DropBear
Tim
looks to be bottomed out.... next month or so will tell
Cryptocurrency mega thread
- Thread starter Heatho
- Start date
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What will happen with Crypto 's , will they rebound or sink ?
Human emotions will decide that answer , Greed or Fear !
My opinion is fear , it's an inbuilt survival response to protect us .
Interesting article on emotions below :
https://behavior.net/2013/03/the-most-powerful-emotion-of-all/
Human emotions will decide that answer , Greed or Fear !
My opinion is fear , it's an inbuilt survival response to protect us .
Interesting article on emotions below :
https://behavior.net/2013/03/the-most-powerful-emotion-of-all/
- Joined
- Aug 22, 2013
- Messages
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- 1,816
Outback said:
I forgot to mention the manipulation that happens when big holders decide to push price movement .
This will run out of steam when enough real small holders act on a direction .
Precious metals are a far safer buy , especially Silver ! it's so cheap today . :Y:
I think Cryptos will always remain a fairly wild ride as they are totally unregulated and unregulatable. The fact that Wall St has established a Futures market for Bitcoin and a number of other Cryptos are being used for trading in major marketplaces adds a certain credibility.
This, together with Cryptos establishing a medium where one can park funds and move funds internationally whilst being totally out of the reach on any Government holds an attraction for all sorts of people, so in my meager opinion they are here to stay and we will be staying with them.
That said, one has to spread risk and should never have everything on one marketplace, I believe hard Silver and Gold should be part of a portfolio just as shares and other investments like Real Estate or Commercial Real Estate Trusts, the difference is they don't get the Adrenalin going like a good Crypto!
This, together with Cryptos establishing a medium where one can park funds and move funds internationally whilst being totally out of the reach on any Government holds an attraction for all sorts of people, so in my meager opinion they are here to stay and we will be staying with them.
That said, one has to spread risk and should never have everything on one marketplace, I believe hard Silver and Gold should be part of a portfolio just as shares and other investments like Real Estate or Commercial Real Estate Trusts, the difference is they don't get the Adrenalin going like a good Crypto!
- Joined
- Aug 22, 2013
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Dihusky said:
I will be kind to you , when you need to convert the Cryptos back to Real money the Govt' will know .
And the most telling thing is these cryptos are not convertible to do any real time trades !
Cheers
jack
No need for your final comment Diggit was was just interested.
Mackka
Mackka
Goldtarget
(AKA OldGT)
Well I'm grinning...at least for now.
On paper returns of over 32% after tax and fees.
There's life in the old dog yet.
Bloody fantastic and I'm sure I'm not done yet. Had to take some pain to readjust my strategy and today I'm way ahead.
That is one lovely sea of green 4ight now. Go bulls.
On paper returns of over 32% after tax and fees.
There's life in the old dog yet.
Bloody fantastic and I'm sure I'm not done yet. Had to take some pain to readjust my strategy and today I'm way ahead.
That is one lovely sea of green 4ight now. Go bulls.
Outback said:
Not entirely true, her on the GC there are a number of businesses which will take Bitcoin for payment. Had a plumber on a job last week and he's happy to take Bitcoin.
I really wanted to tack it to this thread. https://www.prospectingaustralia.com/forum/viewtopic.php?id=24554&p=2
[video=480,360]https://youtu.be/YHjYt6Jm5j8[/video]
[video=480,360]https://youtu.be/YHjYt6Jm5j8[/video]
Well here is something for Crypto People.... :Y:
http://www.msn.com/en-au/travel/new...itcoin/ar-AAy9woM?li=AAgfYrC&ocid=mailsignout
LW....
http://www.msn.com/en-au/travel/new...itcoin/ar-AAy9woM?li=AAgfYrC&ocid=mailsignout
LW....
Goldtarget
(AKA OldGT)
16 July 2018 09:40 pm
Obviously I'd like to have some sort of constructive conversation around cryptos and investment. Most of my contributions are in Crypto Mega thread. But if the chain gets yanked enough I'll sit down and type out the pros and cons and do write up in a balanced way about cryptos vs hedges vs other mainstream investments and the people can draw their own conclusion.
