Cryptocurrency - Bitcoin Continues to Soar!
Re: Cryptocurrency - Bitcoin Continues to Soar!
good read here for those less familiar with bitcoin but interested to learn more: https://vijayboyapati.medium.com/the-bu ... ecc8bdecc1
S&P 500 + Bitcoin
Re: Cryptocurrency - Bitcoin Continues to Soar!
The Forbes quotation to which you refer does not contain a link to the underlying study, but instead states that the statistic about 707.6 kwh comes from a company called "Digiconimist." I found Digiconimist's web page, and they appear to be in the business of (or at least contain advertisements for companies that are in the business of) selling carbon "offsets" to "offset" the purported energy consumption of bitcoin transactions. In other words, Digiconimist makes money by persuading people that bitcoin transactions consume a tremendous amount of energy.
WhyNotUs wrote: ↑Sun Mar 14, 2021 9:17 am"A single bitcoin transaction uses roughly 707.6 kilowatt-hours of electrical energy–equivalent to the power consumed by an average U.S. household over 24 days, according to Digiconomist. On a yearly basis, bitcoin consumes more energy than all but 38 countries, falling in line with countries like Finland, Chile and Austria."matt1882 wrote: ↑Sat Mar 13, 2021 7:46 pmthe relevant questions are what is the marginal cost, in terms of electricity, to process a single bitcoin transaction today (and in the indefinite future); and what is the marginal cost, in terms of electricity, to mine a single bitcoin today (and for the next 120 years)?
https://www.forbes.com/sites/jonathanpo ... ate-change
Re: Cryptocurrency - Bitcoin Continues to Soar!
I started rebalancing by selling some BTC around $50k. I had sells at $47k, $52k and then $49k in the dip there. I had not made a sale since I covered my cost basis in late 2017. I also sold some bits of other altcoins I have. Im in to crypto starting 2016 so my allocation is pretty high percentage of networth at the moment. Bitcoin could go to $20k though and I wouldn’t lose sleep. I have a pretty big sell target around $66k BTC.Aaand...it'sgone wrote: ↑Sat Mar 13, 2021 8:50 pm For those with a crypto allocation, are you rebalancing out of crypto as it grows, or letting it ride? I have a small crypto allocation (started as 1% of 'fun money'), and it's starting to outgrow it's allocation quite a bit (3% now).
My rebalancing is mostly into stablecoins though. Outside of maxxing taxadvantage investments, I don’t need cash for much else. Stablecoins add a really interesting diversification from my perspective. My return on my stablecoin portfolio for February was 16% annualized. This month it will be higher yet.
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Re: Cryptocurrency - Bitcoin Continues to Soar!
I think it's already too late to post a "NFT's Continue to Soar!" thread.Mindbender wrote: ↑Sun Mar 14, 2021 9:51 amThis puzzles me. Are you aware of how bitcoin exists on the blockchain? Your bitcoin is one of the most unique things in existence. Just wait until you hear about non fungible tokens.FIREyourself wrote: ↑Sat Mar 13, 2021 8:13 pmAt least those pieces of cardboard are unique. Can't even say that about Bitcoin.
Index ETF's 45% |ARK Funds 30% | AAPL 5% | TSLA 4% | GOOGL 2% | AMZN 1.3% |Other stocks 4.5% | BTC/ETH 9% |
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Re: Cryptocurrency - Bitcoin Continues to Soar!
At the beginning of the year I did some calculations on when Bitcoin would need to break thresholds to make 100k by end of the year.
It was either June or August to hit 60k.
Nothing is straight line about this, and past doesn't mean much, but 100k now seems far more likely than a few weeks ago.
A price of $250,000 by December almost seems possible at this point.
The daily rate of return seems to be about 1% per day.
If that continues for another 3 quarters... yikes.
It was either June or August to hit 60k.
Nothing is straight line about this, and past doesn't mean much, but 100k now seems far more likely than a few weeks ago.
A price of $250,000 by December almost seems possible at this point.
The daily rate of return seems to be about 1% per day.
If that continues for another 3 quarters... yikes.
Index ETF's 45% |ARK Funds 30% | AAPL 5% | TSLA 4% | GOOGL 2% | AMZN 1.3% |Other stocks 4.5% | BTC/ETH 9% |
Re: Cryptocurrency - Bitcoin Continues to Soar!
Can I ask you where do you stake your stablecoins to get 16% annualized returns? It seems many of the advertised APYs are highly variable, jumping from >30% to 0% in a matter of hours....ohboy! wrote: ↑Sun Mar 14, 2021 9:40 pm
My rebalancing is mostly into stablecoins though. Outside of maxxing taxadvantage investments, I don’t need cash for much else. Stablecoins add a really interesting diversification from my perspective. My return on my stablecoin portfolio for February was 16% annualized. This month it will be higher yet.
Re: Cryptocurrency - Bitcoin Continues to Soar!
And what’s going to be fun if those price targets are reached is going to be the ever increasing “Bitcoin is worthless” posts by Bogleheads (no offense to anyone). We’ve seen those ever since Bitcoin broke $20k.MinnGuyInvesting wrote: ↑Sun Mar 14, 2021 10:23 pm At the beginning of the year I did some calculations on when Bitcoin would need to break thresholds to make 100k by end of the year.
It was either June or August to hit 60k.
Nothing is straight line about this, and past doesn't mean much, but 100k now seems far more likely than a few weeks ago.
A price of $250,000 by December almost seems possible at this point.
The daily rate of return seems to be about 1% per day.
If that continues for another 3 quarters... yikes.
At $250k, as outlandish as that sounds, things will start to have reached “life-changing” territory for me and will need to start pondering retirement.
