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Post by anitya on May 19, 2021 17:22:19 GMT
We already have five different threads on crypto under Alternative Investments folder but they are specific to the news of the day. I thought having a single over-arching thread might function as a catch all for everything about Crypto, and thus, this thread.
P.S.: Not a recommendation to buy crypto. Remember that all national governments might eventually regulate cryptos so severely that cryptos might end up being different varieties of digital tulips! Recently, BOE Governor asked investors in cryptos to be prepared to lose their entire investment.
(If you buy Bitcoin, Dogecoin, Ethereum, or any other digital currency, you should be “prepared to lose all your money.” “They have no intrinsic value,” Andrew Bailey, BOE Governor, said at a press conference. May 7, 2021. Sounds like tulips might have more enduring appeal!)
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Post by anitya on May 19, 2021 17:23:10 GMT
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Post by richardsok on May 19, 2021 17:46:34 GMT
We already have five different threads on crypto under Alternative Investments folder but they are specific to the news of the day. I thought having a single over-arching thread might function as a catch all for everything about Crypto, and thus, this thread. P.S.: Not a recommendation to buy crypto. Remember that all national governments might eventually regulate cryptos so severely that cryptos might end up being different varieties of digital tulips! Recently, BOE Governor asked investors in cryptos to be prepared to lose their entire investment. (If you buy Bitcoin, Dogecoin, Ethereum, or any other digital currency, you should be “prepared to lose all your money.” “They have no intrinsic value,” Andrew Bailey, BOE Governor, said at a press conference. May 7, 2021. Sounds like tulips might have more enduring appeal!) Agree completely, ani. I use ETHE for technical day trading only and especially would never hold it overnight. Sold ETHE at 1:30 today for fast $800 gain. |
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Post by Chahta on May 19, 2021 21:54:56 GMT
Who is buying the bitcoin dip?  But then this: link |
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Post by anitya on May 19, 2021 21:56:01 GMT
Good trade Richard. Where (on what exchange) do you trade? A lot of crypto coins took a trashing today. E.g., Bitcoin fell 25% and gained more than 20% from the day's low in one day today, with double the daily volume. One hopes crypto exchanges made a bunch of money today - they charge by the transaction - high volatility (and hence high volume) is good for the exchanges. Below is a short summary of how different exchange charge fees for trading - transacting even their own products are not fee free! (I am sure real estate agents will be jealous when they learn these exchanges' fee structure!) www.investopedia.com/best-crypto-exchanges-5071855 |
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Post by graust on May 31, 2021 1:00:42 GMT
Good trade Richard. Where (on what exchange) do you trade? A lot of crypto coins took a trashing today. E.g., Bitcoin fell 25% and gained more than 20% from the day's low in one day today, with double the daily volume. One hopes crypto exchanges made a bunch of money today - they charge by the transaction - high volatility (and hence high volume) is good for the exchanges. Below is a short summary of how different exchange charge fees for trading - transacting even their own products are not fee free! (I am sure real estate agents will be jealous when they learn these exchanges' fee structure!) www.investopedia.com/best-crypto-exchanges-5071855I think he trades the Grayscale Ethereum CEF, ticker ETHE. Fido doesn’t charge for pink sheet/OTC trades, but TDA does  I have traded some in ETHE and GBTC, also have bought MARA (a NASDAQ listed stock), and VYGVF. |
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Post by bb2 on Dec 31, 2021 20:50:29 GMT
I'm beginning to understand crypto more and become more interested in aspects as an investment. Smart contracts, for example, are computer programs that run on the network of computers involved in a blockchain like Etherium. For example, there is something called the EVM, Etherium Virtual Machine, where smart contract code executes. You have to use your imagination to see the possibilities, like shared ownership of something. The data that the code uses is stored in the blockchain itself. All this gets complicated but there's a ton of effort going into it. One thing that worries me most is that quantum computing will start breaking blockchain's security in the next 5 or 10 years and though there's lots of effort going into figuring out how to deal with this coming code breaker, it's a promise only at this point. A simple explanation of smart contracts: corporatefinanceinstitute.com/resources/knowledge/deals/smart-contracts/"Similar to traditional contracts, smart contracts define rules and penalties around an agreement and automatically enforce those obligations." I'll buy bitcoin at a much lower price and will buy Block, SQ, probably when the general market crash happens, within a few months I'm guessing. I like Block much more than BTC because BTC has the other existential threat of government outlawing it to the extent it can. Afterall, international finance appreciates a little foreign curency fluctuation to help trade go where the goods are cheapest for a certain qualtiy. But maybe I need to wake up about that too. Kind of like work from home, enabled by the internet, a factory can be anywhere in the world. In this case, the transportation system and applicable laws are the internet, the things which enable freedom of movement. Currency considerations mean less? Just thinking out loud - a though that just came to me now, so might be off. BTW, made a few buck on Bitcoin as of midnight - a true believer bet me it'd get to $80K by the end of the year. |
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Post by bb2 on Dec 31, 2021 21:24:18 GMT
Here's what my imagination just came up with........
