Cryptocurrency

[iam90sbaby 2,125]

If you told me in 2017 that Bitcoin would lose 20% of it's value and crash to 40k I'd have told you you're crazy. 

[Frozenbeernuts 1,652]

17 minutes ago, nobody said:

You're way too hung up on inflation.  Do you realize what happens without inflation?

Normally you buy a house for $100k with a loan.  Inflation helps that house increase in value so that both the lender and home owner make money.  

In the case of no inflation, eventually you'll run into a deflationary cycle.  In other words, instead of that house costing $100k, you can buy it for $90k.  Now the home owner is motivated to just walk away from mortgage.  In other words, the 2008 housing crisis.

So yeah, let's remove inflation from the economy.  It will just plunge the entire world into an unrecoverable depression.  That sounds fun.

Inflation makes you believe the value on your house goes up, but in the end the price of everything just increases. What happens when you sell your house? You typically buy another one. That one is now more expensive because of inflation so you spend more

If people make so much money on all houses because of all of this beautiful inflation, why is our buying power at an all time low?

Inflation forces the money out of our pockets and into the rich who own the goods we buy and the government. There is a reason that we just went through and are going through the largest transfer of wealth to the rich this country has ever seen

[JustinCharge 2,397]

its impossible to not have inequality because too many people are terrible at math.  if you are skilled at math, you are much more likely to get ahead to matter what.  it is what it is.

[Cdub100 3,382]

2 hours ago, peenie said:

That's better but still too much lingo. 

You borrow money to buy something. The bank says hey that thing is now worthless. Give us our money bank.

[nobody 2,044]

1 hour ago, Frozenbeernuts said:

Inflation makes you believe the value on your house goes up, but in the end the price of everything just increases. What happens when you sell your house? You typically buy another one. That one is now more expensive because of inflation so you spend more

If people make so much money on all houses because of all of this beautiful inflation, why is our buying power at an all time low?

Inflation forces the money out of our pockets and into the rich who own the goods we buy and the government. There is a reason that we just went through and are going through the largest transfer of wealth to the rich this country has ever seen

Doesn't matter though.  The fact that you got the loan and the debt essentially became less because of inflation is what makes the housing market and really all capital markets run.  Without that slow drip of inflation the capital markets will eventually seize up in a cycle of deflation.  Why would anyone lend money when it'll be worth more by just holding it and people will just walk away from the debt.

I wouldn't call this economics 101, but it's probably the first week of economics 102.  

[MTSkiBum 1,594]

1 hour ago, nobody said:

You're way too hung up on inflation.  Do you realize what happens without inflation?

Normally you buy a house for $100k with a loan.  Inflation helps that house increase in value so that both the lender and home owner make money.  

In the case of no inflation, eventually you'll run into a deflationary cycle.  In other words, instead of that house costing $100k, you can buy it for $90k.  Now the home owner is motivated to just walk away from mortgage.  In other words, the 2008 housing crisis.

So yeah, let's remove inflation from the economy.  It will just plunge the entire world into an unrecoverable depression.  That sounds fun.

This.

 

We have had practically no inflation for the last few years, 1-2 years of 4% inflation would probably be good for the economy. At least some economists that i have read think so.

[Frozenbeernuts 1,652]

23 minutes ago, MTSkiBum said:

This.

 

We have had practically no inflation for the last few years, 1-2 years of 4% inflation would probably be good for the economy. At least some economists that i have read think so.

The problem is that over a long enough time frame every currency eventually inflates out of control. Its inevitable. So we cycle through this misery where people get screwed over and over, or we change it

So if inflation is so spectacular, why did we just see the largest transfer of wealth to the wealthy in our history? That's a good thing? Your buying power is garbage and it's getting worse.

The liberals don't even need to raise taxes. They just raise inflation which is essence a tax increase, only its much more damaging to the economy

And the reason inflation came to a stand still was because of the sub prime loan crisis that the government fed, bred, and perpetuated. We still haven't payed that off. How do we pay that off at this rate?

[MTSkiBum 1,594]

4 minutes ago, Frozenbeernuts said:

The problem is that over a long enough time frame every currency eventually inflates out of control. Its inevitable. So we cycle through this misery where people get screwed over and over, or we change it

So if inflation is so spectacular, why did we just see the largest transfer of wealth to the wealthy in our history? That's a good thing? Your buying power is garbage and it's getting worse.

