MrBig1
Recycles dryer sheets
- Joined
- Nov 4, 2017
- Messages
- 75
I just hope some of you guys got a piece of this bubble. I missed it totally. But I'm just happy somebody made this kind of return. Phenomenal!
The constraint is the "magic". That, and the way it's processor hard which allows more units, but only in a trickle. The constraint isn't a problem because right now I can send you a tiny amount ... a hundredth of a millionth BTC. In other words, I can send you ten thousand of the smallest units, and it will would be like a buck or two. Even in the future, should the price rise dramatically, the protocol could be updated to allow further subdivisions, should they be needed.From what I have heard on TV, there is a limit to the number that can be mined in total... so the supply will be constrained to that number...
.....
The early adopters fell into two categories .. rich geeks buying for long term seeing the value of the bitcoin technology and relatively poor people with no other means to have their money saved because it becomes worthless and they did not have access to the world government banking system to have their money saved.
Reminds me of the sage Warren Buffet telling Katy Perry last May that Bitcoin was a fraud and not to put any money into it, up 20X since then about a 30 year BRKA run to earn that amount.
I had exact same thought reading this thread. Major difference is beanie babies have some intrinsic value.Beanie babies. Only virtual, and on steroids.
Not joking:
https://coinjournal.net/ethereum-based-cryptokitten-sells-117712/
So you have a virtual kitten selling for $117,712. Yes, cats on the blockchain, that happened.
The way bitcoin transactions are recorded in the block chain, what kind of infrastructure it will take before bitcoin holders can use it to buy a soda at a vending machine, pay for parking at a booth, get a stick of chewing gum?
I didn't know the answer to this (probably still don't, hehe!), but I did a bit of reading just now.The way bitcoin transactions are recorded in the block chain, what kind of infrastructure it will take before bitcoin holders can use it to buy a soda at a vending machine, pay for parking at a booth, get a stick of chewing gum?
As someone pointed out on TV, you are looking at it wrong...
Do not think of it as replacing US dollars (or any other major currency).... but think of it as replacing gold... it is a storage of value just like gold... you do not go into a store expecting to buy a soda using gold... so why would you think that you can buy using bitcoin?
But, we do know that some places are starting to accept bitcoin as a replacement for money, so in a way it is a bit better than gold... however, I would bet that with the huge price swings that fewer people will be willing to accept it for payment... taking an FX risk (is it an FX risk?) is not what companies want to do....
two bits, four bits, six bits, [-]a dollar[/-] a million bucks ...
Bitcoin trading up with the new futures, will be interesting to see if prices stabilize with the large traders getting involved or if volatility continues in this explosive way.
Large traders and institutions can not get in as block trades are limited to 50 contracts ( a contract equals 1 bitcoin) I believe. Also you can not hedge your existing bitcoin or short bitcoin. Jim Cramer who predicted bitcoin would get creamed today has ether on his face.
I thought it was bananas today to learn that there's no regulation of Bitcoin pricing with the futures market now open. Something to the effect of you can buy Bitcoin on one marketplace and immediately sell it on another for a totally different (higher) price and turn a profit with next to zero risk. All you need is access to two market places, interlinked, and an internet connection. Have to think that's going to change a real quick.
Crypto currency is not in a bubble, hardly anyone knows about it.
...I heard a guy say “when my gardener accepts bitcoin then I’ll get in” by then he is buying into the top of the bubble, right now it is still in its infancy stage with lots of legs to stretch
You information is not correct as posted on CNBC you can short a bitcoin, it will cost you 30% of a bitcoin to short a futures contract but you can do it.
Maybe cnbc should check it's sources? The only brokerage that is approved
to clear bitcoin contracts on the CBOE is Interactive Brokers. According to their website:
Will there be any restrictions on trading?
Due to the extreme volatility of cryptocurrencies, clients will only be able to assume a short position if part of a spread that meets the following conditions:
The spread must be one-to-one
The short leg must have the earlier expiry so that once it expires the surviving leg will be long
In addition, trading will not be offered in retirement accounts or for residents of Japan.
What is the Margin Requirement?
Our margin requirement on long positions will be at least 50%. This compares to the exchange initial requirement for the CFE and CME of 44% and 35%. Note that while margin requirements on futures products are commonly quoted in terms of dollars, with the fixed dollar rate subject to periodic adjustments to maintain the desired percentage coverage, IBKR will be adjusting the dollar rate daily to reflect changes in the underlying price and to maintain the 50% minimum. Note that the 50% margin rate will be based upon the lead future last settlement price and will be updated once daily, at the during the overnight system reset.
Also, my comment regarding block trades was incorrect. The maximum position one can hold is 5,000 contracts.