It kind of surprised me when the exchanges started trading Bitcoin & Ethereum. Usually, a commodity is something useful & a currency is something backed by governments. But anyhow, the exchanges have done OK by their decision.
This week? Just another bump in a long road or the start of the meltdown?
3 reasons for possible meltdown : 1) Russia may be cutting them off. A major reason for using crypto is illegal transactions, and Russia is central to those. 2) This years 1040 requires disclosure of any potentially taxable crypto transactions. Enhanced 1099 requirements make it harder to just lie. 3) Wallet breaches.
OTOH, crypto has outlasted a lot of stuff in the past
Thanks patrick, I'd not been following this at all and don't know that market well but it always seemed like a big bubble.
For Bitcoin, there’s only been one constant recently: decline after decline after decline. And the superlatives have piled up really quickly.
With the Federal Reserve intending to withdraw stimulus from the market, riskier assets the world over have suffered. Bitcoin, the largest digital asset, lost as much as 8.7 per cent on Friday and dropped below $38,000 to its lowest level in six months.
Since its peak in November, it has lost 40 per cent of its value. Other digital currencies have suffered just as much, if not more, with Ether and meme coins mired in similar drawdowns.