Can someone explain in layman's terms how this happened?

Can someone explain in layman's terms how this happened?

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people were making too much easy money on paper. that money didn't actually exist, as you are witnessing right now.

so is it because Christmas? too many people tried to cash out at once?

Bitcoin hit 10k. The hype from this caused it to rapidly rise to 17k, killing ALT/BTC pairs. Then the alts naturally tried to rise to their price in BTC as it was on Dec 1. This explosion in total market cap was too much for the market to bear, and we are now imploding. It is possible the events of the last month will repeat themselves in fast-forward over the next few days, but this time BTC will continue a slow rise to 25k with alts not far behind.

In the absolute simplest of terms:
>People invest in something non-physical whose value is not connected to any asset

You need to be aware that any value more than a penny for a non-physical asset is a bubble.

Its musical chairs faggot and someone is about to get left standing

It's impossible to know for certain, but I would guess that it's general panic from people who bought high and has nothing to do with trinkets for mom.

Roger Ver timed the worst possible time for Bitcoin Core, organized an attack to try and move people to Bitcoin Cash. It succeeded, but it exposed to normies that Bitcoin Core is literally shit, hence, discrediting crypto in peoples minds.

More things also happened (Tether, Charlie Lee selling) but that was the main trigger.

It was in the water from the time futures were introduced.

They didn't do it at once, as everyone anticipated mass shorting. They waited till everyone internalized that futures aren't a threat.

Till now, just before years end for everyone to get a fat bonus.

Roger Ver "attacked" BTC.

BTC is such a shitcoin that one closeted homosexual man who squanders most of his money fucking ladyboys was able to take it down. Sad.

Sir? Are you planning the nyr Veeky Forums drawing?

WE NEED MORE TETHERS

everyone was shown that btc is dogshit. on top of that all these crypto coins are useless.

yes i am a coiner and going down with this ship.

I think it was christmas cashout + fud + stoplosses triggering

It's Christmas, Big money scrapped their profits for presents for their family or themselves, Everything will be a bull run on new years

Every year this happens, people pull out money for Xmas and looks like whales joined for some easy gains if you’re new turnoff alerts and ignore blockfolio in 6 mo you’ll thank me for not panic selling

Sorry, don't know what that is.

Sure man, you bought in at 19k like a fucking dipshit and now it's correcting itself and you're going to sell and lose thousands.

Glad I could clear it up for you!

I blame BCH and coinbase

the dollar is not connected to any physical asset either retard

>implying people cash out at Christmas to buy gifts and not to protect themselves from exactly what is currently happening while they're away from their computers for a few days/weeks.

people are pathetic fucking sheep who are easily fleeced for profits

Bch, Coinbase, normies selling, FUD, people realising btc is shit

But the dollar is backed by our government, a global superpower, and the dollar is what is used for oil pricing and trading (this goes back to Nixon, see: Petrodollar).

The fact that you don't see the difference between that and some bullshit meme coins really speaks volumes.

US citizens and companies that do business in the US are required to pay taxes in US dollars thereby creating demand for it.

Glad I could explain the difference between fiat currency and shit coin to u :3

That's why they made it the legal, MANDATORY currency in the US. The fact that it is the only currency legally allowed and people are willing to trade their labor for it gives it value. You could argue it's also backed by oil, but it's obviously not a hard backing as it is FIAT CURRENCY which is inherently worthless, just like bitcoin or any of the others.

What do you think happened

>This explosion in total market cap was too much for the market to bear
you are literally making this up

>can someone explain to me why monopoly money has no value?

moving the goalpost you fucking idiot

Nocoinfag here, What happens after?

Because shitcoin is merely currency speculation which is volatile and easy to get your asshole reamed out if you don't know what your doing. Most people investing in shitcoin don't know what they are doing. Unlike most currencies, most people are holding it as an investment instead of of actually using it to buy and sell goods and services which increases volatility. Add to that the "draw" is that it not regulated by any central bank, which increases volatility further.

