Why is Bitcoin Crashing

There is a sea of red https://finance.yahoo.com/quote/BTC-USD?p=BTC-USD&.tsrc=fin-...

Musk is tweeting Bitcoin is too high.

I put all my savings in Bitcoin because someone here said it was a value store. /s

But seriously why is it crashing this time?

Inb4 buy the dip

Comments

  • +30 votes

    Buy green, sell red.

    https://nimb.ws/tKsBvS

    • +7 votes

      Buy the pump, sell the dip.

      •  

        This is how I do it.

        I am not rich.

        •  

          Just repeat the mantra: This is good for batcoin

    • +2 votes

      That's how I bought my first home

      • +2 votes

        That is impossible. So many nocoiners keep saying that it has no value and here you're saying that you used it buy real estate. 👍

        • +3 votes

          Not if you have a bit of common sense

    • +4 votes

      Replying to OP:

      The first rule, don't put 100% of your savings, in one asset.

      There are heaps of articles, saying both ways, you need to do your research properly.

      This isn't financial advise, but some people should just put money in a fund like vanguard and be happy with your 5-10%

      • +3 votes

        whoosh

      •  

        Edit: "advice"

        Oh, did I forget to say: "Diamond Hands, to the moon"

    •  

      It’s going down to $2k

  • +9 votes

    Because it’s a Game for the rich 😀

    •  

      Someone GMEs

  •  

    it'll be fine.

  • +70 votes

    buy now tweet that you have invested a couple of billion. then prices sky rockets.

    sell to make a profit…

    retweet that it's too high… and prices crash..

    rinse and repeat.

    • +9 votes

      You read the memo didnt you :)

      • +10 votes

        create hype to make money, its an old trick.. but works everytime.

        •  

          Or use the hype. When theres new story buy

    • +4 votes

      Completely unregulated, so perfectly legal.

      •  

        Highlights some of the differences in the markets.

        Here when ASX:GME was going up, the market stopped them from trading and asked them to explain the volatility before they could resume trading.

      • +4 votes

        It's a good point. Musk has been in deep trouble with US financial regulators for commenting on the share price of Tesla and future earnings / sales. Now he can buy/sell bitcoin and comment as much as he likes as he is outside the legal claws of the financial regulators. He can get richer without getting into trouble. The jokes on the rest of the bitcoin purchasers who bought after him.

        •  

          I think you need to look into his motivations. It's not making money.

  •  

    just dont look at your portfolio and be in denial.

  • +4 votes

    because someone here said it was a value store

    sounds like a trusted source.

    • +4 votes

      OP should name and shame them.

      • +5 votes

        "Free advice is usually worth exactly what you paid for it."

    • +8 votes

      Someone here told me to jump of a cliff.

      What am I supposed to do, pass on a free experience?

      • +2 votes

        Do it twice since its free.

        • +10 votes

          For Sale: Parachute. Never opened. Only used once. Small stain.

  • +1 vote

    There isn't any logical reason for the value to rise / fall, apart from supply and demand.
    It does make you think that maybe Musk is potentially manipulating, but then again there may be other less public figures doing the same.

    • +25 votes

      For sure he's manipulating. I think once you get to that level of wealth and success flexing your power is probably one of the few interesting activities you have left.

      •  

        Musk is one of the greatest hypocrites, makes electric cars and claims sustainability, then buy butt coins that are fueled by the dirtiest energy in the world….

    • +2 votes

      Should hack Elon’s Twitter, post something about Bitcoin crashing, and then buy it

      • +5 votes

        Just make a post on reddit and frame it as class warfare.

  • +11 votes

    its been going straight up for like 3 months, so chill. a pullback is healthy.

    • +1 vote

      Yeah, Bitcoin has put on 400% year to date. Daily movements of 10% are not particularly new to Bitcoin

    •  

      No it must go up in a vertical line.

  • +5 votes

    Our master and commander. Lord Musk

    • +1 vote

      Yep, bozo said it was to expensive

      • +14 votes

        it was toO expensive

        fixed…

        •  

          Coool

          • +19 votes

            @hm:

            Coool

            fixed…

            • +9 votes

              @jv: Noice

        •  

          Don’t be toO harsh

        •  

          o_O

      • +1 vote

        BTC started dropping 2 days after his tweet.

