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Last post 24 months ago by rfenst. 28 replies replies.
Crypto takes a BIG Dump! Where's BGZ?
RayR Offline
#1 Posted:
Joined: 07-20-2020
Posts: 8,796
I hope he's OK.. Anxious

Crypto investors panic during market bloodbath: ‘I will lose my home’

By Thomas Barrabi and Theo Wayt
May 12, 2022

Quote:
Crypto investors panicked on Thursday as bitcoin plummeted to its lowest price in more than a year and other cryptocurrencies endured even worse sell-offs.

Victims of the bloodbath — which comes amid a broader stock market rout — range from the billionaire crypto titans who run leading marketplaces such as Coinbase and Binance to lowly retail investors who have poured their life savings into cryptocurrencies.

“I lost over 450k usd, I cannot pay the bank,” reads one of the top posts on the Reddit forum for Terra Luna, a cryptocurrency that has lost more than 99% of its value over the past week. “I will lose my home soon. I’ll become homeless. suicide is the only way out for me.”

More...

https://nypost.com/2022/05/12/crypto-investors-panic-amid-digital-coin-bitcoin-crash/
MACS Offline
#2 Posted:
Joined: 02-26-2004
Posts: 79,593
I don't think Ben will lose his house. He's got a job and stuff. I think crypto was more of a hobby.

At least I hope so.

I've had half my investments in a fixed account and half in the market for a while now and it has still dropped quite a bit this year. When it dove in 2008... I wasn't invested very much but I did learn that if you just leave it the hell alone... history has shown that it will come back. You have to wait it out.
delta1 Offline
#3 Posted:
Joined: 11-23-2011
Posts: 28,754
I am currently under deeper water than in 2008...but as has happened many times in the past, the American economy has strong fundamentals and will recover...like MACS said, "hang on"

this recovery may take a while longer because of the pressures caused by supply chain issues and the disruptions due to the Russia Ukraine War...and we're not even into the fire season yet
Dg west deptford Offline
#4 Posted:
Joined: 05-25-2019
Posts: 2,836
Never played with crypto
Different trading models right now as I remodel Kitchens for a living
METC is in a channel bought the bottom at 14 today will sell at 20 again (although I'm in for the dividend date so I may hold this through disbursement)

Who doesn't love a sexy coal mining operation on a thick vein in PA?

Unless SQQQ shorts crypto than I guess I do play crypto?
HockeyDad Offline
#5 Posted:
Joined: 09-20-2000
Posts: 46,065
He said thick vein.
bgz Offline
#6 Posted:
Joined: 07-29-2014
Posts: 13,023
Appreciate the looking out, but Shawn is right...

I got a job and stuff, it does this sh*t, I just start drooling and start buying more crypto.


Between that and stocks this morning, I bought so much my finger got sore.
Plowboy221 Offline
#7 Posted:
Joined: 03-03-2013
Posts: 5,133
I lost a real doll’s worth of money in crypto…. I knew I should have just bought the real doll would have been a much smarter long term investment. 🤦🏼‍♂️
Mr. Jones Offline
#8 Posted:
Joined: 06-12-2005
Posts: 19,359
Who cares?

I have zero...so I lost zero...

Those TWO IDIOT TWIN MULTI-MILLIONAIRES WHO SUED MARK ZUCKERBERG AND WON A SMALL BUT DECENT SETTLEMENT WERE LIKE 80%or more invested in Bitcoin were smiling ear to ear last year....now???
Not so much ...

They lost their ASSES if they held on too it ....
How stupid can you be???

I'll Google those two idiots and report back.
Mr. Jones Offline
#9 Posted:
Joined: 06-12-2005
Posts: 19,359
Ok

Reporting back

The WINKLEVOSS TWINS who sued Zuckerberg....

Have "E.A.C.H. LOST $2.2 BILLION DOLLARS " IN THE LAST FEW WEEKS....

EACH HAS LOST 40%OF THEIR FORTUNE'S......


WAAAAA
WAAAAAAA
WAAAAAAAAAAA

I'LL prolly see them poaching my trash day run area and trying to hit the same dumpsters I do at 5a.m. while I'm still in the rack....

Damn those WINKLEVOSS twin bastids!!
BuckyB93 Offline
#10 Posted:
Joined: 07-16-2004
Posts: 14,111
The cryto market is incredibly volatile. High risk, high reward and/or loss - it just like any investing or gambling.

I'm not much of a gambler but I tossed in a little money (like $500 hundred) in some of the more "stable" coins like Bitcoin, Ethereum, ChainLink, Cardono just to watch it and see what it's going to do. Last year my little purse it ran up to about 60% gains then started sliding down. I cashed out my initial seed money plus $100 in "winnings" and left the the rest stay there and let it ride using house money. I think it's at about a grand total of $100 sitting out there.