Imagine a mortgage loan on the blockchain. Your financial history is saved in the blockchain. The title to your house, the house you want to buy, your credit rating, salary, etc. Even a maintenance history of your house or the one you're buying. An app on your phone or a smart speaker takes the place of a realtor, title company, bank, appraiser, anyone else traditionally involved. Maybe you ony want to buy half of the house and the other owner will pay you rent that's fair for that particular house based on the local market. Or you'll pay the other owner rent. Or you'll rent it out and split the rent. You'll pay in bitcoin or US Federal Reserve Crypto coin or crypto Yen. The possibilities go on and on. That's a lot of data and a lot of code to run and a lot of time and conversions of current functionality to the blockchain. And that's just on the application side; forget about the blockchain infrastructure! Is the network up to all this computing? Is the hardware there? Security, stability. Thus is why people keep saying the blockchain is in it's infancy. Babysteps. All the while lurk existential threats like quantum computing and non-exitential threats like regulation.
I can kind of start to see it but man, this is looking like 100 years from now.
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Post by racqueteer on Dec 31, 2021 22:46:14 GMT
Forgive me for a possibly dumb comment, but it seems to me that investing in the underlying blockchain technology would be ultimately more rewarding than investing in a specific implementation of that technology. I know that the degree to which the various cryptocurrencies are involved with the technology itself varies. It would be interesting (to me) to see more of a discussion about those aspects of the issue.
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Post by bb2 on Dec 31, 2021 23:35:51 GMT
Yes, racqueteer, I agree at this point in the evolution. Which is why I mentioned Block.
There BKCH, just over 100M in assets, among other possibilities as well.
Is that what you're getting at when you say this? How to invest in the space? Or are you wondering about the technical aspects?
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Post by yogibearbull on Dec 31, 2021 23:42:10 GMT
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Post by bb2 on Jan 1, 2022 0:31:16 GMT
Yes, YBB, I recall you mentioning that purchase of COIN. I forgot about it, thanks for the reminder. IBKR is another way to get some exposure I think but obviously less correlated with BTC.
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Post by racqueteer on Jan 2, 2022 12:00:56 GMT
Yes, racqueteer, I agree at this point in the evolution. Which is why I mentioned Block. There BKCH, just over 100M in assets, among other possibilities as well. Is that what you're getting at when you say this? How to invest in the space? Or are you wondering about the technical aspects? Probably some of each. I don't feel comfortable investing in things I don't understand, and I don't 'get' the whole crypto thing. The 'coins' appear to be speculative, but the underlying technology is going to be there WHATEVER the ultimate 'winner coin' may be. Not sure that clarifies anything? |
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Post by Fearchar on Jan 2, 2022 16:01:53 GMT
I am not going to look for the particular article, but I do recall a JPMorgan report regarding crypto.
Basically, they foresee the technology eventually being embraced.
But not the wild west version that is is being hyped.
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Post by bb2 on Jan 2, 2022 19:13:14 GMT
At this point in my education, I see Web 3/crypto as another form of client/server. We started with fat clients, code/feature rich programs running on a user's computer networked/communicating with more code on a server. Then the web came along with a thin client, the browser, networked to a web server. I see the crypto world as one where the server is a virtual machine distributed across many machines on the network/internet. We have virtual machines now, where one machine virtually becomes many. Now, the crypto VM, (Etherium VM, for example), is where many networked machines become one virtual machine. Seems to me there's a lot of overhead to deal with in the crypto world but there are a lot of smart people and capital working on it. Still a leap of faith for me but I don't know much. And I haven't figured out how people are going to make money off this architecture. They seem to think they will, however, so who am I to say. There is a certain inevitibility that I'm smelling.
