Crypto Currency

Discussion in 'West Mall' started by AC, Mar 25, 2020.

  1. mchammer

    mchammer 10,000+ Posts

    If gold and real estate aren’t good enough for you, what’s the point of crypto?
     
    • Agree Agree x 2
    Last edited: Nov 15, 2022
  2. mchammer

    mchammer 10,000+ Posts

  3. bystander

    bystander 10,000+ Posts

    Comments I posted on social media;


    Bitcoin appears to remain viable but it's not for the faint of heart. After this weeks upheaval in the Crypto world, I have a few thoughts in no particular order, mainly about crypto exchanges which is not crypto itself:

    1) There is no insurance that covers an investment in crypto currency. Beware of an exchange such as Voyager that had very deceptive language implying deposits were FDIC insured when in fact careful reading of the language would have revealed their relationship with a bank had nothing to do with insurance for assets on their exchange.
    2) NFT (Non-fungible Tokens) are made up out of thin air (monopoly money to be used in an exchange or even a game) and in some cases (FTX) appear to be some sort of gift card.
    3) You can make money; big money. You can also lose everything you have. Right now it appears to be a timing game. Timing conflicts with the advice we hear about buy and hold for the long run.
    4) The main thing is to ask yourself, who benefits from all the hype?
    5) You have to have a high tolerance for risk. Play with house money (money you can afford to lose) What's house money? It's the winnings on your gamble. If you lose right away then it's not house money; it's YOUR money.
    6) If you see an exchange platform such as FTX spending big money (such as purchasing naming rights for an NBA arena or buying Super Bowl ads or having very famous people pitch their company) then ask yourself how are they making all that money.
    7) An exchange must have the liquidity to comply with the clearing rules. From an article about what happened to Robin Hood (the exchange that hosted the "meme" stock boom: Gamestop and AMC among others):

    "Under the current T+2 system (Trade date plus two days), it takes up to two days for trades to clear – ie, for the conclusion of the transfer of cash and securities between the buyer and the seller. During that clearing period, a third-party clearinghouse requires the clearing broker – in this instance, Robinhood Securities – to put down a deposit until the trade is settled. Depending on the size of the deposit, the clearinghouse may ask for an additional deposit as a precaution."

    This has caused a lot of problems for exchanges that aren't playing the game straight. Crypto exchanges are not Crypto. They are a platform to hold your asset. If they are trying to do other things such as financing investments of their own ("proprietary trading") then their liquidity may be imperiled.

    How do you know if they are doing this? You probably don't or won't know until it's too late. How do you prevent this from happening to you. Hold your own Crypto. From an article about this:

    "In order to store your own crypto, you'll need access to a crypto wallet. Hardware wallets and custodial wallets are some of the safest ways to store your crypto, but there are advantages and drawbacks to both options. As you'll learn, crypto users may have a strong preference for one over the other."

    8) Be honest with yourself. Do you have any idea what is actually happening with your investment? How does it make you money? What are the drivers of price swings if there are no earnings (fear and hype?)? What does the company do? What are the owners of the platform doing with their profits? Are you buying because of emotion and/or the feeling that the world is passing you by?

    DO YOU FEEL LUCKY?
     
  4. mchammer

    mchammer 10,000+ Posts

    Bloomberg - Are you a robot?
     
  5. Horn6721

    Horn6721 10,000+ Posts

    I admit I am not very informed on crypto But
    How did so many supposedly smart people think this Sam guy was someone to whom they should entrust their money??
     
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  6. Monahorns

    Monahorns 5,000+ Posts

    He was propped up by powerful people in the Democrat Party. He actually ran a Ponzi scheme on behalf of some of them, involved in "fortifying" the 2022 election. Once that was done it was time to let it crumble.

    One more example of why certain people, companies, or ideas when pushed by the media should be met with skepticism.
     
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  7. bystander

    bystander 10,000+ Posts

    • Agree Agree x 1
  8. Horn6721

    Horn6721 10,000+ Posts

    Ah. So he was a front? Powerful Demx used him ? I bet no big Dem lost money.
     
  9. iatrogenic

    iatrogenic 2,500+ Posts

    Talk about a ship of fools. Geez. Slap some fancy, trendy names on some snake oil/tech b.s., sell it for a ridiculously high price to millions, and wait for the bombs to explode. Common sense is truly not very common.
     
    • Agree Agree x 4
  10. Mr. Deez

    Mr. Deez Beer Prophet

    You were talking about fiat currency, not gold and real estate. I'm no crypto fan. I think it's bogus, but with what we and other nations are doing with their currencies, it wouldn't surprise me if it has a comeback at some point.
     
