OT. Crypto | Page 2 | The Boneyard

OT. Crypto

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Scot-e said:
The currency is pretty simple- limited supply -if demand grows price increases. This can happen from institutional adoption- development of practical applications or simply human greed.

The companies are quite diverse but most are using blockchain to improve an existing process- such as supply chain- banking ect…
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Nothing you stated here provides a basis for valuation of crypto currency. It's simply based on what the next bidder is willing to offer.

Companies utilizing blockchain techonology to build a service model that can be monetized is very different from a pure crypto currency play. I would not conflate the two.
 
uconndogs said:
Nothing you stated here provides a basis for valuation of crypto currency. It's simply based on what the next bidder is willing to offer.

Companies utilizing blockchain techonology to build a service model that can be monetized is very different from a pure crypto currency play. I would not conflate the two.
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Valid to a degree. However there is a global community that would like to see an alternative to fiat currencies- this community drives the interest. Wall Street is now involved- that drives interest. A long term measured approach is far from unreasonable if you are like me and want diversity. It’s not a get rich quick scam. I’ve held crypto since 2016 and I have had an annual return of around 20% a year.
 
Scot-e said:
Valid to a degree. However there is a global community that would like to see an alternative to fiat currencies- this community drives the interest. Wall Street is now involved- that drives interest. A long term measured approach is far from unreasonable if you are like me and want diversity. It’s not a get rich quick scam. I’ve held crypto since 2016 and I have had an annual return of around 20% a year.
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Again, explain to me how valuation of crypto currency works.

btw, 20% annual return is great, but at what volatility and risk?
 
Scot-e said:
Valid to a degree. However there is a global community that would like to see an alternative to fiat currencies- this community drives the interest.
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Yeah - silicon valley nerds, who stand to make a lot of money, the venture captialists that back them, money launderers and various criminal enterprises. Not sure they think of themselves as a community though.
 
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uconndogs said:
Again, explain to me how valuation of crypto currency works.

btw, 20% annual return is great, but at what volatility and risk?
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Not giving investment advice. Lots of volatility- it’s not for everyone- but I am a buy and hold person so I don’t worry about volatility.
 
mussels said:
Yeah - silicon valley nerds, who stand to make a lot of money, the venture captialists that back them, money launderers and various criminal enterprises. Not sure they think of themselves as a community though.
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I’m sure they don’t- but I am none of those things. Just an open minded person like my many friends that are interested in blockchain.
 
bfs3 said:
Now I regret having not bought more.
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This is always the case, except when it’s down. It’s fun to play with and make some change but I would not bet my life savings. When I was working starting in 2018 to 2022, I would end my team calls with 5 minutes on the crypto market. I said buy it for your kids or grandchildren. A few bucks a week and forget about it.
 
Scot-e said:
Not giving investment advice. Lots of volatility- it’s not for everyone- but I am a buy and hold person so I don’t worry about volatility.
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Not looking for investment advice. The question on valuation is rhetorical.
 
Exciting times coming. I’m big on the ISO 20022 cryptos (XRP, HBAR, QNT, ADA +more). Switch from SWIFT to ISO is starting soon!
 
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Imaginary money.

Definitely a solid investment.
 
Fishy said:
Imaginary money.

Definitely a solid investment.
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There's stories of people having millions, tens of millions, and even hundreds of millions of "dollars" in crypto but they can never access it.
 
Stinger92860 said:
This is always the case, except when it’s down. It’s fun to play with and make some change but I would not bet my life savings. When I was working starting in 2018 to 2022, I would end my team calls with 5 minutes on the crypto market. I said buy it for your kids or grandchildren. A few bucks a week and forget about it.
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That’s good advice. It wasn’t my life’s savings when I bought it but now it sure makes up a pretty big portion of it. The last year or two I’ve grown accustomed to the volatility but I do think the ETFs will lessen that to some degree.
 
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Scot-e said:
I was hoping for more of a warm and fuzzy thread. Should have known better. Hope the rest of everyone’s week goes great.
Go UCONN!
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Probably coming off as more snarky than I really intend, but this stuff is very risky, and there are lots of small fry out there that don’t understand that.

Thing about these “non-fiat” block chain “currencies” is that anyone can make one - out of thin air. So you make some Scot-e coins, and I make some mussels coins. Then you buy a mussels coin from me for $1000, and I buy a Scot-e coin from you for $1000. Voila! We each still have $1000 real money, and were each sitting on a bunch of coins that have been established by the market to be worth $1,000 each. A whole infrastructure of middle men hawk and sell these things to the masses. And every once in a while we each buy more of each other’s currencies which keeps the prices going up, keeps all the other investors happpy, and stokes more FOMO.

Next, we use our great stash of crypto weath as collateral against loans from banks and private equity for fiat (real) money. Then we use the real money to buy toys and make leveraged investments that produce more real money.

Eveything is great, and everybody is happy until one of the real money investments turns sour, and one of us needs actual cash in a hurry. So I run to you and say I need you to buy a bunch of mussel coins, and you balk and say “Are you crazy? I’m not gonna shell out a bunch of real actual money for your stupid magic beans”.

And then it all falls apart. Its happened before.
 
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Fishy said:
There’s a sucker in that equation.

Let me know when you find out who it is.
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lol.......the answer to that question is of the four parties mentioned, only one has the potential to lose money.....
 
