S&P Dow Jones Indices to launch cryptocurrency indexes in 2021 • Hacker News Board

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

#151

Post by joosters » Thu, Dec 03, 2020, 5:51 PM UTC

clarky07 wrote: post #146

unclesams-uncle wrote: post #82

Earlier quoted context omitted.

> In my opinion the value is in the network and the ability to move money instantly (or at very least faster than traditional methods), securely, to anywhere in the world for a fraction of a cent. That ability alone is valuable and hasn't existed until now. I spent some time working in a relatively-unknown but high volume clearing bank. Banks can and do move billions instantly, and have done so for years through SWIF…

so why does it still take me 3+ business days to move money between banks? I assume it's just because they use that float to make money, but it still sucks. i for one like transactions clearing in a few seconds rather than a few days.

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

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

#152

Post by [deleted] » Thu, Dec 03, 2020, 5:51 PM UTC

misnamed wrote: post #115

okokok___ wrote: post #71

Earlier quoted context omitted.

>Stocks are shares in profitable companies. Not always, tons of companies are losing money but the share price goes up.

Sure, not always. To clarify: I mean stocks are shares in companies, which generally generate profits. Yes, some companies may not, or may even go under, but none of this is an issue if you hold a diversified set of stock and bond indexes for the long haul (I'm talking about equities as an asset class, not any one stock). Stocks are stakes in companies - bonds pay a risk premium - crypto, gold, etc... don't generate…

[deleted]

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

#153

Post by okokok___ » Thu, Dec 03, 2020, 5:53 PM UTC

misnamed wrote: post #115

okokok___ wrote: post #71

Earlier quoted context omitted.

>Stocks are shares in profitable companies. Not always, tons of companies are losing money but the share price goes up.

Sure, not always. To clarify: I mean stocks are shares in companies, which generally generate profits. Yes, some companies may not, or may even go under, but none of this is an issue if you hold a diversified set of stock and bond indexes for the long haul (I'm talking about equities as an asset class, not any one stock). Stocks are stakes in companies - bonds pay a risk premium - crypto, gold, etc... don't generate…

>bonds pay a risk premium - crypto, gold, etc... don't generate income, which by definition makes them speculative.

What about staking? In this case, you're providing a service to the network and being compensated for it.

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

#154

Post by elevenoh » Thu, Dec 03, 2020, 5:53 PM UTC

finikytou wrote: post #135

elevenoh wrote: post #77

Earlier quoted context omitted.

Could you elaborate? We're definitely in an accelerated-transition period w/ an uptick in inequality, if that's what you mean.

cryptos just like tesla stock are roller coasters. the sp500 is an indicator of stability used by most of investors to jauge the health of the markets. add tesla to the sp500 (day after day spiking up and down like no other stock) and you create instability. the crypto has always been instable so managing indices on it... and at the same time you see that many people lost their jobs, went into loans they re not able…

There's points in here I could spend time refuting. e.g. I would disagree that 'add[ing] tesla to the sp500 = instability'

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

#155

Post by mlerner » Thu, Dec 03, 2020, 5:55 PM UTC

puranjay wrote: post #150

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…

The claim about people with "A+ credentials" not working in crypto is off base.

Look at the founders of crypto companies from top-tier VCs like a16z: https://a16z.com/crypto/#vertical-landing-portfolio

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

#156

Post by joosters » Thu, Dec 03, 2020, 5:56 PM UTC

asdffdsa wrote: post #118

CapriciousCptl wrote: post #109

Earlier quoted context omitted.

I want to believe it's an investment myself, but haven't been able to-- and by sitting it out we've of course lost a lot of money in forgone gains. Where I get stuck, and maybe someone could help me here-- generally, you don't have to try to hard to imagine a future with cryptocurrency being more useful then it is today. That is, it is more valuable. BUT, why should that mean that its price should be higher? It's lik…

Are you disagreeing with the fundamental economics argument of supply and demand? More demand assuming a constant (forecasted) supply means the price will be higher.

There's no constant supply of cryptocurrency, there are new types of coins created every day.

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

#157

Post by intotheabyss » Thu, Dec 03, 2020, 5:57 PM UTC

If you want to get a piece of DeFi, but don't know which projects to speculate on, you can buy DPI on Uniswap which is an ERC-20 token that tracks the top 10 coins in the defipulse.com index.

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

#158

Post by ozorOzora » Thu, Dec 03, 2020, 5:57 PM UTC

joosters wrote: post #148

Osiris wrote: post #128

Earlier quoted context omitted.

Being a decentralized application, certainly the core devs could attempt to make such a change but I guarantee that would cause a fork and the community would decide which fork they want to put their mining effort into.

The 'community' at large doesn't mine Bitcoin. A few gigantic mining farms mine bitcoin, and their self-interest could well change the bitcoin issuance. It's not as decentralised as you think.

enters Litecoin

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

#159

Post by fourstar » Thu, Dec 03, 2020, 5:58 PM UTC

puranjay wrote: post #150

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…

>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 crypto businesses. Spoiler: majority of good engineers never worked at big tech companies or went to ivy league schools. Also, investment banking isn't exactly a shining beacon of trust.

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

#160

Post by puranjay » Thu, Dec 03, 2020, 6:00 PM UTC

ahelwer wrote: post #2

Wonder how the weighting will work. If you don't massively overweight smaller coins, you'd just end up holding like 80% Bitcoin & Ethereum with very little of anything else.

I would assume you'd go by the market cap and trading volume of different coins. So BTC and ETH would dominate, but you'd also have to make room for LINK, XRP, DOT, etc.