The liberals don't even need to raise taxes. They just raise inflation which is essence a tax increase, only its much more damaging to the economy

And the reason inflation came to a stand still was because of the sub prime loan crisis that the government fed, bred, and perpetuated. We still haven't payed that off. How do we pay that off at this rate?

 

There have been other inflationary periods in US history followed by strong economic growth. Inflation is not end of the world. Inflation usually comes with wage growth as well, so you will not lose spending power. Lets see how wage growth goes in the next year or two.

 

Edit: Wage growth did match inflation.

Wages in the United States increased 4.41 percent in March of 2021 over the same month in the previous year

https://tradingeconomics.com/united-states/wage-growth

[Cdub100 3,382]

2 hours ago, GutterBoy said:

I think there are three different types of crypto investors these days

1) You got your crypto cult.  That's your Cdub and your frozenbeans, the hodlers, the right wing nuts that think this is the future of commerce, sell at $1M.  They are relatively small players in the market.

2) Then you got your instituional investors.  These are the guys that don't know what's gonna happen, but they want a piece in case it's good.  They're just using it as a place to park some cash for now and take a chance.

3) Then you got your playas.  These are the dudes Nobody is talking about.  The traders, buying on leverage, looking to make some bucks, get in and get out.  This is why it's been so volatile.  They are big enough players to cause some big swings either way.

Then you got the smart people that are just watching it all

I've never been part of a cult before. Do we have a secret handshake?

[frank 2,145]

3 hours ago, peenie said:

Doing what? See my post to nobody above and feel free to answer in simpler terms since I'm unfamiliar with investing. 

TIA 

Drink the drinks, the drinks they drank
I put my money in the bank

[Frozenbeernuts 1,652]

39 minutes ago, MTSkiBum said:

 

There have been other inflationary periods in US history followed by strong economic growth. Inflation is not end of the world. Inflation usually comes with wage growth as well, so you will not lose spending power. Lets see how wage growth goes in the next year or two.

 

Edit: Wage growth did match inflation.

 

 

Bond rates are going negative or are about to go negative. We are also seeing signs of savings accounts going negative.

The US has held the worst at bay for now, but interest rates can only go so low. Never paying for the loan crisis, adding to the deficit, and now Covid have all lead to a powder keg type situation. You just never know when our lenders say Enough, we got our own problems

[Big Guy 1,400]

5 hours ago, peenie said:

@vuduchile

What??!! I told you I don't understand!!

Omg....why did you copy and paste? I need plain language!! 

In the above example does that mean that a person will say, I have $25 but I want to borrow $75 so that I can afford to buy a $100 coin? And that person will borrow the $75 hoping that the coin will raise in value so that they make a profit. However, if the coin loses value then they have to immediately pay back that $75?

I don't know what leverage means. Geezus!!

much to learn grasshopper

[nobody 2,044]

5 hours ago, Frozenbeernuts said:

The problem is that over a long enough time frame every currency eventually inflates out of control. Its inevitable. So we cycle through this misery where people get screwed over and over, or we change it

So if inflation is so spectacular, why did we just see the largest transfer of wealth to the wealthy in our history? That's a good thing? Your buying power is garbage and it's getting worse.

The liberals don't even need to raise taxes. They just raise inflation which is essence a tax increase, only its much more damaging to the economy

And the reason inflation came to a stand still was because of the sub prime loan crisis that the government fed, bred, and perpetuated. We still haven't payed that off. How do we pay that off at this rate?

A slow trickle of inflation is what you want.  Obviously hyper-inflation is bad.  And it helps anyone who has taken a line of credit just as much as it helps the US government.

Everyone's mortgage essentially becomes less.  People with credit card debt.  The only people it really screws are people who stash their money in their mattress.

[GutterBoy 2,281]

13 hours ago, Cdub100 said:

I've never been part of a cult before. Do we have a secret handshake?

People that are in cults don't realize it.  It all seems normal and wonderful to them.

[Frozenbeernuts 1,652]

8 hours ago, nobody said:

A slow trickle of inflation is what you want.  Obviously hyper-inflation is bad.  And it helps anyone who has taken a line of credit just as much as it helps the US government.

Everyone's mortgage essentially becomes less.  People with credit card debt.  The only people it really screws are people who stash their money in their mattress.

