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[JoshuaFH]

Who'da thought that the imaginary money investment idea was a scam?

Actually, I had a crackpot idea for a long time now that cryptocurrency is actually a plan to deal a blow against illegal drug empires. You make a currency that makes it perfect for illegal transactions, hype it up until they develop a dependency on it, and then pull the rug out from under them so they all go bankrupt overnight.

[Antioch]

Regarding bitconnect

Spoiler (click to show/hide)

Holy shit how dumb are people, I thought something like that was only possible in Eve online.

[Sheb]

Ponzi scheme happens a lot.

[Antioch]

Ponzi scheme happens a lot.

Yes, but something on this scale and as blatant as this? Madoff's ponzi had a payout of 10% annual, this scheme promised about 3700% annual.

 

[Antioch]

Another huge scam is about to explode: Tether.


Thether is a cryptocurrency that:

1. Is printed out of thin air

2. Is supposed to be equal to 1 USD, except the company that prints them won't redeem them

"There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers."

3. Claims to be backed by billions of dollars which nobody has ever seen.


Tether is run by the same people as the bitfenix crypto exchange (who super dubiously list USDT (tether) as USD on their exchange. This will almost certainly lead to insolvency of the exchange and crash crypto markets.

The only question is when and how big the crash will be

[milo christiansen]

Welcome to 1929: Cryptocurrency Edition.

Well, maybe not, but the same kind of investment insanity is behind the current boom.

[Dorsidwarf]

I'd say now is definitely a good time to back out of the market for a while if you're investing/trading in crypto (especially second-wave me-too cryptocurrencies) to see how or if the whole thing stabilises

[Antioch]

Well it's crashing alright.

[Reelya]

The good news is that the transaction fees are back down to $5 per transaction, now that people stopped hectically spamming "buy buy buy" orders and bidding up the cost.

The bitcoin price hit $6000, but then it started going up again, so it's anyone's guess. If you bought bitcoin this morning (under $6000) and sold them now (about $7400), you would have made about a 25% profit. It's that volatile, even during a crash.

https://www.coindesk.com/price/

[choppy]

The good news is that the transaction fees are back down to $5 per transaction, now that people stopped hectically spamming "buy buy buy" orders and bidding up the cost.

The bitcoin price hit $6000, but then it started going up again, so it's anyone's guess. If you bought bitcoin this morning (under $6000) and sold them now (about $7400), you would have made about a 25% profit. It's that volatile, even during a crash.

https://www.coindesk.com/price/

That is amazing. Now the issue is having the money to ride the price waves.

[Sheb]

The good news is that the transaction fees are back down to $5 per transaction, now that people stopped hectically spamming "buy buy buy" orders and bidding up the cost.

The bitcoin price hit $6000, but then it started going up again, so it's anyone's guess. If you bought bitcoin this morning (under $6000) and sold them now (about $7400), you would have made about a 25% profit. It's that volatile, even during a crash.

https://www.coindesk.com/price/

That is amazing. Now the issue is having the money to ride the price waves.

That and judging them right. It's not like that money comes from nowhere, that money comes from someone else who thought he could be more successful than the average bitcoin speculator.

[JoshuaFH]

Even if you have both the money and the balls to ride the Bitcoin wave, don't you need, you know, a buyer in order to sell when the time is right? To my understanding, they're not stocks, so you can't sell them whenever you want, so I imagine that when the price is dipping, there's a never ending supply of people to purchase from because they want to sell in order to get off the crashing Bitcoin bus, but people to sell to are perhaps considerably rarer cause who wants to get onto the crashing Bitcoin bus? So you say you can make a 25% profit, but isn't it possible you'd just get stuck with the crashing Bitcoins with noone to sell to?

I'm perhaps mega wrong about that one, as I've never touch a BC exchange.

[Reelya]

If the going rate is $7500 then that's what someone at the moment is willing to pay. That buyers are "rarer" is meaningless: if you can't find buyers then the price drops, since sellers are competing for a finite number of buyers. The going exchange price already factors in the balance of buyers and sellers at any one point in time. The reason it stopped going down at $6000 and started going up was because people started buying it again.

But you don't sell them yourself: you put them on an exchange, then the exchange sells them on your behalf. The "bitcoin price" is nothing fundamental to the bitcoin technology, it's just a reflection of what people are currently paying on the exchanges.

[Sheb]

And I would also note that you need a buyer for stocks too, so in that sense they're similar.

[Jimmy]

Somewhat true, but many stocks pay dividends, whereas this is a commodity, whose value is purely reliant on the perceived value per unit.