Re:2018 Stellar roadmap
by specialist on Thursday January 25, 2018 @06:53PM
(#16235896)
I'm stuck on the revelation that the stock markets high valuations was driven by cartel money needing a place to park.
I now assume every bubble serves a similar purpose.
Knowing that, a person smarter and braver than me could be skimming off some of those narco dollars.
> All those people who sold bitcoin at $19k could do so because there were buyers. Every single one of those buyers lost.
Only if they sold. Otherwise they might just wait until the price climbs back.
The price still doesn't change unless new money enters, though.
Re:2018 Stellar roadmap
by dustingetz on Thursday January 25, 2018 @10:27PM
(#16236811)
great comment BUT real world finance works like that too except USA keeps its currency in demand by forcing international trade especially oil to be settled in USD and invading countries who resist. Macro voices podcast went into that in super depth https://www.macrovoices.com/podcast-transcripts/341-anatomy-...
Strong disagree :(
Cryptocurrency investment is speculation in a zero-sum game. Every dollar someone pulls out of the system in profit required someone else to put a dollar in. All those people who sold bitcoin at $19k could do so because there were buyers. Every single one of those buyers lost.
Cryptocurrencies are not shares in a corporation or bonds or any sort of interest or dividend producing financial instrument. Even the ICOs that claim to be so only work when new money is coming in. To get a (real) dollar out of the system, someone else has to put a dollar in. To get more money out of the system than you put in, someone else has to pay. For that person to get more money out, more people have to come in after them and pay. The top of the pyramid gets paid, the bottom is left holding the bag.
The only growth in market cap is new money flowing into the system. Once enough decides to flow out, the gig is up and the whole thing tanks.