Author Topic: Cryptocurrencies  (Read 17626 times)

rkbabang

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Re: Cryptocurrencies
« Reply #150 on: July 17, 2017, 07:58:51 AM »
BTC just went to 1800, ETH to 130... Talk about volatility for 'currencies'.

While BTC maybe a 'currency' it is like a nano-cap currency.  The vast majority of people on earth have never heard of it, the vast majority of those who have heard of it have no idea how to acquire or use it, and the vast majority who do know how to acquire it are holding it or trading it for speculation purposes.  It isn't functioning as a currency for the most part yet, so wild price swings are pretty much inevitable.   That goes double for ETH as it is accepted as currency even less often.  There are Bitcoin ATMs and businesses which accept Bitcoin, not so much for ETH yet.  Couple that with the fact that most "investors" have no prior investing experience and panic at the first sight of a down tick in price and, yeah, it's going to be a rollercoaster for a while.


mttddd

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Re: Cryptocurrencies
« Reply #151 on: July 17, 2017, 08:11:08 AM »
I did buy some bitcoin in the 1800s but I am accumulating some powder for closer to or after august first. I am hesitant to put much more in until I get a better sense of how Segwit is going to play out, I personally see that as the cause of a lot of the current volatility

rkbabang

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Re: Cryptocurrencies
« Reply #152 on: July 17, 2017, 08:28:22 AM »
I did buy some bitcoin in the 1800s but I am accumulating some powder for closer to or after august first. I am hesitant to put much more in until I get a better sense of how Segwit is going to play out, I personally see that as the cause of a lot of the current volatility

I also think that is the reason for the volatility. The reason I'm buying some now is that if all goes well the price will probably bump right back up without giving you the opportunity to purchase even at current prices.  Markets fall on uncertainty which is what we are seeing now.  Of course if things don't go well with many people choosing to keep the original blockchain alive BTC could split into two like ETH/ETC and prices may fall even further.   This could be an opportunity as well.  After the etherium hardfork I was able to convert my ETC into ETH to increase my ETH holdings.  It should be interesting to follow anyway.



Jurgis

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Re: Cryptocurrencies
« Reply #153 on: July 17, 2017, 11:31:33 AM »
I did buy some bitcoin in the 1800s

I also time-travelled back to the 1800s and tried to buy bitcoin, but the Amsterdam folks were all talking tulips to me...

Oh wait...

NVM.

 8)

rkbabang

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Re: Cryptocurrencies
« Reply #154 on: July 17, 2017, 11:40:44 AM »
I did buy some bitcoin in the 1800s

I also time-travelled back to the 1800s and tried to buy bitcoin, but the Amsterdam folks were all talking tulips to me...

Oh wait...

NVM.

 8)

;)  I recently read someone saying that "If you bought bitcoin stock 10 years ago it would be worth a fortune today".

Travis Wiedower

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Re: Cryptocurrencies
« Reply #155 on: July 17, 2017, 02:58:10 PM »
Went down a 3-hour crytocurrency rabbit hole this afternoon--interesting stuff. Anyone have a good non-technical book recommendation that isn't written by a total fan boy? Just looking for a good overview of everything and how it works, not 101 reasons why crypto is going to take over the world.
My investing blog: Egregiously Cheap

Fat Pitch

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Re: Cryptocurrencies
« Reply #156 on: July 17, 2017, 03:48:31 PM »
Here's a good start http://www.usv.com/blog/fat-protocols

It requires you to re-think the current business models of the internet economy.
Where Seeking Out Risk Adjusted Return is our Passion!

DTEJD1997

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Re: Cryptocurrencies
« Reply #157 on: July 17, 2017, 04:47:10 PM »
I did buy some bitcoin in the 1800s

I also time-travelled back to the 1800s and tried to buy bitcoin, but the Amsterdam folks were all talking tulips to me...

Oh wait...

NVM.

 8)

You know what Abraham Lincoln said about the interweb? 

"Don't believe everything you see on the interwebs!"

-Abraham Lincoln

SharperDingaan

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Re: Cryptocurrencies
« Reply #158 on: July 18, 2017, 06:51:47 AM »
The $50,000 bitcoin?
http://fortune.com/2014/02/18/could-there-be-a-50000-bitcoin/

The article speaks to a back-of-the-envelope valuation approach that is just one of many; but you may want to just go back to the very basic supply/demand model, and think of it as the price set by supply/demand as at a point in time.

At any one point in time the supply is essentially fixed. As new coin is added only by the mining process, at a insignificant rate that is not a function of price - the supply curve is vertical at any point in time. However, over time - the supply will increase from today's 7M to the maximum 21M per the design specs.

Hence almost all the price change, reflects demand change; find new ways to raise demand for bitcoin, and the price must rise. Could be by a virus demanding bitcoin as ransom, could be via textbooks citing bitcoin - as the technology is rolled out and the masses buy some to play with, could be by treating bitcoin as an asset class - no different to a stock, and it could be by creating credit swaps with bitcoin and cash as different legs of the swap. Lots of ways - all increasing demand for the coin - and thereby its price.

All technology rides a 'S' curve, and crypto-currency is in its very early days still.
As the technology begins to ride the neck of the 'S', a $50,000/coin exchange rate at some point is not unrealistic.

Nothing says you have to buy a whole bitcoin at 50K to participate, just as nothing says you have to buy a full BRK share at a few hundred thousand; baby B's are widely available.

Sometimes, the simpler the better.

SD
 
     
« Last Edit: July 18, 2017, 01:52:11 PM by SharperDingaan »

enoch01

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Re: Cryptocurrencies
« Reply #159 on: July 18, 2017, 07:28:30 AM »
SD,

At what price are you buying bitcoin, and at what price are you selling?