RE: Bitcoin on CNBC 📺
Ya, Tom seems nice and I kind of wanted to work into the article somewhere, but didn't find a spot for it, that he does understand Bitcoin and is sort of a crypto guy as much as a CNBC guy. I assume it's some combination of him being a little wet behind the ears as far as these bubbles go, and CNBC maybe wanting him to do a piece like that.
I don’t think bitcoin can even go much lower since bitcoin futures are functional at or above 100 bil market cap or something like that. Maybe $5.5k, but not lower, they don’t alow it.
Could you explain that more? Like the future market stops working if it gets lower than that?
Wouldn't that just be too bad for the futures market? Like it would just have to be shutdown until Bitcoin was higher? Maybe some of those big wigs would have motivation to buy it, so that they can keep the futures market running. But I don't see why however the futures market works would create a floor for Bitcoin.
Also, at today’s prices, bitcoin mining is not profitable anymore. I would really be surprised if we dip below 5k. But yes, we can be stuck here at $6k for years as well.
People make that argument about mining, but I don't think it's correct. What happens is some people start turning off their miners, which in turn leaves more of the pie for everyone else and in effect lowers the cost of mining.
So Bitcoin could continue to drop and this would just keep happening. The field would thin into the people who are best at mining, and mining cost continues to drop as more exit.
I didn’t know about it until few days ago. First time I heard about that was from @dhenz’s video here is the link.He mentioned that the futures markets (CME / CBOE) can only trade markets greater than 100 bil. When it comes to bitcoin.
”If bitcoin falls below 100bil marketcap it will be removed from futures trading and miners will be taking a huge hit. If the miners/future traders are willing to let it go that far then it would be quite interesting.”
He said.
Average bitcoin mining bing cost is at around $7k and I bet at today’s prices the average home miner struggles to be profitable or to even break even the cost of mining hardware and electricity if not loosing. Not mentioning Hashflare and Genesis mining, which turned out to be complete scam. Whether bitcoin futures stop or not if it drops below 100 bil. all hell will break loose. Perhaps that’s what we need to get rid of all weak hands. I still believe we are stuck in this range for a long time.
I haven't watched his whole video but I don't know what he means by "willing" to let it go that far. It's not like they control the price lol.
Some people could buy it to try to prop it up, but that could go really wrong for them, I don't know who would care enough about the futures market to try to do that.
Futures market seems basically like a toy for a few traders.
Ya, it's tough for most miners to be profitable right now, so many of them are exiting, and because they exit, mining becomes less difficult (more slices of pie remain) and cheaper for the ones who keep at it.
It's self-balancing in that way. As Bitcoin price drops, there's pressure on miners to leave. As Bitcoin price rises, there's more room for more miners.
I've heard Max Keiser talk about mining cost as a floor for Bitcoin price and just totally don't agree.
At the end of the day there's just nothing any miner can do about it, other than turn off their rig, if people don't want to pay X amount for a Bitcoin.
So mining cost will dynamically rise and fall in step with Bitcoin price. But it's the wagon behind the horse. Its current cost doesn't create a floor that Bitcoin price couldn't fall thru. It's that if Bitcoin goes lower than that, miners have to leave.
::shrugs::