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Cryptocurrency Markets Lost $18 Billion Overnight (yahoo.com)

Posted by EditorDavid on from the not-so-magic-internet-money dept.

An anonymous reader quotes CryptoCoinsNews: Over the past 24 hours, the crypto market has recorded a loss of $18 billion, as major cryptocurrencies including Bitcoin, Ether, EOS, and Bitcoin Cash dropped by 4 to 13 percent. While Bitcoin ended the day with a 4 percent decline in its value, Ether, the native cryptocurrency of Ethereum, plummeted by 13 percent against the US dollar, becoming one of the worst performing major cryptocurrencies alongside NEO. Tokens recorded the steepest drop in their value on August 11, as most Ethereum-based tokens such as Theta Token, Aion, Pundi X, Aelf, DigixDAO, WanChain, and VeChain recorded a drop of around 14 to 18 percent

For the first time in 2018, Bitcoin, the most dominant cryptocurrency in the global market, has obtained 50 percent of the market share, securing its year-to-date (YTD) high on the dominance index. The sudden increase in the dominance index of Bitcoin which coincided with the spike in the volume of Tether have demonstrated that investors have become reluctant towards taking high-risk and high-return trades, mostly due to the lack of confidence in the short-term trend of the market. Over the past few weeks, tokens have lost over 50 percent of their value against Bitcoin, which has also fallen by more than 20 percent since late July.
"During this 13-day stretch, the total market cap for all cryptocurrencies has fallen $70 billion," reports MarketPlace, in an article headlined "Bitcoin looks 'very sick' and the pain is not over, says analyst."

51 of 99 comments (clear)

  1. Let's all buy Lambos with crypto by Anonymous Coward · · Score: 3, Funny

    Using the money I got from shorting TSLA.

  2. So? by Anonymous Coward · · Score: 1, Funny

    How much have fiat money market losts? WAY MORE. This is a good thing for the Cryptocurreny, because it is much more stable than FIAT currency that fluctuates and this emphasizes how much better an investment cryptocurrency is. I know I'll be buying more and more every day because I make A LOT of tax free money already. Guaranteed.

    1. Re:So? by PopeRatzo · · Score: 4, Funny

      How much have fiat money market losts? WAY MORE. This is a good thing for the Cryptocurreny

      What the fuck are you talking about?

      I know I'll be buying more and more every day because I make A LOT of tax free money already. Guaranteed.

      reader poll: Is he joking? Serious? Are there really such people?

      --
      You are welcome on my lawn.
    2. Re:So? by JaredOfEuropa · · Score: 1

      He's making money by buying heavily into a "stable currency" that "doesn't fluctuate". Sounds like a great plan.
      By the way, BTC is up 3.5% or so again since yesterday's drop. If you really want a good laugh, head over to TradingView and check the technical analysis comments.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    3. Re:So? by Registered+Coward+v2 · · Score: 4, Insightful

      reader poll: Is he joking? Serious? Are there really such people?

      Yes. The technical term for them is fools; they are very important part of a well functioning market as they provide a steady stream of money for the taking.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    4. Re:So? by raind · · Score: 1

      "BITCOIN EN ROUTE TO TRANSFORMING WOLRD ECONOMY - CryptoManiac10"

      First glance from your link doesn't give me a good feeling. LOL

      --
      Get up!
    5. Re:So? by PopeRatzo · · Score: 1

      But please dont buy, we dont want unwise investors on Bitcoin because they lose money with stupidity and then blame Cryptocurrency for there own mistakes. Just means more money for me.

      OK, now it's getting good. How does convincing people to NOT buy your cryptocurrency mean more money for you? Do you know how markets work?

      I'm starting to get a picture of how this whole cryptocurrency thing works.

      --
      You are welcome on my lawn.
    6. Re: So? by balsy2001 · · Score: 1

      How is it tax free? Dont know where you live, but in the US profits from trading currencies are still taxable. If it is in a tax free account then the fact that it is crypo is irrelevant. If not in the US I am curriuous town know the differences in how investments are taxed.

