Discussion in 'Alternative Investments' started by Tropo, 8th Apr, 2013.
Bitcoin - Wikipedia, the free encyclopedia
Tulip - Wikipedia
@Big Max I don't think all cryptocurrencies should be written off just yet as tulip mania.
I'm only in my beginning stages of research but I don't think it is a ponzi scheme (at least not Bitcoin and Ether specifically - most of the other 300 or so currencies that are popping up now, probably are!). In many ways, since fiat currencies like AUD and USD were detached from the gold standard decades ago (I believe when Aus switched from Pounds to AUD in what, the 60's I think, that's when the new AUD got stripped away from gold backing?); some would argue that fiat currency which has been printed into oblivion and becoming more and more worthless as a result (no sense of scarcity and inflation shooting up in some countries...); is just as bad as cryptos.
I kinda see cryptos as a kind of asset protection hedge (like gold or silver).
Whisper quiet on this thread despite the last week of crypto craziness due to China (or... 'rumors'/FUD of China...).
Anyway, either the Investchat community is still growing and not as big as propertychat, or if it IS big - should i take the crickets and tumbleweeds on this thread as a sign that Aussies aren't heavily playing in crypto yet?
Could be that there aren't a lot of crypto investors frequenting this page. There are a few great crypto pages on Facebook, which get huge amounts of traffic. Log into Facebook | Facebook is a good Australian example. There are quite a number of others which are not necessarily Aussie.
While investing in cryptos hasn't hit the mainstream yet, investor numbers are growing for sure.
just revisiting this thread if others are getting into crypto as well. Seems like it is still not popular with investchat peeps.
I'm not sure I'm sold on the idea of crypto, my main gripe being, given a currency such as AUD, it represents Australia and all it's resources, economy, infrastructure, etc... What is crypto backed by??
What Is Bitcoin, and How Does It Work?
Nowadays, Bitcoin can be used as a form of payment and it used uncrackable code to execute purchase and transfers and With the increased demand for bitcoin, prices naturally started to rise and stabilize and also these days, it has become a global phenomenon, emerging as one of the top investment destinations of thousands of people across the world and this is the reason why many investors called it the money of the future as we quickly transform the world into a fully digital realm.
Even The Smartest…….
Still lots of upside it seems!
I'm personally looking at Litecoin. The founder and community have been quick to adopt technology that Bitcoin is struggling to adopt due to the size of the community and how many people are involved. I'm flirting with the idea of investing more in it but for now, I'm just playing with small cash to really get a feel for how it all works.
Litecoin just had a massive boost in the last 72 hours after basically being a flatline for about 2 months. Segwit2X happened long ago for Litecoin and maybe the market is only now realising the value of this.
Ok - caveat before I commence this (rather long, sorry), post: I am no financial advisor, I am not advising you to buy ANYTHING in my below commentary/observations. They are just that: observations and my own personal thoughts as to where things could go.
Something I thought to share with everyone on this thread, during my cryptocurrency travels, is this wonderful link:
100 cryptocurrencies described in four words or less
It is, quite simply, the best thing I've found in my research. It is the top #100 cryptocurrencies/tokens, each described in FOUR WORDS OR LESS! Really helps to simplify basically what each one does, and serves as a great pre-cursor/starting point to more intense due diligence that I strongly encourage anyone who's pensive about this, to conduct!
Other random musings from me... Right now I'm favouring (for various/specific reasons largely unique to each one):
Steem (potential to revolutionise social media; kinda like a paid version of Reddit upvoting)
AdEx (largely because I work in Advertising in my dayjob and I understand the use-case for this!)
You may notice a pattern with my interests.... I do a LOT of DD (due diligence) on each cryptocurrency I take an interest in; reading first their whitepapers/videos, then getting lost in the trenches of Reddit and Steemit to read up as much as I possibly can. I take interest in the ones that don't just serve as a 'currency' (indeed, some don't even want to be 'currencies' as we know it; I.e. money-replacements) but rather I look at their real-life use-case practicality/useability.
Power Ledger for example is going to revolutionise peer-to-peer electricity selling. AND in Australia they just brokered a POC with Origin Energy which is kinda big deal (not only this... the visionary behind Power Ledger has just become acting lord mayor of the city of Perth, WA, which will raise both its profile and chances for real-world application). Monaco I believe is also supremely undervalued based on its strengths, real-world application 'right now' and ambitions, and I think money could be made both as a short term flip or potentially a long hold. Waves is a variant of sorts on Power Ledger but also I think (though has spiked in the last couple of days) still a bit below its true worth.
Another resource that changed my cryptocurrency "life" is this marvellous link:
Yup, all 1300 or so cryptocurrencies, each one indexed, rated out of 5 stars (based on a great taxonomy of contributing factors/data-points). This ought to really help those who are only now just starting their learning curve:
I'm only about 6 months in and I've learned so much already.
Sure, I still believe a lot of this is "Tulip Mania", but with that in mind I believe two things:
1) Just like Tulip Mania and the 1999/2000 dot com boom/bust; the smart money recognised that much of this was just fluff and that it would mostly collapse. But the smarter-still money capitalised on this knowledge. They just knew when to get in AND get out right before the bust, based on a lot of research...
