[Finance] The cryptocurrency (Bitcoin etc) thread

[Tyrone Biggums]

peer to peer will save the content providers large bandwidth and hosting costs. its a terrible example though, Napster with a token to incentivise use is not a paradigm shifting use case.

the goto answers are financial sovereignty, democratising access to banking, micropayment systems and claims on cost and efficiency of currency transfers (which dont apply to many).

Yeah they are doing a fair bit more than Napster ever did.

That you didn't mention NFT's means you've left out a huge sector of crypto.

Never mentioned the whole privacy and security aspect.

Hell something like Audius could change the landscape of the music industry.

 

[beorhthelm]

Yeah they are doing a fair bit more than Napster ever did.

That you didn't mention NFT's means you've left out a huge sector of crypto.

Never mentioned the whole privacy and security aspect.

Hell something like Audius could change the landscape of the music industry.

as a huge fan of NFT i left it out deliberatly beause it comes under financial sovereignty (and Audius is micropayments). also the question was what has crypto done so far. i dont tempt fate with the potential for NFT to revolutionise asset ownership.

 

[KeegansHairPiece]

What is the antithesis of the tulips analogy for Crypto?

When Newton was master of the mint, we went through huge change in terms of recoinage, silver standard to gold standard where silver coins were worth more melted down back to bullion than their value as a coin thus leading to a silver shortage in Britain. Tulips is lobbed into the conversation a lot, and perhaps rightly so, but what are the counter examples?

 

[beorhthelm]

What is the antithesis of the tulips analogy for Crypto?

When Newton was master of the mint, we went through huge change in terms of recoinage, silver standard to gold standard where silver coins were worth more melted down back to bullion than their value as a coin thus leading to a silver shortage in Britain. Tulips is lobbed into the conversation a lot, and perhaps rightly so, but what are the counter examples?

internet. we're somewhere in mid 90's in terms of development and uptake. or early 00's for mad valuations for vaporware ideas.

 

[knocky1]

What is the antithesis of the tulips analogy for Crypto?

When Newton was master of the mint, we went through huge change in terms of recoinage, silver standard to gold standard where silver coins were worth more melted down back to bullion than their value as a coin thus leading to a silver shortage in Britain. Tulips is lobbed into the conversation a lot, and perhaps rightly so, but what are the counter examples?

Crockery after a bull run in a china shop.

 

[CheeseRolls]

Out of interest what has crypto done for the world so far ?

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This was on in our house in the background last night.

The Information Age: The 90s saw the mainstream adoption of the internet, leading to browser wars, the rise of the dot-com giants and fears over the Millennium Bug. (S1, ep 7)

It was amazing how disconnected and disinterested so many people were as the world was reconfiguring around them. Cryptography impacts every single one of us on a daily basis. Cryptocurrency is still something of a niche.

There are so many things that have already been delivered, just not maybe one big thing that would make everyone sit up and pay attention.

I also have a theory that the UK (as with religion) is largely out of step with the rest of the world. We have had a millennium of relative stability, which few other places can match. We have excellent public records, a mature legal system and a record on corruption, which until recent times was rightly the envy of the world. I shouldn't get distracted but the levels of corruption in public life are unprecedented and are only matched by the level of general acceptance.

Where people haven't been able to take these things for granted, the ability to send money to relatives in other countries without paying extortionate fees. The ability to do business in parts of the world, where in the past it might have been impossible to trust anyone and the ability to bypass corrupt governments are all huge. For the last point I am not talking about a bunch of bleating libertarians who want someone else to pay for society, but autocratic states, where governments get elected with 95%+ votes at the end of a gun.

 

[CheeseRolls]

I suppose I should also have added I am currently over 20% down - thanks Bitcoin !

I have been busy staking as much as I can. There are loads of places offering very generous returns, if you can get your head around it. I am hoping that when things do pick up again, this will give me a real boost on the upside.

I am though channelling my inner THPP and constantly reminding myself that 150% of FA is still FA

 

[beorhthelm]

I suppose I should also have added I am currently over 20% down - thanks Bitcoin !

I have been busy staking as much as I can. There are loads of places offering very generous returns, if you can get your head around it. I am hoping that when things do pick up again, this will give me a real boost on the upside.

I am though channelling my inner THPP and constantly reminding myself that 150% of FA is still FA

remember to declare staking returns for income tax. and CGT when you dispose of any tokens. i've swerved staking due to the complexity, fear of rug and hassles of tax. oh and the fees (early on ETH).

 

[CheeseRolls]

remember to declare staking returns for income tax. and CGT when you dispose of any tokens. i've swerved staking due to the complexity, fear of rug and hassles of tax. oh and the fees (early on ETH).

Right now I can only dream of having CGT worries

"With regard to individuals, HMRC deems that “only in exceptional circumstances” would it expect “individuals to buy and sell exchange tokens with such frequency, level of organisation and sophistication that the activity amounts to a financial trade in itself.”

