Author Topic: Cryptocurrencies  (Read 109070 times)

SharperDingaan

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Re: Cryptocurrencies
« Reply #670 on: June 23, 2018, 09:33:31 AM »
In the non-too-distant future I will be back in the crypto 'game', but this time as issuers of our own altcoin.
4 pref share altcoin and 1 utility token using fractional banking.

For quite some time now, it has been practical to issue a block-chain altcoin as evidence of a stock certificate. The Oracle acts as both transfer agent, and exchange facility; the company itself typically being market-maker. The expectation is that the altcoin will not have a market unless there is a 'liquidity' event.

We will be a regulated (FSCO) issuer in the charity space, funds for development and air-drops financed by prefs, liquidity event being a sale to a larger player (province, fed, etc.). Structured as esentially a modified P3; contribute to the venture and get your cummulative contributions back if we can get it taken out; block-chain, smart-contract applications heavily supporting operations.

It will very likely launch with the 'traditional' whitepaper, and a seperate business plan released under confidentiality agreement.
We also understand that it will be the first of its kind in Ontario, & quite possibly Canada as well.

There were lots of ways to 'short' the Bitcoin run-up to 20K/token.
This is just one of them  ;)

SD
 
« Last Edit: June 26, 2018, 04:42:36 AM by SharperDingaan »


Lakesider

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Re: Cryptocurrencies
« Reply #671 on: June 26, 2018, 06:19:08 PM »
Correct me if I'm wrong, But are people mining on an industrial scale forced sellers?

If I own a warehouse full of rigs mining bitcoin I have to sell a certain amount of BTC every month to cover my overheads. As the price falls  I and other miners have to sell more.

Surely this is a significant contribution to the feedback loop?

SharperDingaan

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Re: Cryptocurrencies
« Reply #672 on: June 27, 2018, 05:20:42 AM »
Correct me if I'm wrong, But are people mining on an industrial scale forced sellers?

If I own a warehouse full of rigs mining bitcoin I have to sell a certain amount of BTC every month to cover my overheads. As the price falls  I and other miners have to sell more.

Surely this is a significant contribution to the feedback loop?

The warehouse full of rigs is a mining pool, the biggest of which are in China.
Their main issues are the costs of eletricity, obsolescence, and ongoing crackdowns by various authorities.
https://www.buybitcoinworldwide.com/mining/china/

Mining pools mine for multiple coins, & essentially allocate CPU based on return/CPU second. Pay up or you get no mining, & do it by reducing the complexity of the hash - to push out more coin for the same amount of CPU time. The result is multiple coin, and quasi monopoly control.

Coin from mining pools is typically converted into Bitcoin, for later sale into the market. Bitcoin options and futures are used to control price volatility, and provide liquidity until the underlying coin is sold. Hence there is a persistent seller of underlying coin, and a bias for downside price protection. Opportunity 

So long as mining rig sales, & traditional ICO's continue to funnel cash into the eco-system, there is cash to cover operating costs. But squeeze the back-street exchanges, regulate the ICO process, and speed up rig obsolescence - & only the Bitcoin derivatives market is left. Again, opportunity.

Altcoin is a P2P business, and one of the key business models of P2P is addiction.
The consolidated mining pool is the digital equivalent of a drug cartel.

SD


 
« Last Edit: June 27, 2018, 05:56:33 AM by SharperDingaan »

DeepSouth

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Re: Cryptocurrencies
« Reply #673 on: June 27, 2018, 07:59:01 AM »
Correct me if I'm wrong, But are people mining on an industrial scale forced sellers?

If I own a warehouse full of rigs mining bitcoin I have to sell a certain amount of BTC every month to cover my overheads. As the price falls  I and other miners have to sell more.

Surely this is a significant contribution to the feedback loop?


This feature exists in effectively any commodity business.

Liberty

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Re: Cryptocurrencies
« Reply #674 on: June 27, 2018, 12:00:54 PM »
Correct me if I'm wrong, But are people mining on an industrial scale forced sellers?

If I own a warehouse full of rigs mining bitcoin I have to sell a certain amount of BTC every month to cover my overheads. As the price falls  I and other miners have to sell more.

Surely this is a significant contribution to the feedback loop?


This feature exists in effectively any commodity business.

Not only that, but crypto-mining equipment probably has a rather short useful life and needs to be replaced at frequent intervals to keep up. That's if it doesn't become worthless at some point because of proof-of-stake becoming more popular.
"Most haystacks don't even have a needle." |  I'm on Twitter  | Interesting podcast on sleep science

rkbabang

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emily

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Re: Cryptocurrencies
« Reply #676 on: August 03, 2018, 05:08:16 PM »
Is the intrinsic value of Bitcoin around $2?

clutch

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Re: Cryptocurrencies
« Reply #677 on: August 03, 2018, 05:26:30 PM »
Is the intrinsic value of Bitcoin around $2?

No, $1

emily

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Re: Cryptocurrencies
« Reply #678 on: August 05, 2018, 08:04:04 PM »
Some Traders Are Talking Up Cryptocurrencies, Then Dumping Them, Costing Other Millions

https://www.wsj.com/graphics/cryptocurrency-schemes-generate-big-coin/

Lakesider

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Re: Cryptocurrencies
« Reply #679 on: August 05, 2018, 08:21:38 PM »
Thats what they are for.
Some Traders Are Talking Up Cryptocurrencies, Then Dumping Them, Costing Other Millions

https://www.wsj.com/graphics/cryptocurrency-schemes-generate-big-coin/
thats what they are for.