help me understand crypto

[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/daily-briefing/videos/yield-curve-control-non-fungible-tokens-and-a-wobbling-equity-market?source_collection=89dc905231eb407cb2f77327ba8b714d&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]

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]

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]

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]

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]

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]

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...with-ethereum-shares-up-50-over-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]

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

 

[captain3d]

Crypto currencies do not sell on any stock market. In the same way that gold or houses do not sell on the stock market. There are some funds that buy crypto that do sell on the stock market (eg GBTC)

To buy Crypto you have to go to a dedicated crypto exchange like Coinbase or Binance also some cryptos are now available through Paypal etc

 

[ShokWaveRider]

After reading this I STILL have not idea how crypto currencies work! The Word Crypto (Cryptic) puts me off.

Besides I never did like Coal.

 

[UnrealizedPotential]

After reading this I STILL have not idea how crypto currencies work! The Word Crypto (Cryptic) puts me off.

Besides I never did like Coal.

I do not understand it either. As a result, I have not invested a penny in it and do not plan to do so. If it's too difficult to figure out, I pass.

 

[Markola]

I also don’t understand block chain technology, which is supposed to allow each owner to be visible, or something. But then the Russians who hacked the pipeline and nearly shut down the entire southeast demanded their ransom in Bitcoin. So how is that any different and any better than briefcases full of cash handed over now, or else Guido will make you sleep with the fishes?

 

[indiajust]

The second word is more relevant. Currency. Do you trade FOREX? Are you up to date on trading option pairs between YEN/$/YUAN/STERLING?

Speculating on capital flows between empires/nationstates and military backed central banks is not an investment proposition. These are beyond 800 lb gorillas.

If you are not a FOREX speculator, the only rational response is not to play a game you cannot hope to win.

 

[teachme]

But I also get a sense from the crypto folks that they look down on us "legacy investors" or "user of antiquated investment vehicles" and they think these good times are only just beginning. That has been a huge red flag for me. I am not thinking of investing in crypto but I do feel it merits some mindshare

Probably the young ones who have not had much life experience or people who have made money and are a real world example of the quote

Money doesn't change men, it merely unmasks them. If a man is naturally selfish or arrogant or greedy, the money brings that out, that's all.

Glad I didn't let those attitudes get in the way of making money in crypto which is shaving years off my retirement date and I'd encourage others to seriously investigate.

 

[jazz4cash]

I stumbled on a podcast series about Gerald Cotton, a Canadian Bitcoin entrepreneur who died with his investors money digitally locked up. It reminded me of how often Bitcoin is used for investment scams, ransom ware and other illicit activity. The Podcast is “Exit Scam” on the Audacy app and other places.

 

[mpeirce]

It reminded me of how often [-]Bitcoin[/-] US dollars are used for investment scams, ransom ware and other illicit activity.

Fixed it for you.

There's a reason there are so many US $100 bills in circulation. They fit so nicely in briefcases...

 

[Sunset]

Funny, but driving home today, I realized that bitcoin has enabled various illegal activity.

Like the oil pipeline rasomware, they could have years ago done the ransom, but the tricky part is the payment. bitcoin has solved that.
In the old days, fly a fellow over with briefcases of money? or get $5 million dollars in visa gift cards (10,000 of $500 cards) , then read the numbers over the phone ?

Thankfully bitcoin has made life simpler for criminals.

Canada got rid of their $1,000 bill , as it turned out only criminals were using it. So of course they looked at me weirdly when I turned in a few

I'm not against bitcoin/crypto currency, would actually like to know how to buy some.
Read the story of the guy who bought $200 worth, and now its worth $9 Million.

 

[captain3d]

Crypto = Cryptographic as in secured by encryption.

The Blockchain is just a massive ledger that keeps track of every transaction that ever happened and chains them all together so it can not be undone or modified once complete.

The digital addresses (wallets) of the sender and receiver are recorded on the Blockchain and are public. The owners identity of the wallets are not public.

The simplest way to buy Crypto is probably Paypal or some of the new trading apps like Robinhood. Coinbase would probably be next easiest. It gets quite nerdy and technical beyond that.

You can buy a bitcoin close end 'stock' fund (GBTC) or Etherium (ETHE) in a brokerage account if you do not want to buy the asset directly. This would be similar to buying GLD instead of actual gold.