Most liked posts in thread: Crypto Currencies, and the next big thing
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You are right though, we are talking at cross purposes, you are gambling on a speculative online commodity, I was talking about whether bitcoin and the like are really a currency and whether they can become a mainstream mechanism for trading goods and services. The volatility is a massive impediment to them becoming a real currency.Quant likes this.
Agreed re volatility being an impediment. A lot of my mates are punting big on Cryptos at the moment. They have no experience with investing but have quickly become 'experts'. They are building what they believe to be diversified portfolios of various Alt coins, with Bitcoin considered to be the low risk Core holding of their portfolio. One of my mates is talking about taking out a line of credit against his house to load up on Ethereum.
Epic, epic bubble in my opinion. You can't have price moving from $10 to $250 in 12 months without a serious reversal, regardless of the commodity/asset. Once there's a bit of a correction there will be a huge rush for the exits.
Will be interesting to see how it all plays out.Klogg likes this.
Yeah you guys are right. I'm going to give up throwing blocks of cash at strippers.
Less risk involved accumulating TLS. I can always look forward to lashing out and going out for dinner when they issue their $1.50 dividend twice a year - whooo hooo.
Besides I don't really have the ticker for all this new fangled crypto stuff.
Ain't that right pops?Teknofobe likes this.
This is how your portfolio would look if you invested $100 in the top 10 cryptos on 1 Jan 2017. It would actually be more as I didn't include bitcoin cash and bitcoin gold which you got free.
I was so impressed with this little chart I did the same thing on Dec 1. One of my purchases was IOTA - it has gone up 273% in 5 days - that's right two hundred and seventy three percent.
I doubt it will bring any investors, but plenty of speculators will pile in, the FOMO is palatable, cryptos are being talked about by taxi drivers, there are threads on forums about parenting, facebook community noticeboards.... cryptos "are different", they "are game changers", anyone who isnt in is "old and out of touch", "its going to go a lot higher", "you cant lose"
I cant remember the last time I saw all the signs of imminent collapse and ruin all so strongly represented and aligned. Until it doesnt, it will.
ANY coin that promises to pay you a certain % back on a daily basis I advise you to run from, there are a few new ones out being spruked by the same people that were involved in bitconnect, paying !% daily, or 2% daily etc, get your money back within 200 days if you invest over $10k
DYOR as there are lots of dodgy ICO's going on at the moment.
The world would be a very boring place if it was filled with accountants and lawyers (not that I have anything against accountants and lawyers )
The way I see it - cryptocurrency currently offers things that standard currency cannot, specifically in the realm of smart contracts. However, there's still a LOT of work before this can be truly useful to the mainstream:
- Wallets (a mechanism to hold your private key) are not that easily maintained and can be lost
- Transaction privacy is not entirely there. Bitcoin doesn't encrypt the ledger, so anyone can see all the transactions made by one alias. A few new cryptocurrencies have started addressing this
- Price stability. I wouldn't dare touch bitcoin or ethereum at this point, the price moves too much for me to be able to purchase anything with certainty.
As for short term... there's a nice bubble forming in this area. The number of ICO's (initial coin offerings) is getting big, and some of them just take the BitCoin open source and make very slight modifications. Very dangerous space at the moment.
Longer term, the very interesting part is the distributed ledger/database. Any security concerns around data are removed, as there are many copies as the blockchain is built upon. There are already swarms of teams looking at this, so if you want to join in, I'm sure you can find a vacancy somewhere.
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