Crypto Currency Thread
Discussion
Kent Border Kenny said:
Only if they weren’t employing any leverage though. If they were, it could have seen a very painful exit.
Fortunately all of their strategies are invented after the event, so it wasn’t too likely.
They won't be 'employing leverage' because they're not total bankers.Fortunately all of their strategies are invented after the event, so it wasn’t too likely.
dimots said:
What does this mean? Significant to one person is insignificant to another.
To the person making the investment.I think that those making the loudest noises about it are not likely to have been foregoing their normal lifestyle to increase their holdings, something which gives a lie to their certainty that it is going to the moon.
Kent Border Kenny said:
To the person making the investment.
I think that those making the loudest noises about it are not likely to have been foregoing their normal lifestyle to increase their holdings, something which gives a lie to their certainty that it is going to the moon.
Foregoing normal lifestyle to increase their holdings? No I should hope not. Not sure what that proves though...I mean there is an opportunity cost to any holding.I think that those making the loudest noises about it are not likely to have been foregoing their normal lifestyle to increase their holdings, something which gives a lie to their certainty that it is going to the moon.
Kent Border Kenny said:
And also because they are nearly all fantasists too, who despite spending years on here proselytising have yet to actually build up any significant level of investment.
Is it really an instrument that warrants building up a significant level of investment? For me a small percentage of investable funds feels about right for something that is i) at significant risk of going to zero one way or another and ii) with sufficient potential upside that a small (almost throwaway) proportion of a properly balanced portfolio could generate a chunky return to the overall portfolio.I see some people putting much more of their funds into it than that and whilst I wish them well, it isn't for me.
But there is the beauty of it. No one has to buy even 1 sat and every one can buy as much as they want to.
dimots said:
Foregoing normal lifestyle to increase their holdings? No I should hope not. Not sure what that proves though...I mean there is an opportunity cost to any holding.
As above, it suggests that they don’t believe the story that they are posting on here, such as being certain that Bitcoin is the best investment available at present.JPJPJP said:
Is it really an instrument that warrants building up a significant level of investment?
No, which is the point that I’ve been making.Others on here don’t agree, they claim that it is the best investment available at the moment, which suggests that they should be more heavily invested in it than anything else.
Of course, no-one in finance would ever say such a thing about any asset, as “best” means different things to different people at different times of their lives, which is another point that I have been making, the statements made in this thread are what Pauli would have described as “not even wrong”, as in they are literally without meaning.
It’s cargo-cult finance, people using the words that they hear people in finance using, and thinking that therefore they are forming coherent ideas.
Kent Border Kenny said:
As above, it suggests that they don’t believe the story that they are posting on here, such as being certain that Bitcoin is the best investment available at present.
I get the point.Personally, I never think of bitcoin as an investment...to me it's just a fascinating technology that I use every day and have a reasonably good understanding of. Having said that, and knowing what I do of it, I think it's pretty investable over the long term. It is not perfect, there's a lot of activity behind the scenes to make things work, but it's just got such a head start and has been so phenomenally successful at building a public ledger and securing transactions that it will take a very serious disaster to knock it down.
Probably worth noting that by far my worst investments have been those where I took other people's advice...LF Equity (Woodford) being a prime example. So don't listen to me
The longer I take an interest in crypto the more I think that BTC is really the only game in town in the long term. Think of how many s
t coins have been hyped to be the next big thing only to eventually disappear into obscurity.
I am thinking, Ripple, Cardano, Tron, Monero, Stella etc. All hyped to the max with some stories about how Google or some bank are going to use the technology. The price massively increases for a short term and then eventually falls back to nothing.
I can see Chainlink and Polkadot going the same way.
To me BTC seems the only coin that seems to fall and yet recover, often to a higher value before the fall. I see it is back up to $13,700 which is amazing as it fell from $20K back in December 2017 to around $4K a few months later.
t coins have been hyped to be the next big thing only to eventually disappear into obscurity.I am thinking, Ripple, Cardano, Tron, Monero, Stella etc. All hyped to the max with some stories about how Google or some bank are going to use the technology. The price massively increases for a short term and then eventually falls back to nothing.
I can see Chainlink and Polkadot going the same way.
To me BTC seems the only coin that seems to fall and yet recover, often to a higher value before the fall. I see it is back up to $13,700 which is amazing as it fell from $20K back in December 2017 to around $4K a few months later.
Is Michael Saylor a kool aid drinker, or kool aid purveyor?
https://twitter.com/michael_saylor/status/13240599...
https://twitter.com/michael_saylor/status/13240599...
Edited by anonymous-user on Wednesday 4th November 20:00
Joey Deacon said:
The longer I take an interest in crypto the more I think that BTC is really the only game in town in the long term. Think of how many st coins have been hyped to be the next big thing only to eventually disappear into obscurity.