40% SPY | 10% stonks | 50% Cash
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Re: Cryptocurrency - Bitcoin Continues to Soar!
ohboy! wrote: ↑Sun Mar 14, 2021 9:40 pmI started rebalancing by selling some BTC around $50k. I had sells at $47k, $52k and then $49k in the dip there. I had not made a sale since I covered my cost basis in late 2017. I also sold some bits of other altcoins I have. Im in to crypto starting 2016 so my allocation is pretty high percentage of networth at the moment. Bitcoin could go to $20k though and I wouldn’t lose sleep. I have a pretty big sell target around $66k BTC.Aaand...it'sgone wrote: ↑Sat Mar 13, 2021 8:50 pm For those with a crypto allocation, are you rebalancing out of crypto as it grows, or letting it ride? I have a small crypto allocation (started as 1% of 'fun money'), and it's starting to outgrow it's allocation quite a bit (3% now).
My rebalancing is mostly into stablecoins though. Outside of maxxing taxadvantage investments, I don’t need cash for much else. Stablecoins add a really interesting diversification from my perspective. My return on my stablecoin portfolio for February was 16% annualized. This month it will be higher yet.
Im curious about this but when you say you had sells at those amounts, i assume you are selling a decent amount of btc at each level? Because some ppl could say they sold btc at different price points but it could be any amount... such as even 0.005 btc which wouldn't be that much. I assume you are selling a significant amount of btc at each level? Li
Re: Cryptocurrency - Bitcoin Continues to Soar!
Everywhere. For ease of use and a more consistent rate you might try Celsius or Blockfi. That’s been over 10% lately. I’m doing those but most of my yield is from Defi. You can get over 16% on Yearn for example. I haven’t checked their strategy lately but also Curve with rewards will be pretty high, that’s often what Yearn is using in part. Endless options really. Last week BDP was crazy yields for those with a perhaps higher risk tolerance. It only lasted a week but the yield was huge. As long as it’s above 6% it will be worth it from my perspective. Right now the opportunities are pretty great. As for volatility in rates that is just the current rate recalculated every block, you can dig around for past 7 or 30 days stats. Id recommend minimum of $10k to make the gas worthwhile with a 2 month time horizon. Im thinking shorter time periods and higher principal. The gas will hopefully be less of an issue within a month with Optimism.wmvink wrote: ↑Sun Mar 14, 2021 10:23 pmCan I ask you where do you stake your stablecoins to get 16% annualized returns? It seems many of the advertised APYs are highly variable, jumping from >30% to 0% in a matter of hours....ohboy! wrote: ↑Sun Mar 14, 2021 9:40 pm
My rebalancing is mostly into stablecoins though. Outside of maxxing taxadvantage investments, I don’t need cash for much else. Stablecoins add a really interesting diversification from my perspective. My return on my stablecoin portfolio for February was 16% annualized. This month it will be higher yet.
Re: Cryptocurrency - Bitcoin Continues to Soar!
I couldn't figure out how to invest in it initially, so bought BLCN in brokerage. Tried to use Ally and Chase both to fund one of the cryptocurrency apps but they denied me.....MinnGuyInvesting wrote: ↑Sat Mar 13, 2021 6:43 am Bitcoin reached a new high today, now trading at over $60k.
During the last down turn in the NASDAQ, Bitcoin held steady staying above $45k while NASDAQ was getting hammered. This last week it tickled the previous high around $57-58k, and broke through upside this morning.
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Re: Cryptocurrency - Bitcoin Continues to Soar!
Doesn't seem to go with it.TropikThunder wrote: ↑Sat Mar 13, 2021 5:28 pmNow read this sung to the tune of "I'd like to buy the world a Coke".SEAworld9 wrote: ↑Sat Mar 13, 2021 9:28 am people all over the world are buying bitcoin. it not just stimulus checks in the US driving price action. from russia to nigeria to china to india to countries in europe and south america and africa and so forth, people and institutions everywhere are all acquiring this same scarce asset.
Re: Cryptocurrency - Bitcoin Continues to Soar!
Trying to be constructive, so here goes. I have been doing it since 2013, and I sold enough BTC so that I have "enough" USD, for me and my family.Aaand...it'sgone wrote: ↑Sat Mar 13, 2021 8:50 pm For those with a crypto allocation, are you rebalancing out of crypto as it grows, or letting it ride? I have a small crypto allocation (started as 1% of 'fun money'), and it's starting to outgrow it's allocation quite a bit (3% now).
My allocation was 20% Crypto 3 years ago, then I adjusted to 33%, and now waiting 50% Crypto to 50% USD before I sell additional Crypto to balance. With Repo rates back to effectively 0.02% https://tradingeconomics.com/united-states/repo-rate and the Fed printing money again (Dem Pres, Rep Pres, Dem Pres, Fed never changes), it does not seem that crazy in terms of Crypto/BTC vs USD. And then I am a believer in the future of ETH as a practical solution on a number of levels. I view an investment in ETH as similar to investing in the beginning of the Power Grid - in the 1890's - https://power2switch.com/blog/how-elect ... index.html
And no, I don't think Central Banks are going away. The Fed and USA Assets are protected by the US Military, so I see Crypto as an alternative economy on both micro and macro levels that keeps Central Bankers a little more honest, maybe...
One man's opinion, and I have been wrong before. My wife remembers every time I was wrong
Re: Cryptocurrency - Bitcoin Continues to Soar!
I'm using Rari Capital. They automatically move money around (to Compound, AAVE, etc) to get the best yield from lending or by providing liquidity. An illustration of the many risks involved is here: https://www.notion.so/Capital-Allocatio ... 358e0a2464
Re: Cryptocurrency - Bitcoin Continues to Soar!
