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Re: The State of Cryptocurrency
« Reply #40 on: June 23, 2019, 10:02:10 pm »
Earnings per share (based on net profit after tax) growth supports the growth of stock/share prices.   

There is no underlying support for something like bitcoin.  There is only the hope that someone will pay a higher price than you did.

Many cryptocurrencies allow staking either by owning a certain number of coins in a wallet or by running masternodes which help strengthen the network. You are rewarded depending on the size of your investment, so it's similar to earning interest and definitely works as an incentive to holding those cryptocurrencies

https://coinsutra.com/masternodes/


Re: The State of Cryptocurrency
« Reply #41 on: June 24, 2019, 09:52:22 am »
I'm not going to pretend to be an expert on crypto, because I have a few underlying problems with them as an investment.

1.  No underlying worth.  Just intrinsic value.  (This isn't the only thing like this.  This alone doesn't make for a bad investment.)  It's not like banks or car companies during the crash of 2008.  If all these cryptocurrencies went bottoms up, there would be some sad investors, but very little else would change.

2.  They aren't producing anything other than ledgers.

3.   Much like the technology crash of the late 90's and early 2000's, 95% of these coins are going to die.  There's no reason for 400 different coins.  Maybe you will pick the correct one, but all the rest are going to be worthless.

4.  There is almost no moat.  Anybody and everybody can enter into this space.  And there isn't much differentiation  between the coins, though there is some.  So the eventual champion may not have even started yet, and you will lose on all of your investments.  When that is the case, investments become fads, and coins will lose or gain value more quickly for little reason.

5.  Companies dealing with crypto investments were vastly crazily overpriced.  That shows me that the cryptos were probably overpriced by a decent margin as well. 

This is an extremely high risk investment.  Be prepared to lose every cent you put into it.  This also means that it has a high reward.   But just because you watched a documentary or have read reddit articles, doesn't make you have more knowledge than most people.  In fact, you may be getting used by bigger fish. 


Re: The State of Cryptocurrency
« Reply #42 on: June 24, 2019, 11:41:36 am »
I'm not going to pretend to be an expert on crypto, because I have a few underlying problems with them as an investment.

1.  No underlying worth.  Just intrinsic value.  (This isn't the only thing like this.  This alone doesn't make for a bad investment.)  It's not like banks or car companies during the crash of 2008.  If all these cryptocurrencies went bottoms up, there would be some sad investors, but very little else would change.

2.  They aren't producing anything other than ledgers.

3.   Much like the technology crash of the late 90's and early 2000's, 95% of these coins are going to die.  There's no reason for 400 different coins.  Maybe you will pick the correct one, but all the rest are going to be worthless.

4.  There is almost no moat.  Anybody and everybody can enter into this space.  And there isn't much differentiation  between the coins, though there is some.  So the eventual champion may not have even started yet, and you will lose on all of your investments.  When that is the case, investments become fads, and coins will lose or gain value more quickly for little reason.

5.  Companies dealing with crypto investments were vastly crazily overpriced.  That shows me that the cryptos were probably overpriced by a decent margin as well. 

This is an extremely high risk investment.  Be prepared to lose every cent you put into it.  This also means that it has a high reward.   But just because you watched a documentary or have read reddit articles, doesn't make you have more knowledge than most people.  In fact, you may be getting used by bigger fish. 

I will answer your points one by one, this is the way I see things in this baby market. I am not a crypto evangelist I just enjoy investing in financial markets..

1. NO UNDERLYING WORTH. What about FIAT currencies? What do they have backing them? Governments can print as much money as they want causing devaluation of currencies. At least with blockchain you have a maximum supply of tokens.

2. THEY AREN'T PRODUCING ANYTHING. It's still early days yet. You'll find areas that adopted were places that were suffering economic collapse. Which makes me think that cryptocurrency was designed as a replacement for money. Mass adoption comes when the world economy tanks.

3. THE MARKET WILL CRASH. That's your opinion. I'm sure many of these bad coins will die but honestly I could say the same about the dollar and all the currencies of the world. It's very possible that they will become worthless at some point.

4. ANYONE CAN BUY CRYPTO. Are no barriers to entry a bad thing? I'd say that's more positive than negative. You could say forex is the same and that's the most liquid market in the world. I doubt there will just be one 'champion' coin. Currently the big three are Bitcoin, Etherium and Litecoin. But there are other coins that look very promising.