I am thinking, Ripple, Cardano, Tron, Monero, Stella etc. All hyped to the max with some stories about how Google or some bank are going to use the technology. The price massively increases for a short term and then eventually falls back to nothing.
I can see Chainlink and Polkadot going the same way.
To me BTC seems the only coin that seems to fall and yet recover, often to a higher value before the fall. I see it is back up to $13,700 which is amazing as it fell from $20K back in December 2017 to around $4K a few months later.
I don't disagree with anything you've said, but I'm still really struggling to work out what Bitcoin (or any of the altcoins) is actually for.t coins have been hyped to be the next big thing only to eventually disappear into obscurity.I am thinking, Ripple, Cardano, Tron, Monero, Stella etc. All hyped to the max with some stories about how Google or some bank are going to use the technology. The price massively increases for a short term and then eventually falls back to nothing.
I can see Chainlink and Polkadot going the same way.
To me BTC seems the only coin that seems to fall and yet recover, often to a higher value before the fall. I see it is back up to $13,700 which is amazing as it fell from $20K back in December 2017 to around $4K a few months later.
As far as I'm concerned it's utterly useless as money / currency because of its price volatility. You would never know from one day to the next what youv'e got to pay for any given item. eg. Late 2017 / early '18 one day you could have bought quite a nice new car with one BTC, a couple of months later, that same car would have cost you 5 times as much.
So what else can it do if it can't be used as money / currency ?
I can however understand (just about) the utility for Blockhain technology in general, accounting, proof of work, smart contracts etc. Which would make me lean more towards something like Ethereum. (which Max Kieser includes in the junk / scam catergory)
So my conclusion has been that yes you could make a bit of money with it, but purely as a speculation / bet that the price will go up, not because of any fundamental utility. So I may well throw a few hundred quid in just for fun, but not because I think it's a good investment, or that it has any future.
My other issue with it is the so called fixed number of 21 million Bitcoin, supposedly so that value cannot be inflated away like other Fiat currencies. But at the end of the day it's only a bit of computer code. What is to stop them changing the limit and releasing more in the future. Or even sticking with the 21 million, and just sub dividing it further and further, the resulting inflation would still be the same.
Please explain to me if you think I've missed something, or misunderstood something. It's quite possible, as I can't claim to totally understand the tech, and I know Cathie Wood of ARK Invest is totally sold on Bitcoin, and she's no mug.
Edited by BlackG7R on Wednesday 4th November 19:46
Edited by BlackG7R on Wednesday 4th November 19:52
g4ry13 said:
In 2008 £1 got you $2. Today £1 is worth $1.29
Yes, currencies move with respect to one another, but nothing like as much as Bitcoin moves relative to them.I bought $50,000 at $2.05 to the pound back there, to hedge the costs of living out there for a while but getting pain in GBP. Sadly I blew the lot in a couple of months.
g4ry13 said:
In 2008 £1 got you $2. Today £1 is worth $1.29
It is not unusual for currency to fluctuate over time in terms of purchasing power.
Yep but these are relatively gradual changes, over much longer periods of time.It is not unusual for currency to fluctuate over time in terms of purchasing power.
Apparently the US Dollar has lost about 96% of it's value since the beginning of the Federal Reserve, but that is 107 years !!
Bitcoins value was down to about 1/5 of its peak value in a couple of months, and a couple of years later it's roughly trebled again.
You might be able to make money trading the volatility, but it's no use whatsoever as money or a store of value.
BlackG7R said:
Yep but these are relatively gradual changes, over much longer periods of time.
Apparently the US Dollar has lost about 96% of it's value since the beginning of the Federal Reserve, but that is 107 years !!
Bitcoins value was down to about 1/5 of its peak value in a couple of months, and a couple of years later it's roughly trebled again.
You might be able to make money trading the volatility, but it's no use whatsoever as money or a store of value.
The volatility makes it close to useless for any transactions other than spot. You’d never want a mortgage or even a car loan in Bitcoin, and no-one could be comfortable receiving their salary in it, or issuing bonds.Apparently the US Dollar has lost about 96% of it's value since the beginning of the Federal Reserve, but that is 107 years !!
Bitcoins value was down to about 1/5 of its peak value in a couple of months, and a couple of years later it's roughly trebled again.
You might be able to make money trading the volatility, but it's no use whatsoever as money or a store of value.
The transaction costs are becoming quite a factor too;
https://news.bitcoin.com/bitcoin-transaction-fees-...
Anyway, it turns out that 2020 wasn’t the year that it entered the mainstream, stabilized, or actually became useful for much more than buying drugs, but who knows; 2021 could be the one.
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