Post
Topic
Board Economics
Re: Recent crash
by
deisik
on 30/01/2019, 20:06:36 UTC
I want to have a serious discussion about the recent crash that happened in the crypto market, more precisely bitcoin.

What are your thoughts on this subject? What caused it, is it healthy for the long term, when do you expect to see the price back again?

We are going back to the roots, so to speak

Though you didn't make it clear in the OP what crash you refer to. If you mean the late November early December crash a couple months ago, it was likely triggered by the hash wars, but its causes lie in Bitcoin being overvalued back then. The price had been trading in 6-7k range but with no real support, so when someone started to sell in earnest, the price crashed until it found a new support at 3k. But we may not be done yet

You can think of it as an organic continuation of an overall downtrend which gets us closer to the equilibrium determined by real value of Bitcoin (with most altcoins likely kicking the bucket in the process). So for Bitcoin itself it may be a good thing as lower prices probably add to Bitcoin's real use. You can take Dogecoin as an example of that kind. It is cheap as dirt but almost all of its price is determined by its real use (as a coin for gambling)