If gold and real estate aren’t good enough for you, what’s the point of crypto?
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Crypto Currency
- Thread starter AC
- Start date
Comments I posted on social media;
Bitcoin appears to remain viable but it's not for the faint of heart. After this weeks upheaval in the Crypto world, I have a few thoughts in no particular order, mainly about crypto exchanges which is not crypto itself:
1) There is no insurance that covers an investment in crypto currency. Beware of an exchange such as Voyager that had very deceptive language implying deposits were FDIC insured when in fact careful reading of the language would have revealed their relationship with a bank had nothing to do with insurance for assets on their exchange.
2) NFT (Non-fungible Tokens) are made up out of thin air (monopoly money to be used in an exchange or even a game) and in some cases (FTX) appear to be some sort of gift card.
3) You can make money; big money. You can also lose everything you have. Right now it appears to be a timing game. Timing conflicts with the advice we hear about buy and hold for the long run.
4) The main thing is to ask yourself, who benefits from all the hype?
5) You have to have a high tolerance for risk. Play with house money (money you can afford to lose) What's house money? It's the winnings on your gamble. If you lose right away then it's not house money; it's YOUR money.
6) If you see an exchange platform such as FTX spending big money (such as purchasing naming rights for an NBA arena or buying Super Bowl ads or having very famous people pitch their company) then ask yourself how are they making all that money.
7) An exchange must have the liquidity to comply with the clearing rules. From an article about what happened to Robin Hood (the exchange that hosted the "meme" stock boom: Gamestop and AMC among others):
"Under the current T+2 system (Trade date plus two days), it takes up to two days for trades to clear – ie, for the conclusion of the transfer of cash and securities between the buyer and the seller. During that clearing period, a third-party clearinghouse requires the clearing broker – in this instance, Robinhood Securities – to put down a deposit until the trade is settled. Depending on the size of the deposit, the clearinghouse may ask for an additional deposit as a precaution."
This has caused a lot of problems for exchanges that aren't playing the game straight. Crypto exchanges are not Crypto. They are a platform to hold your asset. If they are trying to do other things such as financing investments of their own ("proprietary trading") then their liquidity may be imperiled.
How do you know if they are doing this? You probably don't or won't know until it's too late. How do you prevent this from happening to you. Hold your own Crypto. From an article about this:
"In order to store your own crypto, you'll need access to a crypto wallet. Hardware wallets and custodial wallets are some of the safest ways to store your crypto, but there are advantages and drawbacks to both options. As you'll learn, crypto users may have a strong preference for one over the other."
8) Be honest with yourself. Do you have any idea what is actually happening with your investment? How does it make you money? What are the drivers of price swings if there are no earnings (fear and hype?)? What does the company do? What are the owners of the platform doing with their profits? Are you buying because of emotion and/or the feeling that the world is passing you by?
DO YOU FEEL LUCKY?
Bitcoin appears to remain viable but it's not for the faint of heart. After this weeks upheaval in the Crypto world, I have a few thoughts in no particular order, mainly about crypto exchanges which is not crypto itself:
1) There is no insurance that covers an investment in crypto currency. Beware of an exchange such as Voyager that had very deceptive language implying deposits were FDIC insured when in fact careful reading of the language would have revealed their relationship with a bank had nothing to do with insurance for assets on their exchange.
2) NFT (Non-fungible Tokens) are made up out of thin air (monopoly money to be used in an exchange or even a game) and in some cases (FTX) appear to be some sort of gift card.
3) You can make money; big money. You can also lose everything you have. Right now it appears to be a timing game. Timing conflicts with the advice we hear about buy and hold for the long run.
4) The main thing is to ask yourself, who benefits from all the hype?
5) You have to have a high tolerance for risk. Play with house money (money you can afford to lose) What's house money? It's the winnings on your gamble. If you lose right away then it's not house money; it's YOUR money.
6) If you see an exchange platform such as FTX spending big money (such as purchasing naming rights for an NBA arena or buying Super Bowl ads or having very famous people pitch their company) then ask yourself how are they making all that money.
7) An exchange must have the liquidity to comply with the clearing rules. From an article about what happened to Robin Hood (the exchange that hosted the "meme" stock boom: Gamestop and AMC among others):
"Under the current T+2 system (Trade date plus two days), it takes up to two days for trades to clear – ie, for the conclusion of the transfer of cash and securities between the buyer and the seller. During that clearing period, a third-party clearinghouse requires the clearing broker – in this instance, Robinhood Securities – to put down a deposit until the trade is settled. Depending on the size of the deposit, the clearinghouse may ask for an additional deposit as a precaution."