      --
      GENERATION 27: The first time you see this, copy it into your sig on any forum and add 1 to the generation.
    7. Re:So? by Anonymous Coward · · Score: 1

      Is he joking?

      Yes, the term used to describe it is sarcasm, and if you can't see that then frankly speaking you have no business attempting to engage other humans, either online or in person.

    8. Re: So? by EvilSS · · Score: 1

      How is it tax free? Dont know where you live, but in the US profits from trading currencies are still taxable. If it is in a tax free account then the fact that it is crypo is irrelevant. If not in the US I am curriuous town know the differences in how investments are taxed.

      They think that they are clever and can avoid the IRS taking notice. And what the IRS doesn't know won't hurt them, right? Which might be true if they are truly careful. Sure, few of them actually are, they think they are but it only takes one screw up.

      Oh, and never, ever, actually spend any of it in any real amount. But hey, they can enjoy their fortunes that they can never actually spend on anything meaningful.

      --
      I browse on +1 so AC's need not respond, I won't see it.
    9. Re:So? by geoskd · · Score: 1

      By the way, BTC is up 3.5% or so again since yesterday's drop

      And now an hour and a half later its back down again.

      There are only two institutional users of bitcoin now: Market manipulators and money launderers / tax evaders. Everyone else abandoned that ship, but the money launderers will prop up the price indefinitely because they are both the buyer and the seller. The only way crypto goes to zero is when the money launderers are stopped, and you can bet that tax agencies the world over are working on that problem as we speak.

      The collapse wont be an overnight crash, just a long slow slide to oblivion as the launderers are either caught, or figure out that crypto is not anonymous enough to protect them, and fewer and fewer remain.

      --
      I wish I had a good sig, but all the good ones are copyrighted
    10. Re:So? by careysub · · Score: 1

      Rated "troll" but I thought is was funny!

      Good satire!

      --
      Starships were meant to fly, Hands up and touch the sky - Nicky Minaj
    11. Re:So? by Brett+Buck · · Score: 1

      Sadly. I think he was serious. It's almost a version of Dunning-Kruger, where being able to debug Grandma's computer problems convinces nerds that they are someone supremely gifted and smarter than everyone else in other areas.

            Then you see something like Bitcoin, and it's perfectly clear that the obvious avenues for manipulation weren't even envisioned up front, some of them at least hundreds and maybe thousands of years old. And then they are shocked that someone invoked them.

    12. Re: So? by phantomfive · · Score: 1

      Worth mentioning that there is another alternative scenario: bitcoin joins gold as the defacto inflation fear investment. If that happens, demand for bitcoin will increase quite a bit, just as gold prices stay far above what the metal is actually worth.

      --
      "First they came for the slanderers and i said nothing."
    13. Re:So? by plopez · · Score: 1

      On Wall Street this is sometimes referred to as the "Dead Cat Bounce".

      --
      putting the 'B' in LGBTQ+
  3. Excellent by fluffernutter · · Score: 4, Funny

    Excellent, I'm in the market for a good video card.

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
  4. Slow painful death by Anonymous Coward · · Score: 1, Insightful

    Because their adepts refuse to accept that bitcoins and other coins like it, were a bubble that's slowly deflating and only the ones who got in early made any sort of money worth talking about. Also the ones who are doing "pump and dump", who btw are responsible for raising the price so high in the first place.

    1. Re:Slow painful death by DontBeAMoran · · Score: 1

      You could drop more than 50% of Bitcoin's current value and it would still be up nearly 100% from a year ago.

      This is only a popped bubble, just like a few years ago when it went above USD$1000. Back then, people kept saying Bitcoin was dead, too.

      --
      #DeleteFacebook
    2. Re: Slow painful death by rtb61 · · Score: 1

      The real problem with cryto will be, the concentration of criminals as the pool dries out, https://www.youtube.com/watch?..., starving piranha, without others to feed on and they will turn on each other, quite viciously. They will jump from all sorts of fraud and computer crimes to more direct actions, holders of large value user names and passwords had better be careful, travel would likely become extremely risky. Which is of itself quite dangerous but in the end will force actions to ban the currencies and criminalise it's traders.

