What happens when a bunch of inexperience, non-battle tested, speculators with little money to their name to lose get together and buy a volatile collectible that wildly vacillates in price, on margin, funded with their fucking credit cards, and then said collectible begins to drop in earnest? What sort of market will result from this combination of perfidy?
This is what cascading margin liquidations looks like.
— Lighthouse Crypto (@LightCrypto) November 30, 2017
That’s right.
You were warned. Now it's over. This time it's for real. @RampCapitalLLC pic.twitter.com/s1T8XcYb9E
— The_Real_Fly (@The_Real_Fly) November 30, 2017
I do not intend to shit on your parade. I applaud all speculators and know the struggle and respect the struggle. But I’ve been doing this shit since ’92 and I know a god damned dangerous asset when I see it. I am trying to protect you; quit fighting me.
This from the Bitcoin forum in Reddit. People are freaking out — because they’re not accustomed with drawdowns or risk management. Those idiots think investing is a meme and that if you say HODL (hold onto dear life) enough times, well then, you’ll simply make billions.
Meanwhile, the main trading hub for cryptos, Coinbase, has been going down for the past day — likely due to an overburdened server. What will happen if BTC truly starts to crash? Will the site even be accessible for people to liquidate?
Yesterday, this lad tweeted a screen shot of his heavily margined crypto wallet, which went from $100,000 to negative $30,000 in a brief spate of rough trading.
@bitfinex You need to make this right – I just went from $100k to -$30k … refunds need to be made and owners made full. This is unacceptable. $NEO $OMG $ETP pic.twitter.com/HcPJlSF1Gk
— Brian (@biop3rl) November 29, 2017
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So, I understand that my generation is the bane of existence for the rest of America, and probably the world… But to these kids getting thwacked in BTC, hopefully this makes them realize that to be a trader you have to pay your tuition. For some people it is very costly, for others it isn’t. But hopefully they learn how to correctly invest after this- albeit their parents will now have to bail them out of another conundrum. The other side that may come with a crash in BTC would be more cynicism, saying “oh the markets are all rigged, alt investment xxx is a better strategy anyways” which was BTC this time around. The game never changes, just the players.
The Boomers destroyed the world. Your generation is just retarded. We do not hate retards.
The markets are rigged and btc is too concentrated in large accounts which artificially restricts quantities available for trading. Everybody is a btc multimillionaire until they all try to cash out and collect. And then they are not.
Coinbase. Such irony. Isn’t part of the promise of cryptocurrency the freedom from third parties controlling your assets?
Decentralized exchanges are in the works.
Thanks for the laughs. Refund? Lawsuit? lolz
Meanwhile Tootsied Rolled common stock has been RIPPING, mind you, up by 85 cents over the last month. I tried to tell you.
Please can you hired a blogger named Sydney or Virgil to blog about stocks like TR and Consolidated Edison? Just for the lols
That would be hilarious. I could ghost write it.
This weekend I’m gonna learn how to buy this shit so when it crashes back to the $5ks I can start to nibble on these loooosers coinstacks or what the fuck ever.
Hahahaha, millenials and libtards on fire. Priceless.
Its still up for the week, let’s see what happens when its down to $4000, then the pain will truly begin. Coinbase is still down so will need to see what selling happens when it comes back online.
Coinbase is up
During a typical blow off top in a commodity bubble, the draw down is measured in years.
I thought the last blow off top was the end, but I was wrong. I certainly didn’t think we’d see a situation where all 300k accounts funded last week would never make money.
BTMFD.
Le Fly it’s so refreshing that you are obsessed with something other than politics these days. Get back to stock picking already.
That was months ago
If bitcoin be a collectible, it is only so from a taxation standpoint. It is an asset, albeit a bizarre one. Perhaps it is the most perfect asset ever invented: no real storage/maintenance costs, highly liquid, and strictly limited in quantity. What other asset meets ALL those criteria?
vaporware
Vaporware doesn’t exist. Bitcoins are trading for around $10k each, around the globe.
“What will happen if BTC truly starts to crash? Will the site even be accessible for people to liquidate?”
Exactly. Crypto markets are a ‘Roach Motel’. Bifurcation eventually follows. At that point we will have to stop the fence sitting.
Mandelbrot, The (Mis)behaviour of Markets 2004, reckoned that share prices contain memory. For example, the memory of the 1929 crash affecting the DJIA into the late 1960s. What memory do Crypto markets have? None I would argue. They are still nascent.
The Bitcoin market is going to reach at least a trillion dollars, in my view, before this bifurcation happens. When it does, watch out. The world as we know it will change. forever.
The crash risk is increased as there is no central bank that will come to the rescue on Bitcoin.
Another case of premature ejaculation by a crypto-bear.