5. OVERVALUED. They lost a lot of value since December 2017, but I expect them to become much more valuable in the coming years. Your comparison to the dot-com bubble is very relevant, I see this market growing and there will be a number of very successful coins that are like Amazon, Google, Apple, Netflix etc. I believe we are still several years away from this point. Of course like the dot-coms, a lot of bad coins will die.

Your last comment is very accurate. It is extremely high risk putting money into cryptocurrency. The best advice I can say is buy near the bottom and sell near the top. Do the opposite of what the reddit crypto gurus are saying and never HODL because that's the best way to destroy your money.
« Last Edit: June 24, 2019, 11:57:57 am by belo horizonte »


Re: The State of Cryptocurrency
« Reply #43 on: June 24, 2019, 12:00:16 pm »
I saw BNB at $6-7 and I thought man I should buy some. I didn't now it is $35.  Ah well..


Re: The State of Cryptocurrency
« Reply #44 on: June 24, 2019, 02:26:56 pm »
I'm not going to pretend to be an expert on crypto, because I have a few underlying problems with them as an investment.

1.  No underlying worth.  Just intrinsic value.  (This isn't the only thing like this.  This alone doesn't make for a bad investment.)  It's not like banks or car companies during the crash of 2008.  If all these cryptocurrencies went bottoms up, there would be some sad investors, but very little else would change.

2.  They aren't producing anything other than ledgers.

3.   Much like the technology crash of the late 90's and early 2000's, 95% of these coins are going to die.  There's no reason for 400 different coins.  Maybe you will pick the correct one, but all the rest are going to be worthless.

4.  There is almost no moat.  Anybody and everybody can enter into this space.  And there isn't much differentiation  between the coins, though there is some.  So the eventual champion may not have even started yet, and you will lose on all of your investments.  When that is the case, investments become fads, and coins will lose or gain value more quickly for little reason.

5.  Companies dealing with crypto investments were vastly crazily overpriced.  That shows me that the cryptos were probably overpriced by a decent margin as well. 

This is an extremely high risk investment.  Be prepared to lose every cent you put into it.  This also means that it has a high reward.   But just because you watched a documentary or have read reddit articles, doesn't make you have more knowledge than most people.  In fact, you may be getting used by bigger fish. 

I will answer your points one by one, this is the way I see things in this baby market. I am not a crypto evangelist I just enjoy investing in financial markets..

1. NO UNDERLYING WORTH. What about FIAT currencies? What do they have backing them? Governments can print as much money as they want causing devaluation of currencies. At least with blockchain you have a maximum supply of tokens.

2. THEY AREN'T PRODUCING ANYTHING. It's still early days yet. You'll find areas that adopted were places that were suffering economic collapse. Which makes me think that cryptocurrency was designed as a replacement for money. Mass adoption comes when the world economy tanks.

3. THE MARKET WILL CRASH. That's your opinion. I'm sure many of these bad coins will die but honestly I could say the same about the dollar and all the currencies of the world. It's very possible that they will become worthless at some point.

4. ANYONE CAN BUY CRYPTO. Are no barriers to entry a bad thing? I'd say that's more positive than negative. You could say forex is the same and that's the most liquid market in the world. I doubt there will just be one 'champion' coin. Currently the big three are Bitcoin, Etherium and Litecoin. But there are other coins that look very promising.

5. OVERVALUED. They lost a lot of value since December 2017, but I expect them to become much more valuable in the coming years. Your comparison to the dot-com bubble is very relevant, I see this market growing and there will be a number of very successful coins that are like Amazon, Google, Apple, Netflix etc. I believe we are still several years away from this point. Of course like the dot-coms, a lot of bad coins will die.

Your last comment is very accurate. It is extremely high risk putting money into cryptocurrency. The best advice I can say is buy near the bottom and sell near the top. Do the opposite of what the reddit crypto gurus are saying and never HODL because that's the best way to destroy your money.

