Bitcoin surpasses $69K to hit new record, eclipsing 2021 peak and overcoming 2022 crypto...

[Shawn Knight]

What just happened? Bitcoin has hit a new all-time high following its previous record in late 2021 and subsequent dip a year later that wiped out most of its value. Pricing varies depending on the source but according to US cryptocurrency exchange Coinbase, Bitcoin's value topped out at $69,324 earlier today before sliding back down into the $67,000 range.

It marks a new all-time high for the volatile digital currency, eclipsing what some say was a previous high point of $68,790 back in November 2021 during the last cryptocurrency boom. Bitcoin's market cap currently sits at $1.3 trillion.

Pricing fell sharply following the previous peak. By November of 2022, a single Bitcoin was worth just $16,437. As with any investment, buying and selling at the right time is the name of the game. Those that managed to buy low (or mint their own coins) and either hang on to them or sell for a huge profit are no doubt smiling with today's news.

Attempting to time the cryptocurrency market or predict future valuations has proven fruitless, yet some still attempt the feat. Many thought the crypto ride was over after the last boom and dip, yet here we are. Bitcoin emerged from the crypto winter about a year ago and has exhibited strong growth ever since, largely in part to the SEC approving Bitcoin exchange-traded funds (ETFs). With a fresh high mark, some now believe Bitcoin is prepared to soar into the stratosphere.

As Rob correctly highlighted earlier this month, a strong crypto market can make gamers nervous. During the last boom, crypto miners helped drive the price of graphics cards through the roof. Of course, that situation was also aided by pandemic-era chip shortages which we've finally put behind us.

The crypto situation seems far calmer this time around, and that is great news for all involved. Organic growth is better than hype and if things can continue to trend upward without disrupting other markets, so be it.

Image credit: Karolina Grabowska

Permalink to story.

https://www.techspot.com/news/102135-bitcoin-surpasses-69k-hit-new-record-eclipsing-2021.html

 

[GodisanAtheist]

Yeah, bitcoin passed out of feasible GPU mining territory long ago so this shouldn't affect the broader consumer market which is always a plus.

Nevertheless, outside of the pure speculative element, still not sure how crypto is actually supposed to fulfill the function of an actual currency.

 

[yRaz]

Yeah, bitcoin passed out of feasible GPU mining territory long ago so this shouldn't affect the broader consumer market which is always a plus.

Nevertheless, outside of the pure speculative element, still not sure how crypto is actually supposed to fulfill the function of an actual currency.

The same way any other fiat currency does, with someone believing it has value and is willing to trade goods for it.

 

[ScottSoapbox]

Nevertheless, outside of the pure speculative element, still not sure how crypto is actually supposed to fulfill the function of an actual currency.

The same way any currency does, with people believing it has value and therefore being willing to trade goods/services for it.

The difference from paper currency is that Bitcoin has a set amount (that increases very slowly on a set schedule) whereas the amount of most paper currencies can be increased by politicians who want to spend more than they can raise in taxes or debt which devalues the paper currency. (e.g., See the global inflation caused by this money expansion from covid)

The only reason speculation is a thing with Bitcoin is that a relatively small number of people believe its value compared to the number of new people becoming believers. So, these new people increase the demand for the basically fixed amount of bitcoin. If tomorrow a billion people bought into Bitcoin the price would skyrocket but then stabilize and speculation would be dead because the new people after that would be to small relative to the number of people using it already to move the price a meaningful amount.

 

[McMurdeR]

The same way any other fiat currency does, with someone believing it has value and is willing to trade goods for it.

So money is basically a bet on the stupidity of humanity. Suddenly it's all so clear!

 

[yRaz]

So money is basically a bet on the stupidity of humanity. Suddenly it's all so clear!

No, that's credit.

 

[McMurdeR]

No, that's credit.

Same thing

 

[Crabjuice]

The same way any other fiat currency does, with someone believing it has value and is willing to trade goods for it.

Well, except that fiat currency has much more than that going for it. The U.S. government has real assets and a GNP backing up that fiat currency, while obviously, crypto-coin doesn't.

 

[yRaz]

Well, except that fiat currency has much more than that going for it. The U.S. government has real assets and a GNP backing up that fiat currency, while obviously, crypto-coin doesn't.

The dollar actually doesn't have anything to do with the US government. The dollar, it's value and interest rates are governed by the Federal reserve which is not a government agency.

