What percentage of investors do you think actually support Bitcoin for its intrinsic value vs just its dollar value?
I was reading some post on here from months back from someone saying they believe bitcoin will fail. Mostly because bitcoin has no actual value. While some places will take bitcoin as payment, it's a slow progression, and even places that do just convert it to its dollar value rather than giving its bitcoin price. Unless bitcoin catches on as a real currency, rather than a commodity, then bitcoin is just a pyramid scheme, and eventually smart investors are going to jump ship, because of game theory. When that happens is just the question. After some replies, the poster admitted that maybe bitcoin won't operate under strict game theory because many people believe in the intrinsic value of bitcoin (decentralization, inflation resistance, etc.) and would rather sink with the ship than to sell. How many people do think actually care about the intrinsic this strongly though? It's very admirable, yes, but is it realistic? Don't get me wrong, I love what cryptocurrency stands for, but at the end of the day, for me it's really about trying to make a profit rather than a moral agenda. Thoughts?
Cashing out and the dollar vs. bitcoin value difference.
This is probably a noob question, but I have to ask it regardless. I bought several altcoins in the end of june. Since then they moved up and down compared to the dollar, but compared to bitcoin most of them lost in value. For example Neem doubled in dollar price, but has now the exact some bitcoin value. Or ripple has now the same dollar value as then, but halfed compared to bitcoin. My question is, does the dollar value even matter, since I have to cash out with bitcoin anyways? Is there another way to convert to dollar without going through bitcoin?
all redditor and bitcoiners. I've been a long time lurker and skeptic but recently with a redditor's suggestion, i am a proud owner of a tiny bitcoin. what bothers me is that BTC is still valued in Dollars. I would rather have a bitcoin valued against 10 carrots. or a pound of coffee or whatever, if you understand what i mean here. BTC is revolutionary and can change the ballgame for the whole financial sector. I understand that its like a commodity and we invest in it like a dollar etc etc, but still, i would like BTC to compete against all currencies, eliminate them and reign the new world order !
I keep hearing "Deflation before massive inflation"
So what can we do about it? Any ideas are welcome. It has a lot of "what if's"... It depends how tax and law play out with it.Historically speaking:
Commodities and things people use every day become expensive,
Luxury goods fall in value.
Inflation wipes out all savings, there is often a rush to spend money while it has value. "Bank runs" and "Bank Bail in's" where the bank will limit your withdraws to prop up the bank temporarily. Sure here the FDIC may insure it, but its nothing if your money is losing value by the hour and it takes months to get it actually into your hands. And many countries have issues with a person holding cash..."You're automatically a drug dealer! >your money is now drug money! >Asset forfeiture" ...I cant count how many times this happens.
People yell " physical gold and silver!" ... yeah, those do hold value well, however the gov does tax that at 26-30% when sold, and will often ban its use in dire times. ....huge grey / pirate area.
Mining stock is the same in the tax range, and nearly anything you "resell", imposed taxes and royalties can be added leaving you high and dry.
Precious metal holdings have been banned in the past, even here in the USA...aka Government confiscation.
Nationalization of Precious metals mines have happened.
Edit: I now realize there are many ways stocks can play out.
Real Estate will raise in value hugely, However so will the taxes, longer contracts at fixed rates benefits the lendee.
Things that you use, if you can stock or invest in it.
-I stock bulk diesel for my cars while following historical averages to buy cheap.
-Rotating food stock
-Extra maintenance items, including the big things like a roof on your home if its coming time. Not joking I have a spare water heater and backup heating options, along with minor parts and filters to fix them. Same with cars and engines, (spark plugs, filters (all different filters), oil, cheap sensors that usually go bad and are only 4-10$ each, 1-2 extra alternator per vehicle, belts, mowing belts, bearings, grease, ... and I've literally had to use everything on that list and reorder.)
Things that directly pay you back or are insurance. Saving money is making money.
-Security, Locks, Alarms, Cameras, people steal.
A deep freezer for instance can stock food you use and buy on sale.
Solar energy and solar heating supplements energy you use anyways
Rainwater can be collected and used rather than buying from a source.
A cooking gadget vs eating out.
Tools and learning to fix things vs hire.
House insulation.-Better insulative windows, and sealing.
Bidet on toilet (lol serious though...)
Your education can be a huge one, not just for prepping but also in your work.
Things that prevent rot, fire, flood / humidity, or failure. Humidity is a silent killer to many preps. (water sump pumps, dehumidifiers, leak prevention, fire extinguishers / sprinklers, )
Things that last and can be resold on the street if need be. This list can be huge, you have to balance it with liquidity, what you use but can also sell before it goes bad / fails.