Ok let's say that a small amount of inflation is ok. Inflation never stays that low forever. Eventually a currency is affected by too much inflation. The currency eventually collapses and the world moves onto a new global currency. I think we can do better than that system

Plus bitcoin isn't going to completely replace the dollar. The dollar will still be around, but bitcoin will keep going up in value as inflation increases. The supply of bitcoin will not inflate, but the value will.

[Cdub100 3,382]

57 minutes ago, GutterBoy said:

People that are in cults don't realize it.  It all seems normal and wonderful to them.

Yeah that 50% hit was wonderful.

[GutterBoy 2,281]

10 minutes ago, Cdub100 said:

Yeah that 50% hit was wonderful.

We're still going to $100K this year, right?

[Cdub100 3,382]

3 minutes ago, GutterBoy said:

We're still going to $100K this year, right?

That's the projection. Unlike some, I don't guarantee sh1t.

[edjr 5,567]

Alright, ya boy is back in!  15k BC and 10k ETH.

Going to be like a bad ride down a water slide.

[Cdub100 3,382]

3 minutes ago, edjr said:

Alright, ya boy is back in!  15k BC and 10k ETH.

Going to be like a bad ride down a water slide.

God focking damn it.

[edjr 5,567]

Just now, Cdub100 said:

God focking damn it.

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[Cdub100 3,382]

1 minute ago, edjr said:

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\ NO

 \ NO 

  \ NO 

   \ NO

     I Okay this is the Bottom Thank GOD

        II "I'm back in boys" - Edjr.

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[edjr 5,567]

Just now, Cdub100 said:

\ NO

 \ NO 

  \ NO 

   \ NO

     I Okay this is the Bottom Thank GOD

        II "I'm back in boys" - Edjr.

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[Gladiators 1,904]

Ed, give me a couple hour notice before you sell.  TIA

[edjr 5,567]

Just now, Gladiators said:

Ed, give me a couple hour notice before you sell.  TIA

   Ok

[GutterBoy 2,281]

2 hours ago, edjr said:

Alright, ya boy is back in!  15k BC and 10k ETH.

Going to be like a bad ride down a water slide.

$37k

[edjr 5,567]

5 minutes ago, GutterBoy said:

$37k

https://www.coindesk.com/price/bitcoin

you can see exactly when I bought in

[edjr 5,567]

BUY BUY BUY!

[Gladiators 1,904]

3 minutes ago, edjr said:

BUY BUY BUY!

What time are you selling?

[edjr 5,567]

BUY THE DIP!

[Cdub100 3,382]

2 hours ago, edjr said:

https://www.coindesk.com/price/bitcoin

you can see exactly when I bought in

Sigh... I bought more DOT today at $29. before you posted.

Can you please sell? 

[Frozenbeernuts 1,652]

China is cracking down on miners. We will see how effective that is. It hasn't done much before. It could also be a bluff to push the price down and purchase more cheaper.

But I would definitely expect short term price to continue down

[edjr 5,567]

15 minutes ago, Cdub100 said:

Sigh... I bought more DOT today at $29. before you posted.

Can you please sell? 

[peenie 1,690]

Geez, what if Bitcoin continues to fall? What if it goes all the way back to $1000? 

[Frozenbeernuts 1,652]

1 minute ago, peenie said:

Geez, what if Bitcoin continues to fall? What if it goes all the way back to $1000? 

What if it goes to $100k?

[Cdub100 3,382]

2 minutes ago, peenie said:

Geez, what if Bitcoin continues to fall? What if it goes all the way back to $1000? 

What if it goes to $100

[edjr 5,567]

HODL!

 

I AM A GENIUS! that is all

[vuduchile 1,941]

56 minutes ago, peenie said:

Geez, what if Bitcoin continues to fall? What if it goes all the way back to $1000? 

 

55 minutes ago, Frozenbeernuts said:

What if it goes to $100k?

 

53 minutes ago, Cdub100 said:

What if it goes to $100

What if it goes to 11?

[Cdub100 3,382]

5 minutes ago, vuduchile said:

 

 

What if it goes to 11?

What if it goes to $1

[GutterBoy 2,281]

1 hour ago, peenie said:

Geez, what if Bitcoin continues to fall? What if it goes all the way back to $1000? 

BUY MORE!