Crypto Bitcoin @ 10k...

good wealth creation strategies are not about predicting what is a bubble and what isnt and what is going to go up and what is going to come down and the latest thing to make you rich quick.

It's about building strong foundations, good habits and the ability to adjust strategies if markets change. Cryptocurrencies can be incorporated into a wealth strategy in ways that it wont affect you if markets turn.
Money has no value, hoarding it is fear based. Trying to predict what is going to come and take it from you is fear based. Putting it all into something and hoping this is the thing that is now going to save you is fear based.

Fear = loss of money

The only way to make money is to be able to see the abundance and not be attached to something as silly as money.

 

You are looking at crypto "currency" too literally. Yes, some of the coins are currencies but being a currency is one of eight different important uses for a digital coin. Ethereum delivers smart contracts over the blockchain for tokens that fund different business projects. Some currencies are used for online advertising, some for using computers or hardware whilst you're asleep (renting out your hardware and making money). There are tonnes of very useful projects using blockchain that currently exist.

Majority of BTC holders now and other alt coin holders are just using it as a store of value like "digital gold".

 

Highest rated comment from a respected crypto member of the reddit community on the tether being pumped.

"
WHAT IF I”M WRONG? CRYPTO WILL IMPLODE!

No it won’t. Sure there will be a dip maybe even a correction, but there are only 395 million Tethers. People will get out of Tether even at massive discounts (until $0) into crypto because they can’t get USD, but not more than the 395 million tethers circulating (at this time).

At a certain discount people will understand what is going on and stop trading for Tether. BTC + ETH is worth over $100 billion, how many time does the entire amount of USDT have to turn over to cause a massive crash?

What will get hit the hardest are the people left holding tether (if/when they implode) and Trex/Polo/Finex.

To think Polo/Trex would rely so much on USDT that they didn’t fully vet it is absurd as well. Whats more likely, Polo/Trex’s due diligence or this @Bitfinexed person based on conjecture? "

Google search any part of the comment with the word reddit behind it and you can read the full post and make your mind up.

 

No. I don't think so. The media calls it a bubble, but then reports BTC Millionaire stories. Its the same type of press thats exists in a stock market bubble. The readers get excited and get on Coinspot and pile in.....Nobody is using BTC. It is going up, because it is going up. Momentum. That will continue until the last marginal buyer has been found. When that is, is anybody's guess.
Good luck to all.

 

Also...
Melbourne man puts home up for sale, willing to accept Bitcoin payment

 

Anywho....

We all should have huge smiles on our faces today haha.

 

Not the case at all. Reread my post and you will see I made a point of saying the underlying technology is a game changer.

It's intentional use of currency is the one thing I have the hardest time believing will take off and be widely adopted but if it did I would say it's Bitcoin. It's other uses as you touched on is where my money is invested not in currency.

 

Sorry, I was responding to this.

The underlying technology you are talking about needs a currency attached to deliver value to the technology. There will be more than one piece of blockchain technology therefore more than one currency will exist.

 

Now @ 14k...
HODL indeed....

 

Can you elaborate on this point?

Are you saying that you have exposure to crypto in a way that isn't affected by downside in price (if so, curious on details) or are you just saying you can keep your position so small (e.g. 1% of portfolio) that it doesn't matter what the price does?

 

If you hold such a small portion (e.g. 1%) then it won't affect you if markets turn, but it also can't really be considered part of a wealth strategy either as it isn't going to make you wealthy. (Granted there are some exceptions e.g. Ethereum which is up 50x so far this year)

For it to play a significant role, I think you do have to have a substantial position which exposes you to the risks that naturally come with such a volatile asset. However if we assume crypto keeps trending upwards at the rate of 10-20% per week, you can progressively liquidate your profit at certain milestones (e.g. 100% of initial capital) with the hope* of breaking even and playing entirely with profit.

Some exchanges do offer stop-loss features, but for those happy for their cryptos to bounce around inside their own little world, volatility is part of the game and the eye is on a much bigger prize.

* - hope is not a strategy

 

Wise words...

The following are not.

