Author Topic: Cryptocurrencies  (Read 208939 times)

Gregmal

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Re: Cryptocurrencies
« Reply #950 on: August 17, 2020, 10:27:30 AM »
Sooo...lots has and hasn't changed here since all the +1 worthy "it fell when everything else did, I knew it was bs" stuff happened back in March. The larger question regarding the "thesis" here(if you will call it a thesis for the funny money), is still:

-scarcity
-acceptance/adoption as store of value
-lack of government interference

The first two seemed to have only strengthened with recent events, and while the third issue is still up for debate, it seems less of a risk as incompetence festers elsewhere(all that money printing) and banks now, even some of the TBTF ones, start getting involved. Is there any reason this is not likely to be taking out ATHs?

There's certainly a lot of funky stuff trading at bubble type valuations right now, but this at least is in its own universe of uniqueness as an "asset"(if you will give it that benefit of the doubt). It may, as I said much earlier in this thread, be another case of the little guy catching on before the institution, and after a "scare the little guy out and accumulate" campaign from the institutions for the past couple years, it may be time for a new chapter here.


Fat Pitch

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Re: Cryptocurrencies
« Reply #951 on: August 17, 2020, 04:36:04 PM »
Sooo...lots has and hasn't changed here since all the +1 worthy "it fell when everything else did, I knew it was bs" stuff happened back in March. The larger question regarding the "thesis" here(if you will call it a thesis for the funny money), is still:

-scarcity
-acceptance/adoption as store of value
-lack of government interference

The first two seemed to have only strengthened with recent events, and while the third issue is still up for debate, it seems less of a risk as incompetence festers elsewhere(all that money printing) and banks now, even some of the TBTF ones, start getting involved. Is there any reason this is not likely to be taking out ATHs?

There's certainly a lot of funky stuff trading at bubble type valuations right now, but this at least is in its own universe of uniqueness as an "asset"(if you will give it that benefit of the doubt). It may, as I said much earlier in this thread, be another case of the little guy catching on before the institution, and after a "scare the little guy out and accumulate" campaign from the institutions for the past couple years, it may be time for a new chapter here.

There's a shift happening at rapid speed. A software business analytics company decided to allocate 250mm into Bitcoin instead of holding treasuries that pay nothing. People are slowly waking up that Bitcoin isn't a currency to be used day to day, but rather a substitute for the global bond market.

Also there's lots of innovation coming out of Ethereum via the "defi" movement which is basically porting all the functionalities of banks, Wall Street, etc onto the Ethereum stack which will probably spread to other smart contract layer 1s.

Having been in the space for the last 4 years+ this environment was what Bitcoin was built for. We are going to blow past ATHs and melt faces  8)
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SharperDingaan

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Re: Cryptocurrencies
« Reply #952 on: August 17, 2020, 06:03:59 PM »
There are really only 2 cryptocurrencies of consequence, BTC and ETH.
Neither of them useful as an actual currency to pay for things.

BTC will get its day in the sun, because of collapsing global currencies. Gold is great, and anonymous (once everything is melted together) - but in quantity, not easy to move around. To facilitate movement, BTC is the obvious anonymous choice. ETH will shine, because of its versatile stack, and increasing business understanding as to how to use it - Covid is just accelerating the process. The biggest beneficiary is marketing - as you can't grow a business, until you can sell more product.

SD




 
« Last Edit: August 25, 2020, 07:21:04 AM by SharperDingaan »

LC

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SharperDingaan

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Re: Cryptocurrencies
« Reply #954 on: August 23, 2020, 09:50:21 AM »
Crypto grew up in the tech community – as the shiny new toy, all very mysterious, very cool, and relatively simple to code. We think currency, because of the success of Bitcoin - the first practical, fully libertarian currency. Combined with options, BTC is by far the ultimate solution for low volume, completely off the grid, anonymous transactions. The innovations are the DL and the Smart Contract.

By itself, at the volumes required for practical applications - DL is utter sh1te.
Block verification takes too long, sucks up too much energy, and the mining community is not independent. It is technology with a VERY limited market – the $5 mouse-trap in a 10c market.

Almost all practical applications run on a monopoly PL – a master data base integrated with smart contracts. The PL is just another business funded IT project -  business ‘tells’, IT ‘executes’. There are no miners, no utility token sold for cash to pay the coders and developers, and no buy/sell of token as investments. Grown ups rule.

For most businesses a PL integrated with smart contracts is becoming essential, and many will just outsource to a cloud provider. What used to require a cast of thousands, and millions of $ – is no longer a barrier to entry. However, the mind set is completely different – coders and developers just don’t have it.