But I believe that you think that it does because that's why most people trust the dollar. It is more accurate to say that the dollar is backed by the US military's ability to project power, but if debters decide to collect in that debt then the military loses its ability to project power.

Global economic powers lack so much confidence in the future of the dollar that the BRICS was created

 

[GodisanAtheist]

Crypto (and specifically Bitcoin) are deflationary currencies, the monetary supply is fixed but productivity and "stuff" keeps increasing, so the purchasing power of each coin (if it were actually used as currency) would keep getting higher and higher and higher.

For all the perceived evils of the Fed and the ineptitude of our Congress, some element of centralized fiscal/monetary policy are a far lesser evil than the complete laisse-faire whims of something like bitcoin.

With the US Dollar, the government can inject money into the economy or pull it out to buffer economic shocks (many of which are admittedly the result of the banking industry/government itself), but those shocks would still be there with crypto, only with no one to actually respond to them.

 

[Jim Lahey]

Some actually decent, mostly respectful dialogue in here!

Usually the crypto posts are overrun with tribalism. Nice to see.

I think most people who are casually involved with crypto are optimistic about it's ability to weather some of the wild inflationary/governmental swings, while equally aware that you don't reinvent economic trading (fiat) with one single solution. Bitcoin specifically has a lot of speculative pressure and the issue of whales in the industry is probably the biggest risk I can think of, aside from hostile government regulation.

 

[yRaz]

Crypto (and specifically Bitcoin) are deflationary currencies, the monetary supply is fixed but productivity and "stuff" keeps increasing, so the purchasing power of each coin (if it were actually used as currency) would keep getting higher and higher and higher.

For all the perceived evils of the Fed and the ineptitude of our Congress, some element of centralized fiscal/monetary policy are a far lesser evil than the complete laisse-faire whims of something like bitcoin.

With the US Dollar, the government can inject money into the economy or pull it out to buffer economic shocks (many of which are admittedly the result of the banking industry/government itself), but those shocks would still be there with crypto, only with no one to actually respond to them.

I'm far from am expect on economics so I'm welcome to an open debate on this, but I feel this mindset has come from 50 years of fiat currencies. Crypto isn't deflationary in and of itself, it is deflationary relative to currencies that can be printed willy-nilly. 1 bitcoin is always going to be(should be without speculation) worth 13,000 avocados, but avocados can be worth $3-7 dollars. We will always have instiutional investors playing the markets and prices will change. The difference is that the dollar changes because we continue you print them where as any crypto worth its salt(I know what I said) is supposed to be like digital gold.

It is my opinion, anyone is free to disagree with this and I won't argue, that we have printed so much money to boost the economy that we're lucky we aren't in a WW1 paper duetchmark situation. While I think it is plausible that the end is not near for the dollar, I don't think we can keep printing money without consequences. We're lucky money printing hasn't driven our economy into the ground as it is, we need to stop our debt based economy ASAP

 

[emmzo]

By now it's clear greed got sanity of the table for big financial institutions and now they are probably already trying to find legal ways to turn nonbelievers into investors in the name of financial freedom. And it's easy. Look, it's only going up! People don't get the basics. They're still calling it a currency, while it is an extremely risky asset. And so, most people will lose and a few will win. There's no happy ending for everybody. Most crypto pundits have no clue of what Bitcoin is, they're only regurgitating the same story of decentralized non inflationary something, better than sliced bread. Debate is futile and it is immediately deemed toxic if I were to call it a Ponzi. Time will tell, for now moonboys rejoice!

 

[monkeylove]

Pump and dump.

 

[Lounds]

Whale pulls rug.

The big boys are collecting all the dumb money.

 

[Karlos95]

Pump and dump.

I have never seen a pump and dump consistently go up over 10 years

 

[Crabjuice]

The dollar actually doesn't have anything to do with the US government.

Incorrect. The Fed is not entirely independent of the U.S. government. https://www.federalreserve.gov/faqs/about_14986.htm
The fact that it has some independence doesn't change this fact.

It is more accurate to say that the dollar is backed by the US military's ability to project power

I did leave this out, but yes, I agree. It's also backed by the US governments ability to tax, thus our GDP (I meant GDP, not GNP) and government assets.

, but if debters decide to collect in that debt then the military loses its ability to project power.

It is my understanding that it isn't possible for the creditors to demand collection. U.S. debt is issued through treasury securities. Bonds cannot be called by the investor.