1.  You can't compare them to currencies at this point though.  They are only an investment tool as they are not easily able to be used as a currency.  you can't go to a store and pay with bitcoins.  They are more similar to baseball cards.  You can say that will change in the future.  I don't know, and I'm not willing to bet my money on that.  (baseball cards were as good as currency when I was a kid).  You are right that countries did quantitative easing during the recession, but that was partially in response to the gigantic wealth inequality.  A vast amount of wealth has settled into the top .5% of the worlds population.  They don't spend it.  Even if it just sits in their banks, banks have reserve rates.  A lot of these companies have just parked the money offshore.  Or foreign governments such as China hoard the bank notes because of the trade imbalance.  QA was actually trying to regulate the supply of actual cash in many situations.  And  yes, many countries did it, and some of them were just trying to lower the value of their goods, but if you have your money in other investments, the share price should increase with the earning that increase with the inflation. 

2.  Fiat currencies are backed by taxes, so they are taking a share of the overall production of a country. 

2. and 3.  You're betting on crypto as an expectation of world markets and currencies collapsing.  I hope you have enough crypto's to hire a gang of mercenaries to protect your future self from gangs of bandits hellbent on stealing all of your possessions.  (or to put it more simply, if that event occurs, we are going to have a lot worse problems than how many bit coins or other currencies you have).

4.   When I talked about a moat, I'm not talking about from the user end.  That is definitely a positive for the adoption of digital currencies.   What I'm alluding to is that there is nothing to prevent people from creating a currency.  Which is why there are so dang many currencies today.  To make a car you have to have  supply channels, manufacturing centers, workers, expertise  in the field.  To make a digital currency, you need much less.  which is why it's much more easily replaceable on an individual coin basis.  This is the reason there are rarely new entrants to the car market, but there are constantly new entrants to the crypto space.  I might be good for the industry by large, but it's bad for investors to try to pick the winner. 

5.  I mentioned this on the previous crypto thread, when BTC was 18,000 per and I was begging people to sell.  There were companies which were 'getting into the crypto space' and it was causing massive price increases in said companies shares, for no reason.  Basically, a company could say they were going to start investing in cryptocurrencies, and their market value would triple or more.  I think some of that was taken care of with the 80% chop of value, but I see some of the exuberance returning, as evidenced by this thread, among other things.  Don't fall into the trap.  I don't know what the correct value is.  nobody really does, which is why it is so volatile.  NFLX, GOOG, AMZN are valued using traditional valuation methods for securities.  But I can tell you the way people were reacting to price surges in the past strongly suggested it was grossly overvalued. 

And again, I am no crypto expert, but I have a lot of investing experience, and am basing my opinions as that of an investor rather than that of a crypto genius. 


  • pkjh
  • Hero of Waygookistan

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Re: The State of Cryptocurrency
« Reply #45 on: June 24, 2019, 02:45:54 pm »
If you think all currencies will collapse, I'd love to smoke whatever you are smoking. It may happen one day but not within our lifetimes, not for a few hundred years at the minimum. Also, crypto is still pretty much only accessible for residents of the 1st world. Most of the world still lives in, what we would consider, utter-poverty.


Re: The State of Cryptocurrency
« Reply #46 on: June 24, 2019, 03:19:10 pm »
If you think all currencies will collapse, I'd love to smoke whatever you are smoking. It may happen one day but not within our lifetimes, not for a few hundred years at the minimum. Also, crypto is still pretty much only accessible for residents of the 1st world. Most of the world still lives in, what we would consider, utter-poverty.



Re: The State of Cryptocurrency
« Reply #47 on: June 24, 2019, 06:16:01 pm »
1.  You can't compare them to currencies at this point though.  They are only an investment tool as they are not easily able to be used as a currency.  you can't go to a store and pay with bitcoins. They are more similar to baseball cards.

I can send crypto from my Korean exchange to my UK exchange in about half an hour and withdraw it to my UK bank account. It will cost me $3 and it will be in my UK bank account within a working day. Good luck doing that with your baseball cards.

2.  Fiat currencies are backed by taxes, so they are taking a share of the overall production of a country. 

A huge chunk of which is most likely be going towards debt repayment. You might want to check the latest external debt as a % of GDP to see how dismal the picture looks. Most western countries are way over 100%.

2. and 3.  You're betting on crypto as an expectation of world markets and currencies collapsing.

No Iím not. I just know how to make money from trading it. Itís good to diversify your portfolio but I donít believe cryptos are the ultimate asset.

4.   When I talked about a moat, I'm not talking about from the user end.  That is definitely a positive for the adoption of digital currencies.   What I'm alluding to is that there is nothing to prevent people from creating a currency.  Which is why there are so dang many currencies today. 

