Author Topic: Bitcoin currency (merged topics)  (Read 83831 times)

Online FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #330 on: May 03, 2017, 03:08:01 PM »
BTC successfully punched thru $800 today.


1000 USD/BTC

Market Cap $16 billion   

Bitcoin outperformed all other assets in 2016.


Bitcoin prices are back in the ~$1200 range again.


Trading has solidly surpassed $1500/BTC in the last 24 hours at most exchanges. Some are trading over $1600 and a few are below $1400. I don't recall spreads this wide, except for right before Mt Gox went bust.  The market cap for all crypto currencies is over $41 billion, with BTC making up almost $25 billion of that total.
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Offline EpsilonActual

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Re: Bitcoin currency (merged topics)
« Reply #331 on: May 10, 2017, 06:21:06 AM »
I purchased my first bitcoin last night through Coinbase. Current value of a bitcoin sits at $1761.53

Online FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #332 on: May 10, 2017, 10:10:49 AM »
Good move!  Coinbase is an excellent place to start purchasing and storing cryptocurrency.

Consider buying some Ethereum or Litecoin, too.  That's what I'm adding to my holdings at this point. Litecoin started selling on Coinbase last week and rumor has it that others will follow.  The market capitalization for all cryptocurrency increased by more than $25 billion in the last couple months, and the altcoins benefited from the majority of that.  The total cryptocurrency market is worth over $52 billion and Bitcoin now makes up just a little more than half of that amount.

While I think everyone should own some cryptocoin, please don't trade more cash for it than you are prepared to lose forever. It's still the Wild West and violent volatility will continue to be the rule for years to come.
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Online FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #333 on: May 18, 2017, 08:16:55 PM »
Today's prices exceeded $1900/BTC, with a market cap of more than $31 billion.  The spread between the various exchanges has narrowed considerably from two weeks ago.

The total cryptocurrency market cap now exceeds $64 billion.
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Online FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #334 on: May 21, 2017, 02:08:12 PM »
Bitcoin has been trading above $2000, twice what it started the year at, for more than 24 hours, bringing its market cap to $33.5 billion.

Ethereum has second place in the market cap race, at almost $14 billion, with a price around $150. It was going for $7 at the beginning of the year.

The market cap for all crypto currency is now above $73 billion.  Gold's market cap is more than $7 trillion.
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Offline osubuckeye4

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Re: Bitcoin currency (merged topics)
« Reply #335 on: May 23, 2017, 10:58:45 AM »
I agree, however, the real gamble to me is... will Bitcoin be "THE" virtual currency? Or, will something else take it's place?

^^man, this guy had no idea what he was talking about  8)

Online FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #336 on: May 23, 2017, 07:10:53 PM »
The cryptocurrency craziness just doesn't want to stop.  Current prices are above $2300, almost double what it was a month ago.


Wences Casares, CEO of bitcoin wallet Xapo and member of PayPal’s board of directors spoke at a conference today and predicted a price of $1 million within 5-10 years.  Seems like crazy-talk to me (especially since the closest anybody else has been willing to predict is half that), but fortunately he tempered that exuberance with:

“The biggest mistake [would] be to buy more bitcoin than you can afford to lose. The biggest mistake is [also] not to own any bitcoin. Put 1% of your net worth in Bitcoin and forget about it for 10 years”

For his prediction to be true, the 20 million bitcoins that will exist in 2027 would have a market capitalization of $20 trillion!  That's three times what gold is now.
« Last Edit: May 23, 2017, 07:25:20 PM by FreeLancer »
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Offline bigbear

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Re: Bitcoin currency (merged topics)
« Reply #337 on: May 24, 2017, 12:16:47 PM »
Consider buying some Ethereum or Litecoin, too.  That's what I'm adding to my holdings at this point.

Ethereum has second place in the market cap race, at almost $14 billion, with a price around $150. It was going for $7 at the beginning of the year.

I was just going to ask your thoughts on Ethereum!  I stumbled across it today.  This is an older article, but it speaks to the structural differences between Bitcoin and Ethereum (non-profit and more open usage). 
https://www.thebalance.com/what-s-the-deal-with-ethereum-3939137

Cryptocurrency shows little to no sign of stopping.  And it's easy to imagine reasons why it could continue its trajectory...  But I got curious about one angle:  Sovereign Wealth Funds.