I should mention the trust aspect of crypto. Now we have institutions we trust with our information. Our assets. It's insured too, for the most part. If someone somehow hacks into your Schwab account, they make you whole. Federal Deposit insurance. But with crypto, security is a central feature, embeded in the technology, eliminating the need for a trusted insitution. I don't trust technology yet and quantum computing could through a monky wrench into this. But there are a lot of people doing things now I'd never do - Rent my house out short term, give money to a perfect stranger just because they have a story on a website, use my phone for financial transactions, etc., so I bet there's a ready supply of adopters out there.
When I wonder if the thechnology could ever be up to the task, I imagine what happens when you bring up Google and type a single letter into the entry field. And how fast it happens. I have no idea how they did that. When autocomplete feature first came out it was slow but very quickly it was amazing.
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Post by anitya on Jan 2, 2022 19:56:29 GMT
I know nothing about this subject. Can Crypto thrive without mining? Security may be inherent in the technology but does not seem in how the coins are held - I am thinking about the incident in how the FBI or some other federal agency recovered 2/3rds of the ransom paid in Bitcoin in one instance.
I am sure some advancement in Agriculture and shipping were made as a result of Tulip mania. The coins are probably like Tulips, they are likely always be there but the current level of affection for them may not last for ever.
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Post by bb2 on Jan 2, 2022 23:46:03 GMT
I hear you, anitya. The FBI had a private encryption key to get that money back and they're not saying how they got it. Informant? Maybe the FBI placed spyware on the crook's computer(s). FBI has mapped millions of illicit wallets created by bad guys, so maybe that helped them find and trick the bad guys. Many possibilities.
Like I've mentioned before, it's possible current encryption schemes will be broken by quantum computing in 5 or 10 years and there's no guarantee the security folk will figure out how to deal with that existential threat.
In the meantime, the rush will continue for a long while I think. Worth a bet in the area for me.
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Post by uncleharley on Jan 6, 2022 12:21:46 GMT
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Post by Fearchar on Jan 6, 2022 13:08:30 GMT
As probably the biggest bubble ever, Bitcoin is heading to zero.
Hopefully everybody owning it understands that and gets out with as much as they can.
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Post by uncleharley on Jan 6, 2022 14:10:05 GMT
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Post by richardsok on Jan 6, 2022 15:31:59 GMT
ETHE is all the way back down in the 20s. Possibly worth watching for day trade opptys again?..... if you can stand sitting at a terminal all day.
Rule 1: never hold it overnight
------------------
BTW, where are rhythm and xray?
Still recovering from all the New Years twerking?
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Post by yogibearbull on Jan 6, 2022 15:46:53 GMT
richardsok, it seems that Rhythm's role changed without any fanfare and he was last on this site in mid-December. He is active at Fido Investor Community.
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Post by richardsok on Jan 6, 2022 15:52:42 GMT
richardsok , it seems that Rhythm's role changed without any fanfare and he was last on this site in mid-December. He is active at Fido Investor Community. Drat. I'm going to miss him. If you happen to be replying to one of his posts, send him my best regards. |
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Post by Chahta on Jan 6, 2022 19:13:58 GMT
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Post by uncleharley on Jan 8, 2022 18:21:50 GMT
Interesting week. The Crypto index continued its freefall fast enough to break below its lower Bollinger Band and no one noticed. Apparently it has no economic relevance except possibly to someone who wants to launder some money.
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Post by Fearchar on Jan 8, 2022 18:34:02 GMT
Hold on now uncleharley, Former Snake Oil Sales people have discovered its true economic benefit. They have been working diligently to explain this to the masses. Unfortunately, some people have trouble understanding it. |
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Post by uncleharley on Jan 8, 2022 21:10:39 GMT
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Post by uncleharley on Jan 10, 2022 17:39:20 GMT
FWIW; It looks like bitcoin is headed for 30,000. I have no horse in this race, I just find the whole situation to be facinating.
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Post by Deleted on Jan 10, 2022 23:15:25 GMT
I am on fidelity and one cannot still buy crypto on Fidelity.
I found a CEF - GBTC and ETF - BITO but neither looks appealing.
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Post by uncleharley on Jan 11, 2022 17:48:51 GMT
It looks like the Crypto Crisis has passed. I am sure their will be another one.
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