50% crypto is quite heavily weighted so I presume you believe strongly in the fundamentals of what crypto brings. What is your crypto allocation like, though? (as in %BTC/%ETH/%other stuff?)mws13 wrote: ↑Mon Mar 15, 2021 5:50 amTrying to be constructive, so here goes. I have been doing it since 2013, and I sold enough BTC so that I have "enough" USD, for me and my family.Aaand...it'sgone wrote: ↑Sat Mar 13, 2021 8:50 pm For those with a crypto allocation, are you rebalancing out of crypto as it grows, or letting it ride? I have a small crypto allocation (started as 1% of 'fun money'), and it's starting to outgrow it's allocation quite a bit (3% now).
My allocation was 20% Crypto 3 years ago, then I adjusted to 33%, and now waiting 50% Crypto to 50% USD before I sell additional Crypto to balance. With Repo rates back to effectively 0.02% https://tradingeconomics.com/united-states/repo-rate and the Fed printing money again (Dem Pres, Rep Pres, Dem Pres, Fed never changes), it does not seem that crazy in terms of Crypto/BTC vs USD. And then I am a believer in the future of ETH as a practical solution on a number of levels. I view an investment in ETH as similar to investing in the beginning of the Power Grid - in the 1890's - https://power2switch.com/blog/how-elect ... index.html
And no, I don't think Central Banks are going away. The Fed and USA Assets are protected by the US Military, so I see Crypto as an alternative economy on both micro and macro levels that keeps Central Bankers a little more honest, maybe...
One man's opinion, and I have been wrong before. My wife remembers every time I was wrong
I wanted to market weigh ETH but when I research further into it, I find that Ethereum is an incredibly ambitious project and they have done some amazing work so far. But with the move to 2.0 there are a LOT of challenges that lie ahead. I personally think that a lot of ETH price action right now is just money flowing into the system because of interest in Bitcoin. This shows from the fact that the ETH/BTC currency pair has been quite stable through this entire rise.
Anyway all this is just trying to make sense of a lot of crazy stuff going on, and in the end I wanted to market weigh ETH by selling some of my BTC to ETH but I could only go up to 5%. Curious about your thoughts and allocation.
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Re: Cryptocurrency - Bitcoin Continues to Soar!
That’s great but 10% allocations don’t move the needle much and you’d need to be extremely risk averse to put much more than that into crypto. If I wouldn’t be happy putting at least 20 - 30% of my allocation in its just not worth the extra hassle/taxes/loss of simplicity to me.
Re: Cryptocurrency - Bitcoin Continues to Soar!
I’m new to crypto but would like to invest a little bit of money. What should I buy in my taxable Schwab account that invests in bitcoins?
Re: Cryptocurrency - Bitcoin Continues to Soar!
What??minimalistmarc wrote: ↑Mon Mar 15, 2021 6:59 amThat’s great but 10% allocations don’t move the needle much and you’d need to be extremely risk averse to put much more than that into crypto. If I wouldn’t be happy putting at least 20 - 30% of my allocation in its just not worth the extra hassle/taxes/loss of simplicity to me.
10% allocation 12 months ago would have moved the needle substantially. Ethereum is up over 10x in 12 months. Bitcoin up 8x. My 10% allocation in crypto is life changing. Even a 2x move in 12 months will “move the needle.” Not to mention diversification.
Shoot my SO bought into Ethereum at $1300 two weeks ago, now $1800. Needles moving...
Re: Cryptocurrency - Bitcoin Continues to Soar!
Cryptofees.infoliksah wrote: ↑Mon Mar 15, 2021 6:50 am50% crypto is quite heavily weighted so I presume you believe strongly in the fundamentals of what crypto brings. What is your crypto allocation like, though? (as in %BTC/%ETH/%other stuff?)mws13 wrote: ↑Mon Mar 15, 2021 5:50 amTrying to be constructive, so here goes. I have been doing it since 2013, and I sold enough BTC so that I have "enough" USD, for me and my family.Aaand...it'sgone wrote: ↑Sat Mar 13, 2021 8:50 pm For those with a crypto allocation, are you rebalancing out of crypto as it grows, or letting it ride? I have a small crypto allocation (started as 1% of 'fun money'), and it's starting to outgrow it's allocation quite a bit (3% now).
My allocation was 20% Crypto 3 years ago, then I adjusted to 33%, and now waiting 50% Crypto to 50% USD before I sell additional Crypto to balance. With Repo rates back to effectively 0.02% https://tradingeconomics.com/united-states/repo-rate and the Fed printing money again (Dem Pres, Rep Pres, Dem Pres, Fed never changes), it does not seem that crazy in terms of Crypto/BTC vs USD. And then I am a believer in the future of ETH as a practical solution on a number of levels. I view an investment in ETH as similar to investing in the beginning of the Power Grid - in the 1890's - https://power2switch.com/blog/how-elect ... index.html
And no, I don't think Central Banks are going away. The Fed and USA Assets are protected by the US Military, so I see Crypto as an alternative economy on both micro and macro levels that keeps Central Bankers a little more honest, maybe...
One man's opinion, and I have been wrong before. My wife remembers every time I was wrong
I wanted to market weigh ETH but when I research further into it, I find that Ethereum is an incredibly ambitious project and they have done some amazing work so far. But with the move to 2.0 there are a LOT of challenges that lie ahead. I personally think that a lot of ETH price action right now is just money flowing into the system because of interest in Bitcoin. This shows from the fact that the ETH/BTC currency pair has been quite stable through this entire rise.
Anyway all this is just trying to make sense of a lot of crazy stuff going on, and in the end I wanted to market weigh ETH by selling some of my BTC to ETH but I could only go up to 5%. Curious about your thoughts and allocation.