For anyone fair dinkum about learning something new, diversifying, or perhaps understanding a little more about numbers, figures and returns I'll put my heart into a serious attempt to explain my views and strategies. All I'm asking is for the intimation that those investors in cryptos get a balanced hearing. I have not heard one single considered argument against it, just digested Web based regurgitation of white noise.
This from the Bitcoin insanity thread. As promised I will try an attempt to put some information up here so that curious folk can make a fair assessment. I will attempt also to give some thought to Crypto vs gold discussion. I will also take public entries into dissecting what I write, I have a tough hide.
So where to start? As this a gold forum I think some of the comparisons of Gold and Crypto is a fair beginning. Essentially both or neither may be well placed to become part of your strategy in wealth/asset accumulation and so lets look at these side by side.
Gold. As you can read in many places here Gold has been a traditional store of value, a criticism that's levelled at Crypto quite frequently. For 1000s of years Gold has been globally recognised as a place to safely store value. In an examination of this, without getting too deep, this inherently makes perfect sense. The number one reason (for me at least) is the fact that it has an almost unique property to be inert. As opposed to say cash it will not detoriate of its own accord over time. In this assessment too we can easily point to the secondary characteristic that gold does not take much room to store. Even large amounts of intrisitic value are stored in a very small surface area, you need only think of the equivalent value of a one kilo bar in todays spot market to get a sense of this. So here we have a robust item that can be stored that isd quite small relative to value.
The next aspect is its scarcity. There is a finite volume of gold in the world (save for extra terrestrial gathering or transmutation both of which appear uneconomical at this stage in history) and this has held true in our past, perhaps even more so than today. True that mining does occur, and the greater amount is added per year to the overall recovered amount, but so it remains there is a finite supply. A wealth store with scarcity creates a demand, which in turn, further secures it as a reliable wealth store.
Gold is also seldom used for alternative purposes. Yes we can account for jewellery as a stable and alternative use, but there is a very low demand on gold for alternate purpose. It is unlikely that any use of gold we have is likely to be mass adopted creating a large volume of the material being used as something other than a store of value. Electronics and space exploration are two very small areas that pull gold from "circulation" where the gold used remains unrecoverable from the wealth store purpose, and both a very unlikely to make any further impression in this manner than currently so. Technology and production does not require Gold as a product, and remains unlikely due to a host of reasons to change this.
Gold is secure. A great deal of gold is locked away very securely and accounted for. (Forgive me if I don't go down the rabbit hole of fake gold stores). There are large examples of gold held by many entities in secure places and positions. The fact large amounts are unlikely to disappear quickly and reemerge on the market disrupting the accepted trading of gold is another reason Gold is seen (overall) as secure.
Overall the future looks quite bright for Gold until we examine some of its characteristics that become difficult to consider it as anything other than a "store" of wealth. Essentially as robust as gold is it has some downside.
Gold is not easily transported. Fact. Sure gold can be traded in physical form quite readily between those within a small locale, but transporting large amounts (and to a lesser degree much smaller amounts) of physical gold between countries and origins is becoming increasingly more difficult. The most common method of gold transfer relies on the old system of granting promissory notes as mediums of exchange, rather than physical gold transfers simply because of the logistical difficulties. Inherently though this does raise some questions around the validity of transfers (another rabbit hole we shall side step).
Also gold is quite difficult to divide physically. For those that smelt you will soon recognise at least one of the issues with gold is melt loss. Sure it can be rolled out and cut, but the process is cumbersome and to be honest a little antiquated. Essentially the last to drawbacks have been offset somewhat by the rise of paper money, and coin mintage, thus allowing a medium of exchange that did not require division of physical gold. Civilisation has essentially adopted the practice that is inherently easier to administer, and makes dissemination of wealth much simpler.
