Caught on Chain
I was reading a funny article that Bitcoin "plunged" downward because Warren Buffett said it was worthless and yes, it is easy from the inside looking out at these old men to say, "They just don't get it" - which they likely don't. But, what they also don't seem to get is that how so many of these "institutional" investors (being how old they are) got rich, has also been through investments that have fucked our society, environment and economy.
But you know, all the electricity Bitcoin uses...
What is interesting in these articles however, is that they seem to fail to see what is causing the dip, because if someone like Buffett says something negative, speculators are going to speculate - meaning that they are going to expect the market to dip, so will play their part in ensuring it does. They aren't getting out though, they are getting deeper in at a lower price, cost averaging their position downward.
Oh and the slump in price they reported yesterday, well... it is back to where it was already, so does this mean that what Buffett says actually has very little weight to investors now? They speculate for a bit and then decide he was wrong?
Just remember,
This is all to create FUD
What is news in crypto however, is that France has granted Binance regulatory approval, which makes them a registered digital asset service provider, so that now it can offer trading and custody services for cryptos.
May the 4th be with you
As the largest exchange, that is a pretty big move and considering that crypto is fringe and Bitcoin has no value, they are moving more than 65 billion dollars worth in volume daily, between spot and derivative trading. That is one exchange and the governments are starting to realize - shit, we gotta have a piece of this.
Regulation is going to come with a lot of rules that people aren't going to like, but if mass adoption is the eventual goal, it is going to be necessary to get enough people aboard, learning and benefiting, before realizing there are endless possibilities of how to generate and define value.
For the average person to have a chance in the current economic climate to build wealth through investing, they are going to have to break away from the mindset of the old guard, because following that mindset is only going to make those early investors, richer. Essentially, they are shilling what they have already invested into, because that is what makes them money and every time someone listens to them, they make a little more, while the new investor is lucky to break even once all things are considered, and what needs to be considered is actually the conditions that these types of investors have created over the last 60 years.
The other thing to remember with someone like Buffet is, he is worth 100 billion plus dollars and is 91 years of age - he really doesn't need to chase every new investment opportunity, or give a shit what he says about anything at all anymore. He can say what he wants and be content, whilst still invested and knowing that he is going to keep making money anyway.
New investors have to start waking up to the FUD and diving into some risk, otherwise they are going to find themselves holding a lot of worthless crap that no one wants, because like it or not - the world is always changing and while the Boomer generation can prop this mess up for a while, it will implode soon enough.
Rough times all round?
Yeah, all the various economies are connected these days, but it is going to be interesting to see how crypto reacts to these rate rises the Fed is bringing in, where they raised it by 0.5% - the largest single rise in over twenty years. However, what you might have noticed is that the rate rises in the mid-teens also led into the 2017 run in crypto, which is what seems to be keeping people bullish, even if the timeframe isn't to their liking..
Another two years? FUCK!!!
But, while some are calling for a massive capitulation in price, MicroStrategy is saying that they would buy more to extend their position to ensure that BTC doesn't fall below 21K. At 21K, would you be buying Bitcoin?
I would be.
But, how much can I buy?
And this is going to be the very interesting question on Bitcoin going forward, as now there are far more holders than there were earlier and while many might sell a little, few will sell the lot, meaning that the liquidity on the market is going to get very thin fast. The further it drops, the more demand it will get from all those bulls who took some gains at the top and hold stables. Just in the top 10, there is 150 billion in stables across Tether, USDC and Terra, and then another 30 billion in the top 20 with BUSD and DAI. For anyone counting, that is 10% of the entire market cap of crypto and over 20% of the entire cap of Bitcoin.
How much of that would take a bite of 25K Bitcoin?
You think you will be getting much at that price?
You aren't the only one.
Because more people are being pulled into crypto and once in, very few leave, the floor is going to keep raising up and it will become self-perpetuating, where each fall will lead to greater gains and those gains will be used as support for the next fall. This cycles more people in as holders too, which means that each round they buy a little higher than the last and, they are not willing to sell at a loss, or at least, not all of what they have bought.
And, it isn't just going to be Bitcoin that is going to get attention, because as more people come in, they are going to start demanding goods and services that cater for holders. They are going to want to use it. Buying, earning and holding crypto now is like buying oil reserves, before the combustion engine was invented.
But don't listen to me - I am not a billionaire.
Taraz
[ Gen1: Hive ]
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He's always said the same thing. I do wonder what his conversation was made up of when he dined with Justin Sun a few years ago. It could have ended in fisticuffs.
I still can't use Binance, my bank blocks transactions. I get an instant text every time I try.
Yeah he has, which makes it more ridiculous that it is the reason for a fall.
Perhaps he told Justin to become an ambassador for a tax haven country! :D
Have you tried Mandala?
No, is it trustworthy and does it have a fiat conduit? (not that I use exchanges frequently).
Not sure about a fiat conduit, but at least it is using the Binance APIs and such and even connects up to BSC I believe - but doesn't have KYC AFAIK.
I rarely pull money out of the crypto world into fiat (they are 2 dimensions linked together with string), but will try next time. I have been using Kraken when I needed to do so.
Yep, Kraken works - but sometimes it is useful to have another exchange, especially one that seams up with Binance services.
I've been willing to try Mandala for some time but I keep forgetting to do that. It's good to know there is no KYC, at least for now.