The deal-breaker is the corporate social responsibility around implementation.
The initial annual cost for a very modest business may be the equivalent of 3 staff, excluding benefits – but save the cost of 5 staff including benefits and RE space. Assuming 50K/head and 25% benefits – about 162.5K/yr, excluding RE savings. With Covid-19 likely to be with us for some time, and most economies in various phases of ‘re-start’ – not enough to warrant laying people off tomorrow, and in quantity.

Obviously, interesting times.

SD

« Last Edit: August 25, 2020, 06:46:05 AM by SharperDingaan »

beerbaron

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Re: Cryptocurrencies
« Reply #955 on: August 24, 2020, 06:09:07 PM »
Crypto grew up in the tech community – as the shiny new toy, all very mysterious, very cool, and relatively simply to code. We think currency, because of the success of Bitcoin - the first practical, fully libertarian currency. Combined with options, BTC is by far the ultimate solution for low volume, completely off the grid, anonymous transactions. The innovations are the DL and the Smart Contract.

By itself, at the volumes required for practical applications - DL is utter sh1te.
Block verification takes too long, sucks up too much energy, and the mining community is not independent. It is technology with a VERY limited market – the $5 mouse-trap in a 10c market.

Almost all practical applications run on a monopoly PL – a master data base integrated with smart contracts. The PL is just another business funded IT project -  business ‘tells’, IT ‘executes’. There are no miners, no utility token sold for cash to pay the coders and developers, and no buy/sell of token as investments. Grown ups rule.

For most businesses a PL integrated with smart contracts is becoming essential, and many will just outsource to a cloud provider. What used to require a cast of thousands, and millions of $ – is no longer a barrier to entry. However, the mind set is completely different – coders and developers just don’t have it.

The deal-breaker is the corporate social responsibility around implementation.
The initial annual cost for a very modest business may be the equivalent of 3 staff, excluding benefits – but save the cost of 5 staff including benefits and RE space. Assuming 50K/head and 25% benefits – about 162.5K/yr, excluding RE savings. With Covid-19 likely to be with us for some time, and most economies in various phases of ‘re-start’ – not enough to warrant laying people off tomorrow, and in quantity.

Obviously, interesting times.

SD

What do you mean by DL and PL?

Thanks
BeerBaron

LC

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Re: Cryptocurrencies
« Reply #956 on: August 24, 2020, 06:23:35 PM »
private ledger vs public (distributed) ledger
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SharperDingaan

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Re: Cryptocurrencies
« Reply #957 on: August 25, 2020, 07:16:08 AM »
private ledger vs public (distributed) ledger

Think of the public ledger (PL) as a ledger that that any member of the public can access, but with only 3 or more copies distributed amongst private entities. New activity updating on each DB in real time, and independently. The individual DB's validating against each other multiple times/day, and resolving any differences via an algorithm. One of the DB's residing at either the Central Bank or the Industry Regulator. It's the ultimate 'toll-booth'.

Think of any given nation having MULTIPLE public ledgers, and the worlds public ledgers together - as the Internet of Things (IoT). As with everything there will be consolidation, and the obvious first choice is money itself - the worlds reserve currency NO LONGER being the currency of just one nation (ie: USD).

Disruption isn't just a word.

SD

Mark Jr.

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Re: Cryptocurrencies
« Reply #958 on: September 08, 2020, 06:52:10 PM »
If anyone is interested, I just did a podcast in my weekly series where we interviewed Brenna Smith, who is a crypto reporter and we talked a lot about the difference between government digital currencies, which are coming, and how BTC fits in after that happens.

https://axisofeasy.com/podcast/salon-20-brenna-smith-where-does-bitcoin-fit-in-after-nation-states-embrace-digital-currencies/

SharperDingaan

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Re: Cryptocurrencies
« Reply #959 on: September 09, 2020, 07:20:33 AM »
Always keep in mind that BTC is just the obverse side of digital currency. It is extremely good at what it does, hedgeable, and highly suitable for large transactions that would otherwise be visible. The problem is that the founding libertarian view of BTC's use, and the criminal view of BTC's use, almost perfectly overlap. 

The good news is that it puts a cap on both transaction frequency, and mining cost. Total mining fees for the materially major activity < total cost of laundering, or about 1-3% of aggregate transaction value. The end by-product is reduction in overall money-laundering activity, and recognition of mining fee as a commission. Commission means demonstrate application value, benefit > cost.

Good link!

SD