Bitcoin and other Crypto...

[Red Shift]

4 hours ago, TheBitch said:

What’s with the crash?

The Decoder: BTFD

Crypto moves in cycles. There are programmatic cycles, like bitcoin’s supply halving every four years. There are hype cycles, where the latest technologies capture public attention, promise the world and then cannot deliver. Then there are cyclical movements in price: what comes up often comes down.

 

Bitcoin, rangebound below $60,000 for weeks, is now changing hands below $40,000. Does this portend a reckoning? A correction? Some see it as a buying opportunity.

 

They will tell you, “BTFD.” Buy the dip, as it were. Let’s decode what the meme means.

It means to buy the dip.

Don’t overcomplicate it.

 

(Please don’t take investment advice from someone who writes about memes. And be wary of taking investment advice from memes.)

 

It’s a reminder that even though bitcoin is volatile, it trends up.

In 2015, bitcoin advocate Alex Millar released a video that offered unconventional investment advice for the crypto industry. “Don’t buy bitcoin,” he said. “It’s going to crash.”

 

Zooming out on a multi-year chart, Millar looked at the notable boom-and-bust cycles in bitcoin’s trading history. Bitcoin, in 2011, he said, went from 6 cents to 36 cents, then crashed. Months later, it went from 85 cents to approximately $29 before cratering to $3. In January 2014, bitcoin was trading above $1,000. The next year, one BTC was worth $239.

 

The trend is clear: Bitcoin will crash. Left unsaid was that in four years bitcoin went from being worth pennies to dollar parity to swinging between a few hundred and a few thousand dollars, with downward swings in between.

 

At the time, Millar cautioned against buying the dip. “You know it’s going to crash,” he said. It seems like he’s changed his tune.

 

“As an investor, you gotta ask yourself if an asset is worth its price. If you answer yes, then you gotta buy. And if the price then decreases from there for bad reasons, you need to double down if you want to respect your original analysis,” Millar told CoinDesk in a direct message.

 

It’s a show of solidarity.

Cryptocurrencies are novel – largely unproven – technological and monetary systems. Assets like BTC, ETH or DOGE buck the investment wisdom taught in prestigious business schools. They lack the cash flows or expected returns that historically have been used to value stocks or start-ups. Instead, crypto trades based on user demand and investor sentiment. All bitcoiners have is a codebase, community and a story to tell.

 

That goes a way toward explaining all of bitcoin’s death pronouncements over the years. The “greater fool” analysis of crypto, or the idea the price will continue to go up as long as new investors can be persuaded to buy in, must lead to a cataclysmic crash, critics say. Every dip could be that great unravelling, when the crowd suddenly gets wise.

 

Crowds are known as much for their wisdom as their madness. Buying the dip is just picking a side.

 

Where FOMO fits in.

On trading forums, the saying is, “The best time to buy bitcoin was 10 years ago. The second best time is now.” Trying to time markets is tricky and there is always a fear of missing out (FOMO). Bitcoiners have developed a trading strategy to mitigate both risks: Amass as much bitcoin as possible and never sell. A dip is just a reminder to buy.

 

It is an expression of a deeper belief.

Sometimes an investment is more than a simple allocation of capital, a calculated bet that something may be more valuable over time. Sometimes, an investment is emotionally or politically motivated.

 

The “smart money” that has moved into bitcoin this past year has often followed a galaxy-brained investment thesis. Paul Tudor-Jones, a hedge fund manager credited with sparking the institutional wave into bitcoin, said the cryptocurrency could become an inflation hedge. Another outsized fund manager, Stanley Druckenmiller, said bitcoin is on its way to becoming a global reserve currency. Meanwhile, Twitter and Square CEO Jack Dorsey has long said bitcoin will be the native currency of the internet.

 

If bitcoin succeeds in any of those roles it would be massive. But there is another motivation many hardcore bitcoiners are motivated to buy as much as they can: It is stealing power from the state.

 

I'll leave you with one thought, what happens when the dip keeps dipping?

[Red74]

[Red Shift]

Everything was nice and cheap today. 

[Welsh]

I bought a further $650 on Bitcoin to lower my average holding but I've no idea why haha

[Red Shift]

Real rollerCoaster ride. Everything up today. NANO up 30% after the crash. LINK looking good

 

Loving my WIREX account

[Red Shift]

Super cheap fees on that WIREX sccount btw. Exchange is virtually zilch.

