Hey there! Sign in to join this conversationNew here? Join for free

Bitcoin Crashed! Now What? Watch

    • Thread Starter
    Offline

    3
    ReputationRep:
    https://www.youtube.com/watch?v=aL52ywnhfT8

    edit:

    Bitcoin has gone from strength to strength, firstly hitting $100, then 200, and upwards. Then in the last 12 months, it has spiked consistently, with more investors taking ever greater and greater interest in this field. Then yesterday, it crashed by over 200 dollars, in the space of a few hours.

    And it's like the analyst says in this video, we just don't know how far it will continue to drop, or whether things will level off. It's just too early to tell. I wouldn't touch it with a barge pole though...
    Offline

    19
    ReputationRep:
    Hmmm maybe its wise to drip feed into bitcoins for the long term...
    Offline

    3
    ReputationRep:
    Um, you must be new. The price is always fluctuating, that's just the way it is. It'll go back up again in time, then drop again. Rinse, repeat.
    • Thread Starter
    Offline

    3
    ReputationRep:
    (Original post by catinsomehat)
    Um, you must be new. The price is always fluctuating, that's just the way it is. It'll go back up again in time, then drop again. Rinse, repeat.
    Did you watch the video?
    • Community Assistant
    • Clearing and Applications Advisor
    Offline

    21
    ReputationRep:
    Anyone silly enough to buy bitcoins deserves to lose money. If it were me, I'd cut my losses and get out.
    • Thread Starter
    Offline

    3
    ReputationRep:
    (Original post by Snufkin)
    Anyone silly enough to buy bitcoins deserves to lose money. If it were me, I'd cut my losses and get out.
    It's all about investments, i once brought some at a bad price, then i sold them again, losing money. Because i did't know how to use the system. These days i just let my fund managers take care of my investments....
    Offline

    2
    ReputationRep:
    Bitcoins are a **** investment because, unlike stocks, currencies, bonds and property, they aren't affected by any actual market forces as much as they are by pure fluctuation. You can't guess where bitcoin's rockets is going to be in a months time or a years time, but you can guess this with stocks and currency.
    Offline

    10
    ReputationRep:
    And just the other day someone asked on here if they are a worthwhile investment.
    • Community Assistant
    • Clearing and Applications Advisor
    Offline

    21
    ReputationRep:
    (Original post by john2054)
    It's all about investments, i once brought some at a bad price, then i sold them again, losing money. Because i did't know how to use the system. These days i just let my fund managers take care of my investments....
    Your fund manager (lol) is laughing at you all the way to the bank.
    • Thread Starter
    Offline

    3
    ReputationRep:
    (Original post by biglad2k16)
    Bitcoins are a **** investment because, unlike stocks, currencies, bonds and property, they aren't affected by any actual market forces as much as they are by pure fluctuation. You can't guess where bitcoin's rockets is going to be in a months time or a years time, but you can guess this with stocks and currency.
    (Original post by Soyeb)
    And just the other day someone asked on here if they are a worthwhile investment.
    BIt coin assets are dynamic in the same way as all of the other stocks and shares...

    As I said i wouldn't buy them, not now, but i know there is still a big demand for them, and whilst that is the case, there is money to be made and lost in them. Any one who thinks that money can only be made in 'tangible' assets, really doesn't understand the stock market that well, i'm afraid!

    J
    Offline

    2
    ReputationRep:
    (Original post by john2054)
    BIt coin assets are dynamic in the same way as all of the other stocks and shares...

    As I said i wouldn't buy them, not now, but i know there is still a big demand for them, and whilst that is the case, there is money to be made and lost in them. Any one who thinks that money can only be made in 'tangible' assets, really doesn't understand the stock market that well, i'm afraid!

    J
    Share prices depend on things like the company's earnings, the economic environment and political issues and regulation. As well as this, one can determine which shares are undervalued and overvalued using indicators like P/E ratio, DCF analysis and EPG, so investing in shares is not gambling when you do your research. That's what investors do. They carry out analysis on stocks to find ones that are undervalued because those ones are very likely to increase in price.

    Bitcoins, on the other hand, are not impacted by these factors and the price is purely affected by the demand at that moment, not any long term factors. This is why you don't see the big asset management firms and investors bothering with Bitcoin investments except some that use it purely for diversification purposes.

