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Bitcoin falls 6% in Asian trade


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Bitcoin falls 6% in Asian trade

 

2020-11-26T035531Z_1_LYNXMPEGAP03Z_RTROPTP_4_CRYPTO-CURRENCIES.JPG

FILE PHOTO: A representation of virtual currency Bitcoin is seen in this illustration taken November 19, 2020. REUTERS/Dado Ruvic/Illustration

 

TOKYO (Reuters) - Bitcoin dropped to $17,657.53 on Thursday, down 5.74 percent on the day, after losing $1,074.9 from its previous close.

 

Bitcoin, the world's biggest and best-known crypto-currency, has risen 358.6% from the year's low of $3,850 on March 13.

 

(Reporting by Tokyo Markets team; Editing by Clarence Fernandez)

 

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-- © Copyright Reuters 2020-11-26
 
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Damn this forum is full of no coiner trolls. Are you also going to comment when bitcoin goes up again 6% in a day?

 
I guess not because it won’t fit your narrative 

 

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19 hours ago, Barnabe said:

 Are you also going to comment when bitcoin goes up again 6% in a day?

 
I guess not because it won’t fit your narrative 

 

The narrative is that bitcoin has no intrinsic value.  It not backed by gold, or by any government.

It may go up or down by 6% in a day, but that's simply random fluctuation based upon demand.

 

There is no long term case for bitcoin.  Its only meaningful purpose is facilitating dodgy transactions, and there's only a limited number/value of them.

 

It's now worth less than it was in late 2017.  I guess criminals are finding other ways of transferring their illicit gains.

 

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The only interesting thing about bitcoin is the underlying blockchain technology, which already has many uses, and will be further improved in the future.

 

The crypto currencies themselves will never become official currencies, because they are too volatile.

 

As Oxx said, their only use is if you want to hide your traces, but even that is not possible any more with most of them.

 

No respectable business want to take the risk of losing a big chunk of their payment within hours after receiving it

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I completely agree with you that bitcoin is based on nothing but faith, and at the moment it’s pure speculation.

I also concede that it is possible to wake up one day and it went to 0.

 

Government will never back it due to bitcoin’s characteristics, but if you think about it, they also don’t “back” gold and throughout history they always attempted to control it and deny individuals access to it.

 

Still there is a slight chance that it becomes the digital equivalent of gold if non governmental institutions start picking it up, which some seem to start doing.

 

As a long term investor, I think I should allocate between 1 and 10% of my portfolios on what is indeed a very risky bet, but which can pay off handsomely.

 

In other words, a bet with limited downside but huge upside potential.

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10 hours ago, Oxx said:

It's now worth less than it was in late 2017.  I guess criminals are finding other ways of transferring their illicit gains.

 

Which, of course, they have.  Bitcoin is no longer the only cryptocurrency game in town.  In fact, the barriers to creating a new cryptocurrency are very low and now there are around 7,000.  (Source:  https://e-cryptonews.com/how-many-cryptocurrencies-are-there-in-2020/ ).  I doubt there's a market demand for so many different cryptocurrencies, and suspect that virtually all of these will ultimately fail with value going to zero.  Will Bitcoin be one of the survivors? In my opinion, probably yes, despite its technical flaws, since it has good brand recognition, much in the way that "Hoover" is synonymous with "vacuum cleaner" and "Biro" with "ballpoint pen".

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It’s not about brand recognition though, like you said it’s all about belief.

 

If enough people believe something to have value, then that belief will become real. It’s basically the same thing as the fiat money, although of course fiat is ultimately backed by government. That is until it isn’t, and hyperinflation or crushing debt cause the government to abandon the currency and move to a new one. Admittedly a rare event, but has occurred multiple times in history.

 

I agree most of them will go to 0. But bitcoin is not going to disappear, and whereas before even I thought they were crazy, those 100k price predictions are not looking so crazy now.

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