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Novogratz Halts Hedge Fund, Says Bitcoin May Drop to $8,000

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Re: Novogratz Halts Hedge Fund, Says Bitcoin May Drop to $8,000

#91

Post by rlucas »

hisabness wrote: post #61
JumpCrisscross wrote: post #21

Earlier quoted context omitted.

For further comparison, he ran an $8 billion fund that utterly failed to weather the 2008 financial crisis [1]. Prior to the IPO, he and Fortress' management "borrowed money, used $250 million of it to pay themselves a dividend, and used part of the I.P.O. proceeds to pay back the loan." [1] https://www.vanityfair.com/news/2009/04/fortress-group200904...

paying yourself with borrowed money sounds good to me. as along as its not recourse that is...

Old trick among big-money managers ... the other fun piece about giving yourself a questionably-recourse (or questionably-to-ever-actually-be-collected) loan is that it's not taxable until it's forgiven. But it's still plenty spendable before that!

Re: Novogratz Halts Hedge Fund, Says Bitcoin May Drop to $8,000

#93

Post by solotronics »

jandrese wrote: post #78
s0rce wrote: post #18

Earlier quoted context omitted.

I assume he meant people have had their coins stolen, usually from exchanges, really not much different than your bank getting robbed, although in this cause your money is gone and the exchange doesn't cover the theft.

There is no FDIC for Bitcoin exchanges. Also a distressingly large percentage of the exchanges to date have been either fraudulently or incompetently run and lost the user's bitcoibs and/or fiat money. Nobody would use banks if 4 out of 5 were completely cleaned out by crooks and went out of business.

yes there is. Gemini is FDIC insured for dollar deposits https://gemini24.zendesk.com/hc/en-us/articles/205823016-Are...

Re: Novogratz Halts Hedge Fund, Says Bitcoin May Drop to $8,000

#94

Post by banku_brougham »

I want to know what platform someone like him can use to transact $250MM out of Bitcoin into USD (in his personal trading acount he said, actually $250MM was the profit).

As I understand, its not easy to convert to cash, especially in large volume.

Re: Novogratz Halts Hedge Fund, Says Bitcoin May Drop to $8,000

#95

Post by omarforgotpwd »

How the fuck is some guy, or anyone for that matter supposed to know where the Bitcoin price is going to go? Yeah it could go to 1,000 or even 100... it could also go to 100,000 by next month. There are so many factors at play it’s extremely difficult to make a prediction with a high degree of confidence. If this guy thinks it’s going to drop to $8000 just because the price fell 20% in one day he must be new to this. There have been many many cases where the price dropped like crazy and then picked back up within no time.

Re: Novogratz Halts Hedge Fund, Says Bitcoin May Drop to $8,000

#96

Post by geezerjay »

coralreef wrote: post #85
0wing wrote: post #66

Earlier quoted context omitted.

Nearly every cryptocurrency followed Bitcoins scheme, wherein massive quantities of the supply were produced for the first few weeks to a small group of users, so any later users entering these systems must than buy from those horders or spend more and more capital on the increasingly expensive and reducing output of mining. It's not exactly a ponzi or pyramid scheme, but the manipulative intent is clear so a new ter…

Yeah, there were relatively more coins produced early on. Those coins were also pretty much worthless early on.

> Those coins were also pretty much worthless early on.

...hence the "pump" stage of the pump-and-dump scheme being conducted quite extensively, with all forms of scammers publicizing the immense virtues and magically perpetual low value of bitcoin, hoping that the next batch of fools and idiots open their wallets to finance the value pumping.

Re: Novogratz Halts Hedge Fund, Says Bitcoin May Drop to $8,000

#97

Post by jondubois »

omarforgotpwd wrote: post #95

How the fuck is some guy, or anyone for that matter supposed to know where the Bitcoin price is going to go? Yeah it could go to 1,000 or even 100... it could also go to 100,000 by next month. There are so many factors at play it’s extremely difficult to make a prediction with a high degree of confidence. If this guy thinks it’s going to drop to $8000 just because the price fell 20% in one day he must be new to this.…

By making the prediction, it can become a self-fulfilling prophecy.

He is probably just trying to make the price drop more so that he can buy even more Bitcoin.

The end of the year is often a time when people get together... Bitcoin is bound to come up in conversations. So I think that there might actually be a big rise in interest after Christmas.

Re: Novogratz Halts Hedge Fund, Says Bitcoin May Drop to $8,000

#98

Post by cryptodogemoon »

bootlooped wrote: post #83
eastendguy wrote: post #64

Earlier quoted context omitted.

All these apps give the government more control, that is why their use is encouraged. Bitcoin "as app" (once or if it works) will be more like cash payments, privacy wise. That is were I see the main advantage. I find it spooky what Visa and Mastercard now about all of us... at least about me.

> Bitcoin "as app" (once or if it works) will be more like cash payments, privacy wise. One massive caveat is that all Bitcoin transactions are public, traceable, and permanently stored in the Bitcoin network. In most ways it's worse than cash, in some ways it's probably even worse than credit cards.

zk proofs supposedly resolve that issue.

monereo, zcash, and eventually ethereum

the concept seems to make sense but I'd be curious how to audit such an obfuscated system

Re: Novogratz Halts Hedge Fund, Says Bitcoin May Drop to $8,000

#99

Post by charlesdm »

jondubois wrote: post #97
omarforgotpwd wrote: post #95

How the fuck is some guy, or anyone for that matter supposed to know where the Bitcoin price is going to go? Yeah it could go to 1,000 or even 100... it could also go to 100,000 by next month. There are so many factors at play it’s extremely difficult to make a prediction with a high degree of confidence. If this guy thinks it’s going to drop to $8000 just because the price fell 20% in one day he must be new to this.…

By making the prediction, it can become a self-fulfilling prophecy. He is probably just trying to make the price drop more so that he can buy even more Bitcoin. The end of the year is often a time when people get together... Bitcoin is bound to come up in conversations. So I think that there might actually be a big rise in interest after Christmas.

What do you do when you're raising a $500m fund and the train is leaving without you?

Re: Novogratz Halts Hedge Fund, Says Bitcoin May Drop to $8,000

#100

Post by Fnoord »

geezerjay wrote: post #96
coralreef wrote: post #85

Earlier quoted context omitted.

Yeah, there were relatively more coins produced early on. Those coins were also pretty much worthless early on.

> Those coins were also pretty much worthless early on. ...hence the "pump" stage of the pump-and-dump scheme being conducted quite extensively, with all forms of scammers publicizing the immense virtues and magically perpetual low value of bitcoin, hoping that the next batch of fools and idiots open their wallets to finance the value pumping.

It could be worse. Imagine for a moment Satoshi is North Korean. "What on earth have we done?"
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