help me understand crypto

[mpeirce]

There is quite a spectrum of "digital" currency emerging.

On one end is the true cryptocurrencies like bitcoin and etherium, etc. On the other end is just "storing" traditional fiat currency in digital form like having you dollars as numbers in a database.

One to watch is the Digital Yuan from China. It's kind of the anti-bitcoin. While bitcoin is anonymous, DY is the opposite. It will allow the Chinese government to track all transactions in real time.

They are also envisioning "features" like attaching an expiration date to it. Imagine getting a stimulus "check" and the money has to be spent in the next 30 days. Maybe even only on certain types of good.

This is pretty dystopian IMHO.

[tenant13]

Quote:

Originally Posted by mpeirce There is quite a spectrum of "digital" currency emerging. On one end is the true cryptocurrencies like bitcoin and etherium, etc. On the other end is just "storing" traditional fiat currency in digital form like having you dollars as numbers in a database. One to watch is the Digital Yuan from China. It's kind of the anti-bitcoin. While bitcoin is anonymous, DY is the opposite. It will allow the Chinese government to track all transactions in real time. They are also envisioning "features" like attaching an expiration date to it. Imagine getting a stimulus "check" and the money has to be spent in the next 30 days. Maybe even only on certain types of good. This is pretty dystopian IMHO.

Chinese society is pretty much cashless already. A lot of places don't accept cash and quite a few use facial recognition for payments. One can argue whether this is convenient or dystopian given how much a lot of us like plastering our faces voluntarily all over the internet. The whole discussion about CBDCs (Central Bank Digital Currencies) is very interesting, especially around privacy aspect. It's inevitable they are coming - Europe is working on digital Euro and Bahamas and Cambodia already released them.

[sengsational]

Evaporating currency! I guess if they can't vote you out of office, they've got a lot of latitude.

[mpeirce]

Quote:

Originally Posted by tenant13 It's inevitable they are coming - Europe is working on digital Euro and Bahamas and Cambodia already released them.

As are "we" (the US). We certainly need to make sure it's a "good thing" and not a "bad thing" when it arrives ;-)

[dirtbiker]

Whoohoo! My dogecoin has doubled overnight!!!






But, I only have $1000 invested [speculated] in it. lol

[Running_Man]

Quote:

Originally Posted by Running_Man The secret to bitcoin and major cryptocurrencies is decentralized finance, otherwise known as Defi. Applications are being written around this and outlawing crypto is not going to be very easy as the valuations gets into the trillions as major corporations are playing in the space and the larger this becomes with more corporations the less likely any outlawing of this will be. Raoul Pal's insight in October 2020, and he was a fan of crypto long before, in conversations with finance heads he saw so many major players were going to get involved in this space and the future these people anticipated, and you don't just create more bitcoin to meet the demand, the price rises to meet the demand. He utilized the stock to flow model and anticipated a price of $400,000 to $1,000,000 based on his model of demand, the amount being mined and he came up with that price, advertised it for free all over the internet and put 75% of all of his wealth into crypto. Since then prices have more than tripled. I especially enjoyed his comment, "Bitcoin is outperforming everything else on earth and makes everything else pointless, I simply don't care about value versus growth, oh look I can make 10 percent in this asset class while Bitcoin is up 100 YTD.. at this phase in the crypto cycle nothing else matters. There is a wall of money coming in" I don't think dead people really can provide the critical thinking necessary to try and understand this space any more than 15th Century scholars understood the importance of Christopher Columbus's journeys. I reccomend this video highly if one would like to try and understand what is happening I think Rauol explains it well. https://www.realvision.com/shows/dai...&autoplay=true

Since this post, the second largest Crypto Asset Ethereum is up 20% Dogecoin is up 100% in a week, it is up 75X since November and Elon Musk is it's biggest fan. Interesting times. I do see where 10 year treasuries are yielding 1.6% so there's that.

[Fermion]

Still waiting for Amazoncoin crypto. All others will bow to that one.

[ExFlyBoy5]

Quote:

Originally Posted by dirtbiker Whoohoo! My dogecoin has doubled overnight!!! But, I only have $1000 invested [speculated] in it. lol

I jumped in the madness back when GME was going and took 1/2 the table when it doubled a few days later. I had forgotten about it until I saw a blip about it on CNBC and see that it's up 400% in a WEEK! I went ahead and took another 1/2 off for a nice little $6500 profit on my $1500 usd holding.

Maybe we need a Robinhood type thread about the race to $250,000 in crypto?

[Fermion]

Quote:

Originally Posted by ExFlyBoy5 Maybe we need a Robinhood type thread about the race to $250,000 in crypto?