        Seems like a pretty damn slow response, for a tweet to be the culprit.

        •  

          Correct, any reason why?

  •  

    Assume a group of people decides to cash out, so other people are buying at lowering prices. Interesting to see how many coins do these people own.

  • +5 votes

    It's not "crashing" pullbacks are normal and healthy. We're objectively in a bull market. Volatility can be your friend or enemy depending on your appetite.

    A wise investor/trader quoted this:

    In a bull you buy the meme/pumpamental.
    In a correction you buy the fundamental.
    In a bear you do not buy.

    • +1 vote

      In a bull you buy the meme/pumpamental. ☑️
      In a correction you buy the fundamental. ☑️
      In a bear you do not buy. ❌

      Sell when new 💵 are buying and accumulate when they capitulate.

  • +19 votes

    And an even wiser investor said.

    You will always know after the event

    It was a Bull Market
    Or
    It was a Bear Market
    Or
    It was a correction.

  • +6 votes

    Crypto's have no intrinsic value at all so it is a real punters market.
    If you thought share and/or currency trading was a mugs game for the retail punter, crypto's take it to a whole new level.

    • +7 votes

      Crypto's have no intrinsic value

      Neither do $100 notes…

      • +2 votes

        Paper notes can be used to make 👏 🎒.

        https://images.app.goo.gl/ecYPzJ9wzYhZ1ssu6

        • -3 votes

          We don't use paper notes anymore…

        • +3 votes

          Clapping post boxes???

          • +1 vote

            @buckster: They look different on a droid. It should be hand + bag.

      •  

        At least if they went to zero you could use them for wall paper.

      •  

        Yes they do, anyone will accept a $100 note and you get your money's worth. Good luck paying someone with $100 of bitcoin, you'll be looking at about 0.01% of the population accepting that as a form of payment.

        • +11 votes

          You cannot pay with Euros in Australia, by your logic that means it has no value. What people are trying to say is that you trust that 100$ has value, that is why it has, if you would not trust it… it would have no value.

          • +1 vote

            @misu p: Please see my long response below why $100 is accepted as value.

          •  

            @misu p: But you can pay for stuff in EU with Euros. In the EU 0.01% accept Bitcoin. Bitcoin is like some kind of inside joke. There is value but actually it's value is derived from currencies people are willing to pump into it.

        •  

          anyone will accept a $100 note and you get your money's worth.

          People will only accept 💵 if the government says that the number is worth the paper it is printed on.
          https://www.bbc.com/news/av/world-asia-india-37921673

          India currency ban: Who will take this money now?

          India currency ban: Who will take this money now?
          Close
          The BBC’s Justin Rowlatt tries to use 500 and 1,000 rupee notes in Delhi after they were banned by the Indian government in a crackdown on illegal money.

          • -3 votes

            @whooah1979: Comparing Australia to India… bahahahaha

            • +2 votes

              @TilacVIP: BTC is global. It doesn't recognise borders or governments. It's a step forward for people that want to do permissionless and immutable transactions.

              • -2 votes

                @whooah1979: Talking about the $100 note comment. It's safe to say that will be accepted worldwide for at least our lifetime.

                • +2 votes

                  @TilacVIP: Of course, the 🇦🇺 government says that an AUD 100 note is worth AUD 100.

                  Can people still use it when 🇦🇺 moves to a CBDC like 🇨🇳 is doing?

                  • -1 vote

                    @whooah1979: It's safe to say for now and the next 20 years, in one form or another…Yes people will in my opinion.

          • +1 vote

            @whooah1979: The Indian government was accepting them back at banks before the ban. During this period they still had value until the government stopped accepting them back. They didn't have value any longer because the person holding them didn't exchange them before they were no longer being accepted. Remember it was the Indian government who issued them to begin with so they can decide when they will no longer accept them back. You make it sound like all of a sudden they were worthless which was not the case.

          •  

            @whooah1979: BBC is a joke. And this article is another attempt at spewing hate about India.