Honestly and unpopularly, Things that can avoid tax when the price inflates out of control and you wish to sell. The numbers can be so distorted in both price and taxing of income. Eggs for instance, in many countries from Weimar Republic of Germany to Venezuela, increased 15,000%+, So that $15,000 egg / $150,000 dozen that you sold from your chickens gets taxed in the highest tax bracket? (which can go into the 90% range if rules aren't changed for the massive inflation) Taxes usually try raising during this and many companies flee the country, add robots / machines, or downsize as the result of more taxes making work and jobs even more of an issue. .. honestly history shows the whole thing being a cluster-duck in so many ways. Alternative currencies pop up, actual trades happen and go unreported, crime even shifts when things get too bad, again with Venezuela, I read that criminals were moving to other countries because the people were too poor to even make anything robbing! You can also have a business where you write off so many things that you would use anyways. The numbers get... err... odd, play the game.
It is usually around 10 years of chaos before things start "stabilizing." and even then, so much damage has occured.
This is a serious thing that has happened to once prosperous people / civilizations in the past...don't think you're exempt, especially when the numbers are at historical limits in many countries. Invest in yourself and what you use regularly.
What will undoubtedly happen from a macroeconomic (big picture) perspective... idiots
OKAY. So demand has been reduced dramatically around the world, our $21 trillion GDP has basically been paused for 2 months, so to keep it afloat (rough math), the government had to add $3.5 trillion to keep the economy running somewhat smoothly. That's a lot of printing, you idiots probably expect inflation. Wrong, step away from the US and look at what other countries are doing, the ECB (European Central Bank) and BOJ (Bank of Japan) are having to print trillions of dollars worth of EURO and YEN to keep their economies going, along with every other country getting pounded. Not only that, but since the US dollar makes up 70% of global transactions, in liquidity terms, trillions worth of euro and yen is MUCH MUCH more than any amount Jpow feels like printing, there's no way our printing could offset what the rest of the world is doing, so inflation isn't coming. If you want proof, just look at the euro/usd (going lower) and literally ANY emerging market currency is getting absolutely clapped vs the dollar. Furthermore, not only is US corporate debt at an all time high, but emerging markets, the eurozone, and asia has borrowed more dollars than ever before at any point in history, basically everyone around the world's debt is denominated in US DOLLARS. So what's about to happen? It's already happening, demand for US dollars is going up because everyone around the world wants to borrow more to offset cash flow concerns and pay off existing debts, which will cause the dollar to increase in value. What happens when the whole world has debt in dollars and the dollar goes up in value? DEBT BECOMES MORE EXPENSIVE. This is DEFLATION, and in particular and even more terrifying DEBT DEFLATION, a phrase that would make Jpow absolutely shit himself (and he knows its coming). This has already started before the whole beervirus nonsense, look at Venezuela and Zimbabwe, they had too much dollar debt, no one wanted to lend to them anymore and whoops, their currency is worthless now. It's going to be like a game of musical chairs for people trying to get access to dollars, starting with emerging markets and eventually moving into the more developed economies. The result: massive corporate bankruptcies, countries defaulting on debt (devaluing their currencies) and eventually a deleveraging of massive proportions. This WILL occur and no amount of printing can stop it, it's already too far gone. It doesn't matter what the stock market does, other markets around the world will be fucked, honestly it might cause the market to go up because of all the money fleeing other countries trying to find a safe place to live. Here are the plays assholes. TLT will go up because no matter what Jpow says, he doesn't control the fed funds rate, the market does, and US treasury bond yields have already priced in bonds going negative. CPI shows that we may see up to -3% inflation (3% deflation), meaning at .25% fed funds rate, the REAL rate is 3.25%, that is the worst thing possible during a deleveraging because it makes it harder to stimulate the economy, the fed has no choice, rates MUST go lower. Rates go lower, bond prices go up, TLT 12/18 $205c. Remember how I said scared foreign money will want to find a nice safe place to go when we go into the biggest debt crisis the world has seen in over 300 years? GLD 12/18 $240c. Finally, the dollar will rise in value as well so UUP 12/18 $28c. As far the actual market, we hit a high of SPY 339.08 in February, fell to a low of 218.26 by mid March, and have since then retraced EXACTLY to the 61.8% Fibonacci retracement level at 290, and started to bounce lower from there. I'm no technical analyst, but I do know history. During the greatest crashes in stock market history, 1929, 2001, 2008, the Nikkei in 1989 (Japan) this exact same thing happened, market got scared and fell to lows, then smoked that good hopium for a few weeks or month to retrace between 50% and 61.8% back to previews highs, then absolutely fell off a cliff. If you don't believe me, go look at the charts. Now, I'm personally not going to be betting on the US market falling because of the fact that its just straight up not reflecting reality and there are much better ways to trade on what's occurring (see trades above), but I PROMISE, that we will not be seeing new highs at any point any time soon. TLDR; The world is going to shit due to the dollars over-dominance of the world market, we will soon see the worst deleveraging in human history, and may very well have to come up with a new fiat money system (probably not bitcoin, but it wouldn't hurt to have some). TLT 12/18 $205c, GLD 12/18 $240c, and UUP 12/18 $28c. If you wanna be an autist and buy weeklys, I can't help you, but I basically just gave you the next big short, so you're welcome. DISCLAIMER: I didn't say what price to buy at for a reason, timing is extremely important for trades like this, so don't FOMO in and overpay, you will get clapped.