2) Also. Just like the dot com boom/bust; remember this: 99% of them failed. But in that 1%, was born the Amazons, Googles, and Facebooks that we know today (and that are pretty much market-leading in each of their categories). I believe crypto's will follow a similar fate. Also, I don't necessarily believe that Bitcoin - just because it is the biggest by market cap - will necessarily be the 'Amazon' (I.e. the phoenix) of the overall crypto boom/bust. But of the 1300 (thus far!) currencies, I could easily recount at least 10 that I think have serious chances of emerging from the flames of the overall crypto bubble bust.
Of course I know there is about 1200+ cryptos that are largely... junk. Some are obvious 'junk'; just by their stupid names (Sexcoin, Pokemon Coin, Donald Trump Coin to name a few), and are easy to avoid. Others of course sound 'great' in a 2-sentence bio when you Google them, but then when you read their whitepaper and go deep into the startup teams' backgrounds you realise any one of 4 things about them, that make them 'junk'.
1) They are merely a copy of some of the more successful ones that already have demand/use-case (E.g. Ethereum platform copies, or simply Coin currencies like Bitcoin etc.)
2) Or, they don't copy the best, but aim to 'revolutionise' something else new. Which sounds great. Until you realise their pursuit is worthless or stupid. E.g.; revolutionising electricity, cleaning up advertising fraud, or a blockchain-based carbon emissions tracking platform - these are all massively worthy and real-world-use-case concepts! But, things that are too specialist/niche uses (outside of pure B2B), such as Potcoin (just for pot smokers, niche audience), or ones for specific real-world uses that won't actually benefit or improve the 'problem' it is trying to solve in the real world!
3) Or, they ARE changing something new / finding a 'gap' in the market, BUT they either don't have the development teams to back up their grandiose intentions, don't have the technology/proof-of-concept ironed out, or simply don't have a clue as to how to solve the problems they've highlighted!
4) Or, in my humble opinon (and by far the most sinister...) are coins/platforms that are pretty much controlled/centralised by central or other banking systems. This is counter-intuitive to what blockchain-technology was intended for. DE-centralised distributed ledgers/chains are the ones to watch; not one masquerading as giving wealth/power to an elite few. You'll notice a trend emerging with many ICO's right now... the idea that those "lucky few" who buy enough pre or post ICO get more voting rights/collective decision making/additional profits... this sort of theme, beware of. These smell of pyrimid-scheme if I ever saw one and will likely collapse in a heap.
Just my thoughts!
Personally, I am not fully of the understanding of how Bitcoin and any of the other digitals work but I do know on my MT4 platform and broker that they are tradeable and seems that the current talk around the water cooler is Bitcoin, it is better to just trade it than buy the physical like I hear so many doing!!
Normally they say the more you hear about something and every Jo blog recommending it, then that is the time to be wary because the people getting in have no clue they are just entering on the hype and the hype is EVERYWHERE you look at the moment!!
My 3 cents hehe
I agree with C-mac, especially on 1. Tulip Mania and 2. dot com bust.
I'm personally sitting on the sidelines for now, but starting to open an account and dabble with a small amount of cash to get ready to pounce when things look better.
The main issue with Bitcoin at the moment is everyone is hyping the value and actual usability of cryptocurrencies, when in fact, there is no mainstream, practical usage of them. I can't go into my local Coles and buy some food with it. We're also years away from any actual development and adoption of such a process.
Transfer money internationally without having to pay fees? At $11K per coin, I think I'll stick with that $20 transaction fee thanks.
Just my 2 satoshis
I am just trying to understand how this is traded?
Is it similar to CFD trading or Share trading?
Do we need to buy this from a broker?
Is there any local broker in Australia?
There is no local CFD market in Bitcoin or the other cryptos, that I know of. The closest analogy to the way these are traded is the ASX, where you buy and sell through an exchange, although things are changing rapidly in this space.
CoinSpot - Buy Bitcoin, Litecoin, Dogecoin and more - CoinSpot is perhaps the most popular Australian Exchange. But there are a myriad of other exchanges out there, not all Australian.
Fair bit of discussion around Bitcoin everywhere ATM, I have been posting some info on PC forum warning of possible collapse. Just my opinion but technically and from other signs this market could be due for a major correction and we are talking scary size move. Projected top was around 18/19k and if price starts to reject the resistance zone there this market could be in for a smashing. Look at all the signs.....lots of inexperienced investors jumping on with no understanding, news articles and new crypto ventures and start ups popping up a dime a dozen, frenzied discussion all over the forums. Classic "bell boy giving the tip means sell" scenario. I am personally sold out of all Bitcoin holdings (and most other crypto, just some very small speculators left now) which I purchased for average $400 - $500 per coin. Have used a small portion of the profit and shorted a couple of times. So far I have been stopped out twice for minimal losses on leveraged positions. Using futures to short now as they have just become available through IB. Current short position (third attempt) off to a great start, if this resistance holds technically you can expect price to drop until at least Feb 2018 and maybe for longer than that.
This is the technical picture (Gann based view), main resistance at red arcs area 18/19k (USD), much more info posted on PC forum if you want to check out in details and other info.
Few articles of interest.
Regulator warns investors off Bitcoin
Kevin O'Leary: This common behavior among bitcoin investors is a 'cocktail for disaster'
THE BOTTOM LINE: Top strategist disses bitcoin as 'Bitcon' and says it meets all 5 criteria of a speculative bubble
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