If sovereign wealth funds (the investment accounts of a nation) were to buy into cryptocurrency, that would be a big move and signal.  Norway itself has $900 billion in sovereign funds.  If they dropped 10% into bitcoin, imagine the jump.  It would also signal a distrust of central banks, by the gov't themselves. 

So I tried to find out if any sovereign wealth funds have invested in any cryptocurrency.  And only found some speculation for Norway earlier in 2017.
http://bitcoinist.com/norway-wealth-fund-reinvest-bitcoin/

Does anyone know anything about sovereign fund investments in crypto?


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Online FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #338 on: May 24, 2017, 06:50:04 PM »
I think Ethereum probably has the most potential of the current altcoins.  It's significantly different from bitcoin technologically and that allows it to be tailored to do things that bitcoin currently can't (and may never be updated to) do.  It suffered a crisis with the DAO attack and appears to have weathered the controversial hardfork that was implemented in order to restore what was stolen by the hack. 

Track record matters in the blockchain game, and there's lots of crapcoins and scamcoins seeking to lure you in, these are the sketchy penny stocks of the crypto market.  How a currency handles the inevitable attacks by bad actors (both internal and external) demonstrates the weak points and pitfalls in the underlying technology.  Bitcoin, being the first on the scene and having weathered the most negative press (Mt Gox, Silk Road, etc.), leads the way in terms of track record and confidence, although there's no guarantee it couldn't be supplanted by one of the upstarts.

As far as the sovereign wealth funds.  Who knows?  There's piles of money sitting in traditional financial vehicles right now.  If it does move onto the blockchain, my guess is that it will be done cautiously over a period of time.  Large piles of money aren't typically accumulated by rash behavior.


Current prices:

BTC  ~ $2600    $42.4 billion cap    50% of the entire crypto market
ETH  ~ $190      $17.4 billion cap
« Last Edit: May 24, 2017, 07:49:35 PM by FreeLancer »
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Online FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #339 on: May 25, 2017, 04:18:10 PM »
Coinbase has had trouble keeping up with the enormous volume of transactions this week and was offline at several points.

http://fortune.com/2017/05/25/coinbase-outage-bitcoin/


Illustrates one of the risks involved with participation in a nascent financial technology.
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Online FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #340 on: May 27, 2017, 01:29:29 PM »
Huge correction the last two days. Bitcoin is down around $2000, with a market cap of $34 billion.

Total crypto market cap fell from a high of $91 billion to $69 billion.
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Online chad

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Re: Bitcoin currency (merged topics)
« Reply #341 on: May 27, 2017, 01:54:13 PM »
Any reason or speculation on why the drop?

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Re: Bitcoin currency (merged topics)
« Reply #342 on: May 27, 2017, 02:06:09 PM »
My guess is it's probably profit taking.  With such a huge run up in prices there's bound to be a significant number of speculators looking to take some earnings off the table. 
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Online chad

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Re: Bitcoin currency (merged topics)
« Reply #343 on: May 27, 2017, 02:12:35 PM »
My guess is it's probably profit taking.  With such a huge run up in prices there's bound to be a significant number of speculators looking to take some earnings off the table.

Makes sense. Interesting at least I'll be keeping an eye on bitcoin more.

Offline bigbear

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Re: Bitcoin currency (merged topics)
« Reply #344 on: May 30, 2017, 10:52:19 AM »
As far as the sovereign wealth funds.  Who knows?  There's piles of money sitting in traditional financial vehicles right now.  If it does move onto the blockchain, my guess is that it will be done cautiously over a period of time.  Large piles of money aren't typically accumulated by rash behavior.


Current prices:

BTC  ~ $2600    $42.4 billion cap    50% of the entire crypto market
ETH  ~ $190      $17.4 billion cap

Large piles of money moved cautiously is still done in larger than normal increments.  But I get your point...

I believe one of the articles I linked to had Bitcoin with a 70% market share.  Interesting to see that they're about 50% now.  I believe Ether was around 15% vs. the 20% or so now.