Stop spending my tax money on troops. the last time that ANY use of US military was justified was pearl harbor. Americans do not need bases overseas. We did not need to "beat the communists." We certainly do not need to be out there in the middle east "nation building". Those are american lives being lost for nothing but pointless political scores.
Start spending my money on developing american energy independence. If all american cars were electric, we wouldn't be dependent on saudi oil. We would never had to interfere with saddam hussein. Kuwait would have never been invaded because the oil wouldn't be worth money. 9/11 would have never happened because bin ladin would have never been radicalized because of the gulf war. We wouldn't need to prop israel up, because nothing in the region would have any utility. Energy independence would have altered all of this. Forget about the environment if you want. Energy independence is the right call, purely from a geopolitical standpoint.
For fucks sake, stop taxing cryptocurrency to cryptocurrency trade transactions. Nobody can keep that shit straight. I traded eth ->zrx -> btc ->usdc and then I sold a bunch of puts that paid... in oEth. Which doesn't even have value until redeemed from the smart contract. The fuck am I supposed to put on my tax returns? oeth? It's a logic block until redeemed, and until then its a floating variable that moves all over the place in value.
Get the voting system fixed. This shit of pitting people against each other using both gerrymandering and winner take it all voting instead of ranked choice voting is wrong. It allows insiders to manipulate the elections, and it creates absolute insanity. The current system is how we got donald trump vs hillary. Neither side could vote for third party, despite many wanting to. What will it take to get us there? Armed revolution and general insurrection? Dead bodies in the streets? Protesters setting themselves on fire? What? The founding fathers warned about factions. You are the embodiment of hamilton's worst nightmares.
Stop printing money. Move back to a semblance of sound money. People do not want to go into debt to buy stuff. Debt is toxic. It is a system that enslaves people, makes them default, and throughout the entire process of defaulting, their stress goes up, and they have health problems because of it. People should not be forward loading their debt into the future as the optimal strategy. Right now, your system of money printing makes debt more appetizing. And that is wrong. There is a reason we buy bitcoin. We fucking hate you and your system. The money printing is theft from the people, and the fed needs to be held to account for the theft of trillions of dollars from the american people.
Stop it with the surveillance network. STOP IT. The price of a surveillance state is too high a price for freedom. I would rather be unsafe and free, rather than be safe but stuck in a prison. And the to the CIA... You are a bunch of goatfuckers that ALL deserve to be strung up in nooses for crimes against humanity. You led the overthrow of pretty much every south american countries democratically elected government at one time or another in the last 100 years. And you are responsible for hoarding and deploying vulnerabilities instead of working with american software manufacturers to get them patched. You are a rogue organization, and every single one of you deserves a full military court martial for crimes against the people of the united states, and against the world. You have destabilized our diplomacy, and tarnished our reputation.
Legalize ALL drugs. Half of the problems in law enforcement go back to our prohibition against drugs. Let people use them in the safety of their own homes. Regulate them. Provide users with clean safe ways of using. Educate people. Provide quitting services for people who want to quit. But at the end of the day, our minds are our minds, and you the state have no business trying to regulate peoples state of consciousness. Life, liberty and the pursuit of happiness includes chemically induced happiness.
$1k invested in Top 10 Cryptos on Jan. 1, 2020 now worth $1,264 (UP +26%)
EXPERIMENT - Tracking Top 10 Cryptos of 2020 - Month Six - UP +26% See the full blog post with all the tableshere. Not sure what this is all about? Here is the history and ground rules of these experiments. tl;dr - This snapshot was taken on July 1st, 2020. By the slimmest of margins, the 2020 Top Ten is still the best performing of the three experiments. In June: Tether holds its ground, as a stablecoin should, all others finish the month in negative territory. BSV loses nearly a quarter of its value in June and is worst performing for the second straight month. Overall, since January 2020, it is Tezos in lead (+88%) followed by second place ETH (+79%). The 2020 Top 10 is up +26% compared to the -4% loss of the S&P 500 since 01.01.2020.
Month Six – UP 26%
Lots of red this month While technically still the best performing of the Top Ten “Index Fund” Experiments for the fifth straight month, this month the 2020 Top Ten cut it close. Very close. How close? The 2020 Top Ten is up +26.6% compared to the 2019 Top Ten’s +25.9%. Watch your back, 2020 Top Ten.
Question of the month:
Which country trialed Bitcoin payments for passports in June?