Gold is a poor motivator. Now we come to my personal examination or observation if you will. Its fine if you think my view is not objective enough or flawed. Gold rarely (with the exception of mining or in the 1800s caused mass migration) a great motivator. Gold does not contribute anything to the advancement of a civilisation. You could argue its accumulation by a state entity may make it more powerful and give rise to greater control of people power, but aside from this is see nothing that gold creates that it hasn't already. Its only in realising its value that it does anything. Reread that statement and let it sink in. Having a gold store creates nothing, and in fact if you look at gold over a long period you will see that its ability to be robust as a store of wealth leads to it not having any real growth or interest attached to it. To clarify if I have land I can produce something, it has a viability that gold can never have. Other than perhaps art (I tend to think of religious art in particular) or adornment there is no practical use for the adding in of gold that enhances something. Gold wont make my computer faster, or build me a better rail network. There is so little scope for "using" gold that my argument is simply it is a poor motivator.
So we move on to Cryptos.
Perhaps it is best to start broadly as the reality is there is more than 1000 available types created for a multitude of reasons, so begin lets streamline this summary a little with some generalisations before we expand our understanding. Cryptocurrency it could be argued are really very unique. It takes a little more than slapping a label on cryptos because their nature is different from everything that has come before. In classing them as assets, wealth stores, currencies, stocks or technology only we devalue what they are, as a general rule they are all but none of those things, as we observe them on a very small timescale and attempt to catagogorize them before they have had a chance to evolve. They are a representation of a new idea, or more correctly, the manisfestation of an idea that fits quite well in the evolution of our culture.
When bitcoin was first dreamt up the germ of the idea was to bring into being a medium of exchange that was reliable, acessable, finite, transparent, uncorruptable and required no centralised authority to oversee its exchanges/transactions. It was to be a utopian medium that sort to put those that wanted to exchange in a position to anonomously and securely pass payment through encrypted means regardless of location. This, historically, had never existed, never thought of and prior to its inception, never possible. What bitcoin did was to take a leap into a frontier that had never been attempted. This essentially is why cryptocurrency is utterly unique. So with that in mind lets look at what properties crypto has.
Cryptos are easily accessed. I wont go into how to exchange/buy cryptos just yet, but basically if you have a computer, and a connection you can access them.
Cryptos are finite. Without going into detail, all cryptos are designed to be finite. Details of the numbers are easily obtained, including how many are "live" and how many are to be realised (and with timeframes). There is a caveat here, hard-forks have and probably will be observed, the splitting of cryptos is possible these are announced prior to an event, and again is unique to cryptos. Basically though if you hold one type and it splits you do end up with equal shares of the "old" and the "new" post fork. This is tricky to summarise and I urge all those wanting to "trade" in cryptos to understand what this means exactly. Also if a crypto is "lost" by a user it cant be replaced. If you lose the information that you stored to verify you are in possession of it unless you recover it then its gone forever, more on this later. Therefore cryptos take on one aspect of a wealth store as they are finite.
Cryptos can be traded for real returns, ie. returned to real fiat currency or used for goods and services
You aren't locked into what you hold, mostly its a very easy and simple process to trade your crypto back into fiat. As with stocks you will require a trading platform and settle on an agreed price subject to the crypto "market price" but its straightforward. Cryptos can be easily traded peer to peer through the exchange of storage devices (like cash), or through collection points that accept crypto.Think of it like Paypal if you will. Many businesses accept crypto and the numbers get bigger over time, all over the world. This is lending itself toward the "cash" or "currency" status.
Simarly if held in a wallet its almost limtless the amount you can hold. a wallet may contain many millions of dollars or a few cents, but until its accessed electronically it is impossible to verify what is actually contained within it. if verified a wallet could potentially be exchanged with anyone, for any reason. This lends itself to the "wealth store" side, and much much less cumbersome than gold. Its a hugely understated advantage.
Cryptos are secure.
