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Bitcoin has made a new all-time high price

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Re: Bitcoin has made a new all-time high price

#241

Post by paulpauper »

FabHK wrote: post #232
paulpauper wrote: post #175

Earlier quoted context omitted.

split it up and sell slowly to avoid excessive market impact and excessive KYC checks

The market is liquid enough for 50 BTC. KYC kicks in at the withdrawal stage, not the exchange stage.

Imagine depositing 50 btc and then having your account locked for suspicious activity because they demand to know where you got the BTC. Who cares about liquidity when you're locked out from your crypto, which means a 100% loss or selling at $0. Your priorities are clearly wrong.

Re: Bitcoin has made a new all-time high price

#242

Post by tim333 »

paulpauper wrote: post #165
jcfrei wrote: post #49

It has in dollar terms but it still hasn't on an inflation adjusted basis. One bitcoin today has less purchasing power than at its peak in November 2021. The dollar has lost about 12.5% since then so the true all time high would be around $79250.

This depends on one's consumer preferences. The CPI includes depreciating items that does not scale with income, like healthcare , cars, clothes, and food. Someone with a net worth of millions of dollars incurs likely a smaller opportunity cost. But I agree despite the hype Bitcoin's returns are still poor and easily surpassed by the S&P 500.

I'm not sure that's true. See https://topforeignstocks.com/wp-content/uploads/2017/08/Bitc...

obviously it depends a bit on the time frame.

Re: Bitcoin has made a new all-time high price

#243

Post by sealeck »

Ekaros wrote: post #34
colesantiago wrote: post #8

Soon this will all collapse, reaching all time highs isn't a good thing. Pyramid scheme at best, ponzi scheme at worst. I still don't know any use case for this other than speculation and people aren't even using it in the real world.

It is neither pyramid nor Ponzi. Bubble or mania probably. In pyramid money comes from recruits directly under, in ponzi central party pays out from new and old investors. Bitcoin is not either anymore than say Tesla or Nvidia...

> Bitcoin is not either anymore than say Tesla or Nvidia...

Except at least Tesla and NVIDIA are actually doing things that are kind of useful (crime and speculation don't count as useful applications).

Re: Bitcoin has made a new all-time high price

#244

Post by ASalazarMX »

MuffinFlavored wrote: post #52
TkTech wrote: post #18

Earlier quoted context omitted.

Speculators buying from speculators and hoping today isn't the day the hot potato explodes.

How long has this been the case for gold roughly? Since the 1970s?

Let's revisit this again when we can melt bitcoins and sell them.

Gold is a finite resource that has to be extracted and processed, ecoins are made out of thin air (mining them is a superficial analogy) and speculation.

Re: Bitcoin has made a new all-time high price

#245

Post by crazygringo »

Geee wrote: post #234
crazygringo wrote: post #197

Earlier quoted context omitted.

> People value things based on their valuation history; that's how it goes. It can be broken down somewhat, but the price history should already contain all the relevant information for investors. No, people value things based on their expected return, which is entirely future-looking. Which is why news -- facts that change our understanding of the future -- changes prices. Nobody values anything based on its history…

Yet, the price history is what convinces people to buy it. The longer it goes, the more convincing it becomes. Gold has been valuable for thousands of years, which is why everyone knows it will keep being valuable. Valuations of collectibles and monetary assets, which don't change, are based on their historical price performance. The price history tells the story of how people buy and sell an asset with certain funda…

I don't know what to tell you, except that you're simply wrong about how pricing works. I don't know where you got this idea that pricing history gives you all the information you need to invest, but it's not what a single professional investor, economist, or financial executive would tell you. Not one.

If you want to learn how pricing works, you might want to start here:

https://en.wikipedia.org/wiki/Asset_pricing

https://en.wikipedia.org/wiki/Valuation_(finance)

In fact, it's precisely to try to correct misconceptions such as yours that a lot of financial instruments put the disclaimer "Past performance is no guarantee of future results." Because it's so easy for people who don't know any better to imagine otherwise.

Re: Bitcoin has made a new all-time high price

#246

Post by tim333 »

exitb wrote: post #11

So I suppose people must use it all the time to buy goods and services. Right?

I did actually manage to use some via the lightning network to buy a regular service the other day - cell phone credit on Silent Link.

But yeah the usual way to buy goods and services is to convert to fiat first.

Re: Bitcoin has made a new all-time high price

#247

Post by fragmede »

laurentiurad wrote: post #73
TkTech wrote: post #18

Earlier quoted context omitted.

Speculators buying from speculators and hoping today isn't the day the hot potato explodes.

no, but I am using my index fund on s&p 500 to buy goods and services

I'm pretty sure you're not. Or at least, my grocery stores and the IRS/tax people take dollars, not SP500 or QQQ. If yours does I'd live to hear how that works (and where you are).

If you're referring to investing $1,000, having it be worth $1,500, and then selling off $300 to pay for groceries, which a Coinbase/whatever account would let you do with Bitcoin while it appreciates.

Re: Bitcoin has made a new all-time high price

#248

Post by seanhunter »

throw2738489 wrote: post #167
patrick0d wrote: post #153

Earlier quoted context omitted.

this should be the real headline. I am certain and beyond any doubt that I speak for all of us hackernews readers when I say that I have no frame of reference on the value of cryptocurrencies without comparing first with the Malaysian Ringgit

Compare it to gold or silver. It has very stable price for centuries or even millennia, when compared to daily salary of skilled worker.

This is one of those things that people say as though it's a good thing, but since precious metals are a negative carry asset (ie it costs money to store and insure gold or silver) this means that when you take compounding into effect they have been responsible for a devastating destruction in wealth over that time. Even more so if you consider the opportunity cost of holding metals when you could be holding a productive asset.

Re: Bitcoin has made a new all-time high price

#249

Post by SideQuark »

throw2738489 wrote: post #167
patrick0d wrote: post #153

Earlier quoted context omitted.

this should be the real headline. I am certain and beyond any doubt that I speak for all of us hackernews readers when I say that I have no frame of reference on the value of cryptocurrencies without comparing first with the Malaysian Ringgit

Compare it to gold or silver. It has very stable price for centuries or even millennia, when compared to daily salary of skilled worker.

That's simply untrue. There's been constant swings in valuation of around 20x recorded through the past 3000+ years (and decent evidence this also happened before that).

https://www.cambridge.org/core/journals/cambridge-archaeolog...

Pretty much all of recorded history is local govts trying to fix the price of gold to remove this instability, and in pretty much every case those govts had to abandoned the fix as actual market values caused local mints to implode.

There's ample research available on google scholar covering all of these points.

Re: Bitcoin has made a new all-time high price

#250

Post by tim333 »

TkTech wrote: post #18
exitb wrote: post #11

So I suppose people must use it all the time to buy goods and services. Right?

Speculators buying from speculators and hoping today isn't the day the hot potato explodes.

The hot potato has gone 5000+ days without exploding and seems fairly non explosive.
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