    And I never even said 'tangible assets'..
    • Thread Starter
    Offline

    3
    ReputationRep:
    (Original post by biglad2k16)
    Share prices depend on things like the company's earnings, the economic environment and political issues and regulation. As well as this, one can determine which shares are undervalued and overvalued using indicators like P/E ratio, DCF analysis and EPG, so investing in shares is not gambling when you do your research. That's what investors do. They carry out analysis on stocks to find ones that are undervalued because those ones are very likely to increase in price.

    Bitcoins, on the other hand, are not impacted by these factors and the price is purely affected by the demand at that moment, not any long term factors. This is why you don't see the big asset management firms and investors bothering with Bitcoin investments except some that use it purely for diversification purposes.

    And I never even said 'tangible assets'..
    Bit coin is still affected by most of these factors. It's like buying gold. You don't actually have to have bullion in your house, in order to trade it?
    Offline

    2
    ReputationRep:
    (Original post by john2054)
    Bit coin is still affected by most of these factors. It's like buying gold. You don't actually have to have bullion in your house, in order to trade it?
    I never said that you needed to have bitocins in your house to trade it. That's not my point. My point is that bitcoins have no intrinsic value, unlike stocks and gold, and they are significantly more volatile than G10 currencies. This means that it's a pure gamble to buy bitcoins, not so for stocks or bonds or property or gold.

    And there is not enough evidence to prove that bitcoins are affected by these factors. Since the price is so volatile and has so many crashes and rallies, it's hard to say whether some of these were caused by things like interest rate decisions and genuine economic and political events or whether the price changes were random. The relationship between bitcoin prices and macroeconomic and geopolitical factors is tenuous at best.
    • Thread Starter
    Offline

    3
    ReputationRep:
    (Original post by biglad2k16)
    I never said that you needed to have bitocins in your house to trade it. That's not my point. My point is that bitcoins have no intrinsic value, unlike stocks and gold, and they are significantly more volatile than G10 currencies. This means that it's a pure gamble to buy bitcoins, not so for stocks or bonds or property or gold.

    And there is not enough evidence to prove that bitcoins are affected by these factors. Since the price is so volatile and has so many crashes and rallies, it's hard to say whether some of these were caused by things like interest rate decisions and genuine economic and political events or whether the price changes were random. The relationship between bitcoin prices and macroeconomic and geopolitical factors is tenuous at best.
    Just out of interest, what is your real world position on these markets, do you have an invested and managed portfolio, like me, or a finance degree, like some others on this forum, or are you a school boy investor, essentially with no money in the markets, and no degree, just an interest in this subject? Out of interest...
    Offline

    2
    ReputationRep:
    (Original post by john2054)
    Just out of interest, what is your real world position on these markets, do you have an invested and managed portfolio, like me, or a finance degree, like some others on this forum, or are you a school boy investor, essentially with no money in the markets, and no degree, just an interest in this subject? Out of interest...
    I study economics and finance and I manage my own portfolio (although it's a small portfolio and I engage in shorter term investments lasting 1-2 months rather than years). And you having a guy who invests for you doesn't mean you know anything about the markets, anyone can just get a guy to invest for them if they have the money. I don't want to sound rude, apologies if I have sounded rude, but I do feel that I know more about this topic than you do.
    • TSR Support Team
    • Clearing and Applications Advisor
    Offline

    20
    ReputationRep:
    (Original post by john2054)
    BIt coin assets are dynamic in the same way as all of the other stocks and shares...

    J
    Buttcoins and Shares have different use cases. Shares are issued by corporations as a financing method where that they don't need to repay the initial investment. Buttcoins are meant to be an alternative currency to dirty fiat. That, in my opinion, is key.

    To profit from buttcoin in the long term requires natural non-speculative demand for it to increase, or in other words, it needs to be a viable currency such that people are willing to trade goods and services for it. The problem is that such a currency also needs to be stable relative to dirty fiat, because basically all earnings any individual makes is given in the form of dirty fiat rather than buttcoin. With wild price swings, you have wild swings in purchasing power, which hinders its use case as a currency. Yet, these massive rallies are needed for you to book a dirty fiat-denominated profit.

    With other "investments" that exhibit similar properties (imho anyway) like Forex, Commodities etc., there is significant natural non-speculative demand from central banks, large corporations etc. With buttcoin, you are generally relying on ripping off another speculator.

    Shares don't rely purely on its price increasing to generate a profit. They also give you an entitlement to any dividends a corporation may issue. If companies are actively destroying shareholder value, you can also vote to remove the management and replace them. Such attributes do not exist with buttcoin.