This has caused a lot of problems for exchanges that aren't playing the game straight. Crypto exchanges are not Crypto. They are a platform to hold your asset. If they are trying to do other things such as financing investments of their own ("proprietary trading") then their liquidity may be imperiled.
How do you know if they are doing this? You probably don't or won't know until it's too late. How do you prevent this from happening to you. Hold your own Crypto. From an article about this:
"In order to store your own crypto, you'll need access to a crypto wallet. Hardware wallets and custodial wallets are some of the safest ways to store your crypto, but there are advantages and drawbacks to both options. As you'll learn, crypto users may have a strong preference for one over the other."
8) Be honest with yourself. Do you have any idea what is actually happening with your investment? How does it make you money? What are the drivers of price swings if there are no earnings (fear and hype?)? What does the company do? What are the owners of the platform doing with their profits? Are you buying because of emotion and/or the feeling that the world is passing you by?
DO YOU FEEL LUCKY?
Monahorns
10,000+ Posts
He was propped up by powerful people in the Democrat Party. He actually ran a Ponzi scheme on behalf of some of them, involved in "fortifying" the 2022 election. Once that was done it was time to let it crumble.
One more example of why certain people, companies, or ideas when pushed by the media should be met with skepticism.
One more example of why certain people, companies, or ideas when pushed by the media should be met with skepticism.
Good article. Thanks.
Talk about a ship of fools. Geez. Slap some fancy, trendy names on some snake oil/tech b.s., sell it for a ridiculously high price to millions, and wait for the bombs to explode. Common sense is truly not very common.
You were talking about fiat currency, not gold and real estate. I'm no crypto fan. I think it's bogus, but with what we and other nations are doing with their currencies, it wouldn't surprise me if it has a comeback at some point.
I pivoted from an economics viewpoint of crypto to that of the investor. Gold makes 10x more sense than crypto for today’s investor. Yes, crypto may work in the future, but what is the rationale to invest in it now? I say none. It was a speculative play that likely has burned many people.
From an investment standpoint, yes. However, people went for crypto because it can be a medium of exchange. There's an appeal to that.
Gold markets mostly satisfies that demand since so few folks actually used crypto as a medium of exchange. Also, why use a medium of exchange where the base unit is so speculative? It’s an irresolvable contradiction.
Totally understandable, and I was never into crypto. Always thought it was dumb. However, I do see the rationale for it, and the trashing of the currency only encourages this sort of thing. I suspect it'll be back in some form.
Bitcoin or any other cryptocurrency could work if:
-There was only one cryptocurrency
-There was better regulation of exchanges
-A way to exchange existing currencies for the chosen crytpocurrency was developed
-Better security was developed to prevent fraud/theft
-A debt limit was imposed on every country based on characteristics such as GDP, GDP per capita, population growth, economic growth, velocity of money need, tax base, etc.
However, politicians love to recklessly spend money they don't have to repay, so instituting such a system is unlikely.
If iatrogenic was in charge of underwriting countries and issuing and monitoring the chosen cryptocurrency amounts based on objective factors, it would work. However, a hierarchy would naturally develop based on a country's productivity, and some pain would be felt by the irresponsible and unproductive, especially by countries engaging in political graft and corruption. The beatings would continue until responsible governments were installed, and there would be an easily accessible list of governments that needed to be removed and replaced. There would be some charity based on need. Janet Yellen, Paul Krugman and a host of others would be jailed as part of the new system. ADVOCATING FOR SOCIALISM AND COMMUNISM WOULD BE PUNISHED BY DEATH in order to avoid mass suffering and death.
The new currency would be known as "Hook'ems".
-There was only one cryptocurrency
-There was better regulation of exchanges
-A way to exchange existing currencies for the chosen crytpocurrency was developed
-Better security was developed to prevent fraud/theft
-A debt limit was imposed on every country based on characteristics such as GDP, GDP per capita, population growth, economic growth, velocity of money need, tax base, etc.
However, politicians love to recklessly spend money they don't have to repay, so instituting such a system is unlikely.
If iatrogenic was in charge of underwriting countries and issuing and monitoring the chosen cryptocurrency amounts based on objective factors, it would work. However, a hierarchy would naturally develop based on a country's productivity, and some pain would be felt by the irresponsible and unproductive, especially by countries engaging in political graft and corruption. The beatings would continue until responsible governments were installed, and there would be an easily accessible list of governments that needed to be removed and replaced. There would be some charity based on need. Janet Yellen, Paul Krugman and a host of others would be jailed as part of the new system. ADVOCATING FOR SOCIALISM AND COMMUNISM WOULD BE PUNISHED BY DEATH in order to avoid mass suffering and death.
The new currency would be known as "Hook'ems".