Basically people were investing in hype, and when people started to realize it, the bubble burst.

> fiat currency
> worthless
Are people buying ron paul's bullshit again?

>explaining the differences between a globally recognized currency and some internet bullshit is moving the goal post
Oh user ...

youre a fucking moron

Which is exactly why I invest in BITBEAN.

Ok. Bitcoin is a bad idea.

bitcoin is a market based purely on hopes and dreams, the moment something that even slightly dashes the hopes and dreams, it tanks, like seen here

>Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on the faith and credit of the economy.

That's the definition, buddy. Just have some "faith", ok?

You did not take your pill yet did you?

And yet, nothing that I have has lost value (at least to any noticeable scale) in the last 48 hours, so obviously, I'm doing something right so far.

Also, it's "you're". Proper spelling and grammar is important when calling someone a moron, otherwise you end up getting some egg on yourself, too.

Based user. I’m gonna be rich. Thanks for the lambo

>monopoly money has no value
Keep sperging, you dumb no-monopoly-er.
It's going to the moon, and you'll just be sad you weren't along for the ride!

You're in for a fun week

I don't need faith, i have the entire respected economic academia behind me and nearly a century of data that shows that Fiat currency produced by a stable government through a central bank is the most effective form of currency.

Roger Ver came on TV. TV said there was a 'bitcoin civil war' and normies realized that bitcoin was expensive and slow.

youtube.com/watch?v=ONmAixoP83M

No shit Sherlock

We go to the moon baby

upboated

b u t
f i a t
i s
l i t e r a l l y
p r i n t e d
o u t
o f
t h i n
a i r
fiat is controlled by a bunch of con artists who would have you believe that, because people can profit in crypto, it's a scam
having funds in bitcoin is far safer than fiat
bitcoin is infinitely more valuable than fiat for the reason alone that it cannot just be generated limitlessly out of nowhere; you either have bitcoin, or you don't. go ahead and try to get 10 bitcoin; you either spend thousands of dollars on equipment and wait for ages to mine it, you buy it (currently with over $100k USD), or you wait for ten thousand plus years for a bitcoin faucet to give it to you.
now, why should you want any bitcoin? well—i can't necessarily tell you what you want, but if you want something that's nigh impossible to destroy, something that a central power can't fuck with, and that people have already invested billions upon billions of dollars in infrastructure in, *and will continue to do so to remain competitive*, then bitcoin is the way to go.
particularly, bitcoin cash.
opting to keep everything on-chain is a smarter approach for a number of reasons—not the least of which, security and censorship-resistance, and certainly consistency in reasonable fees and transaction times. as i see it, the more miners there are at the table, the greater the block size can safely increase. i'd like to see a full-on secure scaling block size that adjusted to transaction volume automatically in a way similar to the way that hashing difficulty adjusts, but we'll see how things go.

my bullets would like to disagree kek

...

Are you seriously trying to argue a volatile currency prone to extreme deflation is better than a currency with a consistent inflation rate under 4%?

I invested with ETH for that very reason. I don't think currency will be allowed to take off. ETH can be currency but it's almost exclusively used for dApps.

wow nice writeup.

>CME futures market
>Normie influx get shaked out of their coins

It'll be back up, screen cap this for future morons

Lol this is getting just sad

Bitcoin is over dumbass

>a physical asset isn't connected to any physical asset

Three reasons:

1) The 200 day moving average of BTC is about $5500. When the price exceeds three times the moving average (which would be $15,500) BTC is too expensive. Normies were buying BTC with credit cards, and panic sold as the price started to drop.

2) Bitcoin Cash debacle on coinbase damaged confidence in the crypto space very badly. Brand confusion (which is the real bitcoin??), pointing out how slow and expensive BTC is to use, and highlighting insider trading. If BTC core is not king, then who is?? That level of uncertainty is scary to the market.

3) Charlie Lee cashing out certainly did not help, although I think he did it for the right reasons and that LTC is likely going to replace BTC as the top dog in the space.