A) Costa Rica B) Venezuela C) Mongolia D) Eritrea Scroll down for the answer.
Ranking and June Winners and Losers
Movement in rank After a very strange zero movement May, we saw some ups and down with the 2020 Top Ten in June. Okay, mostly downs: XRP fell one, dropping it’s long-held #3 slot. Both EOS and Tezos struggled in June: both lost two places in the rankings and both dropped out of the Top Ten. Tether is the only crypto to make a positive move in June, never a good sign. June Winners – Just Tether. The rest of the field struggled in June. ETH finished in second place, ending the month down -7%. June Losers – BSV under-performed its peers for the second straight month, losing almost a quarter of its value (-23%) in June. Tezos also struggled, down -18% since the beginning of June. For those keeping score, I also keep a tally of which coins have the most monthly wins and losses. Tether and Tezos have won two months each. BSV has finished in last place three out of the first six months of the 2020 Top Ten Experiment.
Overall update – Tezos in lead, ETH takes second place from BSV, and 80% of Top Ten are in positive territory.
Despite a bad month, Tezos (+88% since January 2020) maintained its lead. Ethereum (+79%) isn’t far behind in second place and has overtaken third place BSV (+59%). Not counting Tether, the worst performing crypto is XRP, down -7% on the year.
Total Market Cap for the cryptocurrency sector:
The overall crypto market lost over $20B in June but is still up +38% since the beginning this year’s experiment in January 2020.
Bitcoin dominance fell a tiny bit, but hasn’t really made a significant move all year.
Overall return on investment since January 1st, 2020:
After an initial $1000 investment, the 2020 Top Ten Portfolio is now worth $1,264, up +26.4%. It is the best performing of the three Top Ten Crypto Index Fund Portfolio, but just barely: the 2019 group came in at +25.9% in June. Here’s the month by month ROI of the 2020 Top Ten Experiment, hopefully helpful to maintain perspective and provide an overview as we go along: All green first half of 2020 Besides the zombie apocalypse blip in March, so far so good: all green is good to see and a nice change from the all red table you’ll see in the 2018 experiment. The range of monthly ROI for the 2020 Top Ten has been between +7% and +55%. So, how does the 2020 Top Ten Experiment compare to the parallel projects?
Taken together, here’s the bottom bottom bottom line: After a $3000 investment in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, my combined portfolios are worth $2,710. That’s down about -10% for the three combined portfolios. That’s compared to about +4% last month. Better than a few months ago (aka the zombie apocalypse) where it was down -24%, but not yet back at January (+13%) or February (+6%) levels. Lost in the numbers? Here’s a new table to help visualize the progress of the combined portfolios: So that’s the Top Ten Crypto Index Fund Experiments snapshot. Let’s take a look at how traditional markets are doing.
Comparison to S&P 500
I’m also tracking the S&P 500 as part of my experiment to have a comparison point with other popular investments options. Even with COVID and protests in the US, stocks continued to tick up. The S&P is now down just -4% since the beginning of the year. Over the same time period, the 2020 Top Ten Crypto Portfolio is returning about +26%. The initial $1k investment now worth about $1,264. The money I put into crypto in January 2020 would be worth $960 had it been redirected to the S&P 500. That’s a $304 difference on a $1k investment. Not bad, but not as impressive as last month’s $517 swing. And what if I invested in the S&P 500 the same way I did during the first three years of the Top Ten Crypto Index Fund Experiments? You know, the world’s slowest dollar cost averaging/$1k on January 1st approach? Here are the figures:
$1000 investment in S&P 500 on January 1st, 2018: +$170
$1000 investment in S&P 500 on January 1st, 2019: +$240
$1000 investment in S&P 500 on January 1st, 2020: -$40
Taken together, here’s the bottom bottom bottom line for a similar approach with the S&P: After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio would be worth $3,370. That $3,370 is up over+12%since January 2018, compared to the $2,710 value (-10%) of the combined Top Ten Crypto Experiment Portfolios. Here’s another new table to help visualize the difference in ROI of the combined crypto portfolios vs. a hypothetical identical approach with the S&P 500: The new table makes it easy to see that crypto and the markets went in opposite directions in June. This has produced the largest difference in favor of the S&P since the beginning of 2020: a 22% gap. Compare that February, when there was only a 1% difference in ROI.
The crypto market as a whole is up +38% since the beginning of the year compared to the 2020 Top Ten cryptos which have gained +26%. For the second month in a row, and the only two times since the Top Ten 2020 began, the cryptos in this group have under-performed the overall market. Up until the last two months, focusing on the 2020 Top Ten has been a solid approach, but it has not worked so well in the other experiment years. Although there are a few examples of the Top Ten strategy outperforming the overall market in the 2019 Top Ten Experiment, it’s interesting to note at no point in the first thirty months of the Top Ten 2018 Experiment has the approach of focusing on the Top Ten cryptos outperformed the overall market. Not even once.
