Banking on Bitcoin

That’s the natural progression of being introduced to the larger exchanges; now that people can trade in bitcoin futures you are going to see more short selling and other forces at play as more financial “products” there is money to be made hedging against something then organisation will do it.
 
Reign Mack said:
That’s the natural progression of being introduced to the larger exchanges; now that people can trade in bitcoin futures you are going to see more short selling and other forces at play as more financial “products” there is money to be made hedging against something then organisation will do it.
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But those bets do not involve actually purchasing Bitcoin. Also, there's a lot more to cryptocurrency than just investing in BTC. Block-chain technology is the future of how we do things. It's the next evolutionary step of the internet.
 
Chris said:
The same problem with exists with cryptocurrency as it does with the stock market.

If you're a nervous nelly and buy into all the news hype about "this stock is crashing", "or this stock is a bust", then you'll get nervous sell, and lose out often times. Investors don't buy into the media frenzy... They hold onto their investments and ride it out over the long term.

Just like the stock market, the crypto market goes up and down, and always will.

How often do you hear those idiots on the financial news saying things like, "Apple is doomed", or "Apple is past it's prime". Yet the wise people who have Apple stock don't sell it, they hold onto it. I'm not saying that Bitcoin is as valuable as Apple stock, but I'm trying to point out that the stock market is a roller coaster, just like the crypto market. Anytime something happens in the economy, it goes up and down.

If you're one of those people who sees your stock tank and instantly thinks to sell it, then you're probably not cut out for investing in the stock market or cryptocurrency. You've got to ride this sort of thing out and see where it goes.
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To add to that....
You also need to take in account the overall strategy and risk adversity of the investor.

Is the goal to maximize investments in a set period or to develope a long term nest egg?

Nothing wrong with selling high.. buying low with cyrpto.. though it may be volatile.

I personally prefer tangible items such as precious metals, or even exchange rates vs cyrpto. (Think of all the dot com "millionaires")

The long term strategy should alway works with any index in the US economy.. since it is always growing when given enough time.
 
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Sancho said:
To add to that....
You also need to take in account the overall strategy and risk adversity of the investor.

Is the goal to maximize investments in a set period or to develope a long term nest egg?

Nothing wrong with selling high.. buying low with cyrpto.. though it may be volatile.

I personally prefer tangible items such as precious metals, or even exchange rates vs cyrpto. (Think of all the dot com "millionaires")

The long term strategy should alway works with any index in the US economy.. since it is always growing when given enough time.
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Amen, I agree 100%! I'm holding onto most of my crypto for a long time, just to see what it does. I didn't invest much to begin with, so even if I lost it all, I really wouldn't be upset at all. Now if I invested 10k and lost it all, then I'd be upset! But I'm into it for maybe $500 at most.
 
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JP13 said:
But those bets do not involve actually purchasing Bitcoin. Also, there's a lot more to cryptocurrency than just investing in BTC. Block-chain technology is the future of how we do things. It's the next evolutionary step of the internet.
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yes there is more to block chain technology than trading, but its the trading side that has been effecting its value recently those bets have a profound effect on the value that people choose to assign to BTC, the futures were the whole reason they leapt up to 20k in december when they opened and why BTC dipped below 9k the same day the futures expired in january. essentially there is still resource being used to mine for them, the values assigned to them will effect how much a government on corperations are willing to invest in building farms to mine for more. When BTC peaks at 30k in the near future there will be a lot of firms and countries investing in larger offshore farms where electicity is cheap and 3D accelerators will go up in price again
 
The one issue I have woth BTC is the reliance on consumer confidence. All it would take to drop the BTC price drastically is another hacking/digital theft.

Digital currency has an advantage over tradiional currency, in that the cost to transact is low.. buuut it doesnt have the security the dollar has.

Anyways.. thats my opinion.. not worth much. Its been awhile since I was immeresed in High finance.. but my position is pretty conservative for the digital currencies.
 
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Sancho said:
The one issue I have woth BTC is the reliance on consumer confidence. All it would take to drop the BTC price drastically is another hacking/digital theft.

Digital currency has an advantage over tradiional currency, in that the cost to transact is low.. buuut it doesnt have the security the dollar has.

