Cryptocurrency

[vuduchile 1,941]

5 hours ago, Cdub100 said:

What if it goes to $1

These go to 11

[Mike Isles 583]

3 hours ago, vuduchile said:

These go to 11

Nigel Tufnel: The numbers all go to eleven. Look, right across the board, eleven, eleven, eleven and...
Marty DiBergi: Oh, I see. And most amps go up to ten?
Nigel Tufnel: Exactly.
Marty DiBergi: Does that mean it's louder? Is it any louder?
Marty DiBergi: Put it up to eleven.
Nigel Tufnel: Eleven. Exactly. One louder.
Marty DiBergi: Why don't you just make ten louder and make ten be the top number and make that a little louder?
Nigel Tufnel: [pause] These go to eleven.

[lod001 1,237]

bump  eat it worms, ya loser

[nobody 2,046]

The other thing that makes me think crypto investing is over leveraged is these 6-8% interest rates people are earning.  I never understood how they could do that.  Then I realized they're probably paying it out of the fees and interest they're collecting on all the people trading on margin.

This is a ticking time bomb.

[Cdub100 3,384]

39 minutes ago, nobody said:

The other thing that makes me think crypto investing is over leveraged is these 6-8% interest rates people are earning.  I never understood how they could do that.  Then I realized they're probably paying it out of the fees and interest they're collecting on all the people trading on margin.

This is a ticking time bomb.

What if the banks are earning 10%-20% and giving you the scraps of scraps?

[nobody 2,046]

We know banks aren't making 10%-20% since they need to file quarterly statements.

[Cdub100 3,384]

2 minutes ago, nobody said:

We know banks aren't making 10%-20% since they need to file quarterly statements.

What are they making?

[nobody 2,046]

4%

[Cdub100 3,384]

1 minute ago, nobody said:

4%

There's no way banks are making 4% and continue to grow.

[nobody 2,046]

1 minute ago, Cdub100 said:

There's no way banks are making 4% and continue to grow.

On deposits.  In many cases the bulk of their profit is from investment banking not the commercial deposits. 

These crypto-exchanges aren't necessarily investment banks to my knowledge, but somehow they're generating money to support paying 6% on deposits?  So they're either generating cashflow through fees and interest from margin trading, or they're somehow trying to generate income from investing themselves which is possible if they think they cryptomarket will go up 10%+ per year, but that's not sustainable unless they're doing some kind of hedging strategy given the crazy volatility.

But who cares how they do it anyway, I guess.  Everything is going through the moon.  Bothering to understand what's happening is for nerds.

[Frozenbeernuts 1,652]

17 minutes ago, nobody said:

On deposits.  In many cases the bulk of their profit is from investment banking not the commercial deposits. 

These crypto-exchanges aren't necessarily investment banks to my knowledge, but somehow they're generating money to support paying 6% on deposits?  So they're either generating cashflow through fees and interest from margin trading, or they're somehow trying to generate income from investing themselves which is possible if they think they cryptomarket will go up 10%+ per year, but that's not sustainable unless they're doing some kind of hedging strategy given the crazy volatility.

But who cares how they do it anyway, I guess.  Everything is going through the moon.  Bothering to understand what's happening is for nerds.

Nobody said everything is going to the moon. Bitcoin and a few other projects with continue to grow. Most will fail miserably and are straight up scams

I actually do not trust ethereum at all. Their network is going to take a lot of upgrading to make it useful. The gas fees are insane. 

[Cdub100 3,384]

1 hour ago, nobody said:

On deposits.  In many cases the bulk of their profit is from investment banking not the commercial deposits. 

These crypto-exchanges aren't necessarily investment banks to my knowledge, but somehow they're generating money to support paying 6% on deposits?  So they're either generating cashflow through fees and interest from margin trading, or they're somehow trying to generate income from investing themselves which is possible if they think they cryptomarket will go up 10%+ per year, but that's not sustainable unless they're doing some kind of hedging strategy given the crazy volatility.

But who cares how they do it anyway, I guess.  Everything is going through the moon.  Bothering to understand what's happening is for nerds.

So the site I store my bitcoin and ethereum with is called Celsius and they offer 6.2% on Bitcoin and 5.05% of ETH. They can offer this because they charge 6.95% on loans and give the majority of the money on interest earned back to the community. I could earn 10% on stable coins. 

I earn 13% on polkadot but that's staking on the network.

I see your point and one reason I stayed away from the Defi stuff. I didn't trust a 75% return. So long as I stay with trusted sites like Celsius I'm not worried.

