Bitcoin Breaches $8,000 Level as March Slump Accelerates | Hacker News Reader

Bitcoin Breaches $8,000 Level as March Slump Accelerates

bloomberg.com

Water from a stone at this point.

If I can't consolidate micro deposit hashes without spending 100x more in transaction fees than the total amount deposited, then the whole currency is bullshit.

And at this point, the market is so flooded with speculators that nobody will accept bitcoin as anything but a gamble.

It's interesting- I'm convinced there's at least some evidence that Bitcoin is being used in non trivial amounts for genuine use cases these days, be it as a gold substitute, circumventing monetary controls (or drug markets too I suppose)

I'm basing this opinion on the fact that Bitcoin price used to be highly correlated with news a few years ago, but is now more uncorrelated with positive/negative news- This suggests to me that price run-ups in the last couple of years have had a cause independent of speculation, at least in part.

The problem is that it is unclear whether these "genuine use cases" are responsible for 5%, 20%, or 60% of the current Bitcoin price... though recent market behavior suggest this number is still on the low side.

How much longer until I can buy a graphics card again?

The price is going to keep going down until the shady exchanges with fake volume and price manipulation get shut down by regulators and we get genuine price discovery.

This headline suggests that the Bitcoin price has momentum. It does not intrinsically have momentum. Tomorrow’s price could be $10k or $2k.

If markets were perfect, no market would have momentum because an asset's value would be based on present reality rather than past prices. But markets involve trade by humans and humans use past prices as a substitute for rational deductions. Thus any market can have (metaphorical) momentum, especially one where the objective value is difficult to determine and bitcoin certainly to be in this latter category.

Pedantic point: It would need mass or travel at the speed of light to have momentum. Saying it accelerates merely implies it has velocity which is quantifiable over time. If velocity= change of price over unit time, then it is accelerating.

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