Over the past three days, Bitcoin is down by a modest 20%, knifing lower from all-time highs to just below 6,000 today. In the big scheme of things, this pullback is nothing, a mere way station en route of extreme excess. On the other hand of the spectrum is bitcoin cash, an entirely stupid crypto-currency that is trading higher after the much talked about BITCOIN FORK was fucking canceled.
The hype became perverted earlier today when it eclipsed Ethereum in market cap and circle jerked its way up to a $40 billion market cap. Fair value for bitcoin cash is somewhere between $0 and $1.
Due to the run up in BCH, the total market cap for the crypto-currency markets has remained steady at $195 billion. The great thing about the collective market cap continuing to balloon is that it’s becoming a systematic risk to financial markets. Just imagine it gets up to $500 billion and then drops by 90%; what a splendid and beautiful crash it will be — befit with all of the gilded trimmings we’ve come to expect from all fine market collapses over the past 20 years.
On this day, the 10th Anniversary of iBankcoin, I ask the Gods for just one thing: a small, yet delightful, crash in BTC.
If you enjoy the content at iBankCoin, please follow us on Twitter
I have loitered about these fine halls for, … has it been 10 years? … I have made a call … the bitcoin thing is good.
Ditto, gods. I don’t have enough coins yet.
cannibalization
the bitcoins market is a zero sum game so the systemic risk comes from the shear size of the market? is there additional leverage involved whereby entities could go insolvent? yes and yes?
What are you talking about?
That the Bitcoin market contains no money in and of itself, exactly like the stock market contains no money. Market values day to day are the last trade multiplied by the whole float of shares. Most count that money as their own which it ain’t. And what this disguises is the il-liquidity lurking behind. Anyway rock on, I’m not a trader as you can surmise. I invest.
What is money?
Gold. All else is debt.
Money is whatever people accept as a store of value in the exchange of goods and services. It can be a lot of things, like construction skills in a barter economy, metal tokens or slips of paper currency.
money = debt
Bitcoin futures coming on CME before end of year
http://www.cmegroup.com/trading/bitcoin-futures.html
Who knows what happens next – 3x ETFs?
Exactly. Trade it.
This is why bitcoin will not go away. Bringing in more and larger speculators and liquidity.
You’re really stretching if you’re trying to tie in Bitcoin with systemic risk.
At $500 bilion, it will be.
fatwa
If Bitcoin started to collapse say <1000 or <500$ (for whatever reason), I think it could trigger selling in areas where folks start to question valuations. A Bitcoin collapse <1000 would take something else with it, Bitcoin will not drown alone.
@sarc believe me, btc profits equal gold coins galore.
Fly will get his wish. BTC will crash.
And BCH will rise from the ashes.
BTC to BCH will the greatest transfer of wealth inside the greatest transfer of wealth (fiat to crypto) in history. A Russian nesting doll of wealth transfer if you will.
fiat is debt, not wealth. but there’s this thing, i forget its name, it’s yellow, kinda has a nice ring to it and cannot be impaired. how does one transfer that to the blockchain and have access to it at all times even if the grid goes down? Any ideas?