Crypto Currency Thread
Discussion
As others have said, it's crashing and no one seems to know why, just as no one knows why it goes up either. I've stopped worrying about it. It's dead money as far as I am concerned so if at some point in the next few years, one of the half a dozen coins I took a punt on magically revives then it will be a nice surprise. If not it was a nice little ride but I won't lose any sleep over it.
We do know why though. It’s the same path as penny share spikes. The hype is over, the speculative boom has ended and the smart money is cashing out into a market with few buyers and the daft money will hold hoping it will all bounce back.
All the people who previously devoutly believed this was the new world order and that cryptos would stick it to the evil system and now desperately hoping that evil system comes to the rescue and standardises the concept.
We are probably at the beginning of the V2.0 market for crypto where for a coin to survive it has to stop claiming to be anti establishment and be very much establishment. You want security and credibility then you need to work the way the system works. The system exists for a reason.
All the people who previously devoutly believed this was the new world order and that cryptos would stick it to the evil system and now desperately hoping that evil system comes to the rescue and standardises the concept.
We are probably at the beginning of the V2.0 market for crypto where for a coin to survive it has to stop claiming to be anti establishment and be very much establishment. You want security and credibility then you need to work the way the system works. The system exists for a reason.
DonkeyApple said:
We do know why though. It’s the same path as penny share spikes. The hype is over, the speculative boom has ended and the smart money is cashing out into a market with few buyers and the daft money will hold hoping it will all bounce back.
All the people who previously devoutly believed this was the new world order and that cryptos would stick it to the evil system and now desperately hoping that evil system comes to the rescue and standardises the concept.
We are probably at the beginning of the V2.0 market for crypto where for a coin to survive it has to stop claiming to be anti establishment and be very much establishment. You want security and credibility then you need to work the way the system works. The system exists for a reason.
To be honest I was never sold on the whole Crypto will be the end of banks mantra that some Crypto supporters were spouting. Money is the lifeblood of the entire world economy. There is no way in a million years the powers that be were going to allow some shady tech geeks to control that flow independent of any form of control or taxation, that was a pipe dream. They will eventually control it, regulate it and tax it, just like they do with anything else and if they can't do that they'll ban it, plain and simple.All the people who previously devoutly believed this was the new world order and that cryptos would stick it to the evil system and now desperately hoping that evil system comes to the rescue and standardises the concept.
We are probably at the beginning of the V2.0 market for crypto where for a coin to survive it has to stop claiming to be anti establishment and be very much establishment. You want security and credibility then you need to work the way the system works. The system exists for a reason.
Crypto does have a use but I agree the next stage will be when the governments and big banks decide to get involved. I suspect there will a small market for independent Crypto's for people who want to conduct shady business or just "stick it to the system" but the bulk of transactions will still be controlled by the people who control the main money systems now, I can't see how it could be any other way.
DonkeyApple said:
I agree. It’s arrived. It has a use and a benefit. It will remain. But not in this form. It will evolve into tools for corporates etc to acquire and retain consumers and become stable and secure and all terribly, terribly boring. 
Security & stability are essential to any money. It should become a tool that corporates and consumers use and eventually consumers will have no need to understand the boring stuff (either the technical or the economics). It'll just work, like today's internet just works. If governments don't end up using it, then the experiment will have broadly failed. If it succeeds, then it is fiat currency that history will ultimately view as an experiment.I'd recommend reading The Bitcoin Standard https://www.amazon.co.uk/Bitcoin-Standard-Decentra... or listening to it on Audible (use the free credit & free 30 day trial if you're a spendthrift) https://www.audible.co.uk/pd/The-Bitcoin-Standard-... It's a very enjoyable, easy and insightful read for anyone interested in this space whatever your views are.
Personally I think banks are stressed and showing signs of failure. I can't think of a single High Street bank that is particularly good at any aspect of its business. Bitcoin is just one challenger to the bank monopoly, Paypal etc. are another, Hargreaves Lansdown, Octopus et al another, peer to peer lending another...the banks are losing their grip on their wider product offering and if they can't offer value for money as a place to store your cash what is the point of them?
I could probably break from my High Street banking provider right now. There would be some teething issues as I have several businesses and business accounts and paying in cash and settling my corp tax bills may be tricky...but otherwise I don't think it would be too bad.
As for James_B's comments, no I won't be claiming to have cashed in at the peak and honestly I don't care that much about the bitcoin price. It got a bit stressful when the price rose too fast because such rapid growth in value makes for problems. Imagine you have a car on the street that rises in value at £1000 a day...you may love that car but at some point its value becomes a problem. I would prefer to see bitcoin stabilising so that developers can work with a known quantity and don't find themselves suddenly tasked with securing assets worth 1000s of times the price their projects originally planned for!