All of the protocols in pink are on Ethereum. Ethereum is the prominent smart contract network. Decentralized finance is the biggest current use case. The network is so busy that a smart contract transaction costs $50-$100. And the applications are so useful people pay that price all day everyday. Within a month Optimism launches and will increase transactions exponentially while bringing costs down 100x. No longer will it be a minimum $10k to make a transaction worth it. Ethereum has many more reasons than Bitcoin to see value in it.
Re: Cryptocurrency - Bitcoin Continues to Soar!
I remember sitting in a bar back in 2015 or so, not knowing a thing about Bitcoin and Blockchain at the time. I was drinking a few beers and the guy next to me kept talking about it, saying it was the next big thing. I probably should have jumped in then. I still don't know much about it but probably wouldn't jump in now. That ship has sailed.
Re: Cryptocurrency - Bitcoin Continues to Soar!
I dont know man. A buddy was telling me to get into BTC since last March when it was like 4k. Same guy kept on telling me to get in when it was 25 k in Dec. I said the same thing - too late now. Well, here we are at 60 k. Same guy still says to get in now...I guess im the fool here !JD2775 wrote: ↑Mon Mar 15, 2021 10:25 am I remember sitting in a bar back in 2015 or so, not knowing a thing about Bitcoin and Blockchain at the time. I was drinking a few beers and the guy next to me kept talking about it, saying it was the next big thing. I probably should have jumped in then. I still don't know much about it but probably wouldn't jump in now. That ship has sailed.
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Re: Cryptocurrency - Bitcoin Continues to Soar!
Quick look I am seeing a BTC drawdown more than double that of NASDAQ...MinnGuyInvesting wrote: ↑Sat Mar 13, 2021 6:43 am
During the last down turn in the NASDAQ, Bitcoin held steady staying above $45k while NASDAQ was getting hammered. This last week it tickled the previous high around $57-58k, and broke through upside this morning.
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Re: Cryptocurrency - Bitcoin Continues to Soar!
Well, I imagine you can say the same thing about the stock market generally at any point of time. I started a taxable account in Jan/Feb 2020 and thought I'd really missed the stockmarket boat. Then saw everything plunge in Mar 2020 just one month later and thought I had the worst luck ever. Things look a lot brighter today....
Re: Cryptocurrency - Bitcoin Continues to Soar!
This isn’t gold or emerging market stocks, This is bitcoin. It makes a huge difference at only 5% of a portfolio.minimalistmarc wrote: ↑Mon Mar 15, 2021 6:59 amThat’s great but 10% allocations don’t move the needle much and you’d need to be extremely risk averse to put much more than that into crypto. If I wouldn’t be happy putting at least 20 - 30% of my allocation in its just not worth the extra hassle/taxes/loss of simplicity to me.
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Re: Cryptocurrency - Bitcoin Continues to Soar!
Ironic that [in general] the younger people are into Bitcoin and also the environment / climate change. I guess they don't see the conflict when they're making money
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Re: Cryptocurrency - Bitcoin Continues to Soar!
Ironic indeed. Although they can always donate proceeds to causes.
I have considered nibbling on the current tasty opportunity in tobacco stocks and wouldn't lose sleep over it. They don't need my capital (Altria distributes over 80% of it's earnings to shareholders), and if I get outsized returns I could always donate some of it to an anti-tobacco cause.
Re: Cryptocurrency - Bitcoin Continues to Soar!
I am surprised people in the West care about the environment with how wasteful their lifestyles are. There was a BBC article that showed we need 4 Earths if everyone lived like Americans and less than 1 Earth if everyone lived like Indians. The biggest danger to the environment is the fact that every Indian, Chinese and African would want to live like American not Bitcoin mining considering the consensus mechanism can be changed to Proof of Stake which doesn't waste energy for mining.
Land/Real Estate:89.4% (Land/RE is Inheritance which will be recieved in 10-20 years) Equities:7.6% Fixed Income:1.7% Gold:0.8% Cryptocurrency:0.5%
Re: Cryptocurrency - Bitcoin Continues to Soar!
Right. But I'd argue that purchasing/driving the price up of a tobacco stock, doesn't directly lead to more tobacco use.MotoTrojan wrote: ↑Mon Mar 15, 2021 11:36 amIronic indeed. Although they can always donate proceeds to causes.
I have considered nibbling on the current tasty opportunity in tobacco stocks and wouldn't lose sleep over it. They don't need my capital (Altria distributes over 80% of it's earnings to shareholders), and if I get outsized returns I could always donate some of it to an anti-tobacco cause.
Driving the price of Bitcoin up, leads to more mining, which is wasted electricity/resources for no good reason.
Watch - when someone wants to lower Bitcoin's price, you might see a concerted social media effort espousing the energy waste that mining of Bitcoin causes...
Re: Cryptocurrency - Bitcoin Continues to Soar!
Unfortunately the majority of the developing world does want to live like Americans. It is a problem the global community will be facing.Anon9001 wrote: ↑Mon Mar 15, 2021 11:47 amI am surprised people in the West care about the environment with how wasteful their lifestyles are. There was a BBC article that showed we need 4 Earths if everyone lived like Americans and less than 1 Earth if everyone lived like Indians. The biggest danger to the environment is the fact that every Indian, Chinese and African would want to live like American not Bitcoin mining considering the consensus mechanism can be changed to Proof of Stake which doesn't waste energy for mining.
Bitcoin mining does not help the environment, that much can be stated as a fact.
Re: Cryptocurrency - Bitcoin Continues to Soar!
