Re:Terra Luna crash: CTO of Tether welcomes fair regulation ...
by JumpCrisscross on Wednesday June 15, 2022 @09:13AM
(#31752388)
> sky is not falling it's probably just going back to a more sane price
Prices per se are almost never meaningful.
Most crypto purchases are underwater [1]. (This is almost always true when something traded grows in value and buyers before crashing.) Many participants are leveraged. Financially, or operationally due to the cost of their mining rigs and long-term energy contracts.
There are also vagaries specific to PoW. For example, a steep enough decline between difficulty adjustments could make mining fundamentally unprofitable, which has its own suite of knock-on effects.
Prices per se are almost never meaningful.
Most crypto purchases are underwater [1]. (This is almost always true when something traded grows in value and buyers before crashing.) Many participants are leveraged. Financially, or operationally due to the cost of their mining rigs and long-term energy contracts.
There are also vagaries specific to PoW. For example, a steep enough decline between difficulty adjustments could make mining fundamentally unprofitable, which has its own suite of knock-on effects.
[1] https://www.bloomberg.com/news/articles/2022-06-14/bitcoin-r...