I spent a week watching crypto, pretending to "time" the market.

It had been rocketing up for weeks and by about 6pm (Darwin time) Wednesday it had sailed into 16k. It was like a train.
By about 6:15 it was at 13k. I had dinner and it was 14k. Went to bed and it was 16k again when I woke up. Brushed my teeth and it was 15k. 14k this morning, 15k right now....



it was all starting to really stress me out.

Which is stupid cause at the end of the day I'm up 50% from a couple of weeks ago...and about a zillion percent from my initial $100 "#wonderwhatthisthingdoes" investment.

I've realised that It's all psychological.

If it all blows up tomorrow, that lesson alone will have made the experience worth it.

Now taking a leaf out of @chylld 's book and checking on Fridays only....

 

I just checked my portfolio... in less than a month I've already doubled my starting capital.

3 of my coins have tripled, and another 2 have doubled. Bitcoin comes in 6th place at 81% growth. My worst performer has grown 15% in 2 weeks.

What is this thing? This is beyond ridiculous.

 

If you are a bitcoin fanatic.... probably best not to read this post

Made a speculative purchase of multiple BTC avg $416 US in 2013 and didn't pay it any attention for 2 years. Got a bit more interesting after that

Let me put on record here that I just sold out of my last BTC this week at 10,820 US (target was 11,053 but I had a weaker moment and got out early). Just used small part of $AU from profit to go short BTC via leveraged CFD at 10,559 with stop at 11,565 although I don't believe it will exceed the previous high for quite some time or if it does it will be a tiny little false break then collapse. Should not trade above 11,605 if there is a false break of this top. If I get stopped out I will lose most of the CFD funds and I am quite prepared to do so.

Yep folks it's true I am clinically insane .....just did the transaction minutes ago. Exit will most probably be either Feb & June next year, bit too soon to gauge more accurately yet.

Please....whatever you do..... don't follow me Not advice

 

Plenty of people going short, not unreasonable to do so. Also consider CME futures

Personally I think BTC still has some life left in it, the other currencies growing several times faster (e.g. Bitcoin Cash, Dash, Power Ledger) would be my favourites for shorting.

That said I am long on all of them

 

I split my Bitcoin yesterday morning and glad I did. went from 1 BTC to 0.2 BTC and put the rest in 8 different ALT coins. Been a very good move so far...but who knows how this will end?

as for this..

Sir! I salute you! That is a brave move. You could well end up being right too?

Who the hell knows with this stuff. It's all bonkers...

 

Bitcoin is not an investment

 

I think I've found a theory that might help with your Crypto strategy (if there is such a thing).

There are some very dodgy "pump and dump" ALT coins. Bytecoin is a good example. When this coin was released 80 percent of it stayed with the devs. Every time it increases by 10 percent in value a whole bunch gets sold and the price comes down.

It's an awful, terrible coin.

Which makes it a very handy "insanity" gauge.

Coins seem to go up for a couple of reasons, one is genuine, could be accepted by a company, new exchange, Venezuala collapses and adopts bitcoin...etc, etc.

The other reason is frothy exhuberance.

You'd already be observing that a lot of the coins go up and down with each other to some degree. So, my guess is that something like bytecoin is only being bought by people who have done very little research or think it's a cheap bitcoin.

i.e is bytecoin goes up 10 percent and your BTCH ETH or whatever are also going up, it'd be a fair guess that this is an emotional rise.

If bytecoin stays flat but BTC or ETC rises then there may be a genuine reason for the rise and it might be worth researching why.

Anyway, this is all theory, and it's only a gauge. But I suspect there might be something in it.

 

So why would you incorporate it into a 'wealth strategy' (whatever that is) and what did you mean by the comment I quoted?

 

There are so many ways to use bitcoin, make money with it other than a simplistic speculation on whether it’s going to go up or down.

And You don’t ever put yourself into a situation where you rely on any asset class to support you financially. See my comments on retirement.

I’m using bitcoin because I love it. I earn bitcoin, I accept it as payment in my business. I do not depend on it and I certainly will not be ****ing retiring on it - or on anything else for that matter, especially property.