Please find the anonymous person who created the system and ask them to change it to a low or no energy alternative.Anon9001 wrote: ↑Mon Mar 15, 2021 11:47 am I am surprised people in the West care about the environment with how wasteful their lifestyles are. There was a BBC article that showed we need 4 Earths if everyone lived like Americans and less than 1 Earth if everyone lived like Indians. The biggest danger to the environment is the fact that every Indian, Chinese and African would want to live like American not Bitcoin mining considering the consensus mechanism can be changed to Proof of Stake which doesn't waste energy for mining.
I own the next hot stock- VTSAX
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Re: Cryptocurrency - Bitcoin Continues to Soar!
All good points. It makes no sense to me, but the FOMO does get to me... Especially as a systematic value investor .surfstar wrote: ↑Mon Mar 15, 2021 11:51 amRight. But I'd argue that purchasing/driving the price up of a tobacco stock, doesn't directly lead to more tobacco use.MotoTrojan wrote: ↑Mon Mar 15, 2021 11:36 amIronic indeed. Although they can always donate proceeds to causes.
I have considered nibbling on the current tasty opportunity in tobacco stocks and wouldn't lose sleep over it. They don't need my capital (Altria distributes over 80% of it's earnings to shareholders), and if I get outsized returns I could always donate some of it to an anti-tobacco cause.
Driving the price of Bitcoin up, leads to more mining, which is wasted electricity/resources for no good reason.
Watch - when someone wants to lower Bitcoin's price, you might see a concerted social media effort espousing the energy waste that mining of Bitcoin causes...
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Re: Cryptocurrency - Bitcoin Continues to Soar!
There have been forks in major cryptos before. This is something that is voted on to my understanding, not something that requires the creator to alter.WhyNotUs wrote: ↑Mon Mar 15, 2021 11:54 amPlease find the anonymous person who created the system and ask them to change it to a low or no energy alternative.Anon9001 wrote: ↑Mon Mar 15, 2021 11:47 am I am surprised people in the West care about the environment with how wasteful their lifestyles are. There was a BBC article that showed we need 4 Earths if everyone lived like Americans and less than 1 Earth if everyone lived like Indians. The biggest danger to the environment is the fact that every Indian, Chinese and African would want to live like American not Bitcoin mining considering the consensus mechanism can be changed to Proof of Stake which doesn't waste energy for mining.
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Re: Cryptocurrency - Bitcoin Continues to Soar!
I can't think of the first time I heard about Bitcoin, but being in the IT field, I kick myself for not figuring out how to acquire some then.
I had a co-worker who was openly touting how he was buying and selling it a couple years back during the last rush, and I ignored it then.
Marketing people say it takes 7 times for people to hear about something to decide to buy in. It probably took me 7 times to really look into it and try to understand it before I got it enough to buy into it.
I think the issue is there is a lot people don't understand about it.
It's not something you can just read an article about and make a decision on.
It takes some intensive learning to get it, then more educating to start to understand the deeper layers of it.
When looking at it now, I wonder how bitcoin isn't trading at substantially higher numbers than it is, but you can't force the adoption. Just like any new technology, there is early adopters before the early majority.
Seems like we are in that area and probably will be for the next 3-4 years.
I had a co-worker who was openly touting how he was buying and selling it a couple years back during the last rush, and I ignored it then.
Marketing people say it takes 7 times for people to hear about something to decide to buy in. It probably took me 7 times to really look into it and try to understand it before I got it enough to buy into it.
I think the issue is there is a lot people don't understand about it.
It's not something you can just read an article about and make a decision on.
It takes some intensive learning to get it, then more educating to start to understand the deeper layers of it.
When looking at it now, I wonder how bitcoin isn't trading at substantially higher numbers than it is, but you can't force the adoption. Just like any new technology, there is early adopters before the early majority.
Seems like we are in that area and probably will be for the next 3-4 years.
Index ETF's 45% |ARK Funds 30% | AAPL 5% | TSLA 4% | GOOGL 2% | AMZN 1.3% |Other stocks 4.5% | BTC/ETH 9% |
Re: Cryptocurrency - Bitcoin Continues to Soar!
Yeah the FOMO is strong lately, which means I MO'd already, in my opinion. I can't see buying in now and have no reason to.MotoTrojan wrote: ↑Mon Mar 15, 2021 11:55 amAll good points. It makes no sense to me, but the FOMO does get to me... Especially as a systematic value investor .surfstar wrote: ↑Mon Mar 15, 2021 11:51 amRight. But I'd argue that purchasing/driving the price up of a tobacco stock, doesn't directly lead to more tobacco use.MotoTrojan wrote: ↑Mon Mar 15, 2021 11:36 amIronic indeed. Although they can always donate proceeds to causes.
I have considered nibbling on the current tasty opportunity in tobacco stocks and wouldn't lose sleep over it. They don't need my capital (Altria distributes over 80% of it's earnings to shareholders), and if I get outsized returns I could always donate some of it to an anti-tobacco cause.
Driving the price of Bitcoin up, leads to more mining, which is wasted electricity/resources for no good reason.
Watch - when someone wants to lower Bitcoin's price, you might see a concerted social media effort espousing the energy waste that mining of Bitcoin causes...
Re: Cryptocurrency - Bitcoin Continues to Soar!
FYI - The OP also has this thread: Cryptocurrency in Free Fall
Let's keep bitcoin trending to two threads.
Let's keep bitcoin trending to two threads.
Re: Cryptocurrency - Bitcoin Continues to Soar!
Somebody mentioned: "buy bitcoin directly". So what's the process to buy it directly? i.e. not on Coinbase etc. thanks!
Re: Cryptocurrency - Bitcoin Continues to Soar!
I see. Is there a way to hold it outside of cryptocurrency exchanges? otherwise one would be relying and trusting Coinbase and such and this defeats the purpose of bitcoin somewhat. thanks!
