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I don't need to think into Crypto too much; they need to back it with gold or silver for me to buy it.
Bitcoin price discussion and analysis
- Thread starter greggles
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I don't need to think into Crypto too much; they need to back it with gold or silver for me to buy it.
You can try to change a millennia of established thinking if you like.
Aside from the obvious monetary value of gold, it is used in highly advanced technologies; ask NASA where gold is used
So the industrial and jewellery applications of gold do not account for its current inflated value. 80% of the gold price is speculation due to its scarcity. Food for thought.
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Mate; I don't care what Crypto does. Make a market backed by a hard asset, or don't. The Crypto market is just a penny in a pond; compared to the gold market.
You aren’t wrong. Gold has a multi thousand year history, Bitcoin is barely 10 years old.
That would suggest to me that the penny in a pond has a long way to go!
wayneL
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Could gold go to $100,000 in the next 5 years ago. I stress that I like gold for all the reasons you probably like it, but short of some sort of super hyperinflation I can't see it.
Could bitcoin do that?
I really have no idea at all, honestly I just don't know. But there are a lot of macro economists who think that some sort of move like that is possible.
I struggle to understand why it should, but I definitely think that it could.
Could bitcoin do that?
I really have no idea at all, honestly I just don't know. But there are a lot of macro economists who think that some sort of move like that is possible.
I struggle to understand why it should, but I definitely think that it could.
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Keep in mind gold's market cap is around 9 trillion, while Bitcoin's market cap is only 170 billion.
Also, some interesting news I noticed:
https://smallcaps.com.au/australia-post-pay-bitcoin-customers-mass-adoption/
Australians can now pay for Bitcoin at Australia Post
wayneL
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A couple of things that I have come across recently that has really helped me to get my head around the Bitcoin space.
The first one was a simple sentence. We all know the phrase "follow the money". Someone I was listening to recently added an adjunct to that, viz "follow the smart people".
The second one address is what I have actually always struggle with with regarding to Bitcoin and other cryptocurrencies.... How to value them and a meaningful way.
This video goes quite some way in addressing that problem and probably goes some 75% of the way in satisfying my query about Bitcoin valuation.
Additionally, Paul Tudor Jones has quite publicly added bitcoin to his hedge fund portfolio.
I still think there are some hurdles to overcome. I think thre does remain a risk that Bitcoin goes to 0.
That's the downside (which can be hedged via various strategies especially option strategies on Bitcoin futures l
Bitcoin to a milion dollars or whatever number you manage to pluck out of the air, is the upside though. Risk/reward is asymmetrical to the positive.
No one can deny that volatility is massive, which actually really plays into using options strategies around a core holding, both to hedge and reduce volatility
So, yes, I am wading in and as I learnt more and more about this space, I'm rather excited about it. @verce
The first one was a simple sentence. We all know the phrase "follow the money". Someone I was listening to recently added an adjunct to that, viz "follow the smart people".
The second one address is what I have actually always struggle with with regarding to Bitcoin and other cryptocurrencies.... How to value them and a meaningful way.
This video goes quite some way in addressing that problem and probably goes some 75% of the way in satisfying my query about Bitcoin valuation.
Additionally, Paul Tudor Jones has quite publicly added bitcoin to his hedge fund portfolio.
I still think there are some hurdles to overcome. I think thre does remain a risk that Bitcoin goes to 0.
That's the downside (which can be hedged via various strategies especially option strategies on Bitcoin futures l
Bitcoin to a milion dollars or whatever number you manage to pluck out of the air, is the upside though. Risk/reward is asymmetrical to the positive.
No one can deny that volatility is massive, which actually really plays into using options strategies around a core holding, both to hedge and reduce volatility
So, yes, I am wading in and as I learnt more and more about this space, I'm rather excited about it. @verce
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Finally a breakout!
wayneL
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With great fear, I've waded into the crypto space... more than I'm really comfortable with, roughly split between bitcoin and ether, so nice to see some movement.
I've been trying get my head around all the defi projects as well (unsuccessfully so far), but there have been moonshots there too. Probably a young bloke's caper who can figure that **** out lol.
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You cannot compare crypto to gold/silver. No-one (to date) can create gold/silver. Anyone can create a new crypto currency. That makes crypto analogous to fiat. The trouble with creating a crypto 'backed' by gold/silver is that like Nixon in '71, you can simply de-couple.
jog on
duc
wayneL
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That's a point I struggled with Duc and why I have stuck to these, especially BTC. There are a fair few vids on Realvision on this topic from some pretty credible players, but agree with your point in general.
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Agree on the fiat analogy, except that the amount is limited in a given one like BTC;
I stuck to BTC too and saw potentially etherium as a more technical implementation vs BTC a more financial one
Disclaimer, I now just own BTC
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I've been following Nugget's News for crypto-related news. He puts out a good macro/crypto wrap-up each sunday night which is well worth the hour or so of my time. The group advises to keep to ETH & BTC until you know and are comfortable with what these DeFi projects are trying to do and how to obtain their tokens.
Naturally I am ignoring that advice!
Naturally I am ignoring that advice!
Here comes Fidelity.
https://www.fidelitydigitalassets.c.../documents/FDAS/bitinvthessisstoreofvalue.pdf
It is one of the largest asset managers in the world with $2.46 trillion in assets under management as of March 2018 and a combined total customer asset value number of $6.7 trillion.
https://www.fidelitydigitalassets.c.../documents/FDAS/bitinvthessisstoreofvalue.pdf
It is one of the largest asset managers in the world with $2.46 trillion in assets under management as of March 2018 and a combined total customer asset value number of $6.7 trillion.
Bloomberg says
https://data.bloomberglp.com/professional/sites/10/Bloomberg-Indices-Outlook_Cryptos_August-2020.pdf
(Bloomberg Intelligence) -- Increasing adoption, relative scarcity and a favorable macroeconomic backdrop sustain Bitcoin's upward price bias on a stand-alone basis and vs. broader crypto assets. Breaching $10,000 in July, boosted by new highs in gold, helps transition this level to Bitcoin's support from resistance. The unexpected likely needs to occur to prevent a continued price advance for the benchmark crypto. Increasing adoption and vehicles for exposure, and custody, are accelerating Bitcoin into the mainstream of investments.
In a world of zero and negative interest rates and diminishing equity-price returns due to quantitative easing, the quasi- currency stores of value -- gold and Bitcoin -- are finding increasing investor interest. Bitcoin is gaining traction as the digital version of gold.
https://data.bloomberglp.com/professional/sites/10/Bloomberg-Indices-Outlook_Cryptos_August-2020.pdf
(Bloomberg Intelligence) -- Increasing adoption, relative scarcity and a favorable macroeconomic backdrop sustain Bitcoin's upward price bias on a stand-alone basis and vs. broader crypto assets. Breaching $10,000 in July, boosted by new highs in gold, helps transition this level to Bitcoin's support from resistance. The unexpected likely needs to occur to prevent a continued price advance for the benchmark crypto. Increasing adoption and vehicles for exposure, and custody, are accelerating Bitcoin into the mainstream of investments.
In a world of zero and negative interest rates and diminishing equity-price returns due to quantitative easing, the quasi- currency stores of value -- gold and Bitcoin -- are finding increasing investor interest. Bitcoin is gaining traction as the digital version of gold.
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Look interesting, nice if you got the breakout
