re: Official CryptoTalk Thread

Bottom of the descending channel we are in is around 56k, so this swing could fall that far and not invalidate any set up.

That was a pretty strong rebound off 62.5. It’s actually gonna close green after that dip.

We can drop to 56k and be fine, but I’m not sure we will.

We’ll look back and wish we had bought more at these levels.

I don’t think you buy, hold and forget, but BTC, which is in its early stages, is as close to buy, hold and forget as I’ve seen in my lifetime.

Range could go down to 55 right now. I was skeptical but there are some strong macro forces at play. A trip below 60 wouldn’t surprise me.

August is also historically a slow month for btc. I read somewhere the most it’s gone up in August is like 2% all the way back to 2013.

So, I wouldn’t be in a rush to buy a bunch within the next couple weeks.

It’s going to depend on the Israel/Iran stuff.

There may be another leg down if that goes hot.

Right in the zone

I'm new (and late) to trying to understand crypto, but I've been listening to a lot of podcasts and YT videos over the past week to try to understand it. I'm becoming more excited about it the more I learn, but I have two questions holding me back. I'm sure these are pretty basic ideas that have been discussed for years now so I didn't want to create a new thread.

1. Can anyone explain what happens when all BTC is mined? Will transaction fees become unsustainable? I watched a couple YT videos on this topic but the guys just dance around the question and essentially say we'll worry about it later.

2. There seems to be a catch-22 regarding BTC ever being regularly exchanged as a currency for goods and services. It will only be exchanged for g&s when the value of BTC is no longer increasing. Without being able to inflate bitcoin, I cannot see people ever using it as a means of exchange. If it ever were to stabilize and people were to start exchanging it for goods and services that would likely lead to the value of BTC increasing again, which would cause people to return to hoarding it.

I don’t think anyone thinks BTC will be used to pay for goods or services. Other cryptocurrencies could possibly be in the future. The BTC technology just doesn’t allow it to be feasible. Is that what you are asking? Or are you asking what gives BTC its value?

I think I get what you’re saying.

You’re saying that the thing that gives BTC its value also means you kind of need someone to make sure a currency stays inflationary and does not deflate.

You are correct in this- the fed is scared shitless of deflation and it should be. Our economy is debt-based, and deflation would crush it. Debt-based economies have to have some inflation.

New, cheaper debt pays for older, more expensive debt.

Even if our economy wasn’t debt-based, simple game theory would demand any currency that does not inflate would be hoarded and only used when absolutely necessary. Not a great recipe for economic development.

Thats exactly what I'm getting at. We would just go right into a depression, so the problem that bitcoin "solves" is actually a necessary evil and can only exist along side another global reserve currency that a central bank can control