Basically all electronic transactions (passing one from one entity to another) is completely secure. And not like your banks encryption secure, 100% secure. It cannot be hacked or left unverified. It has to pass through many links (blockchain) to be "verified" and once done the exchange is made. Completely unique in this world. Not only that but completely decentralised. the verification comes from a number of different parties or places if you will to verify the transaction. It simply cannot be corrupted, nor requires any external agency, unlike every other electronic transaction exchange. Its actually quite fascinating and a great place to look into crypto and how it "works".
Cryptos are widely divisible.
All cryptos can be expressed as a percentage of 1 unit. Many are divisible by many decimal places. It is not only accurate, but makes it a very fluid medium of exchange. Any other wealth distribution or medium of exchange cannot be as easily divided. if you look at world economies that spiral is usually and inflationary upward movement of units of exchange (Venezuela is perfect example). In theory this suggests greater ease and potentially more stability, as demand increases the divisibility can be accommodated. Large one off or seemingly endless micro transactions are catered for. No other exchange medium can do this on a practical level.
Some cryptos are backed by large companies/corporations/entities.
Read up on some of the owners and investors in crypto. These are not some shady outying fly by night entities, theres some big money and big ideas locked in to particular offerings. Here the units can make a case for shares/stocks parallels, and as advances in the tech and use become available cryptos may eclipse their volatility and level out as a reflection similar to stock/share values.
Cryptos drive innovation.
Even a casual glance will show you that tech and cryptos are intertwined and as time goes on this may become even more so, where not only will cryptos be dependant on tech, but tech will be dependant on cryptos. The most accurate way I can say that is both cryptos and tech will be heavily reliant on blockchain. We are already seeing states looking at blockchain, thankfully the genie was out of the bottle before they knew about it!
So lets look at some drawbacks of crypto.
The price of Cryptos and Market Cap rises and falls constantly.
So its a 50/50 proposition here. There is risk as trades can indeed loose value, and trades can increase in value (per unit). Think of exchanging like this as like the stockmarket/sharemarket. If you are astute and able to transact fluidly enough there are real gains (and losses) that can be achieved. This does however cause it to be less like a wealth store.
Cryptos require "power" to run.
No getting around it, blockchain needs large amounts of electricity and arguable computing processing power to enable it to function. And this is set to continue. It couls also be argued that fluctuations in value or price of units may influenced by power inputs required to obtain units as a reward for verification. The big unkown here is what supports the transaction blockchain once all crypto has been sourced? Its an interesting question and as time goes on this will need to be addressed.
Crypto storage can be unsecure.
When we think of gold we think of places like Fort Knox. Aint nobody getting in there. There are very notable examples of Cryptos being "stolen" and I expect this will continue. Although blockchain is secure, storage is not and depending on the type of storage you use, risks of security are present. Unfortunately there are no Fort Knox crypto storages, and although there are advances in storage security, there is always the chance that your crypto units could be lost or stolen. I would urge you proactively research storage and observe prudent practice to keep your crypto as safe as possible. As a rule, I have ensured percentages are stored differently for "live" trading, holdings, and regular convert to cash or fiat holdings. although not risk free, safeguarding your crypto holdings helps prevent losing them. And by the way, as mentioned earlier, when they are gone, they are gone, almost certainly without any recourse to recover them.
Cryptos are still evolving.
No one can say for sure what collectively or individually these cryptos will look like or direction they are taking. The points of difference in each one is staggering, the inception ideas present in their formation are vastly differing. As we have seen some fluidity of purpose purely in our economic understanding of cryptos, so it will be with the true purpose and direction of individual cryptos. Its my belief you have to remain more objective when assessing a crypto than to view them through traditional paradigms.
Crypto and anonymity.
Unfortuanately although transactions don't require your personal details, trading platforms and the government do. Sadly what is an almost beautiful construct has the hard cage of governmental influence imposing its will upon it. Im not sure where its all headed but as the government wants you to remain transparent in your dealings I think its fair to say its unlikely they will let this not result in the cat being stuffed back in the bag. I have to concede that with metadata collection it seems that at least with any run of the mill interactions with crypto it will still be your duty to declare your interest. The big hand of government is still outstretched to grab its slice of the pie. Others with a greater legal understanding than mine can argue if you should or shouldn't declare your interest or interactions, but they have made it pretty clear that they are watching this space and believe it to be within their scope to lawfully do so.