The world continues to struggle with a global pandemic and traditional markets have nearly bounced back. Although up since the beginning of the year, Crypto did not keep pace with US stocks in June. Will crypto reassert itself in the second half of the year? Final word: Please take care of yourselves and your neighbors. FYI – everyone is your neighbor. Thanks for reading and for supporting the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for the original 2018 Top Ten Crypto Index Fund Experiment and the 2019 Top Ten Experiment follow up experiment.
And the Answer is…
B) Venezuela According to multiple sources, a Bitcoin payment option was available when paying online for passport services in Venezuela. It didn’t last long though: just hours later, the option disappeared, according to user reports.
If anything I hope the staff sees this and reads this. First a change to punishment protocol. Confirmed seller: Ban Confirmed buyer: 3 day suspension, account wipe, next time ban. (Edit: it has been pointed out that wiping would permanently punish someone who was hit under a false positive and therefore struck) Might be a hot take, but why not suspend? Allow people to learn from their mistakes. RMT is a bad thing to do, but is not on par with hacking, even if it enables hackers. RMT is normalized throughout online games and therefore is a problem in the gaming culture/community and can be changed. However, no company has been successful in removing RMT with these methods. So this is what I suggest.
Restrict the players ability to bring in items that are not medical, food, combat or gear related. There is no reason to bring in a GP coin or Bitcoin that I am aware of and they have stated that they don't want you to bring your friends items. This would fix both problems. You could make an exception if the item is quest related. RMT sellers would have to find other items to drop, which may include guns and expensive pieces of gear but with that will come the risk of having to extract successfully with it, greatly increase the time it would take to deliver an item and greatly increase the price of virtual roubles to real US dollars. You would still be able to do a raid with your friend and exchange gear you found inside of that raid or on enemy players.
Change the way the flea market works. Generally I am for a free market, but because of the rampant abuse of RMT sellers and buyers, this can no longer be the case. Every item has a set sell value and if sold by a vendor an inherent buy value. You could use the percentage of the depreciation of an item when you sell it vs when it is bought to find the value of all items IF they were sold by the vendor. You could take this value and allow it to be sold on the flea market for no more than 200% or 250% of that value. You can also make it so the barter value can also no exceed that percentage total as well. Nikita has said that he does not like the inflation of items and this would solve a lot of RMT issues, his issues with the market as well as price gouging. It would also slow down progression. If BSG is unhappy with the value of an item, they only need to tweak the sell value and it would scale with the set percentage for depreciation.
It is clear from the podcasts that Nikita has been on that they are devoting a lot of time to combat this issue. They could shut down the flea market for a week in order to put this system into place and work on the changing in raid issues as well and the game would be better for it. The supply and demand for these services will always be there and reluctantly I would say there is no alternative solution. Getting into a banning tug of war with buyers and sellers will only end with the draining of BSGs resources, which are precious towards the continuation of development. The only good thing to come out of soft banning accounts is that they purchase new accounts, but how many of those accounts are bought with stolen cards that are charged back. As an American I am well aware of our infatuation with instant gratification and I believe that is also another source that fuels RMT. We want our gear now, we want it easy and we want it fast. Putting these measures in place would force players to play the way the game is intended to be played. The only issue that I think cannot be solve currently is paid Sherpa services that are available online. I would say that the price you would pay to play with someone comes with the risk of losing all of your items to other players. I know people do not like the idea of regulating the in game market as it will take roubles out of the pockets of those who are used to selling high value items legitimately, but it is a necessary evil for the betterment of the game as well as the sustainability and longevity of Tarkov. Thoughts?
I've read lots lately on Bitcoin (and other cryptos), both good and bad. Can anyone help me with this point: What's the difference between Bitcoin and Gold? (or any Crypto Currency vs any precious metal). - Both are mined (one digitally, one physically) - Both can be sold for cash (i.e. a fiat currency) - Both can be bought/sold on secondary markets - Both have a mining cost (e.g. equipment used to mine gold vs the electricity cost for mining Bitcoin). - Both are scarce At a high level, the only differences I can see are that whilst both are scarce, the finite amount of Bitcoins is known (21 mil) whereas nobody knows how much gold there is still to be discovered. Also, gold can be used in the manufacture of other items (jewelry for example) but all that can be done with Bitcoin is that it can be spent or sold to someone else. I'm kind of seeing this as a case in the favor of Bitcoin, but where I still get a bit lost is that there's not just Bitcoin.... there's (thousands?) or other Crypto currencies being created all the time, all (presumably) with finite numbers. So I guess my question is why is there so much 'buzz' around Bitcoin, and why does it have a greater dollar value by far than any other Crypto? Just because it was first?