Re: Cryptocurrency - Bitcoin Continues to Soar!
ohboy! wrote: ↑Mon Mar 15, 2021 9:46 amCryptofees.infoliksah wrote: ↑Mon Mar 15, 2021 6:50 am50% crypto is quite heavily weighted so I presume you believe strongly in the fundamentals of what crypto brings. What is your crypto allocation like, though? (as in %BTC/%ETH/%other stuff?)mws13 wrote: ↑Mon Mar 15, 2021 5:50 amTrying to be constructive, so here goes. I have been doing it since 2013, and I sold enough BTC so that I have "enough" USD, for me and my family.Aaand...it'sgone wrote: ↑Sat Mar 13, 2021 8:50 pm For those with a crypto allocation, are you rebalancing out of crypto as it grows, or letting it ride? I have a small crypto allocation (started as 1% of 'fun money'), and it's starting to outgrow it's allocation quite a bit (3% now).
My allocation was 20% Crypto 3 years ago, then I adjusted to 33%, and now waiting 50% Crypto to 50% USD before I sell additional Crypto to balance. With Repo rates back to effectively 0.02% https://tradingeconomics.com/united-states/repo-rate and the Fed printing money again (Dem Pres, Rep Pres, Dem Pres, Fed never changes), it does not seem that crazy in terms of Crypto/BTC vs USD. And then I am a believer in the future of ETH as a practical solution on a number of levels. I view an investment in ETH as similar to investing in the beginning of the Power Grid - in the 1890's - https://power2switch.com/blog/how-elect ... index.html
And no, I don't think Central Banks are going away. The Fed and USA Assets are protected by the US Military, so I see Crypto as an alternative economy on both micro and macro levels that keeps Central Bankers a little more honest, maybe...
One man's opinion, and I have been wrong before. My wife remembers every time I was wrong
I wanted to market weigh ETH but when I research further into it, I find that Ethereum is an incredibly ambitious project and they have done some amazing work so far. But with the move to 2.0 there are a LOT of challenges that lie ahead. I personally think that a lot of ETH price action right now is just money flowing into the system because of interest in Bitcoin. This shows from the fact that the ETH/BTC currency pair has been quite stable through this entire rise.
Anyway all this is just trying to make sense of a lot of crazy stuff going on, and in the end I wanted to market weigh ETH by selling some of my BTC to ETH but I could only go up to 5%. Curious about your thoughts and allocation.
All of the protocols in pink are on Ethereum. Ethereum is the prominent smart contract network. Decentralized finance is the biggest current use case. The network is so busy that a smart contract transaction costs $50-$100. And the applications are so useful people pay that price all day everyday. Within a month Optimism launches and will increase transactions exponentially while bringing costs down 100x. No longer will it be a minimum $10k to make a transaction worth it. Ethereum has many more reasons than Bitcoin to see value in it.
I do see value in ethereum and all of DeFi. But how do I value ether? Why is ether valuable and why should it cost X?
I’m finding it really hard to answer this question. I understand ether is used for fees for compute power on the network, but why would it make sense to market weigh ether in a portfolio? Or even just expect its price to go up?
I can’t seem to wrap my head around this. There’s already 10x of ether as opposed to btc and that makes sense because it needs to be used for smart contracts etc.
But what’s the rationale in buying and holding ether? That part is confusing to me.
I get the store of value argument for btc and thus the rising price. But for ether I’m coming up blank.
Do you have any insight into this?
Re: Cryptocurrency - Bitcoin Continues to Soar!
You shouldn’t, buy directly if holding in taxable, gemini, coinbase, binance etc.
1 fund
Re: Cryptocurrency - Bitcoin Continues to Soar!
Yeah - you'd buy it from the exchange, then have sent to your "private wallet," such as a Ledger or Trezor.Ztx wrote: ↑Mon Mar 15, 2021 6:44 pmI see. Is there a way to hold it outside of cryptocurrency exchanges? otherwise one would be relying and trusting Coinbase and such and this defeats the purpose of bitcoin somewhat. thanks!
Re: Cryptocurrency - Bitcoin Continues to Soar!
If Bitcoin is "digital gold" (I like the "store of value" term better, but using the former for emphasis here), Ethereum is "digital oil", which enables operations of huge emerging Ethereum-based DeFi system's machinery. In terms of asset appreciation, whereas BTC price growth is largely based on the asset's scarcity (assuming relevant demand), ETH price growth is based on the asset's ability to produce cash flows (directly and indirectly). Just my 2c.liksah wrote: ↑Mon Mar 15, 2021 6:44 pmohboy! wrote: ↑Mon Mar 15, 2021 9:46 amCryptofees.infoliksah wrote: ↑Mon Mar 15, 2021 6:50 am50% crypto is quite heavily weighted so I presume you believe strongly in the fundamentals of what crypto brings. What is your crypto allocation like, though? (as in %BTC/%ETH/%other stuff?)mws13 wrote: ↑Mon Mar 15, 2021 5:50 amTrying to be constructive, so here goes. I have been doing it since 2013, and I sold enough BTC so that I have "enough" USD, for me and my family.Aaand...it'sgone wrote: ↑Sat Mar 13, 2021 8:50 pm For those with a crypto allocation, are you rebalancing out of crypto as it grows, or letting it ride? I have a small crypto allocation (started as 1% of 'fun money'), and it's starting to outgrow it's allocation quite a bit (3% now).