So Crypto vs Gold.
Well its really like comparing computers and earthworms. As entities they are so intrinsically different its hard to find the accurate way to compare, and is precisely why I'm put off when the comparison is drawn, or as is more commonly done, Cryptos dismissed. I do think however crypto can put its case forward. Its secure, divisible, highly transactable, requires very small storage, and easily obtained, in fact is actually mineable if we want to take it to the extreme. However the drawbacks in crypto might further serve to underline why gold is more unique, than perhaps the other way around. Gold, as a store of wealth, on balance probably is better at that purpose than crypto in its current form can be used.
I kind of feel like this summary is clunky, and a devolved version of my understanding, but that's what a summary is likely to be. Hopefully I will find some time to explain the steps on not only how to trade crypto in practical terms, but also my strategy which is based on wealth accumulation. Its not easy, but easy to follow. Again I look forward to any critique or contribution in that piece.
Cheers.
Obviously I'd like to have some sort of constructive conversation around cryptos and investment. Most of my contributions are in Crypto Mega thread. But if the chain gets yanked enough I'll sit down and type out the pros and cons and do write up in a balanced way about cryptos vs hedges vs other mainstream investments and the people can draw their own conclusion.
For anyone fair dinkum about learning something new, diversifying, or perhaps understanding a little more about numbers, figures and returns I'll put my heart into a serious attempt to explain my views and strategies. All I'm asking is for the intimation that those investors in cryptos get a balanced hearing. I have not heard one single considered argument against it, just digested Web based regurgitation of white noise.
This from the Bitcoin insanity thread. As promised I will try an attempt to put some information up here so that curious folk can make a fair assessment. I will attempt also to give some thought to Crypto vs gold discussion. I will also take public entries into dissecting what I write, I have a tough hide.
So where to start? As this a gold forum I think some of the comparisons of Gold and Crypto is a fair beginning. Essentially both or neither may be well placed to become part of your strategy in wealth/asset accumulation and so lets look at these side by side.
Gold. As you can read in many places here Gold has been a traditional store of value, a criticism that's levelled at Crypto quite frequently. For 1000s of years Gold has been globally recognised as a place to safely store value. In an examination of this, without getting too deep, this inherently makes perfect sense. The number one reason (for me at least) is the fact that it has an almost unique property to be inert. As opposed to say cash it will not detoriate of its own accord over time. In this assessment too we can easily point to the secondary characteristic that gold does not take much room to store. Even large amounts of intrisitic value are stored in a very small surface area, you need only think of the equivalent value of a one kilo bar in todays spot market to get a sense of this. So here we have a robust item that can be stored that isd quite small relative to value.
The next aspect is its scarcity. There is a finite volume of gold in the world (save for extra terrestrial gathering or transmutation both of which appear uneconomical at this stage in history) and this has held true in our past, perhaps even more so than today. True that mining does occur, and the greater amount is added per year to the overall recovered amount, but so it remains there is a finite supply. A wealth store with scarcity creates a demand, which in turn, further secures it as a reliable wealth store.
Gold is also seldom used for alternative purposes. Yes we can account for jewellery as a stable and alternative use, but there is a very low demand on gold for alternate purpose. It is unlikely that any use of gold we have is likely to be mass adopted creating a large volume of the material being used as something other than a store of value. Electronics and space exploration are two very small areas that pull gold from "circulation" where the gold used remains unrecoverable from the wealth store purpose, and both a very unlikely to make any further impression in this manner than currently so. Technology and production does not require Gold as a product, and remains unlikely due to a host of reasons to change this.
Gold is secure. A great deal of gold is locked away very securely and accounted for. (Forgive me if I don't go down the rabbit hole of fake gold stores). There are large examples of gold held by many entities in secure places and positions. The fact large amounts are unlikely to disappear quickly and reemerge on the market disrupting the accepted trading of gold is another reason Gold is seen (overall) as secure.
