When will all crypto collapse?
- Thread starter 0008
- Start date
Most podcasts that I watch, who have miners as guests, say none of them want to sell their bitcoins. The problem is they use loans to pay for expenses and use the bitcoin as collateral, so they might be forced to sell at one point. But the general consensus is that these guys know exactly where bitcoin is headed, and most don't want to sell.
I agree something better can come along. But I also know that its virtually impossible to. The trick is, you have to create a chain that is truly decentralized enough and have the hashpower high enough so its impenetrable. Its like how do you create a new apple company out of thin air. It would need to be able to produce 100 million phones a year, it would need to have all the accessories, it would need to have the worthwhile stores, the Apple care, essentially everything. And what would this new phone do better in a drastically different way?
When you imagine what it takes to knock bitcoin out, you see its impossible, and then you go back to the bitcoin that already exists, that is tamper proof, and decide its the best way forward. Every other coin that have come since has many sacrifices. Those that have speed, don't have decentralization. Eth for example is already now 100% controlled. The miners that do the transactions have the power to block any transactions. Tell me, does this sound permissionless? Do you not think its important to have this property?
Its too easy for the uninformed people to claim that its easy to create a bitcoin killer, but when you get into the details, you see its nothing but roadblocks.
You don't think the infrastructure for bitcoin is real? Have you seen the hashrate? What do think this means? The amount of computing power going into mining and protecting the network is insane. There are so many developers working on improvements and layers building on top of bitcoin that the innovations coming down the pipeline are insane.
Imagine for one second that bitcoin becomes some base layer world reserve currency. Imagine that every nation decides to put it on their balance sheet, and that every company does so as well. Trust is becoming so important, and there is nothing that you can trust more than a bitcoin transaciton. I know you highly doubt this, but just assume in 10 years, bitcoin has grown tremendously. Now tell me how rare it will be if major players have thousands. Heck, if you take all 21 million, which aren't even mined yet, and forget the ones that are lost, even if each person had 0.1, it would would mean 210 million people could have 1/10. That is less than the population of the US.
I know the scarcity argument has to make you accept that its still around in 10 years, but if it is, the true scarcity will become very apparent.
You're nothing but a broken record, repeating the same garbage every time.
The value is only what someone else will pay for it. Value projections are just guesses, and companies often get it wrong. Future cashflow isn't guaranteed either. So lets just assume the way to value something is Mark to Market, and hence whatever someone will pay for it right now. Bitcoin is 16k, that's the value.
I think you should leave the crypto forum. You seriously don't want to learn and just repeat the same garbage.
True I have been repeating my question for about a year now but I haven't recieved an answer that makes any sense.
True but how would you determine that bitcoin was under or over valued?
What have companies got to do with it? Bitcoin isn't a company. Bitcoin is a bunch of ones and zeros on a ledger somewhere.
Bitcoin has a cash flow? Nah!!
So what value is something the has a very volitile price? A speculative trading vehicle maybe, I can see that.
Aw but I do want to learn. I'm just a little skeptical of things that seem to good to be true. I'm always looking for the man behind the curtain.
In theory bitcoin is a good idea. But you know what Yogi Bera said about theory.
Well, technically the owners of mining corporations have a bias and WANT you to always think that the future is bright for their commodity. Despite the fact that mining, is (and here I repeat myself) a dead-end tech. So keep in mind there may be personal incentive there. No CEO is going to want to give negative outlooks... investors become quite untrusting toward CEOs for good reason over time.
All commodities go through highs and lows... booms and busts. The pain will be felt now. Those who were mining ETH now are crushed with too many competing entities trying to fight it out for dwindling supply with dwindly profits. The mining apocalypse is here now. That said, I wouldn't lose any sleep over it. This is generally for the best.
It will be an interesting experiment to see how much longer the last remaining miner companies can keep pushing PoW. The answer is, no one knows yet. Could be PoW still exists as a minor consensus a decade down the road, or maybe it totally dwindles to nothing before another year is done. All it takes is one more Taproot upgrade, or a few other events such as abandonment and poof... that's the end of the PoW era.
As I said with the merge, the writing was on the wall years ago. I don't understand why some people never see the obvious. They sit and wait and wait and wait, then suddenly move when the rest of the sheep heard start to move post-event and CNBC starts to finally talk about it.
That said, one conglomerate I have been looking at for a short while is BIGG Digital Assets Inc. They've been doing acquisitions in the Canadian friendly crypto space, and have quite a few interesting diversified assets now. A large ownership in TerraZero (30% ownership!), which his moderate-risk, high-reward as well as they own QLUE which is part of a 4-player oligopoly for government tooling.
The main thing that caught my attention though was their targeted acquisition of Netcoins. I had wanted to purchase ownership in Netcoins before Binance did. But instead, BIGG came along first, and grabbed Netcoins.
Now there is a belief that Binance is working behind the scenes to acquire BIGG in order to use Netcoins as their foothold in Canada. Binance itself has been blocked by government regulation to operate here. The same for Bitfinex. They would have to do so through another entity like Netcoins which is government regulated.
A big reason I wasn't interested earlier was that BIGG also had (sadly) diverisified into crypto mining. A decision that was doomed to fail, as all miners will most likely fair. After taking large losses, BIGG finally announced recently they are divesting from the mining business altogether.
Good news, and while I don't blame conglomerates from diversifying, I think it was a bad decision to get involved. I just don't see the small tail being justified in something like this. It's like Ford/Ferrari trying to acquire a horse & buggy division. Really?
BIGG dropped again on the last close, as old fogies didn't like hearing the news. It was basically LOCK-LIMIT DOWN when I checked. In any case, I expect the price of BIGG to continue to fall (sure I could be wrong on this projection) for a bit more. Definitely will be interested on buying a block of shares here at some point. Voyager going bust was actually good news for them. Very little exposure to FTX fallout as well.
I will wait a bit before pulling the trigger. Possibly even start placing another bottom-feeder limit-order before the new year.
The earnings currently have gone from cashflow positive, to downright abysmal. A few more months or another year of this and we'll see how many others who bought into it at the top will flush out with paper-hands or margin out.
It is an interesting speculative play for sure.
Oh, and while on the discussion of Mining. Let's see how some of the state-of-the-art mining related companies have been doing lately?
Here's one that Millennials couldn't stop aping into full-retard not too long ago. Now you can't even sell it for a penny a share:
Despite 'liquid mining' and other 'innovative' forms of crypto mining. It didn't help them. No one wants an 'improved' horse & buggy.
This literally is a repeat of the same stupid shit I saw from the side-lines in the 2000 bubble.
Here's one that Millennials couldn't stop aping into full-retard not too long ago. Now you can't even sell it for a penny a share:
Despite 'liquid mining' and other 'innovative' forms of crypto mining. It didn't help them. No one wants an 'improved' horse & buggy.
This literally is a repeat of the same stupid shit I saw from the side-lines in the 2000 bubble.