      --
      Chaos - everything, everywhere, everywhen
    3. Re:Slow painful death by NicknameUnavailable · · Score: 4, Interesting

      Except Bitcoin has unmitigated issues in the near-term. We're looking at 6 years at most until quantum computers can run Shor's Algorithm. At that point the signature schemes used in Bitcoin are dead. Before that happens (by a few years, at a minimum, to ensure the blockchain is irrevocably altered) everyone needs to convert to post-quantum protocols on a wallet-by-wallet basis (as in, initiated by every single Bitcoin holder individually.) The issue there is that smallest secure post-quantum protocols have signatures on the order of 30KB per transaction. That means a blockchain on the order high-TB to low-PB growth annually. That means mass centralization (at best) because there's no way every user (or even most non-exchanges) can afford that within the next decade given anticipated hardware developments.

      TL;DR: Bitcoin is already dead due to hardware constraints, it exists purely as a pump and dump campagin: the same applies to all cryptocurrencies.

    4. Re:Slow painful death by DontBeAMoran · · Score: 1

      +1 informative

      --
      #DeleteFacebook
  5. And nothing of value was lost by Anonymous Coward · · Score: 1

    Nt

    1. Re:And nothing of value was lost by Registered+Coward+v2 · · Score: 1

      Fiat also has no value, as opposed to minerals, water, energy, food, etc.

      Something only has value if somebdy else is willing to trade something else for it. Scarcity does not create value, gold is quite plentiful and copies of Ellison's Glass Teat are not, yet people value gold far more than Ellison’s excellent collection of essays.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    2. Re:And nothing of value was lost by drinkypoo · · Score: 1

      Fiat also has no value,

      True. Sergio's been trying to find a partner for years and no one's biting.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    3. Re:And nothing of value was lost by mentil · · Score: 1

      Aside from inherent value, of course. The frontiersman who lives alone and hunts, gathers water, and maintains his shelter to survive would agree that food, water, and shelter have value.

      --
      Corruption is convincing someone that the selfless ideal is the same as their selfish ideal.
    4. Re:And nothing of value was lost by sheramil · · Score: 1

      Fiat also has no value, as opposed to minerals, water, energy, food, etc.

      Oh, I don't know. I heard they're bringing out a rebadged version of the Fiat 500.

  6. Who Cares by Anonymous Coward · · Score: 2, Insightful

    We are in it for the technology!

  7. Manipulation by JBMcB · · Score: 4, Insightful

    Bitcoin prices increase = it's a bubble
    Bitcoin prices decrease = it's collapsing
    Bitcoin prices are stable = it's a dead market

    --
    My Other Computer Is A Data General Nova III.
    1. Re:Manipulation by DontBeAMoran · · Score: 1

      Well, you're damned if you do, you're damned if you don't. - Bart Simpson

      --
      #DeleteFacebook
    2. Re:Manipulation by Ramze · · Score: 2

      Actually, if prices remained fairly stable, it would be a currency.

      That's what it was designed to be. These booms and busts are what prevent it from being taken seriously by all the major players in the financial sector.

    3. Re:Manipulation by Hallux-F-Sinister · · Score: 3, Insightful

      Bitcoin prices increase = it's a bubble
      Bitcoin prices decrease = it's collapsing
      Bitcoin prices are stable = it's a dead market

      The problem. You have oversimplified it.

      It's not that it's boom and bust, just like everything else has ups and downs. It's the REASON WHY it's going up and down. Let's say we're talking about a pharmaceutical company. They are worth a billion dollars. They have a new drug that will sell for a lot of money in testing. Tests go poorly, the drug probably will have to be withdrawn before it even goes to market. The stock goes down. They have another drug that they're in the middle of a patent lawsuit over. They win. The stock goes up. Traders understand why it happens and are comfortable in investing in such stocks because there are good and bad signs that tell them how a company, and therefore how a stock, is likely to perform.