Overall the future looks quite bright for Gold until we examine some of its characteristics that become difficult to consider it as anything other than a "store" of wealth. Essentially as robust as gold is it has some downside.
Gold is not easily transported. Fact. Sure gold can be traded in physical form quite readily between those within a small locale, but transporting large amounts (and to a lesser degree much smaller amounts) of physical gold between countries and origins is becoming increasingly more difficult. The most common method of gold transfer relies on the old system of granting promissory notes as mediums of exchange, rather than physical gold transfers simply because of the logistical difficulties. Inherently though this does raise some questions around the validity of transfers (another rabbit hole we shall side step).
Also gold is quite difficult to divide physically. For those that smelt you will soon recognise at least one of the issues with gold is melt loss. Sure it can be rolled out and cut, but the process is cumbersome and to be honest a little antiquated. Essentially the last to drawbacks have been offset somewhat by the rise of paper money, and coin mintage, thus allowing a medium of exchange that did not require division of physical gold. Civilisation has essentially adopted the practice that is inherently easier to administer, and makes dissemination of wealth much simpler.
Gold is a poor motivator. Now we come to my personal examination or observation if you will. Its fine if you think my view is not objective enough or flawed. Gold rarely (with the exception of mining or in the 1800s caused mass migration) a great motivator. Gold does not contribute anything to the advancement of a civilisation. You could argue its accumulation by a state entity may make it more powerful and give rise to greater control of people power, but aside from this is see nothing that gold creates that it hasn't already. Its only in realising its value that it does anything. Reread that statement and let it sink in. Having a gold store creates nothing, and in fact if you look at gold over a long period you will see that its ability to be robust as a store of wealth leads to it not having any real growth or interest attached to it. To clarify if I have land I can produce something, it has a viability that gold can never have. Other than perhaps art (I tend to think of religious art in particular) or adornment there is no practical use for the adding in of gold that enhances something. Gold wont make my computer faster, or build me a better rail network. There is so little scope for "using" gold that my argument is simply it is a poor motivator.
So we move on to Cryptos.
Perhaps it is best to start broadly as the reality is there is more than 1000 available types created for a multitude of reasons, so begin lets streamline this summary a little with some generalisations before we expand our understanding. Cryptocurrency it could be argued are really very unique. It takes a little more than slapping a label on cryptos because their nature is different from everything that has come before. In classing them as assets, wealth stores, currencies, stocks or technology only we devalue what they are, as a general rule they are all but none of those things, as we observe them on a very small timescale and attempt to catagogorize them before they have had a chance to evolve. They are a representation of a new idea, or more correctly, the manisfestation of an idea that fits quite well in the evolution of our culture.
When bitcoin was first dreamt up the germ of the idea was to bring into being a medium of exchange that was reliable, acessable, finite, transparent, uncorruptable and required no centralised authority to oversee its exchanges/transactions. It was to be a utopian medium that sort to put those that wanted to exchange in a position to anonomously and securely pass payment through encrypted means regardless of location. This, historically, had never existed, never thought of and prior to its inception, never possible. What bitcoin did was to take a leap into a frontier that had never been attempted. This essentially is why cryptocurrency is utterly unique. So with that in mind lets look at what properties crypto has.
Cryptos are easily accessed. I wont go into how to exchange/buy cryptos just yet, but basically if you have a computer, and a connection you can access them.
Cryptos are finite. Without going into detail, all cryptos are designed to be finite. Details of the numbers are easily obtained, including how many are "live" and how many are to be realised (and with timeframes). There is a caveat here, hard-forks have and probably will be observed, the splitting of cryptos is possible these are announced prior to an event, and again is unique to cryptos. Basically though if you hold one type and it splits you do end up with equal shares of the "old" and the "new" post fork. This is tricky to summarise and I urge all those wanting to "trade" in cryptos to understand what this means exactly. Also if a crypto is "lost" by a user it cant be replaced. If you lose the information that you stored to verify you are in possession of it unless you recover it then its gone forever, more on this later. Therefore cryptos take on one aspect of a wealth store as they are finite.
