Also incorrect. Its value comes in a little part from its utility value and in a big part from how much people value it. The cost of energy has been going up and the value has been falling in the last 11 months, so there you have your refutal...
Why Bitcoin is Plunging (This Time)
- Thread starter ajacobson
- Start date
Also incorrect. Its value comes in a little part from its utility value and in a big part from how much people value it. The cost of energy has been going up and the value has been falling in the last 11 months, so there you have your refutal...
Bitcoin Falls Below $4,000 as Cryptocurrency Collapse Worsens
The digital currency lost nearly a third of its value in seven days
It's Getting WorseHow many U.S. dollars one bitcoin buysSource: CoinDeskAs of Nov. 26
.Jan. ’18MarchMayJulySept.Nov.05,00010,00015,000$20,000Jul 17, 2018x7,311.44
By
Steven Russolillo
Nov. 26, 2018 9:05 a.m. ET
Bitcoin just had the week from hell.
The cryptocurrency plunged below $4,000 over the weekend. That means bitcoin has lost nearly a third of its value in seven days, one of its worst weekly selloffs on record. The digital currency has now fallen by about 80% since peaking near $20,000 late last year.
Tony Gu, founding partner at NEO Global Capital, said the rout was down to just one thing.
“Panic.”
Ugly WeekBitcoin fell 29% last week, one of its worst drops on record.Source: Refinitiv
%WeeklyperformanceJan. ’17JuneNov.April ’18Sept.-40-30-20-1001020304050
Many speculators have fled the market, as shown by falling trading volumes. And a split this month in a smaller currency called Bitcoin Cash has created tensions. The prospect of large investors selling bitcoin to cover the risks of a fall in the value of their Bitcoin Cash holdings has hurt sentiment.
Now, another worry has emerged: Cryptocurrency miners, the outfits that solve complex equations to generate new digital coins, seem to be losing interest. The amount of computing effort expended by miners, known as the hash rate, has started falling.
Warning SignThe hash rate, which measures computing power used to mine bitcoin, has fallenrecently.Source: Blockchain Ltd.Note: Hash rate indexed to 100
2016’17’18010002000300040005000600070008000900010000
The hash rate rose for much of the year even as cryptocurrency prices slumped, suggesting people remained optimistic prices would bounce back. But it has fallen sharply in recent weeks, according to Blockchain Ltd., a cryptocurrency-wallet service and data firm. That suggests fewer miners are jumping into the network.
“Bitcoin’s value is always driven by the intensity of demand and supply,” says Edith Yeung, a partner at 500 Startups, an early-stage venture fund. “If the miners stop mining, bitcoin will not function…and the overall market will lose confidence. If there is no confidence, people will freak out and sell even more.”
Bitcoin has now fallen by about 80% since peaking near $20,000 late last year. PHOTO:LUKE MACGREGOR/BLOOMBERG NEWS
Rival digital currencies such as ripple and ether have also fallen sharply. The total market value of cryptocurrencies stands at about $130 billion, down from a record high above $800 billion in January, according to research site CoinMarketCap.
The sour mood stands in contrast to a year ago, when cryptocurrencies captured the imagination of individual investors as prices skyrocketed.
Mr. Gu, whose blockchain investment fund in Singapore manages about $400 million in assets, is optimistic the market will recover. “Money is made when there is blood in the streets,” he said.
But others say there could still be pain ahead.
“It’s hard to look at the price charts of the big crypto assets and not cringe,” Fred Wilson, a partner at Union Square Ventures in New York and an early bitcoin investor, wrote on his blog. He drew a parallel to the moves seen when the tech bubble burst.
Back then, Amazon.com Inc. lost 95% of its value from December 1999 through October 2001. The online retail giant has long since recovered.
“I think things will get worse before they get better,” Mr. Wilson said.
The Bitcoin Gamble
Last year, Didi Taihuttu sold almost everything he owned, poured it into bitcoin and moved his family into a trailer park. In this episode of Moving Upstream, WSJ’s Thomas Di Fonzo goes on a year-long journey with the “Bitcoin Family” as they bet everything on a decentralized cryptocurrency future.
The digital currency lost nearly a third of its value in seven days
It's Getting WorseHow many U.S. dollars one bitcoin buysSource: CoinDeskAs of Nov. 26
.Jan. ’18MarchMayJulySept.Nov.05,00010,00015,000$20,000Jul 17, 2018x7,311.44
By
Steven Russolillo
Nov. 26, 2018 9:05 a.m. ET
Bitcoin just had the week from hell.
