221–230 of 368 posts
So here's a scheme that could be used to wildly profit in the fiat market. If you're what is considered a bitcoin "whale" holding millions worth of the currency you would just setup a short on bitcoin futures. Then you initiate a large sell from a well known whale wallet. This would trigger a large sell as stop losses are triggered. Profit then re-buy the dip.
There was a 4 hour stretch this morning in which Bitcoin lost over 20% of its value. In the last 45 minutes it is up 13%. I wonder what a long straddle would cost on this thing.
Bitcoin has recovered from dips really well in the past weeks due to major buy pressure. Unfortunately GDAX (and Coinbase), Gemini, and other exchanges all went down at the same time this time around, making it impossible to buy the dip.
how like is being down planned? could there be more to this coicident?
Earlier quoted context omitted.
I had bought about $50 worth of BTC a year ago and it's now worth $800. Did the bitcoin economy grow that much in the last year? I've heard of increasing adoption by banks and governments but I don't know to what extent they're investing. I don't follow it closely and at this valuation, I have no idea whether it's a good investment or not. Should I sell it now before the inevitable crash? Should I buy more? I don't t…
Ask yourself first, why did the value climb 16x? If you cant answer that then I caution purchasing more. I would also spend some time understanding what "investing" is vs what speculating\gambling is. This is gambling.
Oh I can do that. I expect it to be 100x or more greater than what it is today. The reason why it is 16 as opposed to 8 or 32 is simply the speed of the uptake. It is going up in value because it is in the process of deflating the fixed-asset debt bubble. The only real question is, how big is that bubble.
> I would also spend some time understanding what "investing"
Investing is understanding what the value proposition is, and investing accordingly. You don't, and that's fine. Don't assume that other people have your understanding of the asset class in question though.
The question you should be asking is, why do you think it's important when other people invest in things that you don't understand.
Earlier quoted context omitted.
Let’s see how everyone feels after the next correction. The headlines today seem to change every time I load google news. Up 10%, down 20%. There’s no way to know where it will go from here.
The thing is, for someone who bought a year or more ago, anything less than a 50% correction is small. Also, prudent folk take some of their winnings out of play.
Earlier quoted context omitted.
Try this article from Paul Sztorc: http://www.truthcoin.info/blog/pow-cheapest/ Definitely not ELI5 material though.
ok, I skimmed through it. I admit, I didn't get it. However, I don't think it addresses my fundamental point: there is no reason beyond speculation to own a POW coin. There is a reason, independent of speculation, to own a POS coin.
The incentives of a pow coin align with the users, not the owners, so there's no reason any user would prefer to use another incentive structure.
> There is a reason, independent of speculation, to own a POS coin.
It is not trustless. You are reliant upon the owners not re-writing the consensus rules to your detriment.
Earlier quoted context omitted.
Or, large investment banking houses will step in and create naked shorting opportunities to inflate sell pressure creating 'death spirals' to drive prices down and scoop them up and extreme discounts. This happens in the traditional public markets everyday.
There is no such thing as an extreme discount for Bitcoin. I have yet to see anybody try to do a proper valuation for a Bitcoin to set a price target. If there were, institutional investors would buy in and its price in USD would stabilize nearly instantly. No Bitcoin pumpers can give a proper value analysis because its actual value is something approaching 0. It has no use for which it is better than alternatives, e…
Doesn't mean other people don't understand this though, and that number increases every day.
Earlier quoted context omitted.
ok, I skimmed through it. I admit, I didn't get it. However, I don't think it addresses my fundamental point: there is no reason beyond speculation to own a POW coin. There is a reason, independent of speculation, to own a POS coin.
> there is no reason beyond speculation to own a POW coin. The incentives of a pow coin align with the users, not the owners, so there's no reason any user would prefer to use another incentive structure. > There is a reason, independent of speculation, to own a POS coin. It is not trustless. You are reliant upon the owners not re-writing the consensus rules to your detriment.
Earlier quoted context omitted.
Try this article from Paul Sztorc: http://www.truthcoin.info/blog/pow-cheapest/ Definitely not ELI5 material though.
ok, I skimmed through it. I admit, I didn't get it. However, I don't think it addresses my fundamental point: there is no reason beyond speculation to own a POW coin. There is a reason, independent of speculation, to own a POS coin.
Man, this is just weird. I just bought 0.05 Bitcoins (you know FOMO and all that) and it just feels so much more empty than back in the days when I mined them myself with my brand new dual Xeon CPU and later on was thinking grand thoughts and building little projects with epaper ink displays to display QR codes on small devices that would work on low bandwidth connections and maybe offline. Lots of problems to be sol…
Oh, it's way worse than that. Now, a small country's worth of electricity is consumed every day to no end at all, except "mining" Bitcoins.
Earlier quoted context omitted.
> there is no reason beyond speculation to own a POW coin. The incentives of a pow coin align with the users, not the owners, so there's no reason any user would prefer to use another incentive structure. > There is a reason, independent of speculation, to own a POS coin. It is not trustless. You are reliant upon the owners not re-writing the consensus rules to your detriment.
but if you are one of the owners, how can owners rewrite the rules to your detriment? or, why would they? whether you own $10k worth of coins, or $10 million, in the case of POS, the incentives are aligned and the coin owners earn transaction fees. In the POW case, what underpins the value of the coin?
Biggest owner wins. That's why it is not trustless. The only long-term game-theory outcome for the system is a monopoly. Owners own the miners, and dictate the rules to the users. Otherwise known as our world financial system.
> In the POW case, what underpins the value of the coin?
The network effect of the decentralization, i.e. the nodes. It is the nodes that are peers in the peer-to-peer cash of bitcoin. It is they who hold the blockchain, validate transactions, and validate blocks. Because there are so many of them (185,000 and counting) unless you can effectively convince all of those nodes to adopt consensus changes, the existing consensus rules apply.
PoW alone doesn't make something valuable. Its successful implementation does.