Might as well!

My biotech picks are not doing well at all....I should have just dumped it all in DOGE or pork belly futures or gamestop or something with real value instead of biotech.

[ExFlyBoy5]

Quote:

Originally Posted by Fermion Might as well! My biotech picks are not doing well at all....I should have just dumped it all in DOGE or pork belly futures or gamestop or something with real value instead of biotech.

Maybe tulips will become a thing again!

[sengsational]

The point that crypto currency "A" went up more than "B" makes and interesting point... just because there's a limited amount of "A" in circulation and mineable doesn't mean much when "B" on through "Z" and beyond can step in.

People are going to want what's most useful. But there are many uses. If you want to store big bucks, you want stability. If you want to drop a few bucks in to use for cab fare the next day, eh, as long as it gets me to my destination. Don't they use phone minutes as currency in some counties? Useful because people have phones and need minutes, and can be instantly transferred. Minutes are nice because they are consumed (not just transferred). Like metals that are used in manufacturing, consumed a little bit, but mostly transferred.

[Fermion]

What is discouraging is that several billionaires are embracing bitcoin. I don't want to be forced to buy into crypto and enrich the people who got in early on the "ponzi".

By forced, I mean if enough really rich people invest in it, they will use their power to lobby it into general use.

[sengsational]

Quote:

Originally Posted by Fermion What is discouraging is that several billionaires are embracing bitcoin. I don't want to be forced to buy into crypto and enrich the people who got in early on the "ponzi". By forced, I mean if enough really rich people invest in it, they will use their power to lobby it into general use.

I'm not sure you'd be enriching the early adopters if you wait until the price stabilizes. I would think the world would benefit from a widely accepted currency that was not controlled by a government.

[ownyourfuture]

I finally decided to take a dip.
100 shares. Maybe I'll bring down the entire cryptocurrency universe..lol

[mpeirce]

You are aware that BCHG doesn't invest in "regular" bitcoin, but rather a variant that isn't interchangeable with bitcoin. GBTC does invest in "classic" bitcoin.

[ownyourfuture]

Quote:

Originally Posted by mpeirce You are aware that BCHG doesn't invest in "regular" bitcoin, but rather a variant that isn't interchangeable with bitcoin. GBTC does invest in "classic" bitcoin.

I am now.

[dirtbiker]

Quote:

Originally Posted by ExFlyBoy5 I jumped in the madness back when GME was going and took 1/2 the table when it doubled a few days later. I had forgotten about it until I saw a blip about it on CNBC and see that it's up 400% in a WEEK! I went ahead and took another 1/2 off for a nice little $6500 profit on my $1500 usd holding. Maybe we need a Robinhood type thread about the race to $250,000 in crypto?

My $1k of doge is now sitting at $5000. I probably should have sold it at $6500 this morning, but wanted to wait until it hit $10k, which would be around $0.65. Worst case scenario, it goes to zero, and I wasted $1k. It was play money that I used for speculating anyhow, so I'm not too worried. Today is 'doge day' where it is supposed to 'go to the moon.' LOL. Looks like a bust so far. It's rather ridiculous, but fun.

[Markola]

As if crypto wasn’t already confusing enough. I guess I thought the whole point of stock tickers is that each one is unique. Silly me. I’ll stick to index funds.

Investors Confuse Ethan Allen With Ethereum: Shares up 50% Over Average Price.

Ethan Allen, a U.S.-based furniture company, has been getting strange traction in markets this year, due to an interesting coincidence. The company’s stock ticker is the same as ethereum’s ticker, something it shares with one of the hottest cryptocurrencies right now. This has caused confusion among investors, who have bought Ethan Allen without doing research.

Ethereum (ETH)

https://marketinsider.net/investors-...-average-price

[captain3d]

Etherium not being a stock would never be listed on a stock exchange.

Funny story though. I wonder if anyone mistakenly bought Etherium while looking for some furniture investments.

[Sunset]

Quote:

Originally Posted by dirtbiker My $1k of doge is now sitting at $5000. I probably should have sold it at $6500 this morning, but wanted to wait until it hit $10k, which would be around $0.65. Worst case scenario, it goes to zero, and I wasted $1k. It was play money that I used for speculating anyhow, so I'm not too worried. Today is 'doge day' where it is supposed to 'go to the moon.' LOL. Looks like a bust so far. It's rather ridiculous, but fun.

I'm pretty dumb, but feel a small need to increase the wealth of early adopters.
How do I buy something like doge , since it turns out some (all?) crypto currency is not listed on the stock exchange