My allocation was 20% Crypto 3 years ago, then I adjusted to 33%, and now waiting 50% Crypto to 50% USD before I sell additional Crypto to balance. With Repo rates back to effectively 0.02% https://tradingeconomics.com/united-states/repo-rate and the Fed printing money again (Dem Pres, Rep Pres, Dem Pres, Fed never changes), it does not seem that crazy in terms of Crypto/BTC vs USD. And then I am a believer in the future of ETH as a practical solution on a number of levels. I view an investment in ETH as similar to investing in the beginning of the Power Grid - in the 1890's - https://power2switch.com/blog/how-elect ... index.html
And no, I don't think Central Banks are going away. The Fed and USA Assets are protected by the US Military, so I see Crypto as an alternative economy on both micro and macro levels that keeps Central Bankers a little more honest, maybe...
One man's opinion, and I have been wrong before. My wife remembers every time I was wrong
I wanted to market weigh ETH but when I research further into it, I find that Ethereum is an incredibly ambitious project and they have done some amazing work so far. But with the move to 2.0 there are a LOT of challenges that lie ahead. I personally think that a lot of ETH price action right now is just money flowing into the system because of interest in Bitcoin. This shows from the fact that the ETH/BTC currency pair has been quite stable through this entire rise.
Anyway all this is just trying to make sense of a lot of crazy stuff going on, and in the end I wanted to market weigh ETH by selling some of my BTC to ETH but I could only go up to 5%. Curious about your thoughts and allocation.
All of the protocols in pink are on Ethereum. Ethereum is the prominent smart contract network. Decentralized finance is the biggest current use case. The network is so busy that a smart contract transaction costs $50-$100. And the applications are so useful people pay that price all day everyday. Within a month Optimism launches and will increase transactions exponentially while bringing costs down 100x. No longer will it be a minimum $10k to make a transaction worth it. Ethereum has many more reasons than Bitcoin to see value in it.
I do see value in ethereum and all of DeFi. But how do I value ether? Why is ether valuable and why should it cost X?
I’m finding it really hard to answer this question. I understand ether is used for fees for compute power on the network, but why would it make sense to market weigh ether in a portfolio? Or even just expect its price to go up?
I can’t seem to wrap my head around this. There’s already 10x of ether as opposed to btc and that makes sense because it needs to be used for smart contracts etc.
But what’s the rationale in buying and holding ether? That part is confusing to me.
I get the store of value argument for btc and thus the rising price. But for ether I’m coming up blank.
Do you have any insight into this?
- jabberwockOG
- Posts: 3087
- Joined: Thu May 28, 2015 7:23 am
Re: Cryptocurrency - Bitcoin Continues to Soar!
Bitcoin is over. Get out before it's too late. Tulip bulbs are the next big thing. Get in before it's too late.
Re: Cryptocurrency - Bitcoin Continues to Soar!
How does it go? you can lead a horse to water but you can’t make them drink?liksah wrote: ↑Mon Mar 15, 2021 6:44 pmohboy! wrote: ↑Mon Mar 15, 2021 9:46 amCryptofees.infoliksah wrote: ↑Mon Mar 15, 2021 6:50 am50% crypto is quite heavily weighted so I presume you believe strongly in the fundamentals of what crypto brings. What is your crypto allocation like, though? (as in %BTC/%ETH/%other stuff?)mws13 wrote: ↑Mon Mar 15, 2021 5:50 amTrying to be constructive, so here goes. I have been doing it since 2013, and I sold enough BTC so that I have "enough" USD, for me and my family.Aaand...it'sgone wrote: ↑Sat Mar 13, 2021 8:50 pm For those with a crypto allocation, are you rebalancing out of crypto as it grows, or letting it ride? I have a small crypto allocation (started as 1% of 'fun money'), and it's starting to outgrow it's allocation quite a bit (3% now).
My allocation was 20% Crypto 3 years ago, then I adjusted to 33%, and now waiting 50% Crypto to 50% USD before I sell additional Crypto to balance. With Repo rates back to effectively 0.02% https://tradingeconomics.com/united-states/repo-rate and the Fed printing money again (Dem Pres, Rep Pres, Dem Pres, Fed never changes), it does not seem that crazy in terms of Crypto/BTC vs USD. And then I am a believer in the future of ETH as a practical solution on a number of levels. I view an investment in ETH as similar to investing in the beginning of the Power Grid - in the 1890's - https://power2switch.com/blog/how-elect ... index.html
And no, I don't think Central Banks are going away. The Fed and USA Assets are protected by the US Military, so I see Crypto as an alternative economy on both micro and macro levels that keeps Central Bankers a little more honest, maybe...
One man's opinion, and I have been wrong before. My wife remembers every time I was wrong
I wanted to market weigh ETH but when I research further into it, I find that Ethereum is an incredibly ambitious project and they have done some amazing work so far. But with the move to 2.0 there are a LOT of challenges that lie ahead. I personally think that a lot of ETH price action right now is just money flowing into the system because of interest in Bitcoin. This shows from the fact that the ETH/BTC currency pair has been quite stable through this entire rise.
Anyway all this is just trying to make sense of a lot of crazy stuff going on, and in the end I wanted to market weigh ETH by selling some of my BTC to ETH but I could only go up to 5%. Curious about your thoughts and allocation.
All of the protocols in pink are on Ethereum. Ethereum is the prominent smart contract network. Decentralized finance is the biggest current use case. The network is so busy that a smart contract transaction costs $50-$100. And the applications are so useful people pay that price all day everyday. Within a month Optimism launches and will increase transactions exponentially while bringing costs down 100x. No longer will it be a minimum $10k to make a transaction worth it. Ethereum has many more reasons than Bitcoin to see value in it.
I do see value in ethereum and all of DeFi. But how do I value ether? Why is ether valuable and why should it cost X?
I’m finding it really hard to answer this question. I understand ether is used for fees for compute power on the network, but why would it make sense to market weigh ether in a portfolio? Or even just expect its price to go up?
