Several companies are selling crypto stockpiles in effort to fund share buybacks, shore up stock prices.
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Crypto hoarders dump tokens as shares tumble
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You mean the line didn't keep going up? Who could have possibly seen that twist coming!
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Why is everybody acting like there's a bubble that's about to pop and they want to shore up their stock prices against it? All of the AI people say that There Is No Bubble! They would never lie!
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I guess HODL is now FODL. . .
It'll be interesting to see if this causes a total deflation of the crypto bubble, or if it yet again finds a bottom and bounces back.
One of the arguments that crypto-boosters have long made is that crypto, supposedly like Gold, would hold its value in a time of economic recession or depression. A hedge against economic uncertainty, a safe haven for your dollars. . .and yet, it seems that as we are starting to enter an economic recession, that crypto is not so de-coupled from the larger economy and other assets like stocks, bonds, and the value of the dollar.
It'll be interesting to see if this causes a total deflation of the crypto bubble, or if it yet again finds a bottom and bounces back.
One of the arguments that crypto-boosters have long made is that crypto, supposedly like Gold, would hold its value in a time of economic recession or depression. A hedge against economic uncertainty, a safe haven for your dollars. . .and yet, it seems that as we are starting to enter an economic recession, that crypto is not so de-coupled from the larger economy and other assets like stocks, bonds, and the value of the dollar.
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Wait - you're saying pyramid schemes don't continue to pay out cash for every investor speculator?
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Maybe some AI firms with spare GPUs and nothing but empty valuations for assets should buy these tokens at discounts to prop up their value and then turn around and pivot to mining...why have one bubble when you can have two?
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Happily, I am fully insulated from this bubble because I made the wise decision to go all-in on AI instead!
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Apropos of this; anyone else thinking back to what happened to the Spanish empire when they got their hands on several fucktons of new world gold and silver? It didn't directly destroy them; and in the immediate term being able to buy whatever for the low low price of killing a few people who didn't matter seemed like a great deal; but it more or less rotted them out because the industry with the highest ROI was plunder, rather than something value-added; and you ended up with essentially the closest thing to serious inflation issues that a goldbug can manage.
The very idea of being a "more or less arbitrary value store superpower" speaks to a profoundly rotten concept of what power even is. It looks extra stupid in 'crypto', which doesn't even have niche medical, industrial, and scientific uses; but the problem is a more fundamental one: being rich at the single-person scale is straightforwardly handy; because there's an economy out there large enough that we can usually treat it as arbitrarily large relative to your consumption and production; so just having enough cash to consume whatever amuses you beats punching the clock; but at the scale of a nation-state that simplifying assumption no longer holds; and being a 'superpower' more or less implies that the outside economy is small enough, relative to you, that it will be distorted by your interactions with it.
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Well, half say there is no bubble, the other half say there is a bubble but buy anyway because there is no bubble.
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When your entire economy pivots to building sabers, you're going to have to keep rattling them. Boy, that doesn't sound familiar in this day and age at all!
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Unfortunately history over the last decade suggests Bitcoin can keep doing this peak-and-crash thing indefinitely over a very long time. If I have grandkids, I suspect they will be having the same debates over it's value.
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Note that all these bitcoin treasury ‘valuations’ are at the current bitcoin price… Just maybe the share price reveals something about the bitcoin value.
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Wait, I want to know what lenders are offering DEBT to make leveraged purchases of a highly speculative 'asset' with no inherent value? Also, I hope they lose a lot of money when Strategy and similar businesses go bankrupt.
We live in a world where black and brown people often can't get the money to buy a house, but somehow there are billions and billions of dollars available to buy crypto and. . . twitter.
We live in a world where black and brown people often can't get the money to buy a house, but somehow there are billions and billions of dollars available to buy crypto and. . . twitter.
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I hear there's a company in the South Seas that can give you a great price on them
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Reminds me of The Big Short. Little or no money down to buy a house that will totally continue to appreciate under any circumstances.
Yeah, Okay.
Then 2008 happened and everything blew up.
The problem this time around is you have a cryptomonger in chief who would probably just decide to bail out crypto with our tax dollars.
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Wasn't one of the massive economic issues of the Soviet Union that the central planners of the economy decided to put far too much of the labor and resources in the economy into weapons production, and that lead to severe austerity with regards to food, medicine, clothing, blankets, housing, and other necessities?
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Don't worry, the
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The only thing I don't like about crypto is that there's not a way for everyone involved to lose.
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The funny thing is that we already have two. The AI bubble is both a real estate bubble and a tech bubble. So now it seems that cryptobros are gunning for a third. A valuation bubble?
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From my understanding, the real problem wasn't that borrowers were borrowing too much on houses - although that was certainly part of the problem, but was that banks that were originating debt were turning it over so fast as "collateralized debt obligations" that were sold as 'investments' in financial markets, that they had no incentive any longer to try to make sure the debts weren't junk?
That is, in the old-school version of lending, a bank had money, it made loans, and if the borrowers didn't repay the loans, the bank lost money. So the bank had a lot of incentive to not make bad loans.
But now banks were originating loans, backed by Congress through Fannie Mae/Freddie Mack, and then re-selling them as those CDOs almost instantly, claiming they were great, low risk pools of debt, when in fact they were very high risk pools of debt that were on a collision course with default.
Leaving the Taxpayer on the hook for the bailout of everyone else's reckless behavior? Privatized profit, socialized risk, as the saying goes.
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There is nothing more important to the future of American society than every Bitcoin guy wearing rags and living in the gutter.
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Not EVERYONE though. The people close to Donald get in fast, get out fast, selling at a profit to the greater fools who are left holding the worthless asset. Because that is how pump and dumps work.
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Selling the fungible assets to repurchase the stock used to finance those assets in order to increase the value of that financial claim on the fungible assets that you now possess less of because you sold them to, um, riiiiiiiiight.
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Maybe maybe not we shall see. Notice there hasn't been a "world wide" adoption of BC being interlaced with global currencies which everyone in the BC world predicted would have happened by now? It's too volatile, too many swings, and it's vaporware. BC is for the rich companies to buy and sell between each other to turn a profit on something that doesn't exist.
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Friend of mine ended up in hospital with poisoning after mistaking a tulip bulb for garlic. Fortunately he's doing ok and the Doctors expect he"ll be out in spring...
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The problem with bailout-capitalism is that you eventually run out of other people's money.
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People have been saying crypto is BS for years and this bubble will eventually pop yet every time it tanks there are more idiots jumping in to buy it again. IS THIS FINALLY THE MOMENT??? Let it pop!
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