Alejandro Zelaya told a press conference on 13 June that the risk of the bitcoin fund was “extremely minimal” and that the country hasn’t lost anything as it hasn’t yet sold its holdings.

https://www.newscientist.com/article/232...-salvador/

[LionFlyer]

the country hasn’t lost anything as it hasn’t yet sold its holdings.

Lol. That's the classic line of any investor who has lost money but is in denial by saying paper losses is not real lost.

[Wildreamz]

the country hasn’t lost anything as it hasn’t yet sold its holdings.

Lol. That's the classic line of any investor who has lost money but is in denial by saying paper losses is not real lost.

Cliche but true. As long as business fundamentals are intact. With regards to Bitcoin, I'm not sure what's the equivalent. Transaction volume, perhaps? Still close to all time highs by the way: https://data.nasdaq.com/data/BCHAIN/ETRV...volume-usd

(not vested in bitcoin)

[brattzz]

the country hasn’t lost anything as it hasn’t yet sold its holdings.

Lol. That's the classic line of any investor who has lost money but is in denial by saying paper losses is not real lost.

Cliche but true. As long as business fundamentals are intact. With regards to Bitcoin, I'm not sure what's the equivalent. Transaction volume, perhaps? Still close to all time highs by the way: https://data.nasdaq.com/data/BCHAIN/ETRV...volume-usd

(not vested in bitcoin)

Volumatic churning by whales in control..... :O

[weijian]

There seems to be more headwinds coming.

The Latecomer’s Guide to Crypto Crashing — a quick map of where we are and what’s ahead

Tether — We’ve been watching Tether, the most popular and widely used stablecoin, closely since 2017. Problems at Tether could bring down the entire crypto market house of cards. Tether went into 2020 with an issuance of 4 billion USDT, and now there are 72 billion USDT sloshing around in the crypto markets. As of May 11, Tether claimed its reserve held $83 billion, but this has dropped by several billion alleged “dollars” in the past month. There’s no evidence that $10.5 billion in actual dollars was sent anywhere, or even “$10.5 billion” of cryptos.

Mt. Gox — at some point, likely in 2022, the 140,000 bitcoins that remained in the Mt. Gox crypto exchange when it failed in 2014 are going to be distributed to creditors. Those bitcoins are going to hit the market immediately, bringing down the price of bitcoin even further.

https://amycastor.com/2022/06/14/the-lat...ats-ahead/

[donmihaihai]

Enron, Worldcom, Global Crossing, Tyco and others.

Everyone remember about 2000 tech bubble burst. Everyone should remember these names as well. They were the scandals and fraudsters of that period.

With the current excess, look out for new names. Many are going to be in crypto and also tech stocks. Sometime it is very easy to guess without the need to read the financials, just watch what they talk, sing or tweets.

[¯|_(ツ)_/¯]

I am just pen-ing down my thought.

First thing first, virtual currency is worth virtually nothing.  If I "invest" any of my hard-earn $$$ in BTC, I'm prepare for the return to be zero or as what every crypto investor expected $1,000,000. 

There are many virtual currencies, some says that ETH (or ETH2) has a lot of growth potential because of so and so reason. Some says that XRP is similar to ETH and instead of putting all hard-earn $$$ into ETH, put a bit into XRP would meet the requirement for diversifications.

Well, investors of BTC, ETH, XRP definitely belongs to the old generation as there are more (exotic) coins available and each has their own story line.  It's mesmerizing.  

As far as I'm concern, BTC is the only one worth paying attention and worthwhile to put in some hard-earn $$$.

And what would be my story? 
https://www.imf.org/en/Publications/fand...in%202019.

Gratitude!

[LionFlyer]

First thing first, virtual currency is worth virtually nothing. 

Value and worth is what people ascribe to it. Why does gold have "worth"? Chemically, it is just another metal. Even if we ascribe its value as it's chemical properties, is it worth what it is today? If we accept one of its key properties is durability and immutability, blockchain tech offers the same. Virtual? If we take this argument, then what is the internet worth nothing?

If I put real money to buy a bitcoin, is the bitcoin worth that 100 dollars i paid now or it is worth nothing because it paid for electronic bits and bytes?

[¯|_(ツ)_/¯]

agreed 100%. for the record, I am (and currently still is) a investor of BTC.

I had already parked aside for the next buy when BTC dropped to the right range.

When I says "Virtual currency is worth virtually nothing", it's actually a reminder for me not to cry when these "investment" turn into zero (which I think is highly probable).

As a reminder, to me, it's similar to the saying "Life is short! Play hard!".

Thank you LionFlyer for giving me a chance to clarify.

I wish you success in your crypto investment journey too. 

Enjoy:明天你是否依然爱我