I get a lot of questions about bitcoin from friends and family members. I wrote this up and to the best of my knowledge covers everything a NOOB should know about bitcoin. That being said I probably made some mistakes and welcome any feedback from the community I could get on cleaning up the verbiage. Thanks in advance! Bitcoin For NOOBS Peer to peer digital currency that is scares. It is digitally secure through cryptography and decentralized through open protocol mining principals. Peer to peer: USD: paper dollars can be exchanged peer to peer but any other form of USD exchange requires your banks permission to use your own money. In fact if you try to pull out too much paper USD your bank may question you. BTC: Can be exchanged with no middle man. No bank or government permissions needed for any amount and can be exchanged across the global at any time. Scarsity USD: Print more money just write an IOU to the banks no big deal. Inflationary. BTC: The number of BTCs that will ever exists is a fixed number it will never change. Deflationary. Cryptography: USD: With USD the “keys” to your wallet lie with your identity. If I can gain access to your identity I can gain access to your funds. BTC: Your identity does not travel with the coin ledger. Stealing your identity does not mean your funds can be accessed. Decentralization USD: The federal reserve banks are owned by unknown individuals. Make no mistake the illuminate exists. When the fed prints money the write those unknown individuals and IOU. Out of thin air wealth is created to individuals not the government. You don’t know who they are and never will. BTC: Anyone can mine bitcoin. You dedicate your hardware to mining aka processing transactions. It costs you money to run that hardware. Your reward for your hardware costs is bitcoin. The mathematical principals behind bitcoin do a check for how many mining machines decided if a transaction is real or not. 51% wins. The more bitcoin is used and the more people that dedicate hardware to mining the more digitally secure it becomes. Bitcoins case for calling it gold 2.0: Currently bitcoin is not acting like the USD but instead acting more like gold a store of value. Long ago before the dollar gold was the standard. The government attempted to issue greenbacks however no one wanted them since gold was the tradition and was scares in supply. The government decided to back the dollar with federal gold reserves. Federal reserves no longer exist as they once have in fact if you invest in gold via the stock market there is a slim chance it is backed by any type of gold reserve it’s really just all digital money for the most part now a days. While bitcoin is truly limited in supply and scares not only is it a great store of value but it has even more use than gold. It can be exchanged electronically peer to peer across the globe and used via smart contracts etc. A quick google search say that the total value of gold in the world is at roughly 7.5trillon dollars. Gold does has more use than just a store of value via jewlery electronics etc but let’s compare the numbers side by side. Gold 7.5 trillion BTC market cap 170.5 billion If you agree BTC is a better store of value or at least a decent store of value since it’s truly limited in supply with more usability then it’s easy to see how much upside potential is left on the table. As the fed continues to put out more money during these economic hard times they are causing inflation while BTC has just undergone a halving aka it’s harder for miners to produce a bitcoin reward meaning deflation. Bitcoin is the perfect place for you to store that big fat government stimulus check if you don’t need the money for awhile. Edit: added these sections based on feedback from friends. Dollars and cents: USD: One dollar can be broken down into .01 dollars or 1 cent. This is the smallest unit of measure in USD. BTC: 1 Bitcoin can be broken down into .00000001 bitcoins or 1 sats which is short for Satoshi’s. 1 sat is the smallest unit of measure in terms of BTC. Owning Bitcoin: You can own bitcoin a few different ways but we will talk about two methods in general. Owning coins through a 3rd party such as Coinbase or Robinhood vs owning your coins via your own hardware wallet. 3rd Party: The platform you use can hold some control over you and limit your funds etc just like a bank. They will take additional fees for each transaction you place etc. This really isn’t what bitcoin was intended for but it’s how most people use it currently. Hardware wallet: You own the currency on a hardware wallet like a Ledger wallet etc. there is no middle man. You own the coin and the “keys”
Dash competitive basket index for Wednesday, 17 June, 2020. Meh, nothing special for Dash. Alts did all right.
The 7 day data for everybody including Dash is still ugly. The 24 hour data did go down as predicted, but not very much. My wild guess is that it will go down again tomorrow on the 24 hour data to “finish the move.” Dollar value is not too bad. We can still pay our bills.
Dash outperformed 6 of the 21 cryptos listed above us on CoinPaprika (29% win rate). The 30 day SMA* is 41%
Dash outperformed 6 of the 10 cryptos ranked below us (60% win rate). The 30 day SMA* is 32%.
In total, Dash outperformed 12 of the top 31 cryptos (39% win rate) on the 7 day time frame. The 30 day SMA* is 38%.
Bitcoin dominance dropped a tenth to 64.4%.
5 of the top 31 cryptos beat Bitcoin (16%) on the 7 day data.
On the 7 day time frame, 2 of the top 32 cryptos (6%) were in the green.
On the 24 hour time frame, 26 of the top 32 (81%) cryptos were in the green. That’s the biggest rebound I have recorded.