HuskyCLT said:
Exciting times coming. I’m big on the ISO 20022 cryptos (XRP, HBAR, QNT, ADA +more). Switch from SWIFT to ISO is starting soon!
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I jumped in on a small amount of XRP as a flyer after Xmas....my niece said it could take off in coming next few years. What the heck I had no idea, but as a flyer with money you're willing to lose it's worth taking a stake. I bought a book on crypto and it's slowly starting to make some sense ;)

I use Gemini app to buy/hold....very easy to use but I'm guessing there are better ways to buy/hold crypto. For my needs it seems like a legit app but not a recommend by any means, just personal experience from a novice. I've added smalll amounts of SOL, ETH, BTC and I'm a little ahead since Jan but I'm sure volatility is coming....just taking long term view and see what happens.
 
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Fishy said:
There’s a sucker in that equation.

Let me know when you find out who it is.
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Fair enough, but this is yolo money for me and always has been so I’ve come to peace that I could be the sucker. I find the returns worth the risk. No different than gambling or any other financially irresponsible investment or purchase in my mind.

And I’m also a big boglehead and that’s the backbone of my portfolio. However for individuals with the risk appetite, it’s not a completely outrageous idea to have some exposure.
 
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QuickDraw said:
holding VeChain, algorand, cardano, cosmos, stellar & VeThor. up over 40% YTD,
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Congratulations go red or black next. This is gambling plain and simple. Hope it ends well for you
 
Fishy said:
There’s a sucker in that equation.

Let me know when you find out who it is.
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People have been saying that for 16 years now. People don't understand the value of tokenized or digital assets and currency. To help explain to newbs what blockchain is and can become I like to use the technological innovation of digital photography as an analogy. Analog film photography was more expensive and slower, often required specialists, and was difficult to retouch enhance and program. Digital photography revolutionized the space with social media, commerce, the internet, iphones, everyone participates. A similar thing could happen with digitized assets. Currencies are just the tip of the iceberg. Blockchain can increase the liquidity of all assets. Tokenize your art collection, developing countries tokenize their natural resources so its just not China and other oligarchs coming in to plunder. There's tons of potential. Who knows how far it will go.
 
Drame said:
People have been saying that for 16 years now. People don't understand the value of tokenized or digital assets and currency. To help explain to newbs what blockchain is and can become I like to use the technological innovation of digital photography as an analogy. Analog film photography was more expensive and slower, often required specialists, and was difficult to retouch enhance and program. Digital photography revolutionized the space with social media, commerce, the internet, iphones, everyone participates. A similar thing could happen with digitized assets. Currencies are just the tip of the iceberg. Blockchain can increase the liquidity of all assets. Tokenize your art collection, developing countries tokenize their natural resources so its just not China and other oligarchs coming in to plunder. There's tons of potential. Who knows how far it will go.
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And again.........this is what I can't wrap my head around. Digital platforms utilizing block chain technology that build business models with revenues and cash flow.....sure, I get it. Digital currency for the sake of digital currency....maybe it becomes an accepted medium of exchange, but as an investment where is the underlying value?
 
uconndogs said:
And again.........this is what I can't wrap my head around. Digital platforms utilizing block chain technology that build business models with revenues and cash flow.....sure, I get it. Digital currency for the sake of digital currency....maybe it becomes an accepted medium of exchange, but as an investment where is the underlying value?
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I'll ask a few questions in response. Is gold really all that useful as a metal? Aluminum is far more useful. So is steel. Diamonds are useful for drills. Rubies? Sapphires? Pretty useless. Is a basketball signed by the whole 1999 UConn team more useful than one that isn't? No. That piece of paper with $100 written on it? What's the underlying value? You can say the full faith and credit of the United States (currently negative $34 Trillion). So for all those things it comes down to the fact that a significant number of people decided that they have value and will trade for them. Same for Bitcoin. Because it can't be inflated by a central bank, and because it increasingly is accepted a means of exchange, its value is going up. Other crypto have different reasons.

Honestly the risk to bitcoin is fairly singular, governments may view it as a threat and take action to limit its use as a means of exchange through regulation.
 
HuskyHawk said:
I'll ask a few questions in response. Is gold really all that useful as a metal? Aluminum is far more useful. So is steel. Diamonds are useful for drills. Rubies? Sapphires? Pretty useless. Is a basketball signed by the whole 1999 UConn team more useful than one that isn't? No. That piece of paper with $100 written on it? What's the underlying value? You can say the full faith and credit of the United States (currently negative $34 Trillion). So for all those things it comes down to the fact that a significant number of people decided that they have value and will trade for them. Same for Bitcoin. Because it can't be inflated by a central bank, and because it increasingly is accepted a means of exchange, its value is going up. Other crypto have different reasons.

Honestly the risk to bitcoin is fairly singular, governments may view it as a threat and take action to limit its use as a means of exchange through regulation.
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All the metals and gems you reference do have utility outside of being a sudo-store of value for exchange. They are also highly speculative as investments or hedges. As an aside, I don't think anyone has done particularly well holding gold over the last ten-twenty years.

As for the USD, some day the full faith and credit of the US Treasury may not allow the USD to be the stable mode of exchange it currently is. As a currency, it is meant as a store of value for exchange and performs that purpose very well. BTC with it's volatility, not so much. So, if BTC and other crypto currencies are not a stable source of value for exchange what are they providing. My answer would be speculative wagers in the hopes that others will buy at an increased value. Their is no underlying store of value or cash stream that I can understand.
 
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