Inevitably, crypto skeptics are calling “the end of crypto.” But we’ve seen this kind of correction before. Several times, in fact. In 2014, bitcoin’s price crashed when theexchange collapsed. And in 2018, bitcoin’s price fell 80% as hundreds of “initial coin offerings” crashed and burned. In both cases, the market eventually recovered, and crypto prices rose higher than before.
There was a brief period of relative dollar scarcity from 2016 through 2018, when the Fed raised interest rates and burned money and the U.S. Treasury issued bonds . But as the Fed tightened, other central banks loosened. QE never really ended; it just moved around the world. And in 2019, when dollar shortages caused disruptions onThen came the pandemic.
It’s perhaps easy to see why the end of easy money might spell disaster for those invested in a highly leveraged crypto bubble, but it’s less obvious why it is causing bitcoin to sell off. You’d think it would encourage people to pile into deflationary cryptocurrencies like bitcoin. After all, bitcoin was originally intended to replace the dollar, and some people still think it eventually will.
But these dollars aren’t real. They exist only in the virtual space. They are not, and never were, guaranteed by the only institution in the world that can create real dollars, namely the Fed. The Fed has no obligation whatsoever to ensure that those who have made life-changing amounts of these “virtual dollars” can actually exchange them for real dollars. So when the crypto bubble bursts, the “virtual dollars” simply disappear.
Frances_Coppola Some stuff that’s hard to disagree with in there. On the flip side the world had never been as interoperable, trustful and negligent on energy infrastructure as it has been since 2008. All three are trending down massively.
Frances_Coppola Luxuriant growth = Fake scamdollars printing AKA stablecoinsfraud fuelling the Ponzi scheme.
Frances_Coppola Nice and accurate read of the situation Frances.
Frances_Coppola The comforting fact is that if this is indeed the case, which I don't doubt it is, the government will continue to print into oblivion so crypto will go up eventually :)
Frances_Coppola Don’t agree with most of this except the fact that it’s true that crypto today is tied to the current financial system. The system it was supposed to replace. Pity! As this would have been the perfect time to replace it, but instead it’s merely a copy.
Frances_Coppola Just feel so bullish when I read stuff like this. Makes me realize we're at the bottom or getting there...and we're still here. Few
Frances_Coppola At the macro top crypto medias shout “It’s a new paradigm! This time is different!”, and close to the bottom crypto medias start to reverse “The bottom would be much more desperate, this time is different”. Every time is the same, it’s just market cycles.
Frances_Coppola That's not true. The crypto crash is due to all this fiat like, possibly scheme shitcoins and 'stablecoins' luring good money into shitty proof of stake concepts that were nothing but an appealing website and infinite number of 'influencers' 'not giving' financial advice.
Frances_Coppola NFTs NFTCommunity NFTGiveaways FreeMint fiendish fairyfiends FAIRYFIENDS ARE MINTING NOW !!!!!
Coin Coin Latest News, Coin Coin Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: binance - 🏆 561. / 51 Read more »
Source: Cointelegraph - 🏆 562. / 51 Read more »