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…you are clearly conflating Bitcoin and “crypto” here. Bitcoin has exactly nothing to do with Trump, or his shitcoins.
Well its indirect. Bitcoin is crashing in part because hardware prices have been going up due to AI investments. AI investments are up in part because republicans and trump have been trying to make AI regulation impossible.
Bitcoin is crashing because everything is crashing. Hardware has nothing to do with it. Bitcoin hasn’t been mined with typical commercial hardware for over 5 years. They use ASIC’s whose prices have been not been heavily impacted by AI investments as they can not be used for AI purposes.
AI Hardware affects investments include like 600% rises in RAM in some areas which will affect node costs. Though bitcoin is probably most affected by rising utility costs, also driven by AI spending.
Bitcoin essentially acts as a secure, portable, and transferable hedge against the crumbling of the American empire. Also would work well if you had to flee across international boarders and seek asylum elsewhere because the fascists are getting away with it. Gold kinda does the same thing, but its a PITA to transport and offload.
How is it a secure hedge if its value isn’t tied to anything?
The same way we value any other fiat currency. The value of fiat is faith of redeemability (that it will have value in further trade transactions). Fiat isn’t backed by anything else. So, if two countries (or businesses across boarders) want to conduct business, what is better?
Conducting it in the currency of a foreign state that does sanctions, constantly devalues its fiat currency, and votes for Republicans?
Or,
Conducting that business in a decentralized currency that isn’t backed by anything really other than its ability to be used in other trade and isn’t subject to the recklessness of a bipolar country?
The value of how many BTC international transaction is worth ultimately boils down to negotation. Same holds true for gold, in a way. You just can then just exchange the btc for local currency. The thing that imparts value of BTC to me is how portable it is. If I had to flee the United States, its easier to do with $20k usd (made up amount) in btc than it is to do with gold.
Also, to answer your question directly, how is it a hedge? Soverigns with fiat that bow to billionaires don’t want to have taxes raised. So, to make up for the deficit (the difference between what the budget calls for and what is taxed) is usually made up for by printing more made up dollars. This devalues the fiat.
Like, imagine this with gold. Imagine there can only ever be 21 million ounces of gold (no asteroid mining). The more that central banks print, the more the value if those 21 million ounces goes up since gold can serve as a transferable alternative.
While the dollar is a fiat currency, it is backed by the US economy and even with all of its shortcomings, its certainly more robust than some relatively new virtual currency. Bitcoin is solely backed by faith with the added difficulty of you not being able to go down to a local bank and withdrawing it in cash if you need to and it’s incredibly volatile with it currently being worth 60% of what it was just three months ago.
With regard to inflation, bitcoin isn’t immune from this either considering you have to tie it to a local currency to assign it a value so while it may be independent from a single nation’s inflation rate, you’ll still feel it when you cash some out to buy something.
I dont think its a bad strategy to hold some as part of a diversified strategy, but putting all your wealth into it (or gold, or any other single thing) would be incredibly risky.
While the dollar is a fiat currency, it is backed by the US economy
In what way is the dollar backed by the US economy? It is backed by the faith in the say of the government. The US economy merely runs on the dollar, just as a car drives on roads.
its certainly more robust than some relatively new virtual currency.
It’s more established, for sure. But, the political situation has accelerated what was already happening: the world is de-dollarfying. Add on to that how the administration is alienating the rest of the world, that trend has accelerated.
Bitcoin is solely backed by faith
True, but so is the value of dollar bills
with the added difficulty of you not being able to go down to a local bank and withdrawing it in cash
I dunno about you, but I don’t use cash that much myself in modern times.
if you need to and it’s incredibly volatile with it currently being worth 60% of what it was just three months ago.
It fluctuates, yes. But, so does gold. Same with fiat. The way fiat manifests its fluctuating value is through inflation and increased prices. I’m not saying bitcoin doesn’t fluctuate, but gold fluctuates too. The bet with gold or bitcoin is that the fiat system will consistently devalue itself (moreso with the isolationism the country is adopting and the lack of taxation on the rich), which will increase the value of BTC against the dollar.
With regard to inflation, bitcoin isn’t immune from this either considering you have to tie it to a local currency to assign it a value so while it may be independent from a single nation’s inflation rate, you’ll still feel it when you cash some out to buy something.
Its value (as of today) is merely being the hedge. You’re right. Can’t go to Best Buy and buy a tv with BTC, same as with gold. But, for how long?
