Crypto Markets Wipe Out $150 Billion In Value Within Hours Of China's Latest 'Bitcoin Ban'

[Nevilledog]

Link to tweet

Tweet text:
Reesus Patriot
@ResusCGMedia
Been warning for a while that this is not legitimate currency and GOVs are going to start cracking down.
Crypto Markets Wipe Out $150 Billion In Value Within Hours Of China's Latest 'Bitcoin Ban'—What's Next? via @forbes

Crypto Markets Wipe Out $150 Billion In Value Within Hours Of China's Latest 'Bitcoin Ban'—What's...
The plunge erased virtually all of the gains since a Monday sell-off triggered the crypto market's worst decline in weeks.
forbes.com
7:25 AM · Sep 24, 2021

https://www.forbes.com/sites/jonathanponciano/2021/09/24/crypto-markets-wipe-out-150-billion-in-value-within-hours-of-chinas-latest-bitcoin-ban-whats-next/?sh=5eee1e034e4f

TOPLINE In yet another testament to the nascent market's extreme volatility, cryptocurrency prices tumbled Friday morning after China's central bank reiterated a sweeping ban on digital asset transactions, prompting some experts to warn the harsh rhetoric may encourage more nations to take similar measures while others pointed out prices have quickly recovered from such announcements in the past.


KEY FACTS

The value of the world's cryptocurrencies tanked to a low of about $1.8 trillion by 7:15 a.m. EDT on Friday, falling roughly 9% and losing $188 billion in market value within just three hours of China's announcement, according to crypto-data website CoinMarketCap.

The stark plunge wiped out virtually all of the gains since a global stock sell-off on Monday triggered the crypto market's worst decline in weeks, with top cryptocurrencies bitcoin, ether and Solana's sol falling between 6% and 10% apiece Friday morning.

In a Friday note, analyst Adam Crisafulli of Vital Knowledge Media pointed out China's announcement is "very consistent with its past rhetoric," but still cautioned investors against buying at current prices because it's likely Beijing's measures could be adopted by other countries, with India among the biggest economies voicing hesitancy toward cryptocurrencies.

*snip*

[Ocelot II]

1. Had a conversation with a finance guy last week; he compared the cryptocurrency fad

to the "Tulipmania" bubble in the Netherlands in the 17th century. It's gonna crash, he said.

[Nevilledog]

3. Bitcoin has always seemed like a scam to me.

[Ocelot II]

4. Me, too. The finance guy tried to explain it to me, but the main thing is

that it doesn't actually exist; it's valuable only because people think it is (like those tulips). Nobody knows who's behind it, and you can get more bitcoins only by "mining" them using some kind of decryption process which uses an enormous amount of computer power. There is no centralized bank or record-keeping process; it's all on individual computers. At least with the tulip craze you had real, tangible things.

[Nevilledog]

6. And don't even get me started on NFTs.

[empedocles]

8. Total market collapse in some instances

' . . . Already by 1623, the sum of 12,000 guilders – considerably more than the value of a smart townhouse in Amsterdam – was offered to tempt one tulip connoisseur into parting with only 10 bulbs of the beautiful, and extremely rare, Semper Augustus – the most coveted tulip variety. It was not enough to secure a deal.

When word got out, during the 1630s, that tulip bulbs were being sold for ever-increasing prices, more and more speculators piled in to the market. The intricacies of this market, as well as its frailties, are brilliantly outlined by the historian Mike Dash in Tulipomania: The Story of the World’s Most Coveted Flower and the Extraordinary Passions It Aroused (1999).

One of the curiosities of the 17th Century tulip market was that people did not trade the flowers themselves but rather the bulbs of scarce and sought-after varieties. The result, as Dash points out, was “what would today be called a futures market”. Tulips even began to be used as a form of money in their own right: in 1633, actual properties were sold for handfuls of bulbs. . . '


https://www.bbc.com/culture/article/20160419-tulip-mania-the-flowers-that-cost-more-than-houses

[madville]

26. It's just a game of musical chairs at the moment

You just don't want to be the one holding when the music stops. It has made people some real money, a friend of mine recently cashed in $80,000 worth that he originally bought for $1000.

