re: Why is crypto crashing?

If you’ll accept Ethereum as currency for your house then you run a very serious risk of devaluation of that currency after acceptance. Not sure why you’d want to take that sort of currency risk.
I suspect you never would but like to talk tough on the internet. It’s also possible that you don’t own a house. It’s highly likely that you don’t have others depending on you for their financial well being .

Maybe I’m wrong though. I just know I’d never have someone like you making important financial decisions for any of my concerns.

quote:

---

Are you one of those horrible investors that keeps the bulk of their money in a bank savings account? Or is the bulk of your money in stocks or housing which also have risk of devaluation?

---

I have over 40 years of investment experience in stocks, bonds, options, real estate and other vehicles.
I have been through a lot and some are hard lessons. I have had some great success to though.

I’ve invested in some very risky stocks. I went through the dot com bubble and learned a lot there as internet stocks with no earnings were shooting through the roof. I had some of those. Don’t even remember the names. They went up because everyone was doing it…and buying beget buying.
I also had Enron and worldcom which taught me some tough lessons.

A couple of very poignant lessens for me-

I had a close friend who got me into the ground floor in his company. The guy was a financial wiz and generally well respected. He went public and the stock shot up over 400% in a few years. I was very very rich on paper. Until I wasn’t. I didn’t unload because he said more great things were to come. I did sell some though.

He was found to be cooking the books and lying about accounts which didn’t exist. Very discouraging. Stock went to zero. I got more than I put in but nothing compared to what it was worth at one point. Very hard lesson!

Then @ 2005, I sat through an investment pitch with one of Sir Allen Stanford’s top salesmen who was pushing investment with his stanford group and their “cd’s” which we’re getting close to 8% while other cd’s were getting 3%. I questioned it at the meeting. I put the salesman on the spot. I had friends there who were embarrassed by my questions and got angry as I doubted it. They invested with “sir” Allen Stanford and bragged for years about their returns. Turned out to be a Ponzi scheme… It was sad to see what happened but taught me to trust my instincts.

Despite it all, I very much have trust in the markets and real estate. I’m definitely not risk averse. Just more critical.
With crypto currency (not blockchain), I am very skeptical and I encourage you and others to be also. Just be critical. Scrutinize. Ask questions.
The initial question was why is crypto currency crashing and I think I know why. It’s not used widely enough to be considered a legit currency so it’s subject
to wild fluctuations in value. It hasn’t got the base from which to give it real value. I wish it did because I love the idea of a crypto currency. Currency of any sort should not trade with the volatility of a crypto currency be it Ethereum or Bitcoin.

Crypto has become an “investment” for reasons that lack fundamental underlying value. So it’s volatile. Be careful.

Accepting it as a currency for anything of substantial value is an incredibly dumb decision. This isn’t my offhand opinion. Plenty, with more intelligence and experience than me feel the same.

And if I miss the next “big thing”,‘ it’s okay. I’ll live. I’ll continue to invest in what I know and trust. And while returns are tough now, its okay because I have time.

You can do what you want but you can’t say that you’ve not been warned about potential risks.

all i got over your 10 page thread is this

quote:

---

Just a few examples that come to mind.

---

Of course there have been some volatile currencies and I avoid those too. I would not take any of those currencies in exchange for anything that I value. Same with crypto currencies for the exact same reason.
I need the currency that I accept to be as stable as possible and cannot think of any reason to not accept the USD as currency for just about anything that I’m selling.

Trading currencies including crypto currency is a different issue.

People at WEF were shitting all over crypto

quote:

---

I would caution you that if you aren't in by the end of this crypto winter you may be left behind, failing to adapt to a changing world.

---

I don’t particularly have a dog in this fight, but I’m confused by this claim. If crypto (in general) is to become part of a robust and accepted system for payments, why would it be necessary to be “in” by the end of the crypto winter?

OK. I see what you mean with respect to it being a tradeable asset. But with respect to it being a (true) currency and part of the robust and accepted payment system that I mentioned, I wouldn’t be buying it for that purpose. If my saleable goods in the U.S. were priced in XYZ crypto (say, replacing the $), its value versus say, the Euro, wouldn’t really matter to me as a domestic seller.

It’s all good. I was just curious about the statement about getting in early.

quote:

---

I read earlier where Vitalik is now saying the merger is coming in August. Can anyone give me a few cliffs on the effect that would have on Eth and the broader market? Would it be enough to ignite any type of rally?

---

well theyve been saying its coming for years, but it does seem like its going to be reality soon. although there still has to be a lot of testing done and problems could develop causing it to be delayed into 2023 or beyond.

as far as broader market it will push immense hashrate into other minable coins. some networks might not be able to handle he shift. it will make some of those coins unprofitable to mine which may cause increased buying pressure as they become cheaper to purchase than to mine. the merge will probably wreck analysis of coins for a while until the dust settles and new price discoveries for those coins occur. it could be good or bad, no one really knows there's only speculation.

imo the merge (if succesful) will suck for eth, but im not so big of a fan of PoS and think it would be better off remaining PoW, so theres some bias acknowledgement. I think some stakers will have their eth locked up unable to sell and when unlocked many will sell. if the merge fails then it will be a disaster for the eth ecosystem.

If it's true that:

quote:

---

Crypto doesn't have TRADITIONAL fundamental value

---

What the guys questioning crypto as an investment are wondering is, what is the specific reason for this:

quote:

---

some tokens [have] much more fundamental value than others

---

I'm admittedly ignorant on the topic and would legitimately like to know the answer, if one can be given. I've always seen crypto investing as the greater fool theory in action with some high-tech flair to get people excited. It's made a ton of people a lot of money, but IF the music ever stops there will be some real pain.

I also don't understand how USDC can yield 10% when even terribly rated bonds aren't paying that much. If you are recognizing that the 10% yield comes with some substantial risk, then that would make sense but it doesn't seem like that's your position.