Crypto-Mania Collapse Update: $638 Billion Gone




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ORIGINAL POST

POSTED BY Ed (2 mths ago)
Of the seven biggest, six have plunged by 78% to 92%.


Cryptocurrencies and tokens are multiplying like rabbits: There are now 1,926 listed on CoinMarketCap.com, 500 more than early 2018. And even as the number of cryptos continues to swell, each crypto constantly creates new units through “mining.” This dilution and hyperinflation is worse than with all but the worst fiat currencies, such as the Venezuelan bolivar.

Cryptos are “decentralized.” That was one of the major selling points in whitepapers full of intelligent-sounding gobbledygook and other propaganda promoted in myriad ways, including by an army of crypto trolls and celebrities paid by the tweet. Because cryptos are decentralized, everyone can create their own, and all kinds of outfits are mining new units of existing cryptos. It’s really just a big joke. But people are losing large amounts usually expressed in their hated fiat currency. The pain is real. And the numbers are big.

At the peak on January 7, total market cap was $704 billion, per CoinMarketCap at the time.

But new cryptos arrive all the time, and cryptos are also multiplying themselves via the mining process. CoinMarketCap figures the market cap going backwards, based on today’s existing cryptos to arrive at a theoretical market cap at a date in the past, as if all those new cryptos and tokens had already existed on that day in the past. And by this measure, the theoretical market cap for January 7 was $830 billion.

More https://wolfstreet.com/2018/09/09/cryptocurrency-mania-collapse-update-672-billion-gone/

COMMENTS

Ed (2 mths ago)
Crypto Influencers Pump Up Markets With $105,000 Tweets

By day, Paul Angus is an engineer. But by night, he’s Cryptonomatron: a producer of hot takes on the latest initial coin offerings who has more than 8,000 subscribers on YouTube. The 43-year-old Scot’s online alter-ego is mostly a labor of love, yet it sometimes comes with an added perk: payment in digital tokens.



That’s thanks to the thriving but murky world of cryptocurrency “bounty campaigns,” where social media influencers get paid to promote ICOs by the entrepreneurs (and in some cases scammers) behind the offerings. The practice isn’t new -- crypto celebrity John McAfee has long been a promoter-for-hire, saying in March that he charged $105,000 per tweet. But the endorsements are playing an ever-bigger role in ICO marketing after Internet giants including Google, Facebook and Twitter moved to ban cryptocurrency advertisements this year.

The proliferation of bounty campaigns is one reason why ICOs are raising money at a record pace, despite the ad bans and this year’s 57 percent tumble in Bitcoin. While defenders of the campaigns say they’re an inexpensive way to build a brand, critics see a breeding ground for hype and misinformation. In jurisdictions where ICOs are considered securities, promoters -- also known as “bounty hunters” -- may even risk running afoul of authorities by acting as unregistered broker-dealers.

https://www.bloomberg.com/news/articles/2018-06-26/crypto-influencers-pump-up-markets-with-105-000-a-pop-tweets

Ed (2 mths ago)
Crypto’s 80% Plunge Is Now Worse Than the Dot-Com Crash

The Great Crypto Crash of 2018 looks more and more like one for the record books.

As virtual currencies plumbed new depths on Wednesday, the MVIS CryptoCompare Digital Assets 10 Index extended its collapse from a January high to 80 percent. The tumble has now surpassed the Nasdaq Composite Index’s 78 percent peak-to-trough decline after the dot-com bubble burst in 2000.

https://www.bloomberg.com/news/articles/2018-09-12/crypto-s-crash-just-surpassed-dot-com-levels-as-losses-reach-80?srnd=premium-asia

feignefu888 (2 mths ago)
First and foremost, Ed, Thanks for that article. It says it all, akin to the others thou wrote.

The mining itself, even at bargain price, is almost useless. I looked into some units because we have very affordable electricity cost here in Canada. Even then, it would take years to make profit (as opposed to the upkeep cost and machine's basic price) with a single, even a few, many,by that point, and that's if they're not obsolete/ burnt out by the time that point of (no)return has been reached.
https://www.cbc.ca/news/business/china-cryptocurrency-quebec-manitoba-mining-1.4484307 https://www.thestar.com/news/canada/2018/02/15/hydro-quebec-considers-special-rates-for-energy-hogging-bitcoin-miners.html


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