[Ocelot II]

27. That's the way investment bubbles usually work.

[jmowreader]

17. There is a huge difference between Tulipmania and Bitcoinmania

When Tulipmania collapsed, you still had the bulbs and the flowers they produced were still pretty. When Bitcoin collapses, all you have is a string of numbers.

A couple of people in my department at work are heavily into cryptos. I would assume they are not happy campers today.

[Ocelot II]

18. Yup. The tulips were real, if no longer valuable - though the speculators weren't

interested in gardening, so I don't think they cared. Bitcoin isn't real at all, so when it collapses there will be nothing at all.

[Celerity]

19. might want to find a new 'finance guy'

He is using a fundamentally (and fatally) flawed analogy that violates the most basic tenets of economics.

Tulips lack fungibility, durability, and involved an incredible complex and lengthy supply chain.

Crypto is fungible, doesn't 'spoil' and become destroyed like tulips, and is globally redeemable, transferable, purchased, and sold within an extremely short amount of time.

If I had one bitcoin for each and every time over the past 10 years or so that I have seen 'it's going to crash and become worthless', I would be worth hundreds of millions of USD.

[Ocelot II]

20. He's a knowledgeable guy with a strong background in finance

so I'm inclined to trust his knowledge of tangible money investments over the advice of strangers on the internet. His analogy was a loose one, of course, and since I wouldn't invest in bitcoin under any circumstances it's not important to me anyhow.

[Celerity]

21. I was not giving financial advice, I was simply pointing out very basic faults in his analogy

I wouldn't invest in bitcoin under any circumstances

a completely understandable and valid personal stance

cheers

[Ocelot II]

22. The analogy was a loose one referencing the perils of speculation

and investing in things that have little or no intrinsic value, and I'm sure he understands the differences between the two situations.

[ffr]

2. Europe and North America should follow suit. Eliminate this bullshit dark web currency.

[Tomconroy]

5. It's a good thing that the value of a bitcoin can't go any lower than zero..

[in2herbs]

7. Didn't Congress just pass something that allowed payment in Crypto and because it's a new

form of payment there were alleged protections, not regulations???

[Thunderbeast]

9. HOT TIP!

Fire sale coming SOON on massive computer server farms.

Global supply for electricity to see two percent rise in supply as bitcoin "mines" are shuttered.

Investors strangled by huge blockchain.

[zipplewrath]

15. Help with global warming

Apparently these computer farms were restarting old, shuttered, coal fired power plants to provide the electricity.

[awesomerwb1]

10. So one tweet from mighty Resus

ResusCGMedia.

China's been "banning" Bitcoin and crypto since 2013. Let's see if your mighty source for news does an update in a few weeks. *crickets*

[Nevilledog]

11. It's an article from Forbes.

[awesomerwb1]

12. Oh I read the article

from the article:
"In a Friday note, analyst Adam Crisafulli of Vital Knowledge Media pointed out China's announcement is "very consistent with its past rhetoric," but still cautioned investors against buying at current prices because it's likely Beijing's measures could be adopted by other countries, with India among the biggest economies voicing hesitancy toward cryptocurrencies."

I was commenting on Mighty Resus Media's "opinion" tweet.

[uponit7771]

13. +1

[Binkie The Clown]

14. $150 billion lost in hours, after nothing real was lost or destroyed.

Kind of implies that that $150 billion was never real to begin with.

[onethatcares]

16. are you saying

that aside from some numbers on some computers around the world the numbers didn't exist except in peoples minds?

WTF??????

Come on, what were they backed by, the faith and credit of that lawyer in Narobie that keeps sending me e-mails?

[Binkie The Clown]

23. Back in 2001 I had almost a million gold coins ...

...in Everquest.

[onethatcares]

24. wow.

I'm speechless.

[Binkie The Clown]

25. I never made nearly as much in WoW. nt