On the 24 hour time frame, Dash beat 12 of the top 31 cryptos (39%).
Dash competitive basket index for Monday, 22 June, 2020. No hopium for Dash today. Alt sector looks pretty happy.
The 7 day CBI data got worse for Dash. The 24 hour data was also nothing special for Dash. The Alt sector as a whole looked pretty happy today. I am less grumpy when the CBI data is mediocre in a rising market. Dollar value still solid.
Dash outperformed 5 of the 21 cryptos listed above us on CoinPaprika (24% win rate). The 30 day SMA* is 37%
Dash outperformed 1 of the 10 cryptos ranked below us (10% win rate). The 30 day SMA* is 30%.
In total, Dash outperformed 6 of the top 31 cryptos (19% win rate) on the 7 day time frame. The 30 day SMA* is 36%.
Bitcoin dominance dropped 3/10’s to 64.1%.
14 of the top 31 cryptos beat Bitcoin (45%) on the 7 day data.
On the 7 day time frame, 31 of the top 32 cryptos (97%) were in the green.
On the 24 hour time frame, 29 of the top 32 (91%) cryptos were in the green.
On the 24 hour time frame, Dash beat 11 of the top 31 cryptos (36%).
BTC and ETH Portfolio Discussion - How Do You Maximise the Upside Potential of ETH While Keeping Your Portfolio Sufficiently Diversified?
For the last few days I’ve been thinking about what the optimal BTC + ETH portfolio looks like. I better start off by declaring that I’m of the belief that ETH will almost certainly outperform BTC in this market cycle. There are just too many factors from the current ratio which is in pre-2017 bull run territory providing huge upside potential to all of the many bullish fundamental indicators from ETH 2.0 and dev numbers to internal and external ETH value accrual mechanisms. Based on this, a 100% ETH portfolio is very tempting. However, it’s also very irresponsible. Diversification in important in any financial portfolio and I would even say it’s important in life in general.
Never put all of your eggs in one basket.
So the challenge is, how to I prepare myself for this financial revolution without making my financial success depend on Ethereum’s success? The way I look at it is I want to ‘win’ in the scenario where BTC moons but not ETH and I want to ’super win’ in the scenario where ETH moons and BTC doesn’t. If I look at this on a long time horizon of 10+ years then the moon scenario for BTC is that it becomes “digital gold” (no, lightning will not allow it to scale enough to make it a global currency 🙄). Gold has a market cap of around 20 trillion dollars, so we’ll optimistically assume that Bitcoin has stolen 1/4 of this market in the timescale I’m looking at. This would put the price of one bitcoin just under $250,000 or a 35x return. Estimating the maximum market cap for Ethereum is much harder and it deserves a post of its own. Theoretically, ETH could engulf the ~$100 trillion+ traditional finance system decades from now. However, not only would that skew the results of this analysis, but it’s also very debatable and likely still years further down the line than the 10-15 years timescale I’m talking about here. So let’s take a best case scenario where ETH thrives but we’ll keep the timescale short enough that we don’t have to answer the question Does Ethereum engulf the traditional finance system? The $10,000 ETH this market cycle meme seems quite popular and many posts have shown how plausible this is, so let’s take this and extrapolate it out to one more, less explosive market cycle which may be around a decade from now. With market cycles getting less crazy each time, a $50,000 ETH in a world where Ethereum thrives is very possible (This is around the same market cap of $5 trillion which I used in the Bitcoin calculation). This would result in a 270x ROI from here. So in a best case scenario, 10-15 years from now we could see a 270x ROI with ETH and a 35x ROI on Bitcoin. Looking at this it’s very tempting to go all in on ETH like I mentioned at the start. However, it needs to be remembered that the goal is to ‘win’ in a moon scenario for just either one of these assets. So how much BTC do I need for this? Well, in the crypto space seemingly unrealistic gains in the stock market are possible here, so I’d say a nice ROI over a decade in the crypto space would be a minimum of a 5x ROI. So if BTC were to go 35x in this time, then I would need a minimum of 1/7th of my portfolio allocated to Bitcoin (35 / 7 = 5) or 14%. Of course all of my numbers are rough estimates, so maybe in a world where ETH somehow fails and Bitcoin doesn’t moon that hard, we only see a 15x return from here ($100,000 BTC) then you might want to hold a little more than 14% of your portfolio in BTC, maybe something more like 30-40%. In conclusion, if you want to diversify for the scenario where ETH doesn’t succeed, but you also wish to maximise your profits due to ETH’s greater potential, it would seem that a portfolio of 60-85% ETH and 40-15% BTC would be best. Remember that these are very rough numbers and all of the moonboi price predictions price scenarios are a best case scenario for the set timescale and are far from guaranteed. Please let me know what your portfolio looks like. I look forward to hearing some of your thoughts on this topic. I’m sure many of you will have realised that I haven’t mentioned altcoins. Altcoins are a matter of simply trying to accumulate more ETH, so it’s up to the individual if they feel like they need more ETH to “make it” if/when it moons and/or it depends on their appetite for risk. For me personally, while I doubt I have enough ETH to “make it” one day, I simply don’t like the risk to reward ration of holding an altcoin vs ETH anymore. ETH is too undervalued and it has value accrual mechanisms which mean that ETH accrues value from the tokens which get built upon it (especially in DeFi protocols where ETH is needed as collateral). This makes it harder for tokens to outperform ETH, making the risk:reward ratio less favourable. TL:DR: I’m going to be aiming for a portfolio with 60-85% ETH and 40-15% BTC to maximise profits of ETH out-performing BTC but also maintaining a position where I still profit nicely from a world where a black swan kills ETH and BTC remains.
