Crypto Currency Thread
Discussion
NickCQ said:
enlighten me
Stock is the size of existing stock or reserves. Flow is yearly production. Modelling has shown that bitcoin's stock to flow ratio correlates very well to price, with an impressive ~95% r2.But if course correlation could be a coincidence. We all know correlation is not necessarily causation.
So, another statistical approach is to see if the two trends (S2F & price) are cointegrated. It's a different method and points much more strongly to causation than correlation is able to. If you find two trends that are cointegrated, you can be almost certain that the connection is meaningful. They will move together, often shift around, but the trajectory is clear.
The cointegration test is the work of Engel Granger. They won a Nobel prize for it a decade or two ago.
You can see bitcoin's stock to flow charted here live https://digitalik.net/btc/
There are plenty of references for this if you want to dig deeper into the econometrics.
Of course, there's no guarantee that the connection will hold. In fact it will likely break at some point in the future, unless some utterly crazy stuff happens and bitcoin becomes the global reserve currency and/or the $ totally collapses.
Behemoth said:
Of course, there's no guarantee that the connection will hold. In fact it will likely break at some point in the future, unless some utterly crazy stuff happens and bitcoin becomes the global reserve currency and/or the $ totally collapses.
Believe it or not I did an econometrics degree about 10 years ago, hence my picking up on this. Having had a brief read through the literature it seems like some serious analysis has been done on this rather than redditors dicking around with Stata not understanding what's going on underneath.When I was an undergrad I remember reading a similar analysis of the ratio of the gold price to the silver price. That passed all the same tests for cointegration, ADF, unit roots and all that good stuff. Then one day it just stopped (Chow test)!
NickCQ said:
Behemoth said:
Of course, there's no guarantee that the connection will hold. In fact it will likely break at some point in the future, unless some utterly crazy stuff happens and bitcoin becomes the global reserve currency and/or the $ totally collapses.
Believe it or not I did an econometrics degree about 10 years ago, hence my picking up on this. Having had a brief read through the literature it seems like some serious analysis has been done on this rather than redditors dicking around with Stata not understanding what's going on underneath.When I was an undergrad I remember reading a similar analysis of the ratio of the gold price to the silver price. That passed all the same tests for cointegration, ADF, unit roots and all that good stuff. Then one day it just stopped (Chow test)!
A bit of corporate activity in the mining space
https://www.hiveblockchain.com/news/hive-blockchai...
It is only a small purchase really (C$4m), but it is funded with shares in a publicly traded company
I haven't made my mind up if this is good for Hive, or good for Cryptologic
https://www.hiveblockchain.com/news/hive-blockchai...
It is only a small purchase really (C$4m), but it is funded with shares in a publicly traded company
I haven't made my mind up if this is good for Hive, or good for Cryptologic
https://dailyhodl.com/2020/04/02/bank-of-france-sa...
''The central bank is also analyzing how cryptocurrencies can be used to power CBDCs. In a recent internal report, the bank highlights Ethereum (ETH) and Ripple (XRP) as two crypto assets that could be used to issue tokenized central bank digital currencies.''
''The central bank is also analyzing how cryptocurrencies can be used to power CBDCs. In a recent internal report, the bank highlights Ethereum (ETH) and Ripple (XRP) as two crypto assets that could be used to issue tokenized central bank digital currencies.''
Thesprucegoose said:
https://dailyhodl.com/2020/04/02/bank-of-france-sa...
''The central bank is also analyzing how cryptocurrencies can be used to power CBDCs. In a recent internal report, the bank highlights Ethereum (ETH) and Ripple (XRP) as two crypto assets that could be used to issue tokenized central bank digital currencies.''
Hopium for ethtards and riptards at its finest. ''The central bank is also analyzing how cryptocurrencies can be used to power CBDCs. In a recent internal report, the bank highlights Ethereum (ETH) and Ripple (XRP) as two crypto assets that could be used to issue tokenized central bank digital currencies.''
You can already express any traditional currency on any number of tokens. You ought to invest time in intelligent primary research rather than wasting time swiping your way through the crypto red tops.
Behemoth said:
You ought to invest time in intelligent primary research rather than wasting time swiping your way through the crypto red tops.
So you disagree with the report by that the Bank of France looking at its own token to run on another coin, that is very weird really, as the report is there. Maybe it is because they are not mentioning BTC it is 'rubbish' news.Also considering I think i have posted at most 2 stories like this in the years on this thread, you are talking out the wrong hole again as usual.
this is the direct report, I would say it is quite important news for investors.
https://www.banque-france.fr/sites/default/files/m...
Edited by Thesprucegoose on Friday 3rd April 17:00
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