I could probably break from my High Street banking provider right now. There would be some teething issues as I have several businesses and business accounts and paying in cash and settling my corp tax bills may be tricky...but otherwise I don't think it would be too bad.
As for James_B's comments, no I won't be claiming to have cashed in at the peak and honestly I don't care that much about the bitcoin price. It got a bit stressful when the price rose too fast because such rapid growth in value makes for problems. Imagine you have a car on the street that rises in value at £1000 a day...you may love that car but at some point its value becomes a problem. I would prefer to see bitcoin stabilising so that developers can work with a known quantity and don't find themselves suddenly tasked with securing assets worth 1000s of times the price their projects originally planned for!
No expert but i don't see any signs of banks failing. I see them being tighter controlled than 9 yrs ago and still making huge profits generally, with 95% of the population using them in the main.
I've money in p2p but also still in banks and govt bonds, can't see that changing anytime soon as the banks are backed up should anyone go bust.
I've money in p2p but also still in banks and govt bonds, can't see that changing anytime soon as the banks are backed up should anyone go bust.
200Plus Club said:
No expert but i don't see any signs of banks failing. I see them being tighter controlled than 9 yrs ago and still making huge profits generally, with 95% of the population using them in the main.
I've money in p2p but also still in banks and govt bonds, can't see that changing anytime soon as the banks are backed up should anyone go bust.
Why do people still think banks are backed up? You get £85,000 back from your savings, per financial institution, if they go tits up. Less for business accounts.I've money in p2p but also still in banks and govt bonds, can't see that changing anytime soon as the banks are backed up should anyone go bust.
dimots said:
I would prefer to see bitcoin stabilising so that developers can work with a known quantity and don't find themselves suddenly tasked with securing assets worth 1000s of times the price their projects originally planned for!
imo key security & custodial infrastructure are probably the most important things that devs & entrepreneurs are working on right now.dimots said:
200Plus Club said:
No expert but i don't see any signs of banks failing. I see them being tighter controlled than 9 yrs ago and still making huge profits generally, with 95% of the population using them in the main.
I've money in p2p but also still in banks and govt bonds, can't see that changing anytime soon as the banks are backed up should anyone go bust.
Why do people still think banks are backed up? You get £85,000 back from your savings, per financial institution, if they go tits up. Less for business accounts.I've money in p2p but also still in banks and govt bonds, can't see that changing anytime soon as the banks are backed up should anyone go bust.
What happens to your savings if you forget your crypto password? How often do people forget passwords?
98elise said:
How many people have 85k in savings? Most of the country live pay day to pay day. of those that do how many have it all sat with a single bank? To do that you would have to be stupid and rich, and that not a normal combination.
What happens to your savings if you forget your crypto password? How often do people forget passwords?
Lots of people have more than £85k in a single bank account. Particularly businesses.What happens to your savings if you forget your crypto password? How often do people forget passwords?
If you forget your crypto password your money is still there, on the blockchain. You will be able to see it. It is totally safe you just can't ever access it until you invent a functioning quantum computer capable of cracking the encryption.
dimots said:
98elise said:
How many people have 85k in savings? Most of the country live pay day to pay day. of those that do how many have it all sat with a single bank? To do that you would have to be stupid and rich, and that not a normal combination.
What happens to your savings if you forget your crypto password? How often do people forget passwords?
Lots of people have more than £85k in a single bank account. Particularly businesses.What happens to your savings if you forget your crypto password? How often do people forget passwords?
If you forget your crypto password your money is still there, on the blockchain. You will be able to see it. It is totally safe you just can't ever access it until you invent a functioning quantum computer capable of cracking the encryption.
dimots said:
If you forget your crypto password your money is still there, on the blockchain. You will be able to see it. It is totally safe you just can't ever access it until you invent a functioning quantum computer capable of cracking the encryption.
Hence the importance of manageable key security processes & infrastructure that has top notch interfaces & user experience. Protection and ongoing security of valuable passwords/pass phrases is going to be a lot easier for my children than for today's technically challenged generations. That's because not only will the software & hardware be better, they will also grow up used to the importance of cyber security & will be familiar with arcane but crucial concepts like public/private key pairs.
dimots said:
Why do people still think banks are backed up? You get £85,000 back from your savings, per financial institution, if they go tits up. Less for business accounts.
Hence you spread it about. Likelihood of uk regulated banks going under now since the financial crisis is a lot less than someone losing their electronic stash or wallet etc.Anyone who is wealthy enough to have to worry about the limits on protected bank accounts is sensible enough to understand what the implications of them are, and to move money round so it remains protected.
However, even the most intelligent and clever people can still forget a password.
However, even the most intelligent and clever people can still forget a password.
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