Bitcoin

#502
#502
I'm fascinated to see over time how it behaves relative to other asset classes. It is pitched by its adherents as part of an alternative financial system, within which crypto is an alternative currency, but at this point it doesn't seem to have all of the characteristics of a currency.

As as asset, it also appears more correlated to risk assets (e.g., equities, high-yield credit, commodities, etc.) than safe haven assets, which is interesting since many people want to think of it as a trendier form of gold. It's parabolic moves tend to coincide with rips in the stock market, and when equities get killed, like in March/April, it gets killed too.

Regardless of what you think about it, it probably is here to stay in some form or fashion. Especially the concept of the blockchain. It's a little bit different than people going nuts over flowers.
 
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#503
#503
05_never_again said:
I'm fascinated to see over time how it behaves relative to other asset classes. It is pitched by its adherents as part of an alternative financial system, within which crypto is an alternative currency, but at this point it doesn't seem to have all of the characteristics of a currency.

As as asset, it also appears more correlated to risk assets (e.g., equities, high-yield credit, commodities, etc.) than safe haven assets, which is interesting since many people want to think of it as a trendier form of gold. It's parabolic moves tend to coincide with rips in the stock market, and when equities get killed, like in March/April, it gets killed too.

Regardless of what you think about it, it probably is here to stay in some form or fashion. Especially the concept of the blockchain. It's a little bit different than people going nuts over flowers.
Click to expand...
The price of futures contracts on tulips in 17th century Holland rose, peaked, and crashed in the span of 6 months...

Bitcoin has been here for over 10 years, and is underpinned by a truly disruptive technology in Blockchain.

It’s here to stay at this point.
 
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#504
#504
85SugarVol said:
The price of futures contracts on tulips in 17th century Holland rose, peaked, and crashed in the span of 6 months...

Bitcoin has been here for over 10 years, and is underpinned by a truly disruptive technology in Blockchain.

It’s here to stay at this point.
Click to expand...
That's what I'm saying. It's been around for almost a decade, has survived numerous parabolic booms and busts, and is underpinned not only by a disruptive technology but a philosophy that is truly believed by its adherents and backers. Tulips didn't have any of that. If bitcoin was going to flame out, it probably would have done so after either after its 2013 or 2018 crashes.

It's probably here to stay, but the role it ends up playing in the economy and how it behaves as an asset/currency are still totally up in the air, IMO.
 
#506
#506
05_never_again said:
That's what I'm saying. It's been around for almost a decade, has survived numerous parabolic booms and busts, and is underpinned not only by a disruptive technology but a philosophy that is truly believed by its adherents and backers. Tulips didn't have any of that. If bitcoin was going to flame out, it probably would have done so after either after its 2013 or 2018 crashes.

It's probably here to stay, but the role it ends up playing in the economy and how it behaves as an asset/currency are still totally up in the air, IMO.
Click to expand...
Bitcoin is the reserve currency for all of Crypto at this point.

And will be to Millenials & Z’s what gold has been to Boomers & X’s
 
#511
#511
Velo Vol said:
When you think about it, what's more valuable than money?

Click to expand...

I’ve never seen a “market cap” expressed for Gold & Silver.

How is that calculated? Is there an estimate of all the mined ounces in the world? That would seem like a wild guess to me.
 
#515
#515
Did it miss earnings?

ErY3zWkXYAElS9T
 
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#516
#516
Cryptocurrency traders could ‘lose all their money,’ UK watchdog warns

Britain’s financial watchdog issued a dire warning to cryptocurrency traders Monday as Bitcoin took investors on another wild ride.

The UK’s Financial Conduct Authority said consumers who invest in the red-hot cryptocurrency market “should be prepared to lose all their money” because there are so many risks involved.

Firms promoting crypto investments may overstate the returns that traders will reap and understate the risks of the market, and investors who buy in are unlikely to have access to consumer protections if something goes wrong, regulators said.

Officials also noted that there’s no guarantee digital currencies can be converted back into cash and that their prices are known to swing wildly.

https://nypost.com/2021/01/11/uk-watchdog-warns-cryptocurrency-traders-amid-bitcoin-volatility/
 
#518
#518
Having a cap of 21,000,000 bitcoins creates a supply/demand imbalance that seems to contribute to the $40,000/Bitcoin valuation.

But, I’ve yet to actually witness a Bitcoin transaction. I would assume that there would need to be (or is) a crypto market to exchange all of the various crypto currencies with other crypto currencies. If so, then the supply is theoretically unlimited if new crypto currencies can be created without limits that can be integrated into various exchanges.

It might could be the 21st century’s version of the tulip craze.
 
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