 

[Frozenbeernuts 1,652]

1 hour ago, Cdub100 said:

So the site I store my bitcoin and ethereum with is called Celsius and they offer 6.2% on Bitcoin and 5.05% of ETH. They can offer this because they charge 6.95% on loans and give the majority of the money on interest earned back to the community. I could earn 10% on stable coins. 

I earn 13% on polkadot but that's staking on the network.

I see your point and one reason I stayed away from the Defi stuff. I didn't trust a 75% return. So long as I stay with trusted sites like Celsius I'm not worried.

 

Peet to peer leveraged lending on hodl hodl seems very intriguing

[Alias Detective 1,180]

Decisions for those who aren’t long term.  I smell blood.

[Frozenbeernuts 1,652]

3 hours ago, Alias Detective said:

Decisions for those who aren’t long term.  I smell blood.

Anyone who isnt in this long term must be suffering. I have been seeing quite  a few tweets from people who claim to have lost significant amounts on bitcoin. It's unfortunate that these people didn't approach bitcoin from a long term perspective.

[Mike Isles 583]

7 minutes ago, Frozenbeernuts said:

Anyone who isnt in this long term must be suffering. I have been seeing quite  a few tweets from people who claim to have lost significant amounts on bitcoin. It's unfortunate that these people didn't approach bitcoin from a long term perspective.

I’m down close to 50% but just bought more. (Actually I’m lying. I’m about to buy more. Going to pounce on its lowest)

[RaiderHaters Revenge 3,597]

I’m getting killed all profits gone just about but I’m buying more and going long

[Cdub100 3,384]

48 minutes ago, RaiderHaters Revenge said:

I’m getting killed all profits gone just about but I’m buying more and going long

Yeah this hurts.

[vuduchile 1,941]

So, what's happening?

[Frozenbeernuts 1,652]

I have some money set aside in case it gets really cheap. Unless it goes mid to low 20s, I'm not buying any more. Too many financial responsibilities coming up.

[tubby_mcgee 687]

Its easy to see why it's gonna be the new currency.

With the bitcoin I own,
On Tuesday, I can buy a car.
On Wednesday I can by 2 cars.
On Thursday I can buy a golf cart.
On Friday I can buy a bag of golf tees.
On Saturday I can buy a car.
On Sunday I can buy a yacht
On Monday I can buy a Trek Bike
On Tuesday.....

How is that the future of money? 
You really think folks will want that volatility?

 

 

 

 

[Cdub100 3,384]

3 hours ago, vuduchile said:

So, what's happening?

No idea. I read that the dump came from newly purchased bitcoin though 

[vuduchile 1,941]

1 hour ago, Cdub100 said:

No idea. I read that the dump came from newly purchased bitcoin though 

I guess if you bought it all a year ago, you’re not too bummed yet.  But if you bought within the last few months like I did, you’re doing the “crypto is bullsh!t” dance again.   

[Big Guy 1,400]

On 5/22/2021 at 2:33 PM, Frozenbeernuts said:

I actually do not trust ethereum at all. Their network is going to take a lot of upgrading to make it useful. The gas fees are insane. 

 

Right now I have no idea how or why something basically "virtual" can be affected by tangible / physical.

Can anybody explain the physical aspect of anything to do with crypto currency? 

[Frozenbeernuts 1,652]

5 hours ago, Big Guy said:

 

Right now I have no idea how or why something basically "virtual" can be affected by tangible / physical.

Can anybody explain the physical aspect of anything to do with crypto currency? 

I'm not sure i follow. Facebook and Google are pretty much completely virtual.

[edjr 5,572]

BUY BUY BUY!

[Alias Detective 1,180]

This fluctuation is the stupidest sh!t I've ever seen in the investment world.

[edjr 5,572]

37 minutes ago, Alias Detective said:

This fluctuation is the stupidest sh!t I've ever seen in the investment world.

31k to 38k in 24 hours?

[Alias Detective 1,180]

18 minutes ago, edjr said:

31k to 38k in 24 hours?

Look at the percentage changes.  Unprecedented until this asset class arose.

[GutterBoy 2,281]

11 minutes ago, Alias Detective said:

Look at the percentage changes.  Unprecedented until this asset class arose.

I remember seeing  crap this like this with the first internet stocks in the late 90s.

[Cdub100 3,384]

5 minutes ago, GutterBoy said:

I remember seeing  crap this like this with the first internet stocks in the late 90s.

Yup, early adoption has volatility. 

I believe I have Google and Amazon and hopefully not many pets.com. Time will tell.