  11. mchammer

    mchammer 10,000+ Posts

    I pivoted from an economics viewpoint of crypto to that of the investor. Gold makes 10x more sense than crypto for today’s investor. Yes, crypto may work in the future, but what is the rationale to invest in it now? I say none. It was a speculative play that likely has burned many people.
     
  12. Mr. Deez

    Mr. Deez Beer Prophet

    From an investment standpoint, yes. However, people went for crypto because it can be a medium of exchange. There's an appeal to that.
     
  13. Horn6721

    Horn6721 10,000+ Posts

    Did Tom Brady really lose all his money with FTX?
     
  14. mchammer

    mchammer 10,000+ Posts

    Gold markets mostly satisfies that demand since so few folks actually used crypto as a medium of exchange. Also, why use a medium of exchange where the base unit is so speculative? It’s an irresolvable contradiction.
     
  15. Mr. Deez

    Mr. Deez Beer Prophet

    Totally understandable, and I was never into crypto. Always thought it was dumb. However, I do see the rationale for it, and the trashing of the currency only encourages this sort of thing. I suspect it'll be back in some form.
     
  16. iatrogenic

    iatrogenic 2,500+ Posts

    Bitcoin or any other cryptocurrency could work if:

    -There was only one cryptocurrency
    -There was better regulation of exchanges
    -A way to exchange existing currencies for the chosen crytpocurrency was developed
    -Better security was developed to prevent fraud/theft
    -A debt limit was imposed on every country based on characteristics such as GDP, GDP per capita, population growth, economic growth, velocity of money need, tax base, etc.

    However, politicians love to recklessly spend money they don't have to repay, so instituting such a system is unlikely.

    If iatrogenic was in charge of underwriting countries and issuing and monitoring the chosen cryptocurrency amounts based on objective factors, it would work. However, a hierarchy would naturally develop based on a country's productivity, and some pain would be felt by the irresponsible and unproductive, especially by countries engaging in political graft and corruption. The beatings would continue until responsible governments were installed, and there would be an easily accessible list of governments that needed to be removed and replaced. There would be some charity based on need. Janet Yellen, Paul Krugman and a host of others would be jailed as part of the new system. ADVOCATING FOR SOCIALISM AND COMMUNISM WOULD BE PUNISHED BY DEATH in order to avoid mass suffering and death.

    The new currency would be known as "Hook'ems".
     
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  17. bystander

    bystander 10,000+ Posts

    I think the fear, rational or not, of having your crypto asset stolen is the number one reason why I've stayed out of it. I also believe it has no value beyond timing the market based upon the hype. Money can still be made.

    Which side of the flip are we on? I think we know the answer to that question but will it flip again. I've heard it could still drop to $12K or so. I have no idea why the floor would pick that arbitrary amount. What we do know is there's a chance a lot of money will now go back to traditional investments which will continue to deflate the crypto market. But at some point it will rejuvenate.

    Any ideas on when and what it would take for it to happen?
     
  18. Mr. Deez

    Mr. Deez Beer Prophet

    Damn, I can't help but wonder what kind of **** this guy must have on congressional Democrats for Maxine Waters to be kissing his ***. It must piss her off to have to be respectful to some rich white guy. She's not doing it if he doesn't have massive amounts of dirt.

     
    • WTF? WTF? x 2
  19. mchammer

    mchammer 10,000+ Posts

    He paid her off. Maxine can’t turn on him out of principle because that negates why she gets paid in the first place. There is no mystery here.
     
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  20. Mr. Deez

    Mr. Deez Beer Prophet

    No doubt she's a crook. It's how she operates, but usually she's just quiet about her benefactors. For her to have to publicly kiss a rich white guy's *** (a Jewish rich white guy's ***, no less) tells me it's on another level. Hating Whitey (especially if he's Jewish) is what she's all about.
     
  21. AC

    AC 2,500+ Posts

  22. AC

    AC 2,500+ Posts

  23. AC

    AC 2,500+ Posts

    The bottom is in. All indicators point to a Bitcoin recovery in 2023:
    *Bitcoin not Altcoins. All altcoins are securities! Bitcoin is a commodity asset. Will compete with the US Dollar.
    *USD WILL lose global reserve currency status.
    *BRICS alliance currency backed by a basket of precious metals. That will take over! This is a good thing!
    * Bitcoin will be used for international settlements!
     
  24. AC

    AC 2,500+ Posts

    You have to research Bitcoin to understand it!
    The next halving is March 2024. So a year before and a year to 18 months after the halving, expect a bull market! By early 2025 it will be exponentially more valuable than today! Buy, hold, keep it offline!
     

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