I’m confused what the alternative is. If it’s valuable and people lose value somewhere in their life, they will exchange their valuable thing to make up for it.
Like stocks, don't confuse short term volatility with long term performance. The fed is expert at manipulating short term valuations, but their manipulations only hold for so long before they have to lower or raise rates again.
Cryptocurrency has explicitly and repeatedly been touted as un or anti-correlated to the wider financial ecosystem, fiat currencies and the stock market, and has been loudly, noisily and never-endingly sold as a great hedge against these things, absent any evidence.
The evidence is in now, and those theories are a bust.
There are many theories about everything. Sorry the ones you bought into didn’t work out. Most of us aren’t surprised that when the dollar is manipulated that other asset classes’ dollar values change as well.
I didn't buy into them, nor was I the slightest bit surprised. The point is that like most theories about cryptocurrency value that originate with cryptocurrency proponents, they have been shown to be wrong when exposed to the real world.
To turn it back on you - I'm not sure why you're upset that a central bank currency is being manipulated, that's entirely the point of such a system, to allow manipulation by steering committees to attempt to smooth out the bumps and judders in the economy and keep things on an even keel. It's a good thing!
DailyMail is like Wikipedia — a great first spot to spin off and read a dozen sources you probably haven't seen yet. All linked and just waiting for you.
I wish you luck on your reading-less journey through this topic.
I'm not upset either. The dollar is a stable because of manipulation though unfortunately over the long term it does lose value. The cost of stability. Crypto on the other hand I do expect to go up over the long term while being short term volatile. Let's check back in five years and see if that's the case.
We can do that, and I'm not sure I would like to make a prediction about the price of any particular cryptocurrency asset that far ahead.
But I'm also not sure what that has to do with my posts further up, which are saying that another claim about cryptocurrency, that it's a hedge against the stock market and the wider financial system, is wrong. If you're trying to say "Well it might work out, longer term!" then I'm not really sure it qualifies as hedge at that point, you're just talking about another investment which it turns out is quite strongly correlated to the general financial markets.
Except it's not, it's literally just shown that when the stock market takes a dive and times generally get tighter, it crashes worse than everything else.
The notion that the volatility of crypto currencies are due to the value of the dollar being manipulated (rather than the "value" of the crypto) is absurd. You can trivially compare the value of a dollar to a basket of currencies (e.g. the U.S. Dollar Index/Dixie), or a basket of goods (like the consumer price index), and it is fairly stable, and definitely not as wild as the gyrations of crypto prices.
Just as companies like Celsius offered a high interest rate on Bitcoin, and lots of people moved their money into Bitcoin; the government can do the same by changing interest rates which incentivize people to move their money to/from dollars.
Feels like all the crypto marketing has been saying you should get crypto to avoid government manipulation. And yet the government manipulation is just as effective.
The government can short term manipulate the dollar and as a result the dollar value of various assets. That's what causes the short term volatility. Long term though the value of assets resistant to manipulation will go up, while the value of the dollar will steadily go down as it always does.
It's pretty simple, all the Bitcoin 'manipulation' you see is simply buying/selling open market coins. Not selling massive quantities of newly minted coins. The government on the other and has minted and spent trillions of dollars in stimulus which has resulted in permanent inflation.
The point is, Bitcoin will bounce back, the dollar will not.
> It's pretty simple, all the Bitcoin 'manipulation' you see is simply buying/selling open market coins.
LOL. And every tether is backed by a US Dollar in a bank account, right? Nobody could possibly (say) fake buy pressure to put the prices up?
> The point is, Bitcoin will bounce back, the dollar will not.
What point? For what purpose will bitcoin "bounce back" that the dollar will not?
As the dollar is not an investment, but a means of exchange, it doesn't seem particularly important whether the dollar 'bounces back', because nobody is trying to sell you dollars to stick under the mattress as a get-rich-quick scheme.
Savings accounts are for short-term liquid ... savings. You only keep in those what you need in the forseeable.
None of these is "investing in dollars" though. You're not just holding dollars and hoping the value will go up, because literally nobody does that. By design. If you want money to grow you invest it in productive assets. Unless you're into cryptocurrency when you gamble it on group psychology and dickbutt jpegs like 3AC did.
There is plenty of other manipulation, like constructing ponzi schemes that require BTC/ETH to get into, or "stable coins" backed by other crypto, or selling "art" like NFTs.
These all sooner or later crash down, and bring the value of ETH and BTC down with them. Already billions of dollars have left the crypto space, and are unlikely to ever come back.
It of course isn't impossible that BTC will bounce back, but there is also no guarantee of it. Perhaps Gamestop will bounce back as well, or the Venezuelan Dollar.
I very much doubt that people who have bought BTC at $60k, or the people cashing out of USDT while they still can, will want (or be able to) bring their money back into this crazy ecosystem.
Especially so as the price of energy increases and global warming becomes ever more apparent, keeping many afraid of investing in such energy wasteful endeavors.
USDT is no longer trusted — but still swapped around due to now-legacy exchanges denominating in it.
Your other points are not true for many cryptocurrencies, and for the ones it is, there are plenty of players who don't hold your concerns — right, wrong, or indifferent, they exist.
You say it's not trusted and yet the most volume in crypto (around 46 billion) is being traded every day it. Are you sure you're not just in your own thought bubble?
Most of the money minted and spent goes to dropping bombs on brown people and guarding Arab oil investments. And while the average American got a small check, giant companies got massive interest free loans. Again.