Cryptos can be traded for real returns, ie. returned to real fiat currency or used for goods and services
You aren't locked into what you hold, mostly its a very easy and simple process to trade your crypto back into fiat. As with stocks you will require a trading platform and settle on an agreed price subject to the crypto "market price" but its straightforward. Cryptos can be easily traded peer to peer through the exchange of storage devices (like cash), or through collection points that accept crypto.Think of it like Paypal if you will. Many businesses accept crypto and the numbers get bigger over time, all over the world. This is lending itself toward the "cash" or "currency" status.
Simarly if held in a wallet its almost limtless the amount you can hold. a wallet may contain many millions of dollars or a few cents, but until its accessed electronically it is impossible to verify what is actually contained within it. if verified a wallet could potentially be exchanged with anyone, for any reason. This lends itself to the "wealth store" side, and much much less cumbersome than gold. Its a hugely understated advantage.
Cryptos are secure.
Basically all electronic transactions (passing one from one entity to another) is completely secure. And not like your banks encryption secure, 100% secure. It cannot be hacked or left unverified. It has to pass through many links (blockchain) to be "verified" and once done the exchange is made. Completely unique in this world. Not only that but completely decentralised. the verification comes from a number of different parties or places if you will to verify the transaction. It simply cannot be corrupted, nor requires any external agency, unlike every other electronic transaction exchange. Its actually quite fascinating and a great place to look into crypto and how it "works".
Cryptos are widely divisible.
All cryptos can be expressed as a percentage of 1 unit. Many are divisible by many decimal places. It is not only accurate, but makes it a very fluid medium of exchange. Any other wealth distribution or medium of exchange cannot be as easily divided. if you look at world economies that spiral is usually and inflationary upward movement of units of exchange (Venezuela is perfect example). In theory this suggests greater ease and potentially more stability, as demand increases the divisibility can be accommodated. Large one off or seemingly endless micro transactions are catered for. No other exchange medium can do this on a practical level.
Some cryptos are backed by large companies/corporations/entities.
Read up on some of the owners and investors in crypto. These are not some shady outying fly by night entities, theres some big money and big ideas locked in to particular offerings. Here the units can make a case for shares/stocks parallels, and as advances in the tech and use become available cryptos may eclipse their volatility and level out as a reflection similar to stock/share values.
Cryptos drive innovation.
Even a casual glance will show you that tech and cryptos are intertwined and as time goes on this may become even more so, where not only will cryptos be dependant on tech, but tech will be dependant on cryptos. The most accurate way I can say that is both cryptos and tech will be heavily reliant on blockchain. We are already seeing states looking at blockchain, thankfully the genie was out of the bottle before they knew about it!
So lets look at some drawbacks of crypto.
The price of Cryptos and Market Cap rises and falls constantly.
So its a 50/50 proposition here. There is risk as trades can indeed loose value, and trades can increase in value (per unit). Think of exchanging like this as like the stockmarket/sharemarket. If you are astute and able to transact fluidly enough there are real gains (and losses) that can be achieved. This does however cause it to be less like a wealth store.
Cryptos require "power" to run.
No getting around it, blockchain needs large amounts of electricity and arguable computing processing power to enable it to function. And this is set to continue. It couls also be argued that fluctuations in value or price of units may influenced by power inputs required to obtain units as a reward for verification. The big unkown here is what supports the transaction blockchain once all crypto has been sourced? Its an interesting question and as time goes on this will need to be addressed.
Crypto storage can be unsecure.
When we think of gold we think of places like Fort Knox. Aint nobody getting in there. There are very notable examples of Cryptos being "stolen" and I expect this will continue. Although blockchain is secure, storage is not and depending on the type of storage you use, risks of security are present. Unfortunately there are no Fort Knox crypto storages, and although there are advances in storage security, there is always the chance that your crypto units could be lost or stolen. I would urge you proactively research storage and observe prudent practice to keep your crypto as safe as possible. As a rule, I have ensured percentages are stored differently for "live" trading, holdings, and regular convert to cash or fiat holdings. although not risk free, safeguarding your crypto holdings helps prevent losing them. And by the way, as mentioned earlier, when they are gone, they are gone, almost certainly without any recourse to recover them.
