201–210 of 371 posts
If the threat of regulation drops it 25%, that's not a very good store of value or medium of exchange.
Compared to some currencies, it is. Brazil Real has lost 80% of its value relative to the dollar since 2013. I think this is overdone considered the last time Korea threatened regulation it only fell 10%.
Time to buy. Down from what price since January? Cryptocurrency is a long term play from a software and financial engineering vantage. It also continues to irritate the hell out of banks (bank accounts are being closed and restricted from exchange transfers, including coinbase) and general investors. It's not liquid enough yet, creates no need for middle men and Bitcoin itself is now being manipulated by futures cont…
Yes, but what? Ripple's seen maybe the biggest loss, but it's not clear that part of its loss isn't due to decreasing confidence in the underlying, which is bad if you want to BTFD. Same can be said for many others. Though if you look at todays charts e.g. in ETH, it's clear someone's probably made good money intraday buying dips.
I have been trying to figure out eventual equilibrium price of BitCoin and here is one approach: Due to wealth inequality, we assume that majority of the crypto investment would be from ultra-rich. It might become quite normal for them to invest 1% of their wealth in crypto for uncorrelated diversification. In a way this is very similar to buying art which probably doesn't have much utility except among other wealthy…
That doesn't make any sense. Using this logic you could argue that basically anything should have an eventual market cap of ~$1 trillion.
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Why should Bitcoin cost so much just because the future may depend on it? That's a good case for why it will continue to exist, but it could also exist and do it's job at $1.00 / btc. I think it's a couple of things that Buffett is looking at. First, like gold, Bitcoin is not a business and does not produce earnings. Second, people seem to be buying it for no other reason than that they think it'll keep going up. Tha…
Because the price of any currency is proportional to GDP/velocity, and since it's costly to exchange cryptocurrency with fiat, there's a limit to how high the velocity can go.
wat
Earlier quoted context omitted.
Why should Bitcoin cost so much just because the future may depend on it? That's a good case for why it will continue to exist, but it could also exist and do it's job at $1.00 / btc. I think it's a couple of things that Buffett is looking at. First, like gold, Bitcoin is not a business and does not produce earnings. Second, people seem to be buying it for no other reason than that they think it'll keep going up. Tha…
Because the price of any currency is proportional to GDP/velocity, and since it's costly to exchange cryptocurrency with fiat, there's a limit to how high the velocity can go.
The suicide prevention hotline is pinned to the top of cryptocurrency subreddits because the price of bitcoin is where it was at the beginning of last month. Think about that for a minute. When we really have a bear market people are going to lose their minds.
Naive speculators are buying cryptocurrencies on their credit cards without understanding the volatility https://www.bloomberg.com/news/articles/2018-01-11/bitcoin-b...
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Any successful Lightning Network (at scale) would require a dramatic block size increase. The last (Lightning Network tech) I saw suggested it would need a 133MB blocksize. Blockstream struck down a modest increase to 2MB in November. They have devs who want to reduce the blocksize. I'm not sure where you're finding hope in LN. Bitcoin Cash forked off to get back to scaling, and it's doing great. Check out how well t…
And Bitcoin Cash will need GB or even TB sized blocks to scale to the size of Visa. If scaling the network was as easy as changing 1 variable it wouldn't be that hard to get consensus on a scaling solution.
This is what happens when you have high correlation and low exchange liquidity . All it takes is 150 coins sold ($1.5 million) to make it fall 1000 points, and then the other exchanges and coins mirror this. If the major exchanges were consolidated there would be much less volatility. http://https://greyenlightenment.com/why-bitcoin-is-so-volat...
Other exchanges will not mirror this--arbitrage will occur
It already is occurring.
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Naive speculators are buying cryptocurrencies on their credit cards without understanding the volatility https://www.bloomberg.com/news/articles/2018-01-11/bitcoin-b...
Not true, it's a very savvy move. You're gambling with someone else's money-- credit card debt can be discharged in bankruptcy. You don't lose your house or your shirt, and the only real consequence is poor credit for a few years. And if bitcoin goes up? Pay it off, keep the profits...you still win.
The last time China explicitly banned Bitcoin, it dropped by around 45% to around $6000. It went on to $20K from there. But what's different this time is that there are first time investors in millions who joined in the last 2 months. They didn't read the white paper, they didn't invest in technology, they invested for the monster returns. So I think there will be a more sell off this time before it rebounds back to…
I love bitcoin and cryptocurrency as potential solutions to problems with gov-controlled currencies (I've used crypto to buy drugs, for example). But I'm still confused why people refer to purchasing currency as an "investment." Obviously the rates are going up now, but doesn't everyone expect them to just come back down? I don't convert my USD to Yen and call it an "investment."
Perhaps it's 'accidental investing with a dose of roulette number thrown in'.
Perhaps it's a new type of investment/gambling hybrid that requires a new category.