My track record shows no signs of organisation or sophistication.
I am avoiding any scenarios where liquidation is even a possibility, or where the staking process is so complicated I can't get my head around it.
Rug pulling and theft can never be entirely ruled out, which is why the rewards remain high.

 

[warmleyseagull]

Maybe you wouldn't get scorned if you knew what you were talking about.

If you have to ask what crypto does you've obviously put zero research into what the crypto space has implemented and what's to come.

I think I do - have run a very successful DIY portfolio for 30 years with some high risk investments - some win, some lose; I make the point that crypto may have legs as alternative currency in the end, but that is not a good reason to go chasing it in order to make a quick buck, which is what many have done with burnt fingers. Doesn't the volatility of the price tell you something?

 

[Tyrone Biggums]

I think I do - have run a very successful DIY portfolio for 30 years with some high risk investments - some win, some lose; I make the point that crypto may have legs as alternative currency in the end, but that is not a good reason to go chasing it in order to make a quick buck, which is what many have done with burnt fingers. Doesn't the volatility of the price tell you something?

The volatility suggests its a very new technology that the vast majority of people have no idea about.

It also suggests unlike traditional markets which are often closed to the poor huddled masses crypto is far more accessible to people and places the world often overlooks.

If all of a suddenly you threw those millions of people into the stock exchange they'd also be creating shifts and volatility no different to what happens in crypto.

 

[Neville's Breakfast]

The volatility suggests its a very new technology that the vast majority of people have no idea about.

It also suggests unlike traditional markets which are often closed to the poor huddled masses crypto is far more accessible to people and places the world often overlooks.

If all of a suddenly you threw those millions of people into the stock exchange they'd also be creating shifts and volatility no different to what happens in crypto.

There’s nothing to stop crypto buyers from becoming share buyers on the Stock Exchange

 

[Gazwag]

There’s nothing to stop crypto buyers from becoming share buyers on the Stock Exchange

The only real difference in buying/selling on the stock market is you can only do it 8-5 M-F for UK companies you can buy and sell crypto 24/7 which I think makes buying share far less impulsive. In a lot of ways buying crypto at 2am once you have had a few drinks is no different from an acca on the Bolivian 2nd division you just open a different app.

 

[CheeseRolls]

There’s nothing to stop crypto buyers from becoming share buyers on the Stock Exchange

The only real difference in buying/selling on the stock market is you can only do it 8-5 M-F for UK companies you can buy and sell crypto 24/7 which I think makes buying share far less impulsive. In a lot of ways buying crypto at 2am once you have had a few drinks is no different from an acca on the Bolivian 2nd division you just open a different app.

The boundaries are blurring, much faster than you would imagine.

There are mirror virtual stocks for top US companies bought with stable coins see https://terra.mirror.finance/stake
You have organisation working to bridge traditional finance and DeFi like https://allianceblock.io/
You have token based commodity trading see https://mettalex.com/

These may not appear to be a big deal if you live in the UK or the US, but these are new opportunities for many new entrants globally and the impact will be felt everywhere.

 

[dwayne]

Another dire week for pretty much everything but BTC then !!

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[Tyrone Biggums]

Another dire week for pretty much everything but BTC then !!

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Kusama pumped.

2 weeks ago I got a bunch at $200 then added more up to the $300 mark.

Took out all profit at $535 two days ago.

Very profitable week!

 

[pb21]

peer to peer will save the content providers large bandwidth and hosting costs. its a terrible example though, Napster with a token to incentivise use is not a paradigm shifting use case.

the goto answers are financial sovereignty, democratising access to banking, micropayment systems and claims on cost and efficiency of currency transfers (which dont apply to many).

Theta is a micropayment system, as I understand it, there is also more to it than just a CDN.

https://medium.com/theta-network/th...oughput-micropayments-to-support-43308898053b

 

[Albion Dan]

Another dire week for pretty much everything but BTC then !!

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Bitcoin dominance looks set to pump short term. Alts look they are gonna get rekt. I’m out of almost all those that I didn’t get at the bottom and sitting in btc and usdt.

 

[giveusfalmerplease]

Hopefully you guys didn't jump on Wrx! Down 50% from it's high which was near to where I bought it!!!!

 

[warmleyseagull]

The volatility suggests its a very new technology that the vast majority of people have no idea about.

Agreed - which is why it is not a good idea IMO to go chasing it, because even if you are one of the cognoscenti elite you are bound up with a lot of people who know rock all.

Don't get me wrong - if folk want to buy crytpos, that's their right. If it were less volatile, less energy using, and there were some kind of metric to understand whether price should be $1 or $80,000 then I would be a buyer; I have always been a big holder of gold due to its counter cyclical nature. At some small level if might even be fun to gamble a bit. But lets have some reality as to the fundamentals; the launch of dogecoin as a joke that is now worth $70bn sort of says it all.