Dash competitive basket index for Friday, 12 June, 2020. The whole crypto sector had a rough day in response to the Dow Jones Industrial Average sh!tting the bed.
Dash and the whole crypto sector had a bad day. This is almost certainly a reaction to the Dow Jones Industrial Average sh!tting the bed and dropping nearly 2,000 points in the last 24 hours. People got all excited that we were making modest progress against Covid, but then discovered that just throwing money at the economy doesn’t really make it healthy again. And we dropped a rank. It’s not all doom and gloom, our moving average crept up a bit. Dollar value dropped to $73.99, but still high enough to pay our bills. Eventually, people will realize that crypto is not tied to the fiat economy quite so tightly as they imagine. Stated differently, people will realize that the legacy banking industry will be printing money like mad in an attempt to stimulate the economy. Crypto marches to a different drummer. We neither need nor want to inflate our money supply in that manner. Plus, we literally can’t.
Dash outperformed 6 of the 21 cryptos listed above us on CoinPaprika (29% win rate). The 30 day SMA* is 40%
Dash outperformed 3 of the 10 cryptos ranked below us (30% win rate). The 30 day SMA* is 30%.
In total, Dash outperformed 9 of the top 31 cryptos (29% win rate) on the 7 day time frame. The 30 day SMA* is 37%.
Bitcoin dominance pickled up that 1/10th again to 64.2% It’s been range bound for 2 weeks.
8 of the top 31 cryptos beat Bitcoin (26%) on the 7 day data.
On the 7 day time frame, 5 of the top 32 cryptos (16%) were in the green.
On the 24 hour time frame, exactly 1 of the top 32 (32%) cryptos were in the green. Tether.
On the 24 hour time frame, Dash beat 7 of the top 31 cryptos (23%).
* The 30 day SMA is the Simple Moving Average for the last 30 days. It is represented with the red line. The blue line is the daily Dash performance based on the price change over a one week period compared to the price change of other coins. As always, this is not investment advise. Never trust some random dude on the internet. Do your own due diligence. All crypto is inherently and unavoidably risky. Don’t invest more in crypto than you can afford to lose. ^ Dash vs the top 31 cryptos in the world. We made a higher low. We're ok. Tune in tomorrow. The red line is the percentage of the top 30 Alt Coins that were in the green (price went up) on the 24 hour time frame. The blue line is the percentage of the top 30 Alt Coins that were in the green (price went up) on the 7 day time frame. Yesterday I said, “So tomorrow should be up, and significantly so.” Yeah, not so much. I did not anticipate the DJIA shitting the bed by 2,000 points in the last 24 hours. So now the interesting question is when the 24 hour data will bounce back up. My current guess is that is that it will go up some time in the next 72 hours.
Bitcoin Vault is described as: ‘Peer-to-Peer Anti-Theft Electronic Gold’. The goal of Bitcoin Vault. Bitcoin Vault is created to provide an extra level of security based on a three-private-key security structure. It features all the convenience of Bitcoin while adding important features allowing user transparency and freedom. Conversion from Bitcoin to United States dollar can be done at current rates as well as at historical rates – to do this, select the desired exchange rate date. Today’s date is set by default. The mere fact that the dollar price of Bitcoin remains an important metric indicates that Bitcoin’s central value is as a speculative asset, rather than its usefulness as a medium of exchange Bitcoin vs The US Dollar. The Characteristics of Money, Compared — Post #16 This means that the dollar loses value as time goes on because more are added to circulation (see post 7 and post 8). Bitcoin has a decreasing inflation schedule meaning that there are less added to circulation as time goes on. This implies that (if adoption The value of Bitcoin versus the U.S. Dollar! Because the dollar is the system of trade we are so used to and cling to daily, we tend to look at the value of other things of value in ‘dollars.’ The exciting thing about Bitcoin and cryptocurrency is that the value of Bitcoin versus the dollar in the long term will not matter as it has a value
The Us Dollar vs Bitcoin and Gold - Battle For Your Pocket!
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