Is the crypto crash a buying opportunity?

by philg

Bitcoin and Ethereum have been down lately, right?

Could this be the right time to buy for those of us who have mostly missed the cryptocurrency wave?

I recently heard about an alternative to Bitcoin that is also popular with criminals seeking ransom. Here are the characteristics:

  • administered from central server
  • no limit to supply
  • 25 percent of the supply minted in last 6 months
  • 1 percent of holders control 30 percent of the currency
  • 27 trillion units circulating in the system

A good time to jump in?

16 thoughts on “Is the crypto crash a buying opportunity?”

  1. Yes. IMO still many months to go in this market cycle.
    ~ Signed “bag holder from 2015”

    Do tell about this intriguing alternative 🙂

  2. There are reports that most of the bitcoin mining is in China, and China is about to ban it. If so, we could be looking at a much bigger crash.

    • Bitcoin doesn’t need the Chinese miners. Nodes in other countries should be more than sufficient for the blockchain. Chinese selling their coins may be an issue, don’t know how big, but not the end mining in China.

    • I’m guessing those Chinese companies that developed the Bitcoin ASICs for their own use will ship them to some other country that has cheap electricity (like Inner Mongolia’s coal-fired one) but at the same time does not care much about global warming. Russia or perhaps one of the former Soviet ‘stans seems like the only option. Or maybe the DRC if they ever build the mega dam on the Congo.

      I don’t think governments will ban cryptocurrencies though. The advantage for them of having major criminals use an easily traced (for nation-state level actors) means of financial exchange instead of untraceable cash is quite valuable. I wouldn’t be surprised if the guys behind the Colonial Pipeline ransomware attack are discreetly nabbed and sent to Gitmo when they leave Russia to vacation with their ill-earned gains.

  4. Forget crypto, the currency of the future is tulip bulbs. Surely history (tulip mania) can’t repeat itself, and this time is different, right?

  5. Suspect Elon will introduce a new currency instead of trying to modify dogecoin or bitcoin, the same way he made a car from scratch after trying to modify a Lotus. This has been his entire focus for the last 3 weeks. The new currency will become the universal universal currency & he’ll have the government by the balls.

  6. @philg

    As I’ve repeated said in the past – the guys who did really well in 1945 Berlin were the ones with current experience in high velocity gas dynamics and/or rocket structures, gnc, and propulsion.

    And not the guys with a trunk full of Vermeers in the staff car.

    If you’re projecting a discontinuity in the heretofore stable life in these United States, arrange your affairs accordingly. Recent experience teaching at the Institute or the lesser preparatory college for sociopaths further up Mass Ave may be more valuable than your current weightings would indicate.

    • Yes, when average annual income tops $10,000,000 million under Dear Leader Hunter Biden and price of gas tops $5,000 per gallon and ever increase, ever-increasing by-weekly cash handouts from institutions of mandatory higher learning of touchy-feel “sciences” (which would all become “social”) would become necessary to survive for those who themselves can not fix a roof and plumbing or grow beets and potatoes.
      At that moment likes of Wernher von Brown who was interned at a US rocket research facility and was given quarters to live and something like $20,000 / year salary will seem financial giants.
      But if decadent bourgeois class survives in fenced of Greenwich CT, Swiss Alps and secret British enclaves Vermeer is poised to do much better.

  7. In order to know if this is a “buying opportunity” you would have to know what it is worth. How would you figure that? And what are you going to do with it? — can’t use it to buy groceries, pay the rent or fill the car with gasoline. Hope that in the future someone will be willing to pay more than you paid and you can unload it on him? Also, “the alternative” has issues but has never lost about 25 percent of its value in two weeks. And the parade of horrors re the alternative are well known and therefore already priced in & the price can be seen in say US treasuries, say the 10 year, which the last i checked were yielding around 1.6% & the break even is around 2.5% which seems to be about average for the last 15 or so years.

  10. I bought a few shares of Coinbase stock (COIN) just to get a taste. You might consider that.

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