      The board of directors fires a half-dozen executives whose titles start with "C" (such as the CEO, CTO, CFO, etc.) This likely will drive the stock price either massively down or massively up, depending on WHY they fired them. IF the company had been in trouble, this could be a positive development, and stock value goes UP. Or, if they'd been doing incredibly well, (in the literal sense, doing so well it's hard to believe it's possible, seems to good to be true, etc.,) and they sack the leadership, it's probably the harbinger of bad tidings at that company, and for all people holding their stock.

      It would only be weird if that action had no impact on stock prices at all, and they remained consistent with other, similar companies.

      With Bitcoin, who the fuck KNOWS why it goes up or down? Or maybe it's because the "currency" doesn't DO anything, unlike a company that makes... oh, widgets or something, or a different company that perhaps sells consulting services on the installation and use of... oh, widgets or something. The value allegedly arises from the facilitating of trade itself. It would be if I got a stack of sticky notes, and put a little doodle on each one, and tried to tell people that because my doodles are unique, (let's pretend for a second they are,) that these stickies can be traded as if they're money, and they're therefore worth something, and what would you give me for one? Oh, or a stack of a few. Or a million of them? The entire trading ecosystem for cryptocurrencies is based on a perception of value without ties to reality. It's interesting, as a study in psychology, but I won't be putting real, actual money into it.

      For those who ARE, you just about might as well be playing the damned lottery. The only real difference is that the lottery isn't contributing nearly as much, (according to what I've heard, dunno if it's actually TRUE or not,) to rising costs and cratering availability of good graphics cards, or to all the heat generated by computers around the world mining something that doesn't really have a demonstrable objective reality.

      (I'm kinda against the idea of Bitcoin and the like. Is it obvi?)

      --
      Our reign has gone on long enough. Indeed. Summon the meteors.
    4. Re: Manipulation by reanjr · · Score: 1

      The value of BTC, like that of any fiat currency, is based on the trust placed in it to have future value, which itself is based on trust. The price fluctuates wildly because, like you say, there's no underlying asset to assess fair value or to provide price stickiness. It fluctuates by the mental whim of those placing value in it, which is imprecise and fickle. But that doesn't mean it's all a gamble. Many phenomena are chaotic and it's impossibne to say anything precise about the phenomena in the immediate future, yet the phenomena can be analyzed through long term trends, and other tools to remove noise.

      And it's hard to make a claim that BTC is about to fail when it's doing the same thing it's done for a decade. And it becomes increasingly harder to claim it will fail in the future with every passing year.

    5. Re:Manipulation by CptJeanLuc · · Score: 1

      TL;DR: Bitcoin is not an appropriate means of payment, it is gambling not investment, it is not entirely anonymous and the level of anonymity seems to have a net negative impact on society, and it is an environmental disaster. The sooner we get rid of it, the better.

      Bitcoin has been fluctuating violently and unpredictably (for those not manipulating the market) for years, which proves that for the last few years, Bitcoin has been completely useless as a means of payment - and makes me believe it will continue to be so for foreseeable future. You want your wallet to be a stable "currency", not a high-risk "investment". Plus when paying for two bottles of milk, you do not want the transaction fee to be 5-10 times the value of the product you are buying (which makes credit card fees of 2-3% seem very, very modest).

      As Bitcoin is not viable for generally replacing other means of making payments, that leaves Bitcoin as a possible financial "investment". Which puts everyone not taking part in manipulation of that "market" at a disadvantage, plus investing in something which has no fundamental underlying value is essentially gambling, and you might as well take your money to roulette table at the casino. At least then as an outsider, you have a decent chance of winning.

      Bitcoin as a means to make entirely anonymous payments is not entirely real, as the ledgers are public so wallet transactions can be followed, and any conversion to/from real life currency can possibly be identified in some way. Plus the benefits of anonymous payments seem to be entirely outweighed by the negative effects of how it fuels markets for illegal products like drugs.

      Add to this the fact that Bitcoin is an environmental disaster, consuming power at a level rivalling the consumption of entire countries ...

      I hope this fad will be over soon, and it will be regulated into oblivion. Block chains has many fine uses. Payment in its currently implemented form is not one of them.

    6. Re:Manipulation by DontBeAMoran · · Score: 1

      Why do you say that? Is it me you're looking for?

