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Bitcoin Is Crashing (businessinsider.com)
An anonymous reader writes: Bitcoin is getting smashed. The cryptocurrency was down 18% to about $892 per coin as of 8:17 a.m. ET on Thursday. It is the biggest drop in two years. Earlier this week, on its first trading day of the new year, Bitcoin crossed above the $1,000 mark for the first time since 2013, but it has now tumbled below that level.
He isn't selling, he's BUYING!
SJW: Someone who has run out of real oppression, and has to fake it.
A useful currency is stable for the time you hold it.
If you are a merchant that takes bitcoin but sells it for local currency by the end of the day, you need intra-day stability.
If you are holding it as a currency for days or weeks at a time, you need short-term stability.
If you are holding it as a currency for longer, you need medium- or long-term stability.
On the other hand, if you are buying it as an investment, like a stock, or as a speculative "investment" (aka "gambling") then in addition to a long-term upward trend, you want instability so you can benefit from dollar-cost averaging as you buy and "dollar cost averaging in reverse" - selling a fixed amount of BC every day - when you eventually sell.
Of course, if you are a day trader who depends on intra-day changes in value, you want short-term instability and either a knack for timing the market right or a dose of good luck to keep from coming out in the red that day.
Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
China is in a huge bubble, smart Chinese are desperate to get their capital out. Capital controls never work for long.
The 'ghost cities' in China are all owned by Chinese citizens, who traditionally love to own * real estate. In China a condo that has never been occupied is worth more that a condo that has (strange, but somewhat understandable as rents are nowhere close to mortgage payments). The average person with money in China is sitting on assets that are overvalued by a factor of at least 5. As more and more of them realize this, bitcoin pricing will become more volatile. The 'grey market international cash flow' share of bitcoin ownership (think of it as a flux though) is increasing vs the 'investor/speculator' shares.
* 70 year lease, own...
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'