The mainstream financial media is subtly acknowledging that a lot of the price action in Bitcoin was fueled by leverage. We seem to be in the process of finding out how leveraged bets on a rising asset price work in reverse. Hint: they don’t work very well.
Bitcoin, which was soaring around $125,000 in October, dropped below $86,000. That’s down roughly 7% from a day earlier.
Strategy, the company that used to be known as MicroStrategy and now raises money just to buy bitcoin, lost 10.3%. It said that it raised a fund of $1.44 billion in U.S. dollars, not in bitcoin, by selling stock to help pay for its dividends on preferred shares and interest on its debt.
I have never understood the attraction of investments with no intrinsic value; that is, nothing but the hope someone else will be willing to pay more for it.
Are we adding gambling to the list of human behaviours you pretend not to understand?
First, bugger off with the personal remarks. Second, I used the “investments”.
You’re talking about your own personal understanding. How can he address that without addressing you personally?
Is he being insulting or abusive? Perhaps in the initial context, but what if I now call you “jackass”? Surely he’s much less offensive by comparison now. See, I do what I can to improve things.
I’m not stupid, ebt, so don’t give me feed me that crap.
My broker used to call it “the greater fool theory” of investing.
And problems start when you either run out of fools or the fools wise up.
Reminds me of the story of the Three Wiseguys bringing bitcon to baby jesus
Isn’t this the oldest ponzi scheme in history?
No matter how many times I’ve heard bitcoin explained, I just couldn’t wrap my head around just what the hell it is. So I never bought any. Shame on me I guess, but stories like this make me feel better that I haven’t bought any recently.
Warren Buffet, who is no fool, has passed up on lots of investments because he never understood them.