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Hey chops, it’s been awhile (personal troubles) … but anyway, it’s nice to see you are still around dude
Top comment on the First article i read since my 2 year hiatus.
Some very good points there. Hopefully people will shake off the brainwashing from the mainstream media that is keeping them poor. But if the last 2 years is anything to go by, I don't have much hope!
In fairness to Buffet, he also said he doesn't understand it and therefore isn't investing. As you said, at 91, he's done his investing now.
I don't have much hope either - but all in time, as they say.
Buffett is no fool in what he knows for sure - but the world is changing and I would suspect that if he was 21 instead of 91 and was starting from scratch, he would be in crypto.
I think you're right there.
The first paragraph of the post is the best part of the article. These people only want to juice out miniscule investors, and they feel happy doing so, even though they run charities to whitewash their black investments, they only think of filling their bank accounts.
On the other hand, new regulations can help build a stable blockchain economy worth investing for new entrants in the market. But, it might cost crypto investors something to pull back from DeFi and returning to CeFi, or say it might kill the DeFi systems, as the banks are already crying out loud for bans on crypto.
I don't think it will kill DeFi and rather, I think it will help strengthen them, as people will start looking for real global alternatives to better manage and have control over their own wealth. But, it isn't going to happen without a fight.
If Binance can enter Europe with sacks of billions dollar investment on the behest of government, it is also possible they may provide governments their services to form regulatory framework for blockchain industry, and why would these centralized exchanges, like banks, want people to invest into free market, rather they will pamper governments to put more restrictions on DeFi market for their own gains. Typical Corporate thinking.
He's representing an age of so many things, the big boom after the war, the big depressions of the 80s with great art, So much has happened... they come from a different time without internet.
Yes - it is a completely different era and set of conditions. As I was saying in another comment, if he was 21 instead of 91 and starting from scratch, he would be thinking very differently about his investment strategy.
Yap, age makes us value different things and our values change our vision of the world.
Hehe the good old energy argument. They just love that stuff...
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Regardless of its relevance.
the time BTC gets down to 21k the grab the copy fast cause it will only last for a minute
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Only one person can buy the absolute bottom :)
I would not listen to the advices of a 91 years old person.
The FED raised the interest rate less than the expected rate. I think that's why cryptos reacted in a positive way tonight.
I think it was more than expected, wasn't it? I thought people were expecting .35 in the US and in Australia, the banks had factored in 0.15, but it was a full quarter.
I think it was expected %0.75 or %1.
exactly. I doubt a prime Buffet would've passed on crypto. He's 100 years old for peace sakes, why should young investors in a novel technology care about what he thinks about something he clearly doesn't understand
Yeah - he is from a different time, with very different opportunities.
Microstrategy becomes a single point of failure in bitcoin price. The market is highly leveraged.
FED goes smooth, but it doesn't change the macroeconomics around the world. So lets see what happens :D
I am not sure that they even have enough to make that much of an impact, but they can buy near the bottom to prop it up, because there won't be too much available on the markets for long.
It always makes me laugh when people say they'd load up the truck and buy Bitcoin at 25K (or whatever asset after a hugeeeee dump).
Those dumps are scary!
You just know that 99% of them will be too weak to stick to their plan and throw out their hand to catch the falling knife.
;)
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This is true, but I wonder if the people who have significant capital (and interest in crypto) will be as scared? The average person will be, but if you bought at 67, 25 is cheap :D
I do sometimes wonder if when people speak so very authoritatively on things that don't seem to line up with reality whether it's because they know something or whether it's because they desperately want whatever they said to be true and seem to think if they scream it loud enough that somehow that will make it so.
I think that authority tries to make things true that they want in a "fake it til you make it" kind of way - or fake it until others make it for you in this case.
Buffet doesn't understand the technology and he is evaluating things based on traditional finances. He is usually late to the trade but his achievements are why people are willing to listen to him.
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The conditions of the world economy has changed and he has benefited from getting in early and making gains from those changes - but eventually, the changes require investment shifts and at some point, he might find his approach no longer suitable - but not in his lifetime.
Decentralized finance and by extension, decentralized insurance, would put a bit of pressure on his holdings.
Buffet is the magnet that attracts cashes, $$$.. Now, that when he turned 91, net worth crossed 100 bilion. The truth is people still wants to make money more...
Man!! Hopefully, the old man lives a decade and his 100th birthday should be gifted as 10 more billions on the asset list.
Still in some other countries people earn 5-6$ a day to run families.The whole earth is a big comedy play theatre..
Buffet is a wily old fox and still very much active in the market.
Remember this is the guy that sold all of his airline stocks a few days before the Covid19 pandemic lockdowns started back in 2020.
Some will assume he had inside knowledge of the coming collapse of air travel but it could be that he just looked at the situation and made a judgement call. Either way he made a killing and didn't broadcast it.
I wouldn't be surprised if he is quietly accumulating bitcoin right now.
Being 91 has it's benefits. He seen just about everything and can still detect value.
Dismissing Buffet because of his age is a big mistake...Huge.
One simply does not acquire $100 billion by luck. 🤯😂👍
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The corrupt gov fraudsters here in the formerly united states have that attitude towards pretty much everything right now. Doubling the taxes this year and spending it on weapons to send to the proxy war they continue to run in Ukrain is what broke me. I will no longer pay a huge tax bill to help fund this madness. I am closing up shop. By the end of the year.