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S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

reuters.com

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Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#261

I've been dabbling in crypto since the lockdown (all red, but I've had fun) and this space is like the wild west early days of the internet, with even more scammers. We're past the heady ICO days but now, all the scams have moved to Uniswap. And I might be guilty of being elitist, but I rarely, if ever, see founders with A+ tier credentials (Ivy league education, FAANG/Investment banking/Mckinsey et al) starting cryp…

How could you be in the red? the number of risk free arbitrage opportunities is frankly staggering. Everywhere you look: futures, options, defi, etc there are juicy arbs all over the place.

For example, short term btc futures are often trading at 30% annualized basis over spot. By taking on zero risk (except for exchange risk), you can easily capture somewhere between a 20 and 30 percent annualized return.

It's just too easy, and many professional crypto trading firms are making in excess of 25% per month with low net crypto delta

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#262
post #221
post #198

Earlier quoted context omitted.

>We truly have no idea what the future if Cryptocurrencies are. Yes we do... Why in the utter hell would I ever use crypto that has ABSOLUTLY ZERO GUARANTEE after I pay someone?

Curious, which country are you living in that doesn't have laws against fraud or theft?

Curious, why are you being intentionally obtuse?

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#263

Earlier quoted context omitted.

A store of value is just one aspect to what makes money, money. It also has to be a medium of exchange and a standard of value. Bitcoin's value changes so wildly that it cannot be a standard (right now) and no one uses it to buy things. Everyone is investing in bitcoin on the promise that its going to be so much more useful than dollars, in the hopes that they will make a lot of... dollars? Do you see the contradicti…

Your logic stumbles when you consider gold. "no one uses it" either to "buy things", and yet it is valueable and has been so for eons. Store of value is a very important function in itself.

The gold standard was abandoned precisely because it was inferior. It was pretty useful up until early 20th century as a medium of exchange too. People used to use gold coins to buy things, didn't they?

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#264

Earlier quoted context omitted.

It's because you don't live in the EU. Millions of people have had instant money transfers for years now.

But this is the power of bitcoin right? Now I can live in South America and get near-instant (crypto)currency transfers as well.

In fact what parent is saying is that fast transaction speeds are not something that are solely enabled by bitcoin. There is absolutely no technical reason why transfers have to take days between banks. That's just down to the banks in your country having a crappy infrastructure.

In fact, among the interesting properties of Bitcoin, I'd rate transaction speeds as the least relevant - chiefly because network throughput and transaction speed is actually pretty poor if you compare it to what is achievable with classical tech.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#265

Earlier quoted context omitted.

Its not a signal at all. Thats the entire rebuttal. Your premise is flawed.

How else do you figure out whether the devs can actually do what the whitepaper promises? Just go by their word?

First you need to understand that most of this "savant developer" stuff is entertainment. If you would only purchase the tokens of a project because you see a quirky pre-diagnosed aspergers dev on twitter and telegram at all hours of the day, then thats the way organizations are going to continue to market.

Most of the projects are not that complicated and do not require specific expertise. And even the "brand new blockchains!" are not that complicated, despite being put on a pedestal as the highest order of complexity in the crypto space, we are talking about linked lists that a freshman in college all get exposed to.

Secondly it is completely fine and normal to just outsource the development to contracting firms. Because these are normal businesses booking revenue after they create and sell digital assets and just hiring a few developers to do it.

I don't find that controversial and its completely normal to any other software development cycle, although I would like the speculators to understand that more in their decision making process. What's not normal is daytraders pretending to be angel investors.

To answer your question, I would say the only thing to look for is token distribution schedule and if there are ways to alter that such as minting tokens without any input from the community, or if the treasury tokens are locked in a smart contract or not.

Regarding the actual product you are still always taking them by their word.

I would argue taking a less passive approach and trying to help the development effort, or being in a position to! You might actually land the development contract, which can be more lucrative than speculating to begin with.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#266
I think there is a lot of confusion here. This is not an index fund. You can't buy it. It's just an index, a number that tells you what the price is.

It may be a step toward a future index fund designed to track the index, the way SPY tracks the S&P 500 and DIA tracks the Dow Jones Industrial Average. But for now, it's only an index.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#267

I think there is a lot of confusion here. This is not an index fund . You can't buy it. It's just an index, a number that tells you what the price is. It may be a step toward a future index fund designed to track the index, the way SPY tracks the S&P 500 and DIA tracks the Dow Jones Industrial Average. But for now, it's only an index.

S&P has indices that have options contract directly on them. Which is way more fun!

Also, index options enjoy the same better taxation that futures contracts do, as they are both Section 1256 contracts. Where no matter how long the trade is, 60% of the profits are taxed at long term capital gains rates and the other 40% are taxed at short term capital gains rates.

Gotta read between the lines :) This is a great step for what could be a wildly popular product.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#268

Earlier quoted context omitted.

Cryptocurrency isn't actually scarce though, it may be "scarce-like" but the scarcity is an artificial property that can be arbitrarily changed, unlike gold's scarcity which is an unalterable property of reality.

In all practical senses it is scarce. It is the protocol and consensus of the people using it that makes it scarce. If you disagree, go ahead just make your own BTC and see how "easy" it is to convince other people to use it instead of BTC or some other mainstream coin. (Some people even tried exactly that...)

It's easier for those with the funds, and connections to manipulate, and censor discussions about other forks - and some pro-Segwit people did exactly that with the 2017 hard fork, like on /r/bitcoin, bitcointalk, etc.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#269

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It really just comes down to the idea that blockchain networks are cheaper, more secure, more reliable and more scalable than traditional server arrangements. That’s not just my opinion; most of the top tech companies are ploughing huge amounts of money into it. market investors will do what they always do, but all I know is that I would rather have a crypto wallet with some stored value than an old, inefficient serv…

I mean if you're literally talking about the difference between 'buying physical servers' and 'buying Bitcoin' ... well, it seems to me you're missing out on a range of other options, like: investing in companies developing new hardware, for starters. Personally, I just lease what I need at going rates, which get ever cheaper. And by cheaper I mean: in dollar terms - so to keep up with that, I don't see the need to h…

Bitcoin is probably not the best case study for this aspect of the conversation, but I suppose you have a fair enough point. Although to be clear, I am thinking of the assets more like commodities than speculative stocks or equities. I do not mean to suggest that traditional servers are going to go away or become obsolete any time soon, but after you get past the cryptocurrency hype in the headlines there really is a huge amount of potential for the technology. This is definitely what long-term investors are considering and why this is even a topic here.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#270

Earlier quoted context omitted.

The "anywhere in the world" part is really huge. As of now, most cryptocurrencies aren't run by nation states, unlike traditional currencies. Cryptocurrencies have to potential to become a global currency that's fair to all. I actually think that the nation states really missed out when they didn't mint their own cryptocurrency that has the same value as their physical money. If they controlled a currency completely,…

Central Bank Digital Currencies (CBDCs) are incoming — 2020s will be the fight of MMT vs BTC as Balaji says.

I honestly think CBDCs are complementary to Ethereum, Bitcoin, etc.
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