If BTC core confidence is badly shaken, expect a multi-month bear market until a clear winner arrives. If the Facebook/Litecoin rumor is true, expect a fairly rapid return to stability and an insane moonshot in LTC.

Whatever you say. Enjoy your unending inflation.

this. decentralizing exchange is a good idea, and blockchain is a great technology with useful applications.
But Bitcoin is the absolute wrong use for it, decentralizing currency is a recipe for disaster.

You realize the whole idea of slow steady inflation of 2%, what we have right now, is exactly what milton friedman wanted right?

Why, did someone buy Park Place?
Because I like to hang out there, but don't have $350 for rent.

99 percent of dollars are digital only

somebody give this guy a job at wapo

Because he was a realist, knowing there was little chance of ever going back to any kind of sound money after 1913.

I will. Small inflation rates encourage people to bank their money instead of hoard it under mattresses since banks usually compensate savings accounts for inflation whereas matress stuffing doesn't. This increases the availability of investable money, which allows more opportunity for growth and innovation which, as we all know, increases employment and real wages. Inflation is not bad as long as real wages are rising.

>Media outlets discover BTCs gains from $1k to $5k
>Starts shilling non-stop about how BTC could be worth $50k by years end, and $100k within one year
>Normies take the bait. Thousands of them take up loans
>BTC reaches $20k and meets hard resistance
>Same media outlets does a 180 and starts FUD'ing hard about BTC bubble
>The weakest hands begins dumping, which only validates the medias claims
>More weak hands begins dumping
>And on and on and on

It becomes a self-fulfilling prophecy. Blame the fucking media.

No, because he believed in rational expectations and slow steady inflation is the way to get there

yet he got a boner stoping the printing presses

People are cashing out so they can report big profits in q1 2018
Or taking the tax credit for losses.

alt coins are liquifying their btc/crypto so they can actually pay their devs in something they can buy groceries with

Or it could be a bch power move.
It has to beat btc if it want to be the big boy.

in other words, there are billions in functional physical assets, work, electricity, and real estate backing bitcoin. even if the tech is pretty old, it has the most in psycial assets (and certainly energy) behind it. this is why bitcoin is not a bubble. it will never be unprofitable for a miner to mine coins, and then sell them for higher than the cost of mining them—and as long as there are miners who are competing for hashing power, you can bet that bitcoin is a safe investment, and one that will create a demand for the real-world assets necessary to mine it. it's not a ponzi or a fad or a meme bubble or whatever—it's an economic boon.

Went up too quickly. It's still net up over a month ago.

It's like you are just regurgitating everything you've been taught in college, word for word. Do you have a brain? Are you capable of thinking for yourself? I have to wonder what kind of investments you actually have, coming here.

good luck finding a bank paying you interest above inflation rates, when central bank interest rates are negative to zero.
and by the way, your savings are a liability to banks. they don't like their customers.

He probably has blue chip stocks which have grossly outperformed crypto over the last month

pretty sure this was just whales taking profits. this correction was coming no matter what, they're just shaking it in time to get all the weak hands out.

A variety of things:

- a natural market correction
- people cashing out for Xmas
- Shaken market confidence due to the Coinbase debacle 2 days ago

Mostly Coinbase though. Thanks you fucking idiots. We could be sitting on $10k BCH right now if they had just risen it slowly instead of turbopumping it like they did.

those are negative billions. bitcoin destroys energy for minimal eminence that gets increasingly less.

>Assuming I would ever "invest" in crypto
Neither of you seem to know your history very well, economic or not.

>in other words, there are billions in functional physical assets, work, electricity, and real estate backing bitcoin.
that's not how this works. if you buy %50 of a farm you're legally entitled to 50% of the farm's harvest, profits, land, etc.
if you buy 50% of all bitcoin, you're entitled to nothing. you don't get any of the equipment used to mine it, you're not guaranteed a sale price, nothing. you can only hope your salesmanship is good enough to sell some numbers to other people for more than you bought it.