The cryptocurrency plunged below $4,000 over the weekend. That means bitcoin has lost nearly a third of its value in seven days, one of its worst weekly selloffs on record. The digital currency has now fallen by about 80% since peaking near $20,000 late last year.
Tony Gu, founding partner at NEO Global Capital, said the rout was down to just one thing.
“Panic.”
Ugly WeekBitcoin fell 29% last week, one of its worst drops on record.Source: Refinitiv
%WeeklyperformanceJan. ’17JuneNov.April ’18Sept.-40-30-20-1001020304050
Many speculators have fled the market, as shown by falling trading volumes. And a split this month in a smaller currency called Bitcoin Cash has created tensions. The prospect of large investors selling bitcoin to cover the risks of a fall in the value of their Bitcoin Cash holdings has hurt sentiment.
Now, another worry has emerged: Cryptocurrency miners, the outfits that solve complex equations to generate new digital coins, seem to be losing interest. The amount of computing effort expended by miners, known as the hash rate, has started falling.
Warning SignThe hash rate, which measures computing power used to mine bitcoin, has fallenrecently.Source: Blockchain Ltd.Note: Hash rate indexed to 100
2016’17’18010002000300040005000600070008000900010000
The hash rate rose for much of the year even as cryptocurrency prices slumped, suggesting people remained optimistic prices would bounce back. But it has fallen sharply in recent weeks, according to Blockchain Ltd., a cryptocurrency-wallet service and data firm. That suggests fewer miners are jumping into the network.
“Bitcoin’s value is always driven by the intensity of demand and supply,” says Edith Yeung, a partner at 500 Startups, an early-stage venture fund. “If the miners stop mining, bitcoin will not function…and the overall market will lose confidence. If there is no confidence, people will freak out and sell even more.”
Bitcoin has now fallen by about 80% since peaking near $20,000 late last year. PHOTO:LUKE MACGREGOR/BLOOMBERG NEWS
Rival digital currencies such as ripple and ether have also fallen sharply. The total market value of cryptocurrencies stands at about $130 billion, down from a record high above $800 billion in January, according to research site CoinMarketCap.
The sour mood stands in contrast to a year ago, when cryptocurrencies captured the imagination of individual investors as prices skyrocketed.
Mr. Gu, whose blockchain investment fund in Singapore manages about $400 million in assets, is optimistic the market will recover. “Money is made when there is blood in the streets,” he said.
But others say there could still be pain ahead.
“It’s hard to look at the price charts of the big crypto assets and not cringe,” Fred Wilson, a partner at Union Square Ventures in New York and an early bitcoin investor, wrote on his blog. He drew a parallel to the moves seen when the tech bubble burst.
Back then, Amazon.com Inc. lost 95% of its value from December 1999 through October 2001. The online retail giant has long since recovered.
“I think things will get worse before they get better,” Mr. Wilson said.
The Bitcoin Gamble
Last year, Didi Taihuttu sold almost everything he owned, poured it into bitcoin and moved his family into a trailer park. In this episode of Moving Upstream, WSJ’s Thomas Di Fonzo goes on a year-long journey with the “Bitcoin Family” as they bet everything on a decentralized cryptocurrency future.
why not. the whole world is Venezuela. inflation is 1,000,000.00 in VE,
it is just a matter of time. if it goes to 50K you might still be a loser to inflation.
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Even if one of these cyptocurrencies does become wildly successful in the future, it definitely won't be the original BTC. BTC is too slow and inefficient, and manages to be ludicrously insecure to use and store (one guy in the news lost $1 million to a low-grade phone hack, there are countless similar stories) while at the same time offering close to zero privacy - anyone with an Internet connection and your wallet address (which must be given out to effect transactions) can see your account balance as well as your entire transaction history. It's purely a speculative football.
I really believe it's going to go above and beyond its all time highs. It will take a while but this year is a good time to buy. Bitcoin is not going anywhere, nothing has changed this year. Correction is the name of the game. But stocks experienced correction this year too.
How deep of the hole are you in ?
Quite a few hedge funds shut down this year. If that's what you mean. So what? Correction. Great time to buy stocks.
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It is a crash with no end in sight, and not a correction. It got up via massive greed and fraud. Read about USDT.
