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

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Temasek among investors in crypto exchange FTX US now valued at $10.8b (JAN 27, 2022)

Temasek is engaging with FTX after potential Binance bailout (WED, NOV 09, 2022)
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
Satoshi's invention will probably stay on, but as a gambling chip.

FTX contagion has hints of 2008 global financial crisis – and that is bad news for Bitcoin

Crypto companies have quietly mimicked the structure of “fractional reserve” banks, he added, holding assets that are a fraction of client deposits. “We’re not going to find out until it’s too late.”

The irony is that cryptocurrencies were invented to take trust – and contagion – out of money and banking. Satoshi Nakamoto, in his white paper on Bitcoin in 2009, responded directly to the wipeout of ordinary people’s wealth caused by the fractional reserve banking system.

Nakamoto thought it was absurd, in a modern society with high-powered computers and advanced mathematics, that so much of finance was based on blind trust. To transfer one Bitcoin from one person to another, no trust is required. It is a self-verifying mechanism, mathematically impossible to fake or complicate.
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Mark Cuban wants to buy more bitcoin, says gold investors are 'dumb'

Cheyenne DeVon
Published Wed, Dec 28 202211:50 AM EST

Billionaire Mark Cuban is doubling down on bitcoin and says he even prefers investing in the digital asset over gold.

The longtime cryptocurrency advocate said he hopes the price of bitcoin goes down further so he can buy more during a Dec. 26 episode of Bill Maher’s “Club Random” podcast.

Bitcoin has lost over 60% of its value in 2022 and prices were hovering just below $17,000 as of Dec. 27 – far below the digital coin’s 2021 highs.

Financial experts typically consider gold to be a good way for people to protect the value of their investment portfolio from declining due to inflation. However, Cuban called gold investors “dumb as f---” during his interview with Maher.

“If everything went to hell in a hand basket and you had a gold bar, you know what would happen? Someone would beat the f--- out of you or kill you and take your gold bar,” he explained.

When comparing the two, Cuban said that both gold and bitcoin are a “store of value”, meaning he believes that both assets maintain their value rather than depreciating.

However, there is a key difference between how gold and bitcoin derive value.

Gold’s value is derived from its relative scarcity and its long history of being traded for goods and services.

On the other hand, bitcoin and other cryptocurrencies are a relatively new form of payment.

Most digital coins don’t derive their value from an underlying entity which makes them subject to unpredictable fluctuations in price.

Bitcoin prices are currently trending far below their January prices while gold has only diminished by a little over 1% year to date as of Dec. 27.

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My personal opinion is that crypto prices are simply a proxy to risk taking in the markets.

Bitcoin’s 160% rebound in 2023 is a gamble on ETF ‘demand shock’

Bitcoin stormed back with a more than 160 per cent advance this year that added some US$530 billion to its market capitalisation. In its wake, myriad smaller tokens ranging from Sam Bankman-Fried-backed Solana to dog- and frog-themed memecoins took off as investors embraced risk again. An investor who bought US$100,000 of Solana at the start of 2023 would now be sitting on a more than US$800,000 gain.
So after a +160% in FY23, 2024 YTD bitcoin is "already" +70%. Plenty of paper millionaires around but understandably more caution this time around, since the memories of the last crash is still fresh. Will these paper wealth convert to real wealth and then start to buy more Rolexes/yachts etc? The Bloomberg subdial is still dropping and needs some help!

Bitcoin’s rally is creating around 1,500 ‘millionaire wallets’ daily

BITCOIN’S record-breaking rally appears to be creating around 1,500 new “millionaire wallets” daily, according to crypto analytics firm Kaiko Research.

The original cryptocurrency has soared around 70 per cent already this year amid exuberance over surging demand for US exchange-traded funds that were first allowed to hold the tokens in January. Even so, the pace of new millionaire wallets being created is lower than during the last bull-market run of 2021, when more than 4,000 wallets were reaching the million-dollar mark daily. The high for the current year was 1,691 wallets on Mar 1.

The slower pace could be due to a few things. Fresh capital has yet to arrive in full force; large so-called whales are taking profits while Bitcoin hits new highs; whales are storing their holdings with custodians, rather than personal wallets, Kaiko said in a report on Monday (Mar 11).

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