      --
      #DeleteFacebook
    7. Re: Manipulation by Hallux-F-Sinister · · Score: 1

      The value of BTC, like that of any fiat currency, is based on the trust placed in it to have future value, which itself is based on trust. The price fluctuates wildly because, like you say, there's no underlying asset to assess fair value or to provide price stickiness. It fluctuates by the mental whim of those placing value in it, which is imprecise and fickle. But that doesn't mean it's all a gamble. Many phenomena are chaotic and it's impossibne to say anything precise about the phenomena in the immediate future, yet the phenomena can be analyzed through long term trends, and other tools to remove noise.

      And it's hard to make a claim that BTC is about to fail when it's doing the same thing it's done for a decade. And it becomes increasingly harder to claim it will fail in the future with every passing year.

      To each his own. Invest in it if you like, and best of luck to you; I, however, shall not, for the reasons I already stated.

      --
      Our reign has gone on long enough. Indeed. Summon the meteors.
  8. I don't trust the blockchain hype. by Qbertino · · Score: 4, Informative

    I see problems with long-term feasiblity. Power consumption is through the roof, as is ineffciency in validation/resolution.

    Digital currency is a very, very good idea, but a massive simple one-dimensional set of tokens managed by a single trusted service is way more likely to offer real-world advantage over bitcoin and Co. I believe digital currency will take off when we get one that doesn't require obscene amounts of processing power to handle and transfer via transactions. When you can have an app on your cheap-ass asian semi-feature-phone and transfer 50 cents with a push of a button and the guy selling you his fruit can see if on his phone in 3 seconds. This isn't going to happen at a global scale with any of the current cryptocurrencies. Hence their real-world usefulness is notably limited and thus they won't succeed as currency IMHO.

    --
    We suffer more in our imagination than in reality. - Seneca
    1. Re:I don't trust the blockchain hype. by DontBeAMoran · · Score: 1

      Problems for power consumption of proof-of-work coins, yes.

      Reddcoin, for example, does not have that problem.

      --
      #DeleteFacebook
    2. Re:I don't trust the blockchain hype. by Dorianny · · Score: 1

      You do realize that most U.S dollars are just bits in computer systems recorded in financial institutions databases. Essentially digital currency

  9. Bitcoin is a great story by GovCheese · · Score: 2

    It's always a fascinating story when connected communities come up with an idea, especially when "connectedness" might provide an opportunity for transforming wishful thinking into currency, or anything else. But goddamn I'm impressed by work they've put into it and the energy of their unusual convictions.

    --
    "He's using a quantum encryption scheme! That'll take hours to break!"
    1. Re:Bitcoin is a great story by thegarbz · · Score: 1

      and the energy of their unusual convictions.

      The same amount of energy as the country of Austria to prop up a market that in no way can achieve the goals of a functional currenty all the while the world is already buckling under the weight of man-kind's energy use.

      If I ever meet Satoshi Nakamoto I will punch him in the face and then feed him to an endangered Orca.

      I'm all for community ideas. But this is one that will likely have the biggest negative impact of any community project every, except if you were one of the few at the very top of the pyramid.

  10. You fools! by DontBeAMoran · · Score: 3, Insightful

    Meanwhile, everyone who has Dogecoins can still rely on the one and only 100% reliable 1:1 trade ratio of Dogecoin-to-Dogecoin.

    --
    #DeleteFacebook
    1. Re:You fools! by that+this+is+not+und · · Score: 1

      I can benefit the same way by trading the buttons off my shirt to my co-workers.

      Except now our damn shirts are flapping in the wind.

  11. Re:Are you a cop? by RandomFactor · · Score: 1

    My nick is RandomFactor.

    However that's not a bad effort.

    --
    --- Mercutio was right.
  12. Re:Are you a cop? by that+this+is+not+und · · Score: 1

    You are not a law abiding citizen if you race down the road above the speed limit.

    You're a tax-paying sucker.

    You almost certainly don't have a need to be going that fast.

  13. LOL by KixWooder · · Score: 1

    that's all.

    --
    I hate fat people.
  14. Re: Are you a cop? by reanjr · · Score: 1

    Civil infractions are great. Pay your lawbreaker's tax, and be on your way. Imagine if speeding were a felony...