A lot of people made a lot of money off it. A lot of people lost a lot of money off of it. This is the way things go when you gamble.

CoinBase (one of the larger bitcoin trading platforms), floated this reality out last week when they filled their quarterly SEC filings.

"Cryptocurrency trading platforms might look and feel like regular brokerage apps to everyday users, but regulators have long warned they lack the oversight and investor protections that are built into traditional financial services.

Coinbase Global Inc. acknowledged that reality this week. In its quarterly filings, the crypto trading firm suggested that the digital tokens it holds for its users might not really belong to them if push comes to shove.

'Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings, and such customers could be treated as our general unsecured creditors,' the company said."

https://www.wsj.com/articles/coinbase-says-users-crypto-assets-lack-bankruptcy-protections-11652294103

If you have your crypo $ held in places like Coinbase and Robinhood, you don't actually hold anything. Technically they have it and it's not backed by anything. Your crypo money can evaporate overnight and you'll have little recourse in trying to get it back. If a place like Coinbase goes bankrupt, then you'll have to wait inline like all other creditors to try to get something, if anything, back from them after the bankruptcy gets settled.
rfenst Offline
#11 Posted:
Joined: 06-23-2007
Posts: 39,100
For better or worse crypto will be the the new world currency in our lifetimes. Better to figure it out earlier (now) rather than later.
frankj1 Offline
#12 Posted:
Joined: 02-08-2007
Posts: 44,211
rfenst wrote:
For better or worse crypto will be the the new world currency in our lifetimes. Better to figure it out earlier (now) rather than later.

OY!
you remember that I was Frankie FlipFone like for evah?
That changed, this is worse!
Sunoverbeach Offline
#13 Posted:
Joined: 08-11-2017
Posts: 14,586
So, say we hit that point, but you're in an area where you don't have signal. For transportation, are the only payment options grass & a$$ then?
MACS Offline
#14 Posted:
Joined: 02-26-2004
Posts: 79,593
In a world where we're demonizing fossil fuels... and nothing else can keep up to make enough energy... we won't have cars to drive with no gas, and we won't have power to charge the electrics.

Muh fuggers with horses are gonna run this place!
Sunoverbeach Offline
#15 Posted:
Joined: 08-11-2017
Posts: 14,586
So grass will be a viable option
BuckyB93 Offline
#16 Posted:
Joined: 07-16-2004
Posts: 14,111
rfenst wrote:
For better or worse crypto will be the the new world currency in our lifetimes. Better to figure it out earlier (now) rather than later.


For me, here is the issue with crypto being more widely accepted and used in normal everyday money transactions. It will come down to if the big guns (governments, regulation agencies, financial agencies) can try to regulate it. Let's set aside blockchain technology for the minute - crypo is based on blockchain but blockchain is deeper than just crypo.

Crypo has a foundation of being a decentralized form of currency. It's unregulated. This doesn't sit well with regulatory authorities like the SEC. These regulatory agencies do have a point and provide a service - some level of reassurance and protection that your money doesn't dry up overnight and those companies that hold you money are on the up-and-up (to some level).

So it's a conundrum. How do you regulate a financial industry that has a foundation of not being regulated? How do you protect the user/consumer from their money just drying up overnight? If your bank closed it's doors tomorrow, you still have insurance that your money with them is not flushed down the toilet. This is not so in the crypto market.

The Federal government already has been making moves in that direction. When doing you're income taxes, there is a section on the 1040 form with form 8949 where you are supposed to enter profits/losses from crypto trading. Crypto exchanges are also supposed to provide you with a 1099-K form.

Canada approved a Bitcoin ETF back in 2021 (?) for trading on the Canadian stock market.

https://www.barrons.com/articles/bitcoin-etf-canada-sec-51645226649.

There have been numerous attempts to do so on the US stock market (I think Fidelity, Vanguard, and VanEck tried) but so far the SEC rejected them. (https://fortune.com/2022/01/28/when-will-bitcoin-etf-make-stock-market-fidelity-sec-metaverse/)

There are a couple ETF's that have been approved and are traded on the NYSE but they are not directly crypto coins but Bitcoin "linked" type of assets using Bitcoin futures and stuff.

ProShares has one with the ticker BITO (https://www.proshares.com/our-etfs/strategic/bito/). I think Fidelity put together one too (https://www.investopedia.com/investing/why-fidelity-got-bitcoin/)

Let's not be naive. These big banking and investment institutions have their finger on the pulse of crypto and likely have been mining coins their own just waiting to get the SEC to give the OK.

It's still a bit murky but once the SEC and other regulatory agencies can find a way to regulate the unregulated crypo market and get a slice of the pie, it will become more mainstream for everyday transactions.
izonfire Offline
#17 Posted:
Joined: 12-09-2013
Posts: 8,642
Another ideal vehicle of market manipulation for those in control.
Another reason to lose faith in this pathetic system…
bgz Offline
#18 Posted:
Joined: 07-29-2014
Posts: 13,023
Sackless... or I'm a dumb azz, one of the two.

