Crypto Bitcoin @ 10k...

What the funky chicken said - spot on.

I recommend nothing, not even the things I do myself. Lol

 

Online Mining?

 

But this is only the beginning

 

Ha, well I hope so! It might be the beginning for amazing growth but, unfortunately, we have passed the period of "gob smacking ridiculous I can't believe my computer screen" growth.

For the main coins anyway.

Maybe some of the new players will emerge and reign king! I actually don't think that BTC will come out on top in the very long term. It will be like the myspace of social media. Who knows when the facebook will appear...

 

The entire technology of permissionless funding fascinated me. The coin that has the most value not so much.
Bitcoin turns your mobile phone into a bank, not a bank account where you need to be identified, a borderless, permissionless, decentralised BANK. No one can freeze it or cease it or tell you what to do with it. That’s what fascinated me.

People can sit and complain about what’s fair and right and wave flags in front of Parliament House to get permission for a change they perceive as being fairer to their personal circumstances - that only results in frustration.

Or they get busy and build industries that make what’s unfair obsolete. The bitcoin /blockchain technology is the very beginning of that industry.

Food is next - decentralised, community based real food away from the control of organisations

The world is waking up/ becoming smarter and this is just the beginning. Money at least has enough value to be noticed but noticing it will lead to bigger growth for more industries

Today’s price of bitcoin and the drama involved in the crypto space ( so much of it as the masses meet it with resistance and fear) none of this is remotely interesting to me. Growth is.

 

My take after more research is as follows.
Cryptocurrency is perfectly aligned with the dot com bubble. Majority of crypto is non proven garbage being hyped by the uneducated with nothing more than an idea! It has no substance, if I knew how to market I could start an ICO.

However the technology which all this garbage is built off is an absolute game changer. The block chain, tangle whatever version you like will deliver some of the new biggest companies in the world, it will just take time.

Call me uneducated but I also fail to understand the purpose of anymore than a single crypto currency? Why is their a need for more than one decentralized currency? Ultimately I think one will succedd and I believe Bitcoin whilst not the best technology is so far ahead of the competition in terms of acceptance that it will be them.

So where does this lead me to??
Well there is money to be made in Crypto! ALOT of money. There are two key strategies IMO.

1 - Timing the bubble burst. It's going to burst but when I really don't know. The key here is employing a debt recycling strategy in small portions. Start with a number you feel comfortable with losing and use that. For me it's 5k. The way crypto is performing it could become 10k in a month. I personally am not up for doubling down. Take the 5k profit off the table and keep playing with your original 5k. Rinse and repeat until the bubble bursts.
If your comfortable wit losing more than invest more. Just ensure you take the profits off the table and pay down debt.

2 - Like the dot com bubble the great companies with the great products survive. Think Amazon, Priceline and EBay. The key here is a long term hold that will ride out the bubble as the companies will be backed by actual technology that the world needs. For me this is the likes of Bitcoin, IOTA and POWR.

It's Scary times but for those willing to put some time and money on the line it's also exciting times.

Happy Investing.

 

I don't argue it doesn't have a lot of value or importance.. But reminds me a lot of dot com early on (late 90's). Plenty of valuable business and ideas came of it later on - but the value was placed too highly early on, and so many sharks in the pond, and it crashed and burned pretty spectacularly. After the fallout, many emerged from the rubble, but it took time after that to assess true value.

I think a verifiable electronic ledger of transactions has huge potential to change the world, but right now I think some of the prices are jumping the gun quite a bit. Still lots of challenges there, especially regarding block sizes and being timely enough for the volume of transactions needed. There are a few solutions out there to solve this, but not quite sure they are there yet. It's going to be a bit of a rocky road until this all stabilises.

As you say, only gamble on what you can afford to lose. And in and out so you're not the one holding that big firecracker as it blows up in your face.

 

And what a firecracker.....

Nudging 13k now.