    (yeah, I know excessive speeding CAN be a felony)

  15. Blockchain has three use cases by jdoeii · · Score: 4, Interesting

    Blockchain exists for ~10 years and still there are no mainstream use cases where it replaced the incumbent tech, other than illegal activity. There is a fundamental reason for that.

    BCh offers a single unique feature: distributed trusted transaction (DTT). DTT competes with a centralized transaction == transaction with a trusted third party (T3P). DTT is by definition distributed and as such is *always* more expensive than a T3P all other things being equal: reaching consensus with multiple parties is harder than with a single party. In order for DTT to be competitive with the old tech T3P, the distributed nature of DTT must offer some advantage for people to be willing to pay the required premium. So far the only use case where people or willing to pay this premium is circumvention of regulation, when the trusted third party does not exist. This brings us to this list of use cases:

    1. Circumvention of regulation.
    This is the only meaningful use of DTT.
    China has capital flow controls which effectively bar companies and individuals from moving money out of China. To get around these regulations people buy video cards and electricity in China for CNY, mine cryptocoins, sell them in the States for USD. That's the largest market right now, much bigger than buying drugs on the likes of Silk Road. This use case also includes ICOs and other pump and dump schemes.

    2. Selling picks and shovels.
    Derivative of (1). If 1 goes away, 2 will go away too.
    https://finance.yahoo.com/quot...

    3. Marketing & FMO
    Add blockchain to the company name and see your valuation pop.
    "We must work on blockchain because it's the future".
    All kinds of blockchain projects in banks, etc which are going mainstream "any time now". All of them can be done easier/cheaper/more reliably with a T3P, no exceptions.

    1. Re:Blockchain has three use cases by MikShapi · · Score: 1

      You forgot two major demand drivers in your account that are the important one.
      a. A method of imbuing a currency with trust. If you live in a country with an economy in free-fall and hyper-inflation, you can earn $1000 this month, only to see what you earned become worth $750 the next because your government is over-printing. Often such a government also places legal prohibition on forex trading, and your options boil down to watching your wealth vanish, getting mauled on rates on the black market or move your money to a crypto-currency asap. People do the later, which creates a demand-driven price-push. This also goes to the "what doesn Bitcoin/cryptocurrency actually DO?" question. It produces trust. Which isn't a big deal if your government can do it with other means (vaults with gold and projected stability), but is a very big deal if you live in a failing nation.
      b. A computer that can't be switched off. If your cryptocurrency is a glorified operating system for immutable logic that can be run on top of a distributed computer that cannot be switched off, this becomes a platform to do new innovative things on. And you know what happens when a million startups wrote apps for windows? Windows became a platform. And what will happen when a heap of them write apps that take advantage of Ethereum's smart contracts? Ethereum will become a platform. Add uplift to "2nd gen" (where "1st gen" was ProofOfWork/ProofOfBurn currencies like ) and you both become heaps more attractive to institutional investors, offer a source for them to make an attractive yet sensible return on their security, as well as solve the power consumption problem in the way of scaling.

      So sure. Bitcoin is still a ways off from a 2nd gen rollout. But don't limit your field of view to just BTC, and don't leave out important components of the demand in your analysis.

      --
      -
    2. Re:Blockchain has three use cases by jdoeii · · Score: 1

      a. Categories 1 (circumvent government restriction on circulation of fiat foreign currency) and 3 (use US dollars instead).
      b. You are not describing a use case. You are describing a feature. Describe a use case and it will fall into one of the 3 categories.

      Did I ever say bitcoin?

    3. Re:Blockchain has three use cases by jdoeii · · Score: 1

      Use case 3.

  16. Re:Dollar is the safest bet in the woooorld. It's by DontBeAMoran · · Score: 1

    I challenge anyone to describe an alternate future where the dollar, yuan or ruble wins.

    EMP bombs all over the planet, no computers and no internet for decades. Physical currencies wins.

    But in the meantime, I'm hoarding all the Dogecoins I can!

    --
    #DeleteFacebook