[GutterBoy 2,281]

I used to day trade this stock MLRE, Millionaire.com it was a total scam.  I would make a few hundred bucks a day and then decided to go long and it went to zero   Not the only one I focked up on.

[Alias Detective 1,180]

25 minutes ago, GutterBoy said:

I remember seeing  crap this like this with the first internet stocks in the late 90s.

 

18 minutes ago, Cdub100 said:

Yup, early adoption has volatility. 

I believe I have Google and Amazon and hopefully not many pets.com. Time will tell.

I love the conviction.  :thumbsup:

[Alias Detective 1,180]

17 minutes ago, GutterBoy said:

I used to day trade this stock MLRE, Millionaire.com it was a total scam.  I would make a few hundred bucks a day and then decided to go long and it went to zero   Not the only one I focked up on.

Rode Lucent up and rode Lucent down.

At the start of 2000, Lucent's "private bubble" burst, while competitors like Nortel Networks and Alcatel were still going strong; it would be many months before the rest of the telecom industry bubble collapsed. Previously Lucent had 14 straight quarters where it exceeded analysts' expectations, leading to high expectations for the 15th quarter, ending Dec. 31, 1999. On January 6, 2000, Lucent made the first of a string of announcements that it had missed its quarterly estimates, as CEO Rich McGinn grimly announced that Lucent had run into special problems during that quarter—including disruptions in its optical networking business—and reported flat revenues and a big drop in profits. That caused the stock to plunge by 28%, shaving $64 billion off of the company's market capitalization. When it was later revealed that it had used dubious accounting and sales practices to generate some of its earlier quarterly numbers, Lucent fell from grace. It was said that "Rich McGinn couldn't accept Lucent's fall from its early triumphs." He described himself once as imposing "audacious" goals on his managers, believing the stretch for performance would produce dream results. Henry Schacht defended the corporate culture that McGinn created and also noted that McGinn did not sell any Lucent shares while serving as CEO.^[29][13] In November 2000, the company disclosed to the Securities and Exchange Commission that it had a $125 million accounting error for the third quarter of 2000, and by December 2000 it reported it had overstated its revenues for its latest quarter by nearly $700 million. Although no wrongdoing was found on his part, McGinn was forced to resign as CEO and he was replaced by Schacht on an interim basis. Subsequently, its CFO, Deborah Hopkins, left the company in May 2001 with Lucent's stock at $9.06 whereas at the time she was hired it was at $46.82.^[30]

[Frozenbeernuts 1,652]

Early adoption. Only 2% of the world population is invested in bitcoin. It will get better.

[nobody 2,046]

https://www.cnbc.com/2021/05/24/bitcoin-price-soars-after-elon-musk-tweet-on-sustainability-efforts.html

So Musk can just reach out to miners.  Isn't Bitcoin supposed to be decentralized?  Oh wait, no, mining conglomerates control it all.  

[Frozenbeernuts 1,652]

5 hours ago, nobody said:

https://www.cnbc.com/2021/05/24/bitcoin-price-soars-after-elon-musk-tweet-on-sustainability-efforts.html

So Musk can just reach out to miners.  Isn't Bitcoin supposed to be decentralized?  Oh wait, no, mining conglomerates control it all.  

Decentralization has more to do with nodes that signal for or against changes to the system. There is also mining centralization in a way, but they are very incentivized to keep mining when profitable.

Michael Saylor initiated the meeting. I dont think there is much they can do, unless they try to force changes in the energy miners use. If that's the case Saylor is going to find out the hard way why you don't try to take control of bitcoin.

I would personally not get involved. Bitcoin miners use the same electricity we all use, no matter where it comes from. No one checks to make sure our Christmas lights are powered by renewable energy

[nobody 2,046]

My point was more that Bitcoin is supposed to be decentralized for security and independence.  If a few power players control 50% of the mining, that isn't decentralized.  Now let's say Bitcoin does become a world currency.  If you control 50.1% of the miners, you can control what gets put on the blockchain.  With the world's economy hypothetically being run through these miners, you would need the miners tightly regulated which defeats the whole purpose of decentralization.

One barrier to entry in becoming a government sanctioned digital currency is that anybody should be able to mine with something as small as their phone.  It can't be these onerous machines because then these mining towns will spring up around cheap energy.  In other words, not decentralized.

[tubby_mcgee 687]

Musk controls the Bitcoin dial, to an extent, for now.

[nobody 2,046]

When mining consortiums control the flow of currency, you're just replacing banks with mining consortiums.  I'm sure when Musk realizes that and throws out a tweet we'll see another leg down.