I dont think its a bad strategy to hold some as part of a diversified strategy
Wasn’t saying otherwise.
but putting all your wealth into it (or gold, or any other single thing) would be incredibly risky.
Didn’t say I did. But, I have enough in BTC to restart in another country when my home stops holding free and fair elections, and to serve as an effective hedge against inflation and the crumbling of the Empire.
i wonder what caused this. did the bitcoin people finally figure it out?
Bitcoin seems to have these hype cycles where it spikes and then crashes. I kinda doubt it is tied to anything else that much. Basically, it requires new buyers to push it to new highs. To get new buyers, you need to have hype. When you run out of new buyers, it tanks. Then people start a new hype cycle once the price gets low enough.
more buyers is one way to push the price up, the other is fewer sellers. maybe anyone that’s going to see through it already has
Sure, but if the price isn’t increasing, people get bored or nervous and sell. People are also tempted to sell when it hits new highs.
I have theory that all that all the bitcoin investors are jumping onto the AI bandwagon.
Trump didn’t pick a completely insane person to lead the federal reserve
Gold silver and crypto only go up when people think the economy is gonna crash
Since he picked a regular guy basically they know the economy won’t crash anymore so they sold
Yet, if you exclude last week’s spike Gold is around its all-time high value, which is over 2x its price when Trump took office.
Meanwhile per this article the price of Bitcoin is lower than when Trump took office.
So the biggest by market valuation cypto of all either isn’t really correlated with people’s expectations of economic crash as you postulate or crypto investors totally disagree with Gold investors about an economic crash approaching.
Personally I’m starting to suspect that the theory that crypto is seen as a protection against economic crashes is either false, outdated or some crypto investors do see it like that but they represent a tiny fraction by value of all trading in that asset class so they’re not the ones shaping crypto prices.
Not a regular guy by any stretch.
Jane Lauder, Kevin Warsh’s wife, is the granddaughter of global cosmetics industry legend Estée Lauder. She is the daughter of billionaire Ronald Lauder, who is the sole heir to the The Estée Lauder Companies. According to Forbes, Jane Lauder has a net worth of $2.7 billion, making her among the world’s wealthy individuals.
Jane Lauder’s father Ronald Lauder is incidentally the same person who has actively been encouraging Donald Trump to acquire Greenland!
Ronald Lauder, has shared a long personal history with Donald Trump, dating back to their days as students at the University of Pennsylvania’s Wharton School. The relationship forged during their undergraduate years has endured, with Trump and Lauder remaining close associates and trusted advisers over time.
Ronald Lauder is widely seen as the person who first encouraged Trump to consider the idea of acquiring Greenland in 2020 and has continued to counsel him on the matter since then.
Earlier this month, The Guardian reported that Lauder has built commercial interests in Greenland. Read more at: http://m.timesofindia.com/articleshow/127806205.cms
I didn’t mean an actual regular guy lol what did you think I meant
I meant someone regular as in someone the markets consider an unspectacular and reasonably qualified choice
Yup. People hate when it’s the easy answer but there’s no huge conspiracy. Traditional economists were terrified about the potential shift at the fed and Trump picked an establishment guy. The dollar got stronger, while crypto, gold, and silver crashed.
The other part here is that crypto had a decent bump when Trump won, but before he took office. Investors were excited about him as a pro-crypto president
Constant digital exposure to unprecedented propaganda combined with most people reading below a 6th grade level
Not just the constant exposure but the failure of traditional media to maintain their influence leads to people being in echo chambers.
Traditional media was essentially purchased with intent to alter its fundamental purpose of delivering news to selling ads and ideas
Many have been gutted or shuttered entirely as well
Inevitability under pure cronyism
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I think you hit upon the reason: gold and silver dipped so people traded bitcoins to buy cheap metals.
There’s rumors that people saw that Epstein was involved with bitcoin and were like “oh HELL no fuck that”.
I seriously doubt that any institutional or otherwise large-scale investors would have reacted to that. It has absolutely no impact on Bitcoin in practical terms.
Agreed. People have known bitcoin has been used for illegal purposes from its inception. Nothing changes with proof that is has been used for illegal purposes.
This does not sound believable knowing the cryptobros love for Elon
After “Money Laundering: The Movie”, the rich realized they don’t need bitcoin anymore.
Is this a reference to the Melania film? Lol
It could be interpreted as trust in the Dollar if gold starts falling, too.
