BITCOIN as an alternative to regular currency

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rik
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so whats the chance in 5 years bitcoin is worth >10 times its current price compared to it losing in value???
surely there must be value in the upside being way higher than the downside with these speculative stocks
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abgespaced
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rik wrote:
Tue Feb 23, 2021 7:06 pm
so whats the chance in 5 years bitcoin is worth >10 times its current price compared to it losing in value???
surely there must be value in the upside being way higher than the downside with these speculative stocks
Chance of Bitcoin going another 10x from here is high if the central banks don't stop printing money. Much of the market cap of Bitcoin is a result of rapidly devaluing the US dollar and US treasuries no longer being a viable hedge against inflation because of 0% interest rates. Gold and silver are suppose to fill this role but two problems with that - nobody knows where the gold is and silver has remained stagnant for years, so a lot of millennials don't trust metals anymore than they trust paper money. Plus crypto is opening up many doors to global trade in less sophisticated countries, so it's not just a speculative bubble; it has uses and intrinsic value contrary to what the shills say.

But value of Bitcoin aside, if crypto as a technology is still around in 5 years then it is more likely that a second generation coin will have taken it's place, therefore the potential for 10x gains on Bitcoin alternatives will be much higher than Bitcoin's chances. With at least 8000 alt coin projects and counting, I'd say it is almost a mathematical certainty that crypto will be around in 5 years and that the market cap of Bitcoin will move towards a more equidistributed home amongst the alts.

All that said, the Fed, central banks, the whales and tech giants, would-be dictators at Davos and the WEF, Wall St etc all have enough fingers in the pie to make a mess of Bitcoin, if they would rather see the power balance remain with them as the global financial system currently stands. And unless you are amongst the most fast-asleep of the population, you'd understand just how far these people are willing to go to eliminate any threat to their power.

So this isn't financial advice, but if anyone did happen to ask me how to approach speculating in crypto, I would say that a diversified approach is best.
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Euler
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It’s Gates Versus Musk as World’s Richest Spar Over Bitcoin

https://www.bloomberg.com/news/articles ... f=X2PkL1Vc

Unless you’re the world’s richest person, you shouldn’t be buying Bitcoin. That’s the message from Bill Gates — the third richest.

With a rally of more than 400% over the past year, Bitcoin has become increasingly mainstream, and everybody including prominent investors and policy makers have been talking about it. The world’s on-again, off-again richest person, Elon Musk, recently invested $1.5 billion in the cryptocurrency through his company, Tesla Inc., and said Bitcoin would soon be accepted for payments.
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Naffman
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Makes me wonder as everyone has blown their $1200 stimulus on bitcoin that the money is seriously about to dry up
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gazuty
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My issues with Bitcoin:

1 seems difficult to hold - where to obtain? is it safe from hacking? All of the middle service providers seem dodgy or like cfd providers?
2 seems difficult to use as a medium of exchange
3 still restricted to a very small community

.....

I’ve been gradually buying gold (via pmgold on asx which gives right to hold physical)

In comparison to bitcoin

1 easy to purchase on asx. Well regulated. Perth Mint is guaranteed by the western Australian government.
2 difficult as medium of exchange (have to sell on asx and convert back to fiat currency) cannot buy a coffee.
3 gold has a broader community than Bitcoin (that could of course change) and thousands of years of human history as a store of value.

......

So for me I’ll just keep buying gold for the foreseeable future, try to get up to 10% in gold. At moment got 4% in gold.
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superfrank
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arbitrage16
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Bitcoin is also incredibly slow - 4 transactions a second, whereas VISA can do 65.

There is a usecase for this form of currency, but is bitcoin it?
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Naffman
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arbitrage16 wrote:
Sun Mar 21, 2021 12:12 pm
Bitcoin is also incredibly slow - 4 transactions a second, whereas VISA can do 65.

There is a usecase for this form of currency, but is bitcoin it?
Exactly it's a good idea but it's not worth what its worth imo.

Tesla is a similar story.

I wouldn't be shorting them as you've seen how silly prices rise in all asset classes but I definitely wouldn't buy.
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superfrank
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"How can it ever scale to the masses if it only does 7 transactions per second?"

Maybe you should read up on transaction batching, Bitcoin's protocol level as a settlement layer, and scaling payments via second and third layers.
Bitcoin's detractors haven't done their research
https://tftc.io/martys-bent/issue-946-b ... -research/
verance
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Euler wrote:
Sat Feb 27, 2021 1:29 pm
... The world’s on-again, off-again richest person, Elon Musk, recently invested $1.5 billion in the cryptocurrency through his company, Tesla Inc., and said Bitcoin would soon be accepted for payments.
Is investing shareholders funds in a speculative currency (instead of making electric cars) not a breach of fiduciary responsibility?
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marksmeets302
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gazuty wrote:
Sun Mar 21, 2021 11:12 am
My issues with Bitcoin:

1 seems difficult to hold - where to obtain? is it safe from hacking? All of the middle service providers seem dodgy or like cfd providers?
2 seems difficult to use as a medium of exchange
3 still restricted to a very small community

.....

I’ve been gradually buying gold (via pmgold on asx which gives right to hold physical)

In comparison to bitcoin

1 easy to purchase on asx. Well regulated. Perth Mint is guaranteed by the western Australian government.
2 difficult as medium of exchange (have to sell on asx and convert back to fiat currency) cannot buy a coffee.
3 gold has a broader community than Bitcoin (that could of course change) and thousands of years of human history as a store of value.

......

So for me I’ll just keep buying gold for the foreseeable future, try to get up to 10% in gold. At moment got 4% in gold.
From the abstract of a paper called "Bitcoin is not the New Gold – A comparison of volatility, correlation, and portfolio performance" (https://www.sciencedirect.com/science/a ... 191830187X): "Gold plays an important role in financial markets with flight-to-quality in times of market distress. Our results show that Bitcoin behaves as the exact opposite and it positively correlates with downward market".
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jimibt
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have just been reviewing the binance api for my son. found that it's actually pretty decent and a lot could be done to automate this bitcoin stuff...

interesting read for those with a programming bent: https://github.com/binance/binance-spot ... est-api.md
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jimibt
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Euler wrote:
Mon Dec 02, 2013 6:43 pm
When I was on my travels recently I learnt a friend of mine was accepting payment in BitCoin's as a gimmick. Remarkably he collected over 1000 so he is now a BitCoin millionaire. I've told him to sell them, but as we all know emotion often overrules common sense so it's not entirely impossible that he will hold them until such time as he losses it all again!
sorry for the necro-post -but how did your friend fare on his/her collection/retention gambit??
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alexmr2
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Anyone on Dogecoin? I put £260 in 6 weeks ago and it's up to £600ish. Today has gone insane with 60% increase in the last 24 hours. I sense some volatile drawdowns coming but I bought it for the long term as something to leave in the background
Screenshot_20210414-021545_Binance.jpg
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Derek27
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alexmr2 wrote:
Wed Apr 14, 2021 2:20 am
Anyone on Dogecoin? I put £260 in 6 weeks ago and it's up to £600ish. Today has gone insane with 60% increase in the last 24 hours. I sense some volatile drawdowns coming but I bought it for the long term as something to leave in the background

Screenshot_20210414-021545_Binance.jpg
Better cash out quickly before Bill Gates nicks it. ;)

By the way, if people don't share or understand your sense of humour, just use the ;) emoji.
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