There are a lot of stocks too, whatís your point? Maybe your idea of investing is just clicking a button and waiting for profits but Iím much more into technical analysis. I could list at least 10 coins which I think are likely to do very well over the coming years and I know which coins to avoid.

5.  NFLX, GOOG, AMZN are valued using traditional valuation methods for securities. 

All those are totally overvalued. Theyíve had so much leveraged fiat pumped into them itís not even funny. When they start going down, there is literally no support, there is no bottom.


  • L I
  • Waygook Lord

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Re: The State of Cryptocurrency
« Reply #48 on: June 24, 2019, 06:30:00 pm »
I could list at least 10 coins which I think are likely to do very well over the coming years and I know which coins to avoid.

What are the coins to buy now and which are the ones to avoid?


Re: The State of Cryptocurrency
« Reply #49 on: June 24, 2019, 06:41:56 pm »
What are the coins to buy now and which are the ones to avoid?

I wouldn't be buying any coins now. Wait for the BTC correction to see what happens to the ALTS. Still see a lot of downside potential and also the Tether situation hasn't been fixed.

10 coins to avoid that have high market cap: XRP, USDT, XVG, TRON, BCH, BSV, BTG, DOGE, BCD and of course LIBRA.


  • HappyPlanetAbuser
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Re: The State of Cryptocurrency
« Reply #50 on: June 24, 2019, 10:37:28 pm »
Yeah XRP such a scam, I have 4000 of them and what they basically do is dump billions of them each month.

Furthermore, it's not used for anything other than to fund their fun projects with banking.
Who's ready for another 4 years of Trump 2020!


Re: The State of Cryptocurrency
« Reply #51 on: June 25, 2019, 05:03:25 am »
Whether XRP is actually a cryptocurrency is debatable.

https://steemit.com/bitcoin/@grider123/why-ripple-is-not-a-cryptocurrency


  • alexisalex
  • Hero of Waygookistan

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Re: The State of Cryptocurrency
« Reply #52 on: June 26, 2019, 11:32:34 am »
Well that's another day of not being able to focus on work.


Re: The State of Cryptocurrency
« Reply #53 on: June 26, 2019, 12:14:04 pm »
Well that's another day of not being able to focus on work.

Same, I'm watching ETH gathering momentum. 8)


  • oglop
  • The Legend

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Re: The State of Cryptocurrency
« Reply #54 on: June 27, 2019, 05:47:45 am »
well damn. what a beautiful red dildo. shorted the absolute top!

hopefully btc will hover around 11-12k and give alts a chance to catch up


  • HappyPlanetAbuser
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Re: The State of Cryptocurrency
« Reply #55 on: June 27, 2019, 07:01:38 am »
Friggin' Russians
Who's ready for another 4 years of Trump 2020!


Re: The State of Cryptocurrency
« Reply #56 on: June 27, 2019, 08:02:30 am »
For those wanting to get some exposure to bitcoin without using bitcoin directly look into grayscale bitcoin trust gbtc, you can buy it on stockpile.com if youíre American. Iíve just doubled my investment with this recent bull.   **But obviously do your own research before investing in anything. **
« Last Edit: June 27, 2019, 08:08:38 am by thunderlips »


  • alexisalex
  • Hero of Waygookistan

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Re: The State of Cryptocurrency
« Reply #57 on: June 27, 2019, 08:32:47 am »
Looks like it's already moving back up.  I'm genuinely stunned.

Just noticed it has hit $14K on Korean exchanges.  Koreans getting involved again!
« Last Edit: June 27, 2019, 08:38:01 am by alexisalex »


Re: The State of Cryptocurrency
« Reply #58 on: June 27, 2019, 10:40:47 am »
Looks like it's already moving back up.  I'm genuinely stunned.

Just noticed it has hit $14K on Korean exchanges.  Koreans getting involved again!


Overextended move off the bottom powered by Tether. The volatility early this morning indicates it's over.

Koreans only seem to buy when the price is high, so once again they will get rekt.

"Be fearful when others are greedy and greedy when others are fearful."


  • HappyPlanetAbuser
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Re: The State of Cryptocurrency
« Reply #59 on: June 27, 2019, 11:49:27 pm »
Coming home to find my account hemorrhaging money ! :laugh: fuggin' being played again by these whales.
Who's ready for another 4 years of Trump 2020!