Do you see the market share shifting as a good thing for crypto as a whole?  Or a bad thing?  Or just a thing as the market figures out which currency/technology is better?
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Online FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #345 on: May 30, 2017, 12:18:54 PM »
I think bitcoin's loss of market share is probably to be expected (although that doesn't necessarily mean it becomes less valuable in the process) with so many crypto coins competing to improve on the original concept.  Bitcoin might be supplanted by other cryptocurrency, but I don't see how anything, short of an extinction level event, kills the entire concept of storing and transferring value over a decentralized global network.

I'm still struggling with how to position my holdings going forward to best deal with these uncertainties.  While I believe crypto isn't going away, the traditional fiat system will not disappear either, at least for the next twenty years or more.  So what is the best way to straddle both worlds in the meantime, and how should one allocate their net worth between them?
« Last Edit: May 30, 2017, 01:42:25 PM by FreeLancer »
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Online FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #346 on: May 31, 2017, 01:37:30 PM »
I'm seriously considering starting a process of dollar cost averaging out of my bitcoin holdings, at least until I get closer to a more conservative level of net worth.  I'm a believer, but not to the point of risking that many eggs in the cryptocurrency basket. 

I got this way around the end of 2013, too, during the last big bubble.  Since it popped, it hasn't been difficult for me to just continue holding them over the last few years.  But now these recent price increases are starting to gnaw at me again and I think it may be time to consider emptying the basket a bit to spread the risk around. 

Haven't quite settled on how fast to draw down, if I actually decide to go that route, but I'm trying to not let alternating greed and fear get the upper hand in the decision making process.  Easier said than done.
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Offline bigbear

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Re: Bitcoin currency (merged topics)
« Reply #347 on: June 01, 2017, 08:54:20 AM »
It's a tricky concept...  I think I agree that it's a sustainable currency.  So I'm past the confidence hold up.  But I've still got 2 hold ups:

1.  It's valuated in the US$.  Which shows the US$ is the standard bearer still.  As you said, it's tough to say (with any type of confidence) that will change anytime soon.  This hold up is relatively small for me compared to the next one.
2.  Crypto has a technological element to it as well.  And because of that is susceptible to the "next big thing" as far as valuation goes.  Look at almost any industry and you see huge shifts in the companies that dominate based on technology and manage  Retail went from homemade, local mom/pop general stores, magazine retailers, K-Mart/Wal-Mart, Amazon.
It looks like is already happening with Bitcoin and Ether.  What's next?  What's the life expectancy of crypto technology?

On the flip-side, there have been significant changes with fiscal, monetary, and financial "tools" within the fiat world over the past 50-60 years as well (from deficit spending, national debt forgiveness, taxation games, helicopter money, glass-steagall, fractional reserves, CDO, pension-type assumptions, central lending rate manipulation, etc., etc....).  A big assumption is that the way crypto works now would limit many (all?) of those "tools."  Could that change?
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Online FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #348 on: June 05, 2017, 09:10:10 PM »
BTC  ~ $2600    $42.4 billion cap    50% of the entire crypto market
ETH  ~ $190      $17.4 billion cap


Currently:
 
     ~ $2900/BTC     $47 billion     47%
     ~ $249/ETH     $23 billion
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Online FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #349 on: June 07, 2017, 12:51:36 AM »
Finally made up my mind and initiated a test run of an automatic sell/deposit program, which I hope to ramp up over the next few months, as I become comfortable that all the cogs in the process are functioning satisfactorily.  I'm aiming for a withdrawal rate that would pay out the entire current value of my bitcoin holdings over the next 10 years, and plan to continue those monthly withdrawals until the value of my cryptocurrency holdings are back down around 10% of net worth.  I will continue to hold ethereum but probably won't add significantly to what I already have.  If coinbase offers additional altcoins I may consider adding them to my holdings.

If the bitcoin experiment crashes and burns, at least I'll have cashed out some portion of the current windfall and spread the financial risk around to other asset classes.
« Last Edit: June 07, 2017, 09:29:56 PM by FreeLancer »
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