        •  

          About 90% of the population are morons - so what most people would do is irrelevant.

          I would love it of people started paying me in BitCoin instead. If I had been paid in Bitcoin for the past 12 months instead of dollars, I would have made over a million dollars last year. Oh well, back to the salt mines we go

    • +4 votes

      Exactly, finally someone that gets it. All smoke and mirrors coupled with FOMO to create "value"

      • +1 vote

        You have no idea.

  • +1 vote

    Why is Bitcoin Crashing

    Because Elon Musk opened his mouth…

  •  

    Crashing?

    Hardly, just a healthy pullback and has bounced almost 50% from that. I was expecting it to head back to the 40K USD area before heading up again. Just for reference, Telsla made more money in the last few weeks from BTC that they have on their whole car production combined. Once other corporations figure out they can make more profit the same way instead of adding value to their products and services then the things will REALLY take off.

    • +4 votes

      So, more corporations will start to 'invest' in non-core pursuits?
      Not everyone will make a profit, so who will the losers be?

      • +2 votes

        so who will the losers be?

        Nocoiners.

        •  

          Because those corporations that make a loss, will try to recover that from their customers?

      • +1 vote

        Well a lot of them haven't been doing much apart from share buybacks for the last few years with cheap credit. Makes the share price look good but no money is going into R&D and production. If they can make the bottom line look good just through investment in crypto then they will. Shareholders get a win on the SP and performance based CEOS get their bonuses because the SP 'looks' good.. Look at intels (and other tech corps) latest cap-in -hand approach to the government they're crying poor because they put all their prfits into buybacks instead of R&D.

        This guy has some thoughts: https://www.youtube.com/watch?v=c6DmQxBlXms

        •  

          I found George Gammon on Valuentertainment not long ago. He quite good with his macro.

    • +9 votes

      This is honestly one of the worst takes I've read in a while. So you're suggesting that businesses should abandon or de-prioritise their core products/services (i.e. how they sustain themselves and why they incorporated as a business in the first place) and become crypto speculators?

      Telsa can get away with it because Elon is Elon. Other CEOs would get collectively skewered by their customers, employees and shareholders.

      • +3 votes

        BTC is Tesla's side hustle.

      • -1 vote

        No I'm not suggesting it, that's what's happening already. For now at least.

        • +7 votes

          My head hurts reading your comments, and is the reason why we need economics and finance taught at some low level at schools.

          Businesses need to keep doing what they do and sharing their profits with shareholders. They do not need to speculate on alternative assets, effectively turning them into hedge funds.

          • +2 votes

            @Lineone: Sure, I agree, so why all the negs?

            • +1 vote

              @EightImmortals: For all the neggers.

              https://www.techradar.com/news/tesla-has-already-made-dollar...

              “Tesla is on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020. While the Bitcoin investment is a side show for Tesla, it’s clearly been a good initial investment and a trend we expect could have a ripple impact for other public companies over the next 12 to 18 months.”

              Share buybacks (3 minutes)

              https://www.youtube.com/watch?v=VBiApaw2sJc

              • +4 votes

                @EightImmortals: For those who don't know what Tesla's mission is:

                Tesla's mission is to accelerate the world's transition to sustainable energy. Tesla was founded in 2003 by a group of engineers who wanted to prove that people didn't need to compromise to drive electric – that electric vehicles can be better, quicker and more fun to drive than gasoline cars.

                Not sure how using a highly energy inefficient commodity works to that core mission. If it wasn't Elon, people would probably be trying to overturn the board, as the corporate governance must be lacking.

                •  

                  @Lineone: Oh is that their mission, the profits are just a side motivation lol

                • +1 vote

                  @Lineone: Bitcoin only survives because of dirty energy

          •  

            @Lineone: It would be fairly arrogant and foolish for corporates to ignore blockchain and crypto benefits.
            It would be like when nokia ignore touchb screen phones or xerox ignored the first network pc right in their office

            •  

              @funnysht: What's a Nokia? Is Xerox going to be blockbusted post-Rona?

    • +3 votes

      So you're suggesting that a lot of entities will stop making things and start putting all their money into an asset with no underlying value? If that's the case then the world is in trouble.