Hey, I just figured out how to buy LUNA!!!
HockeyDad Offline
#19 Posted:
Joined: 09-20-2000
Posts: 46,065
California Governor Gavin Newsom signed an executive order on Wednesday that lays the groundwork for bolstering and regulating the cryptocurrency industry in the state (via CNBC). As outlined in the executive order, Newsom’s goal is “to create a transparent and consistent business environment for companies operating in blockchain,” that balances “the benefits and risks to consumers.”

The executive order calls upon the California Governor’s Office of Business and Economic Development (GO-Biz) to collaborate with the state’s Department of Financial Protection and Innovation (DFPI) and Business, Consumer Services and Housing Agency (BCSH). Together, the state agencies are tasked with devising “potential blockchain applications and ventures,” which could include applications in the “private sector, academia, and community.”

It also orders the DFPI to shape a regulatory approach to cryptocurrency, create consumer protections, as well as produce educational materials that inform California’s residents about both the risks and benefits associated with cryptocurrencies. The order specifically says the materials will “include information about how to avoid scams and frauds,” one of the major concerns about crypto.
MACS Offline
#20 Posted:
Joined: 02-26-2004
Posts: 79,593
^Yeah... I'm certain NewScum has "the people" in mind.

HIS people only.
HockeyDad Offline
#21 Posted:
Joined: 09-20-2000
Posts: 46,065
Newsom’s got just the right tax for that!
BuckyB93 Offline
#22 Posted:
Joined: 07-16-2004
Posts: 14,111
I'm not a proponent of big government. With that said, there should be some degree of regulation to try to expose scams and ensure that the companies that are traded on the open market have some level of transparency. I get it, buyer beware but pyramid & Ponzi scams are all around us and should be exposed for what they are.

Remember the Enron scandal in the early 2000's? The Sarbanes-Oxley Act was spawned mostly as a result of shady company.

Besides, the only legal Ponzi scheme is Social Security (which we are all forced to contribute to) and the government doesn't like competition.
rfenst Offline
#23 Posted:
Joined: 06-23-2007
Posts: 39,100
I just think crypto, being the/an influential source of money, that we have no choice but to adopt it. The Treasury and Fed will end-up involved to try to maintain control of the money supply and value of the dollar. Therefore, regulation will ensue- but not as fast as it could.
Sunoverbeach Offline
#24 Posted:
Joined: 08-11-2017
Posts: 14,586
If they figure out how to regulate crypto, doesn't that take away some of the selling points that got people into crypto to begin with?
rfenst Offline
#25 Posted:
Joined: 06-23-2007
Posts: 39,100
Sunoverbeach wrote:
If they figure out how to regulate crypto, doesn't that take away some of the selling points that got people into crypto to begin with?

Yes, but nevertheless.
I mean, how could government survive without the ability to tax transactions. Treasury, Fed and IRS will eventually take control of all U.S. crypto transactions. Congress is just behind the times on this already.
MACS Offline
#26 Posted:
Joined: 02-26-2004
Posts: 79,593
rfenst wrote:
Yes, but nevertheless.
I mean, how could government survive without the ability to tax transactions. Treasury, Fed and IRS will eventually take control of all U.S. crypto transactions. Congress is just behind the times on this already.


Wrong way to think, IMO. How did the gov't survive before income tax? Property tax? Etc, etc... and now they've grown way too big and way too spendy. They give zero sh*ts how they spend OPM... they just know they need more of it.

I say cut taxes and quit your frankin' overspending.
Whistlebritches Offline
#27 Posted:
Joined: 04-23-2006
Posts: 22,127
MACS wrote:
Wrong way to think, IMO. How did the gov't survive before income tax? Property tax? Etc, etc... and now they've grown way too big and way too spendy. They give zero sh*ts how they spend OPM... they just know they need more of it.

I say cut taxes and quit your frankin' overspending.



Sounds like a little "Tea Party" might be in order............I'm all in.


BTW wifey and I bought a schit ton more crypto yesterday.............Just couldn't pass on those prices.
rfenst Offline
#28 Posted:
Joined: 06-23-2007
Posts: 39,100
MACS wrote:
Wrong way to think, IMO. How did the gov't survive before income tax? Property tax? Etc, etc... and now they've grown way too big and way too spendy. They give zero sh*ts how they spend OPM... they just know they need more of it.

I say cut taxes and quit your frankin' overspending.

I never said spending too much is a good thing.
But, if we are going to continue down the same paths as the last 75 or so years, it is simply inevitable for government to get involved so it can keep track of and taxable transactions the exact same way it presently does with digital financial transactions and currency transactions.
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