Bitcoin’s unfiltered global trading volumes for the past 24 hours are now higher than ethereum’s entire market cap.
Bitcoin saw global trading volumes of nearly $20 billion today, while ethereum’s market cap has dropped to about $18 billion.
Bitcoin fell today from about $8,000 to $7,500, making it a drop of circa 5% for no clear reason.
There’s no apparent news to explain the price action, so it may be just traders being traders.
Alternatively, stocks are falling a bit too and they’ve been generally stagnating for two years. The German economy is pretty much contracting if we account for inflation. Same for UK. For US, growth in real terms is at just 0.2%.
In addition, central bankers have been caught like rabbits on the spotlight. Whether ECB or PBOC or FED, they appear to have no clue nor any real orchestrating capability as for profit private commercial banks make the real policy in expanding or contracting lending, and thus economic activity.
The wind of change is spreading globally, and those in charge appear unable to adapt, to give concessions, to realize real reforms are necessary and are being demanded.
All this presumably puts some pressure on investments and bitcoin is apparently not quite escaping that pressure for now.
Other cryptos are faring worse. Ethereum’s reduction in supply should lead to a gain in ratio you’d think, but it has fallen more than bitcoin today.
All other cryptos are down, as are pretty much all assets, including gold slightly. Making it all a bit peculiar unless we consider what is up.
Government borrowing is growing faster than the economy, something which by definition is unsustainable according to FED chair.
At a big picture view, that presumably means governments across the world are sucking in all the money, leaving less for investments, hence the fall in pretty much all assets.
In America such borrowing accelerated after a massive tax cut for mainly the rich, like the President himself.
In Britain, the very dull election has both main contenders offering a free Rolls Royce for everyone as Andrew Neils put it.
Attempts in other places to raise funds by increasing fuel taxes and the like have sparked revolts. That’s primarily because the very rich are effectively not being taxed at all, while the rest are arguably taxed far too much. In some places, they tax even bread.
As the rich are in charge they’re clearly unwilling to put taxes up for themselves and not the rest. As the rest are in revolt in many places, governments don’t dare tax them anymore. Thus the massive borrowing which is sucking out money from the economy to send it towards the useless military in America, or wasteful bureaucracy, and quite often towards outright corruption.
The solution that has been proposed is a Citizens’ Assembly, where the rich and poor can sit together in the same hall to discuss matters, but it appears quite unlikely that will be granted.
The current solution thus is FED basically printing money and giving it to commercial banks who then give it to the government. For the rest… well the above business model is far too profitable so why bother with the rest.
Why bitcoin should fall in this situation is a puzzle, unless we consider it can’t quite accommodate a village let alone a world.
It’s more for savings, when what is needed is a global, open, cheap to almost free, fast to almost instant, payment network to facilitate an uncontrollable currency-asset.
There’s arguably bitcoin cash for that, but they can’t even decide whether to use the green logo or an orange one.
So cryptos are not ready, even though you’d think they have to be, with innovation continuing.