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Bitcoin rollercoaster.


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One can understand why some investors are reluctant to invest in Crypto.  As a Crypto market observer it makes fascinating viewing. 

Todays 10% fall for example, after a 90% increase since October. Talk about profit taking. Or is this a classic case of Pump and Dump, just on a phenomenal scale and compressed timezone. 

Either way, doubters  must now accept Crypto is here to stay and is bona fide currency. It is also a wild wild ride.  If it were an attraction at an amusement park it would come with multiple health warnings and indemnity release forms as mandatory.   However, those with Cahones large enough make some pretty awesome margin.

 

 

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I stay away from the whole family of crypto.

I don't like the amount of hype and general **** that is out there. Ranging from its an inflation hedge, as they cant make any more of it. To its not a fiat currency, like those evil central banks.

Doesn't look like either of those things to me!

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Agreed Bopperz. It is now a currency though. No two ways about it.  So view it as that. It is a part of the new paradigm (sorry to use that old naughties word, but it fits). Ok, so you might not like $USD right now because you take a view on the multi trillion dollar Fed debt, or £ Sterling because of the risk of No Deal or the Thai Baht because of potential political unrest... Bitcoin comes without any Government debt. It is radical because it's value is determined exclusively by the market with no government interference or influence. It is also not underwritten by any bonds or gilts. It guarantees no interest. But you can spend it and exchange it for ready money.  It is simply another form of currency. You can see why governments are afraid of it and why some want to emulate it. The blockchain principle is secure and reliable. It will become money on your phone, like Applepay or Paypal, but without the politics of provenance. True, the hyperbole is confusing and verges on the ridiculous, but the currency itself...it's here, despite the naysayers predicting its downfall. The world is changing and Bitcoin is part of the change. 

Have a grand day and good luck on your trades.

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24 minutes ago, 786Trader said:

Either way, doubters  must now accept Crypto is here to stay and is bona fide currency. It is also a wild wild ride.

Crypto might be here to stay but will any of the current coins survive or will central banks clear the field before launching their own?

https://www.financemagnates.com/cryptocurrency/news/christine-lagarde-feels-ecb-will-launch-a-digital-euro/?utm_content=buffer57ee9&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

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2 minutes ago, 786Trader said:

Bitcoin comes without any Government debt. It is radical because it's value is determined exclusively by the market with no government interference or influence.

https://www.fxstreet.com/cryptocurrencies/news/us-treasury-could-destroy-the-true-nature-of-blockchain-by-going-after-self-hosted-cryptocurrency-wallets-202011260353

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12 minutes ago, Caseynotes said:

Crypto might be here to stay but will any of the current coins survive or will central banks clear the field before launching their own?

https://www.financemagnates.com/cryptocurrency/news/christine-lagarde-feels-ecb-will-launch-a-digital-euro/?utm_content=buffer57ee9&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

Very good point, Casey. They see Bitcoin and want to emulate it, or in the case of the Fed try and ban it. Bitcoin and Crypto have DEMAND. A Euro backed or $ backed crypto may not have them same demand, but will also be seen as currency. Crypto's lack of provenance (political and geographic) is a major USP. The market normally wins as governments know too well. 

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46 minutes ago, 786Trader said:

The Fed wants to ban it or tax it. No central government likes crypto as its a form of financial anarchy. 

Financial Anarchy: one of the main fallacies of Bitcoin.

You are that independent holding bitcoin that anytime you want to buy it or sell it have to go through an exchange using your full identity. With all sort of passports and ids checks.

Let's not forget that the main goal of many bitcoiners is to amass as much of the correlated fiat currency as possible. With the romantic topic of becoming a blade runner paying in SHA-256 hashes to other elite individuals you watch how your virtual coins grow in value, that value that is established in that so-hated fiat currency. The happiness of a bitcoiner comes with the grow in price of that coin in the exchange. The more coins of the fiat currency they get from their bitcoins the happier they are.