 

This post by Stewie on @macro_business is worth reading before buying #Bitcoin or any $crypto:

Bitcoin going to $1million, replace central banks - MacroBusiness

Even if it is used in everyday life long term, doesn't mean that it's not a massive, fraud-driven bubble that could pop short term (as it did after Mt. Gox). 2340 on Twitter

 

My gox was not a cryptocurrency it was an exchange, a business.
That’s like saying that the internet is a bubble because xyz.com website turned out to be a fraud

 

Of course it was a business & it's colllapse (whose demise is still not 100% understood publicly & may never be) resulted in an 80%+ decline in the Bitcoin price and multi-year bear market.

Did you read the post & understand the implications of what it could mean for the price of Bitcoin if this company is found to have funneled hundreds of millions of dollars worth of 'fake' Tether into the crypto ecosystem?

 

I bought ether at AU$270, doing very nicely now at $630.

 

The funny thing with blockchain seems to be that everyone is right?

Its the wild west. There IS fraud happening. No doubt about that..and lots of it, Bitcoin is whichever way you look at it in a bubble. A big fat one. More exchanges will go belly up for sure, there will be more forks and nobody knows what happens once the last Bitcoin has been mined....

But...One could argue that wall street doesnt exactly have a squeaky clean record either and the genius behind blockchain is hard to ignore. It's simply a better way.

Nothing is as powerful as an idea whose time has come.

We're entering new territory here. The future may well not be Bitcoin but you can be pretty sure that the blockchain technology behind it is only going to progress.

 

It dosent matter I’m not using it to retire on, I’m using it as play money.

Awesome frickin playground at the moment and the moment is all that matters.

The fact that it’s attracting so much drama does not really concern me at this stage

 

This is essentially my strat... use crypto as a growth accelerant for the main portfolio. When it reaches 10% of my total liquid portfolio:

• sell 20% of my crypto
  • highest growth ones first, to effectively rebalance my crypto currencies
  • reduces crypto to 8% of my liquid portfolio
• pay that money into a non-deductible loan
• redraw as a new investment split and buy ETFs/LICs/etc

Locks in the profit progressively. Not betting on it doubling every month, although I'm currently at 68% growth after 3 weeks (not too shabby)

 

I started buying property when I was 19 around 1990
The speculation I heard was:
You are too young to be getting into so much debt
It’s too dangerous
Adelaide has now hit a median of $100,000 its a bubble, no one can afford property any more, the poor first home buyers
I can’t believe you bought a property over $100,000, you will never get your money back.
All you are doing is making the ATO and the banks happy
You need superannuation not property
Anyone who owns properties for investment is just greedy

NOW!!!!

Imagine if I had listened to all that fear based BS instead of my own intuition???

I’m not about to do it now either. I’m driven by things above people’s opinions, fear and speculation and so far it’s worked for me.

 

Whenever I hear this, it reminds me that people often speak about their own situation, and what they believe they should do, rather than what I should do about my situation.

It's like me recommending slow and steady LICs to a young, energetic new investor with risk appetite to spare. Is it what I'm starting to look at now that I'm rounding out my portfolio? Yes. Is it the best choice for a new investor with regular income, seeking high growth? Of course not.

Would I recommend crypto to said individual? Probably not It's not an investment; it's a play thing. I've chatted to friends who invested significant portions of their networth into Bitcoin, and here's what one of them said:

I believe crypto should only be of interest when you're far enough along your investment strategy that you can afford to throw a bit of money into a sandbox and be relatively lackadaisical about it

 

I agree
... and I would discourage all "investments" in bitcoin or any other cryptocurrency. It's not an investment and not a get quick rich scheme. It's not the stock market.

 

I know dem feels. Was looking at my notes from years back. In April 2013 was holding 19.88 BTC that I'd accumulated riding the price action. My average was around USD 110. Was a small sum for me, but still the gambling factor was totally out of control. Sold all pre Mt.Gox collapse, which is just as well as was holding on exchange back then and would have lost the lot anyway.

Holding precisely zero crypto these days.

 

The unique characteristic of all the large bubbles in the past is that the majority of people didn't know that a bubble existed at all.

About half of the people in the world are calling Bitcoin a bubble. Doesn't that destroy the fact that it is in fact a bubble?