I never said anything about "crypto". That's all you. I was talking about Bitcoin.
So, you do not understand that Bitcoin is a form of cryptocurrency? Frequently referred to by the term "crypto?" Good to know.
And I see a very important distinction. FTX was all about crypto. And do you know how much Bitcoin they held? Almost none.
Nope, wrong. At one point, FTX held $3 billion in BTC. Customers withdrew around 20,000 BTC right before it declared bankruptcy. BTC's price is so volatile that I've seen the USD amount vary from $450 million to $333 million in news reports.
Approximately 20,176 bitcoin simply vanished from FTX's coffers around five days before the exchange filed for bankruptcy.
news.bitcoin.com
Now, I will admit that I haven't dug into reports by the new management or receivership. But I'm quite confident that a fair amount of the cryptocurrency stolen by FTX/SBV, either to line his pockets or to prop up Alameda, was BTC. If that wasn't the case, that would be sheer luck, because there's nothing in the structure of BTC that made it more resistant to that type of theft/fraud than any other currency.
And as a reminder...
• BTC has no depositor insurance whatsoever
• BTC spent most of the past year melting down
• The Fed has not and will not rescue BTC
• BTC has been involved in a variety of scams and frauds
Granted, stocks share some of these features (e.g. no deposit insurance; occasionally crashes). But at least that stuff is regulated, and you don't have to worry about the CEO of the NYSE stealing your stocks and taking off for Bermuda.
And You are late to the "bitcoin has melted down" parties.
Or, not. I noticed that your comparison chart was
awfully selective about its dates.
I have been a Bitcoinner since 2011. I have seen ALL the meltdowns. The amount of times people have declared it dead has been amazing... and they have been wrong every single time.
Tell that to the people who got wiped out because the exchange they used failed... or [/url=v]because they accidentally threw the hard drive with their private key in the trash.[/url]
And as to the fed coming in to save a crypto investor. Good the fed should never do ANY such thing. And I would never hold anywhere near the amount of value in USD that is the limit of their insurance ($250k).
Hold the phone.
You've got less than $250k in Bitcoin. Those coins aren't insured by anyone. And that's your idea of a hedge against bank failures. But you know that $250k in cash would be insured. What the what?
If you don't get bitcoin... you don't get it. That's OK.
Oh, please. I've gotten it for a long time, and it's an utter failure as a currency. It's just another object of speculation, which excels at separating ordinary people from their
real money.
You will get it eventually. A digitally native, un-inflatable hard bearer asset that has been running worldwide for 14+ years. And one of the only assets safe from what I see on the horizon.
Except that it isn't safe
at all.
• It's not insured
• Nothing backs it
• If you lose the encryption key to your wallet, you're screwed (almost 20% of BTC is already "stranded" and inaccessible)
• If it's stolen from you, you're screwed
• Almost every major exchange involved in BTC has bought it over the past year or so
• If someone ever gets more than 51% of BTC, you're screwed (that happened to Bitcoin SV in 2021)
And finally. I am not saying there is no risk in holding Bitcoin. Governments could continue to try to attack it.
So your idea of a good hedge is an asset class that's under repeated attacks from governments?
And the price WILL go up and down as it has it's whole existence until it stabilizes.
Unless it goes to $0, BTC will never stabilize. It can't. It has no mechanism to stabilize its exchange rates or purchasing power.
You can laugh at me again later when it falls from 900k a coin back to 100k.
Can I laugh at you when it drops to $10, too?
