Down 14% in the last month. Still way above its actual value (0) but headed in that direction.
I’m guessing cost of living is driving a lot of hodlers to liquidate. You have to imagine most of the money in this thing is institutional though so maybe it won’t matter that much.
Inflation is driving the cost of commodities up but BTC seems to move in the opposite direction. This is meaningful bc the value prop of BTC as an inflation hedge would suggest the opposite, and BTC overweight portfolios will underperform the diversified commodities basket. If this persists it’s only matter of time before we also see some institutional unwinding
I don’t follow that market super closely but it’s interesting nonetheless. It seems these big corrections happen from time to time as well so could just be more of the same. Still one wonders if we are starting to see some structural covariance.
Value is socially necessary labor time, so those things would actually increase the value of Bitcoin, not lower it. But for it’s value to be realized, a commodity needs use value on top of exchange value. Bitcoins have no use value other than their use for facilitating exchange (as a currency). However, since bitcoins are almost never exchanged for other commodities, they don’t facilitate much exchange at all. Without use value, the actual value would be zero no matter how much labor and resources go into a commodity. Those inputs are just destroyed.
Bitcoin is the modern equivalent of Marx’s concept of socially unnecessary labor (e.g. repeatedly digging a hole in your backyard).
It’s only maintained value because socially unnecessary labor is one of the most valuable forms of labor in the backwards neo-capitalist system since it’s the only type of labor that the elite can perform.
Seeing this collapse I feel is a canary for a much larger crisis brewing that will snap away a lot of the fantasy value that has been incorrectly boosting GDP over the past decades.