    So I wouldn't lump shares and buttcoin in the same category at all. Buttcoin is far more speculative, and it's questionable whether you're genuinely "investing". In it's current market condition, your investment thesis is essentially playing hot potato with a bag of excrement with a bunch of other speculators.
    • Thread Starter
    Offline

    3
    ReputationRep:
    (Original post by The Financier)
    Buttcoins and Shares have different use cases. Shares are issued by corporations as a financing method where that they don't need to repay the initial investment. Buttcoins are meant to be an alternative currency to dirty fiat. That, in my opinion, is key.

    To profit from buttcoin in the long term requires natural non-speculative demand for it to increase, or in other words, it needs to be a viable currency such that people are willing to trade goods and services for it. The problem is that such a currency also needs to be stable relative to dirty fiat, because basically all earnings any individual makes is given in the form of dirty fiat rather than buttcoin. With wild price swings, you have wild swings in purchasing power, which hinders its use case as a currency. Yet, these massive rallies are needed for you to book a dirty fiat-denominated profit.

    With other "investments" that exhibit similar properties (imho anyway) like Forex, Commodities etc., there is significant natural non-speculative demand from central banks, large corporations etc. With buttcoin, you are generally relying on ripping off another speculator.

    Shares don't rely purely on its price increasing to generate a profit. They also give you an entitlement to any dividends a corporation may issue. If companies are actively destroying shareholder value, you can also vote to remove the management and replace them. Such attributes do not exist with buttcoin.

    So I wouldn't lump shares and buttcoin in the same category at all. Buttcoin is far more speculative, and it's questionable whether you're genuinely "investing". In it's current market condition, your investment thesis is essentially playing hot potato with a bag of excrement with a bunch of other speculators.
    I don't know what you mean by this. I don't have an investment in bitcoin, much less a thesis in it. And to be calling this, '****' which is what you did, is quite offensive, and i would have expected more from tsr staff to be honest with you. don't do it again.

    (Original post by biglad2k16)
    I study economics and finance and I manage my own portfolio (although it's a small portfolio and I engage in shorter term investments lasting 1-2 months rather than years). And you having a guy who invests for you doesn't mean you know anything about the markets, anyone can just get a guy to invest for them if they have the money. I don't want to sound rude, apologies if I have sounded rude, but I do feel that I know more about this topic than you do.
    How much is your portfolio worth? I have watched lots of videos on trading, and even invested some of my own money, before pulling it all. I don't consider myself completely clueless, if anything i know enough to know how little i truly understand the markets. So if you think you know so much more than me, because you recently moved out, and are doing a degree in economics. Good for you. I moved about just under twenty years ago...

    Plus i lived through the 07 and 08 crashes. Did you even know that there was a major economic crash in 2007?
    Offline

    3
    ReputationRep:
    what do you mean "crashed"? as in the bitcoin economy crashed? ehh. I bought an amount last night and I didn't see a huge jump or crash in the price?
    • TSR Support Team
    • Clearing and Applications Advisor
    Offline

    20
    ReputationRep:
    (Original post by john2054)
    I don't know what you mean by this. I don't have an investment in bitcoin, much less a thesis in it. And to be calling this, '****' which is what you did, is quite offensive, and i would have expected more from tsr staff to be honest with you. don't do it again.
    By "Your", I am referring to a potential buttcoin investor in that sentence. I don't see how referring to an item as being rather undesirable to hold is remotely offensive.
    Offline

    2
    ReputationRep:
    I was thinking of buying in a few days ago, literally because I saw a thread on it on TSR. When BTC actually starts getting talked about on a social conservative hellhole such as this place, you know it's a massive bubble about to pop.

    (Original post by Snufkin)
    Anyone silly enough to buy bitcoins deserves to lose money. If it were me, I'd cut my losses and get out.
    >MFW when I spend my undergrad years day trading it and took a return well in excess of what any professional unit trust would ever give you :smug::smug::smug:
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    What newspaper do you read/prefer?
    Useful resources
    How much money do you spend a week?The ultimate guide to tax!Guide to student bank accounts

    Sponsored features:

    Web Legend

    Win a Macbook Air!

    Blog about setting up a website for a chance to win in our Web Legend competition.

    Quick link:

    Unanswered money and finance threads

    Groups associated with this forum:

    View associated groups
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.