Anyways.. thats my opinion.. not worth much. Its been awhile since I was immeresed in High finance.. but my position is pretty conservative for the digital currencies.
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That is the same with anything though, If you invest 10K in Jack in the box, all it would take to drop would be an e-coli break-out. Or if you invest in GE all it would take to drop is GE to fudge the books and not really make the money they say, or Papa Murphys inflating their numbers, or well the housing market in 2008.

It is all risky. You just have to take @JamesAndTheSahara's advice, and not invest what you can't afford to lose, and diversify just in case. I just put a shit ton on CTL crossing my fingers. I also may have or may not have money floating in certain oil companies. I have bought a lot of gas, and I want some of that money back hehe.
 
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ac_ said:
That is the same with anything though, If you invest 10K in Jack in the box, all it would take to drop would be an e-coli break-out. Or if you invest in GE all it would take to drop is GE to fudge the books and not really make the money they say, or Papa Murphys inflating their numbers, or well the housing market in 2008.

It is all risky. You just have to take @JamesAndTheSahara's advice, and not invest what you can't afford to lose, and diversify just in case. I just put a shit ton on CTL crossing my fingers. I also may have or may not have money floating in certain oil companies. I have bought a lot of gas, and I want some of that money back hehe.
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Not necessarily true that currency valuations are the same as corporate entities.

Corps have a slew of factors that contribute to the value such as assests, Capital, accountability, and most importantly.. stability.

Currency valuations are based alot on confidence and predictability.

Take the US dollar... a safe bet because the US has an entrenched economy and strong military... all which point to stability and predictability. Anyone interested in buying futures in the Syrian Lira?

What does digital currency have other than some intrinsic advantages such as ease of transaction? What backs it?

Just a thought.. I am not advocating for or against digital currencies.. just throwing out caution.


Btw... gas/energy is a nice choice... always a demand.. and the recent deregulations for driling offshore should drive up profitability.
 
Sancho said:
Not necessarily true that currency valuations are the same as corporate entities.

Corps have a slew of factors that contribute to the value such as assests, Capital, accountability, and most importantly.. stability.

Currency valuations are based alot on confidence and predictability.

Take the US dollar... a safe bet because the US has an entrenched economy and strong military... all which point to stability and predictability. Anyone interested in buying futures in the Syrian Lira?

What does digital currency have other than some intrinsic advantages such as ease of transaction? What backs it?

Just a thought.. I am not advocating for or against digital currencies.. just throwing out caution.


Btw... gas/energy is a nice choice... always a demand.. and the recent deregulations for driling offshore should drive up profitability.
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I wasn't stating that they were the same, i was stating that the risks were.
 
Sancho said:
The one issue I have woth BTC is the reliance on consumer confidence. All it would take to drop the BTC price drastically is another hacking/digital theft.

Digital currency has an advantage over tradiional currency, in that the cost to transact is low.. buuut it doesnt have the security the dollar has.

Anyways.. thats my opinion.. not worth much. Its been awhile since I was immeresed in High finance.. but my position is pretty conservative for the digital currencies.
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Coinrail hack this weekend
http://www.scmp.com/business/money/...tumbles-most-two-weeks-after-south-korea-hack
 
Yet, the Bitcoin blockchain was not hacked. Be smart with your holdings. If you lose because of a hack, you did not properly store your crypto.

While those who doubt block-chain tech laugh, the rest of us are raking in profits from getting in early on the next evolutionary step of the internet.
 
JP13 said:
Yet, the Bitcoin blockchain was not hacked. Be smart with your holdings. If you lose because of a hack, you did not properly store your crypto.

While those who doubt block-chain tech laugh, the rest of us are raking in profits from getting in early on the next evolutionary step of the internet.
Click to expand...


This isnt the first time blockchain currency has been compromised.
 
Reign Mack said:
Only he exchanges have been compromised not the actual block chain technology itself.

Tether was apparently some sort of scam to begin with.
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If banks were as vulnerable as the exchanges... the dollars value would never have the current demand.

Hence the creation of the FDIC backing.

Exchanges are the banks to a bitcoin. If the government ever insures digital currency.. then hell.. I'm in.

Until then.. I'll run more tangible stuff with historical trends.
 
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