So it is all cyberpunk literature with a bit of TAZ philosophy, but bitcoin is no more than a very volatile "financial product", unfortunately , and since I am surrounded in IT departments by bitcoiners I am so tired of listening to people excusing themselves for choosing this overhyped movement over any other FX pair or metal.

I understand that people want to get rich quickly and that is why they chose bitcoin, but they want to get rich by grabbing more and more of that fiat currency that they hold in the bank accounts. So let's be honest with ourselves, let's cut the rubbish and call it like it is: Greed on a very volatile market.

 

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4 hours ago, 786Trader said:

Either way, doubters  must now accept Crypto is here to stay and is bona fide currency.

Where is the evidence for this?

Just because the value of Bitcoin has risen recently does not mean it's a bona fide currency. I think it's a speculative bubble, the price is going up because people are bidding prices up simply because they think it will go higher.

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Many people have predicted the downfall and disappearance of bitcoin

They are still waiting. They may have a long wait.  It is a currency. It is exchanged for goods, services and other currencies. It is secure.  It's value is volatile, which is also its attraction for traders. If one does not want to trade them, then no problem, trade something else.  

I observe the Crypto market and marvel at it. Personally, it's Gasoline and Oil and by extension the Dow and FTSE that I prefer to trade. Our system of Capitalism is determined by trade, Bitcoin and Crypto are just another part of the cornucopia. It appears to have a life and value of its own.

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On 26/11/2020 at 12:29, 786Trader said:

One can understand why some investors are reluctant to invest in Crypto.  As a Crypto market observer it makes fascinating viewing. 

Todays 10% fall for example, after a 90% increase since October. Talk about profit taking. Or is this a classic case of Pump and Dump, just on a phenomenal scale and compressed timezone. 

Either way, doubters  must now accept Crypto is here to stay and is bona fide currency. It is also a wild wild ride.  If it were an attraction at an amusement park it would come with multiple health warnings and indemnity release forms as mandatory.   However, those with Cahones large enough make some pretty awesome margin.

 

 

Agree with this totally - certainly for a newbie sitting on the fence as to action to take

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There was another fork the other day - Bitcoin Latinum - the world's largest "insured" digital asset.

One wonders if every time another variant is created it simply draws away potential investors from the original version.
I bet committed Bitcoiners wish these variants would all just fork off 😉

I saw something the other day that happened to mention that a Bitcoin was worth about 10 ounces of Gold.......then it hit me - would I prefer to be offered one Bitcoin out there in the ether or ten ounces of physical Gold in my actual possession? 10 Bitcoin to buy a single ounce of Gold intuitively feels like the more sensible way around as I'm certain that Gold is safe but several times less certain that Bitcoin is - so we could be out by a factor of 100!

But whilst fund managers all start allocating the odd fractional percent to get exposure to Alpha for minimal portfolio downside the price will probably hold or bubble up even more. It will be interesting though  if national regulators later turn round and ban funds from holding cryptos - then they will all have to rush for the exit at the same time. Maybe that's the ultimate expected outcome.  According to Wikipedia in March 2018 0.5% of bitcoin wallets owned 87% of all bitcoins ever mined. Imagine if  transferring that 87% to fund managers at peak prices is the intended end-game before it all collapses? It would make Bernie Madoff look like a mere pick-pocket.
 

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  • 2 weeks later...

Surprised people haven't done a bit more research here, I see a lot of false statements in regards to BTC.
In my opinion, it is the best opportunity of my life, it is the internet of money and it has proved to us that it is not going away. With large companies now buying up BTC as a hedge on inflation, I think we are going to see a multi year bull market here.
Don't underestimate network effects - Bitcoin is already a household name and onramps are becoming easier by the day, with paypal now promising to sell this year. The market cap is still very small compared to other assets and I could see a big supply shortage coming if big companies keep buying and if we get another wave of retail investment. I think governments would have made their move by now if they were going to prevent it.

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