"two plus two equals four" is something I was taught in elementary school, and doesn't make it any less true. You aren't enlightened because you brush off the scientific community in favor of your speculations with no standards of rigor or peer review.

Anti intellectualism is a dangerous ideology, you can't just discount respected academia because the information is inconvenient to your desire for a get-rich-quick scheme.

Your original post said "MY CURRENCY BASED ON NO PHYSICAL ASSETS...".

user says "So is the USD."

You say "But it's backed by the US Gov and used to buy oil."

Still not based on physical assets. That's moving the goalposts.

and nothing you have has increased in value, the funny part is my investment is still at x8 times, it was at x10 times yesterday but still up.

can you say the same thing about your pathetic "global currency"?

some people were actually stupid enough to sell their valuable BTC for less than 15k

So was the trump tax bill changing crypto transactions pure FUD?

>a natural market correction
people keep using this term, but it doesn't apply to crypto
correcting to what? what is the correct price of bitcoin?

kek those guys should just stick to being chads but they keep trying to be entrepreneurs and getting cucked by timothys

okay, so? Doesn't change the fact that they need my savings to operate and the FDIC will reimburse me if shit hits the fan. It's a tiny trickle of less than a percent of my savings every year in exchange for decades of relative stability and growth.

Found the non programmer.

You’re a complete retard if you think crypto can’t be hijacked in some form or another. It’s literal lines of code that you’re paying thousands for. The problem is that if an exploit is found, people panic, peolle sell, people drive the price down.

Dumbass.

Should have invested in Chuck E Cheese coins. I’ll be over here playing sweet games, winning prizes, and eating pizza nerds while your meme currency collapses.

>Appeal to authority
You aren't even addressing any of what I stated, all of which was true by the way, and are instead attempting to discredit me by assuming I am somehow attempting to "brush off the scientific community", whatever that means.

Try harder.

It's stupidity is what it is. Bitcoin is inherently deflative because more can't be generated at whim. This means accumulation of wealth causes the price of something in bitcoins to go down, which further incentivizes hoarding and waiting for another drop. It's an inherently destructive system if you came in late that massively incentivizes having hopped onto the train early. There's no economic incentive there.

Well I don't know what the exact term is but when a price is rising rapidly due to everyone investing for gains rather than a belief in the long term future of the actual investment than it needs to correct downward as the nonbelievers sell off.

people decided to sell their holdings/coins. that's it.

Exchanges offer leverage. Price swings wildly forcing people to liquidate their positions. Happens pretty regularly. Short squeezes to fuck out shorters, crashes to fuck up people buying on margin. Nothing to see here.

Well, there might be an issue with all the US cucks getting fucked by Trump, since the tax plan passed and declared crypto to crypto trades are taxable events, so half the point of Tether was just invalidated, and swapping back and forth isn't going to save you from the tax man. This may have been a shit ton of profit taking as the Americunt whales take some money to pay uncle ham.

right, getting increasingly fucked up economic crises and paper growth for a tiny fraction. just 90% within one life time.

get a rope, cabbage head.

misuse of the term appeal to authority. It's supposed to be used when the authority is not actually knowledgeable on the subject, or when the counter example is plenty equipped to challenge the authority. You are not equipped to challenge the authority. You are not a Ph.D. equipped research economist presenting an extensively researched and peer reviewed paper on the matter of inflation and fiat currency, you're a speculator with nothing of substance trying to get rich quick.

> Scientists say gravity is real
> Nice appeal to authority fallacy

I'd try to refute something else but there's nothing in your post to refute except maybe the part where you say i'm dumb.

It's fuckin Christmas normies cashed out there gains for gifts. Not only will they be back but all the people getting money for Christmas will come too. Buy now buy now. This will all be the same by EOY

>It’s literal lines of code that you’re paying thousands for.
>Found the non programmer.

>Dumbass.