Support #1 for Bitcoin has been hit, but #2 is well lower
My preferred no-brainer target – per NFTRH’s Currencies segment – has been 12,500 as we’ve been noting for most of 2022. But Bitcoin (BTCUSD) did touch the December 2017 high, which can also be considered viable support.
That is a lot of damage done to the Bitcoin promoters and especially their herds. I feel it is worth a shot to see if this speculation can get some wind if/as the broad bear market rally continues.
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The best definition of cryptocurrencies and Bitco(i)n in my view was from Hugo Salinas Price, along the lines of:
“the exchange of valid fiat for a sequence of electrical charges in a digital computer memory that fulfil no definition of money and confer no legal claim to anything with tangible value”
The application of charting methods to a quantity with zero or negative fundamental value would appear to be risky, to say the least. Quite apart from the high probability of being cheated by the “exchanges”.
Believe me, I am and have been far from a BTC proponent. It is a pure speculation. Nothing more or less. But the quote “valid fiat” is interesting. Is there even such a thing?
Not really, but I meant valid in the sense that you can buy a coffee and pay taxes with it (USDs), neither of which are possible with crypto unless you convert the crypto back to USD first.
The prices of Tesla cars touted for sale for bitcoin are listed in dollars.
Many years ago before the price explosion there were month-long debates on Zero Hedge between the skeptics and the enthusiasts. The above argument was always countered with “you buy crapto to HODL”
LOL, I would not HODL anything so well hyped and so not well understood (by me). So re. paper currency, ‘valid’ means ‘official’ as decreed by the Trillions in debt government. All a confidence game, ongoing for decades now.
Gary, “legal tender” or just “fiat currency” are probably better alternatives. I had paraphrased HSP’s text a bit too hastily.
He wrote about 9 articles on the topic on his website between 2013-04-10 and 2020-11-24.