I think the fear, rational or not, of having your crypto asset stolen is the number one reason why I've stayed out of it. I also believe it has no value beyond timing the market based upon the hype. Money can still be made.
Which side of the flip are we on? I think we know the answer to that question but will it flip again. I've heard it could still drop to $12K or so. I have no idea why the floor would pick that arbitrary amount. What we do know is there's a chance a lot of money will now go back to traditional investments which will continue to deflate the crypto market. But at some point it will rejuvenate.
Any ideas on when and what it would take for it to happen?
Which side of the flip are we on? I think we know the answer to that question but will it flip again. I've heard it could still drop to $12K or so. I have no idea why the floor would pick that arbitrary amount. What we do know is there's a chance a lot of money will now go back to traditional investments which will continue to deflate the crypto market. But at some point it will rejuvenate.
Any ideas on when and what it would take for it to happen?
Damn, I can't help but wonder what kind of **** this guy must have on congressional Democrats for Maxine Waters to be kissing his ***. It must piss her off to have to be respectful to some rich white guy. She's not doing it if he doesn't have massive amounts of dirt.
He paid her off. Maxine can’t turn on him out of principle because that negates why she gets paid in the first place. There is no mystery here.
No doubt she's a crook. It's how she operates, but usually she's just quiet about her benefactors. For her to have to publicly kiss a rich white guy's *** (a Jewish rich white guy's ***, no less) tells me it's on another level. Hating Whitey (especially if he's Jewish) is what she's all about.
AC
2,500+ Posts
The bottom is in. All indicators point to a Bitcoin recovery in 2023:
*Bitcoin not Altcoins. All altcoins are securities! Bitcoin is a commodity asset. Will compete with the US Dollar.
*USD WILL lose global reserve currency status.
*BRICS alliance currency backed by a basket of precious metals. That will take over! This is a good thing!
* Bitcoin will be used for international settlements!
*Bitcoin not Altcoins. All altcoins are securities! Bitcoin is a commodity asset. Will compete with the US Dollar.
*USD WILL lose global reserve currency status.
*BRICS alliance currency backed by a basket of precious metals. That will take over! This is a good thing!
* Bitcoin will be used for international settlements!
AC
2,500+ Posts
You have to research Bitcoin to understand it!
The next halving is March 2024. So a year before and a year to 18 months after the halving, expect a bull market! By early 2025 it will be exponentially more valuable than today! Buy, hold, keep it offline!
Binance sees withdrawals of $1.9 billion in last 24 hours, data firm Nansen says
Take the exchanges down. This is what needs to happen. These exchanges are unregulated and run by financial charlatans. History will prove once again that human beings can be taken for a ride by a silver tongue promising the riches of avarice and the keys to the future. Fundamentals matter. So does regulation. It's hand in hand. Don't let anarchists fool you with tales of how the illuminati or whomever are controlling the world. There is no short-cut around it. It is what it is. We have a monetary system. We all agreed to accept the paper because it is supported by all of us. Even stocks have a company behind them. Land is land. Buildings are buildings. But a light, invented out of thin air is NOTHING. And why do people fall for it? The same reason they fall for the candy coated words of a politician. It is the desperation of the human race. The weight of mortality. The destruction of the ego. The greed of the heart. What is the answer? If not God then at least in wisdom. Start today.
Take the exchanges down. This is what needs to happen. These exchanges are unregulated and run by financial charlatans. History will prove once again that human beings can be taken for a ride by a silver tongue promising the riches of avarice and the keys to the future. Fundamentals matter. So does regulation. It's hand in hand. Don't let anarchists fool you with tales of how the illuminati or whomever are controlling the world. There is no short-cut around it. It is what it is. We have a monetary system. We all agreed to accept the paper because it is supported by all of us. Even stocks have a company behind them. Land is land. Buildings are buildings. But a light, invented out of thin air is NOTHING. And why do people fall for it? The same reason they fall for the candy coated words of a politician. It is the desperation of the human race. The weight of mortality. The destruction of the ego. The greed of the heart. What is the answer? If not God then at least in wisdom. Start today.
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AC
2,500+ Posts
Trusting paper, fiat currency that is debt based and backed by nothing but military threats? Real money is not gov issued, it’s a hard asset. Bitcoin qualifies even though it’s digital, due to it being backed up by electric power, and ASICS miners. It’s more scarce than Gold and Silver but all three are the hedges worth owning now. Hard money is proof of work based not proof of stake. Mining any of the hard assets mentioned is proof of work.
AC, you are a kool aid drinking true believer. It is a freakishly unsettling to see someone so enamored with Bitcoin, but I still hope you succeed.
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