Cryptos are still evolving.
No one can say for sure what collectively or individually these cryptos will look like or direction they are taking. The points of difference in each one is staggering, the inception ideas present in their formation are vastly differing. As we have seen some fluidity of purpose purely in our economic understanding of cryptos, so it will be with the true purpose and direction of individual cryptos. Its my belief you have to remain more objective when assessing a crypto than to view them through traditional paradigms.
Crypto and anonymity.
Unfortuanately although transactions don't require your personal details, trading platforms and the government do. Sadly what is an almost beautiful construct has the hard cage of governmental influence imposing its will upon it. Im not sure where its all headed but as the government wants you to remain transparent in your dealings I think its fair to say its unlikely they will let this not result in the cat being stuffed back in the bag. I have to concede that with metadata collection it seems that at least with any run of the mill interactions with crypto it will still be your duty to declare your interest. The big hand of government is still outstretched to grab its slice of the pie. Others with a greater legal understanding than mine can argue if you should or shouldn't declare your interest or interactions, but they have made it pretty clear that they are watching this space and believe it to be within their scope to lawfully do so.
So Crypto vs Gold.
Well its really like comparing computers and earthworms. As entities they are so intrinsically different its hard to find the accurate way to compare, and is precisely why I'm put off when the comparison is drawn, or as is more commonly done, Cryptos dismissed. I do think however crypto can put its case forward. Its secure, divisible, highly transactable, requires very small storage, and easily obtained, in fact is actually mineable if we want to take it to the extreme. However the drawbacks in crypto might further serve to underline why gold is more unique, than perhaps the other way around. Gold, as a store of wealth, on balance probably is better at that purpose than crypto in its current form can be used.
I kind of feel like this summary is clunky, and a devolved version of my understanding, but that's what a summary is likely to be. Hopefully I will find some time to explain the steps on not only how to trade crypto in practical terms, but also my strategy which is based on wealth accumulation. Its not easy, but easy to follow. Again I look forward to any critique or contribution in that piece.
Cheers.
dude that is much longer than my attention span :8 :8
Goldtarget
(AKA OldGT)
just getting warmed up matectxkid said:
Cabin fever OldGT? :lol:
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Good post and thank you for putting in the effort.
Goldtarget
(AKA OldGT)
mbasko said:
Well I had a couple free hours lol. I was sort of thinking if I'm going to express my involvement that my actions were based somewhat on considered thinking. It's a bit of a mess reading it over, I was working on other things at the time, but maybe it was worth it.
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Hell of an effort to compose all that , so well done !
As you know I'm not a fan of todays dream time crypto's but could be more open the the Gold backed cryptocurrency's .
See here for the list : http://www.goldscape.net/gold-blog/gold-backed-cryptocurrency/
As you know I'm not a fan of todays dream time crypto's but could be more open the the Gold backed cryptocurrency's .
See here for the list : http://www.goldscape.net/gold-blog/gold-backed-cryptocurrency/
DropBear
Tim
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You don't need an exchange to buy crypto.
Just come to our coffee shop and buy using my Crypto ATM , just need cash to purchase and a smart phone.
You can even buy a meal , coffee and drinks from us using crypto.
Outback , don't go near those Gold backed crypto's, don't waste your dough. Just buy crypto and convert back and forth in bullion for safe hedges and potential gains using these guys. https://www.ainsliewealth.com.au/
Just come to our coffee shop and buy using my Crypto ATM , just need cash to purchase and a smart phone.
You can even buy a meal , coffee and drinks from us using crypto.
Outback , don't go near those Gold backed crypto's, don't waste your dough. Just buy crypto and convert back and forth in bullion for safe hedges and potential gains using these guys. https://www.ainsliewealth.com.au/