[Welsh]

Just as things started picking up again, we've got another big crash happening ffs

[Captain Turdseye]

14 hours ago, Red Shift said:

Real rollerCoaster ride. Everything up today. NANO up 30% after the crash. LINK looking good

 

Loving my WIREX account

Hee hee

[Red Shift]

4 hours ago, Welsh said:

Just as things started picking up again, we've got another big crash happening ffs

I keep two accounts. My main HODL, and my play money for flicking around. 

 

With high fees, short term volatility doesn’t always pay off, and for me its the bigger picture. We all have our belief systems, but having followed community currency for more than 20 yrs (Bristol Pound, Positive Money, CES etc) my belief is that diFi community currency is the only rational way out of the current debt based paradigm, capable of levelling the marketplace and closing the gap (eventually) between the elite we and the plebs.

[ZonkoVille77]

Eject, EJECT!!

[Rick Sanchez C-137]

I'm down a tonne. Too late to eject. Time to strap in and check my accounts in 3+ years. Fuck.

[Rick Sanchez C-137]

2 hours ago, Red Shift said:

I keep two accounts. My main HODL, and my play money for flicking around. 

 

With high fees, short term volatility doesn’t always pay off, and for me its the bigger picture. We all have our belief systems, but having followed community currency for more than 20 yrs (Bristol Pound, Positive Money, CES etc) my belief is that diFi community currency is the only rational way out of the current debt based paradigm, capable of levelling the marketplace and closing the gap (eventually) between the elite we and the plebs.

 

Tell that to the whales fucking us poor folks shit to bits

[The-Sir]

Now's the time to buy folks. 

[Red Shift]

Fortune favours the brave.

[Red74]

March 2020. Bitcoin was £3k and everyone was saying it was dead. 
 

Everyone’s talking about crypto currency now who’d never thought they could get in and they all want to get some. 
 

Lump in now and we’ll soon rebuild our mass pyramid building scheme

[Red Shift]

4 hours ago, Red74 said:

March 2020. Bitcoin was £3k and everyone was saying it was dead. 
 

Everyone’s talking about crypto currency now who’d never thought they could get in and they all want to get some. 
 

Lump in now and we’ll soon rebuild our mass pyramid building scheme

The Mrs came home from work the other day with a chirpy “this crypto thingie you’ve been mucking around with the last couple of years - a few people at work are chatting about it and seem to think its going places. Shall I get in on it?”

 

I just laughed hard and told her she has selective hearing.

[Red Shift]

8 hours ago, Rick Sanchez C-137 said:

 

Tell that to the whales fucking us poor folks shit to bits

I understand what you’re saying, but the other attitude is to recognise that the market can no longer disappear. It’s too big. It’s billions. There’s too much cream being skimmed by the ‘infrastructure’ itself. 
 

So when a whale manipulates, and a crash comes, WE WIN TOO, albeit on a smaller scale, by getting in on cheap prices, and increasing holdings.

[Red Shift]

[SasaS]

This one and corona thread could use some Spy Bee.

[Red Shift]

22 minutes ago, SasaS said:

This one and corona thread could use some Spy Bee.

SPYBEE altcoin? Where!?!? How much!?!?

[Colonel Bumcunt]

Question from the back of the class....

 

How do bitcoin miners make a profit if the cost of mining is so high?  Why do it?  

[Red Shift]

1 hour ago, Colonel Bumcunt said:

Question from the back of the class....

 

How do bitcoin miners make a profit if the cost of mining is so high?  Why do it?  

https://www.investopedia.com/tech/what-happens-bitcoin-after-21-million-mined/

[Red Shift]

18 hours ago, Colonel Bumcunt said:

Question from the back of the class....

 

How do bitcoin miners make a profit if the cost of mining is so high?  Why do it?  

More specifically “the Bitcoin price is still largely above the miners’ breakeven levels that Marathon, one of the largest miners, estimates at $4,541 per BTC (cf. p3 of their latest presentation). At the current rates, the total miners’ revenues remain very high, above $50m per day: a level that was reached for the first time only in February this year.”

[Captain Turdseye]

I’VE GOT MORE LUMENS THAN I ORIGINALLY SOLD. 

 

BACK IN THE GAME. 

[Gnasher]