I can’t seem to wrap my head around this. There’s already 10x of ether as opposed to btc and that makes sense because it needs to be used for smart contracts etc.
But what’s the rationale in buying and holding ether? That part is confusing to me.
I get the store of value argument for btc and thus the rising price. But for ether I’m coming up blank.
Do you have any insight into this?
Re: Cryptocurrency - Bitcoin Continues to Soar!
Totally, all the folks saying Bitcoin has been a bubble for the past 1,3,5,10 years have finally been vindicated! Just check the returns yourself.jabberwockOG wrote: ↑Mon Mar 15, 2021 10:47 pm Bitcoin is over. Get out before it's too late. Tulip bulbs are the next big thing. Get in before it's too late.
1yr- 919%
3yr- 1,686%
5yr- 13,616%
10yr- 99,999,99%
YTD bonus: 90%
Re: Cryptocurrency - Bitcoin Continues to Soar!
Just imagine the 20yr return.
Between the idea And the reality...Between the motion And the act...Falls the Shadow - T. S. Eliot
- jabberwockOG
- Posts: 3087
- Joined: Thu May 28, 2015 7:23 am
Re: Cryptocurrency - Bitcoin Continues to Soar!
Kitkat76 wrote: ↑Tue Mar 16, 2021 1:10 amTotally, all the folks saying Bitcoin has been a bubble for the past 1,3,5,10 years have finally been vindicated! Just check the returns yourself.jabberwockOG wrote: ↑Mon Mar 15, 2021 10:47 pm Bitcoin is over. Get out before it's too late. Tulip bulbs are the next big thing. Get in before it's too late.
1yr- 919%
3yr- 1,686%
5yr- 13,616%
10yr- 99,999,99%
YTD bonus: 90%
Pump and Dump much? There must be more productive boards out there than Bogleheads to preach about FOMO on crypto and the best ever deluxe joys of becoming a gazillionaire in convenient digital investments. Better get some NFTs while you can.
Re: Cryptocurrency - Bitcoin Continues to Soar!
You would use a wallet. Here’s a summary of the more popular ones.Ztx wrote: ↑Mon Mar 15, 2021 6:44 pmI see. Is there a way to hold it outside of cryptocurrency exchanges? otherwise one would be relying and trusting Coinbase and such and this defeats the purpose of bitcoin somewhat. thanks!
https://youtu.be/Eod04JEyOV8
Remember when you wanted what you currently have?
Re: Cryptocurrency - Bitcoin Continues to Soar!
The problem I have with Bitcoin is that something shinier can came along and supplant it. Without artificial demand, like say taxes for government issued currency, it will always run the risk of becoming boring and stale. Precious metals have a tangibility to them that Bitcoin can never have. Of course, precious metals haven't returned 100,000,000% in 10 years.jabberwockOG wrote: ↑Tue Mar 16, 2021 7:40 amKitkat76 wrote: ↑Tue Mar 16, 2021 1:10 amTotally, all the folks saying Bitcoin has been a bubble for the past 1,3,5,10 years have finally been vindicated! Just check the returns yourself.jabberwockOG wrote: ↑Mon Mar 15, 2021 10:47 pm Bitcoin is over. Get out before it's too late. Tulip bulbs are the next big thing. Get in before it's too late.
1yr- 919%
3yr- 1,686%
5yr- 13,616%
10yr- 99,999,99%
YTD bonus: 90%
Pump and Dump much? There must be more productive boards out there than Bogleheads to preach about FOMO on crypto and the best ever deluxe joys of becoming a millionaire on digital investments. Better get some NFTs while you can.
Re: Cryptocurrency - Bitcoin Continues to Soar!
Ah I see, so now we have to resort to attacks about my own intelligence rather than make a case for it. Fine then, I asked. Mumble mumble *transaction fees* doesn't explain to me why an inflationary token should keep going up in value but alright.ohboy! wrote: ↑Tue Mar 16, 2021 12:26 amHow does it go? you can lead a horse to water but you can’t make them drink?liksah wrote: ↑Mon Mar 15, 2021 6:44 pmohboy! wrote: ↑Mon Mar 15, 2021 9:46 amCryptofees.infoliksah wrote: ↑Mon Mar 15, 2021 6:50 am50% crypto is quite heavily weighted so I presume you believe strongly in the fundamentals of what crypto brings. What is your crypto allocation like, though? (as in %BTC/%ETH/%other stuff?)mws13 wrote: ↑Mon Mar 15, 2021 5:50 am
Trying to be constructive, so here goes. I have been doing it since 2013, and I sold enough BTC so that I have "enough" USD, for me and my family.
My allocation was 20% Crypto 3 years ago, then I adjusted to 33%, and now waiting 50% Crypto to 50% USD before I sell additional Crypto to balance. With Repo rates back to effectively 0.02% https://tradingeconomics.com/united-states/repo-rate and the Fed printing money again (Dem Pres, Rep Pres, Dem Pres, Fed never changes), it does not seem that crazy in terms of Crypto/BTC vs USD. And then I am a believer in the future of ETH as a practical solution on a number of levels. I view an investment in ETH as similar to investing in the beginning of the Power Grid - in the 1890's - https://power2switch.com/blog/how-elect ... index.html
And no, I don't think Central Banks are going away. The Fed and USA Assets are protected by the US Military, so I see Crypto as an alternative economy on both micro and macro levels that keeps Central Bankers a little more honest, maybe...
One man's opinion, and I have been wrong before. My wife remembers every time I was wrong
I wanted to market weigh ETH but when I research further into it, I find that Ethereum is an incredibly ambitious project and they have done some amazing work so far. But with the move to 2.0 there are a LOT of challenges that lie ahead. I personally think that a lot of ETH price action right now is just money flowing into the system because of interest in Bitcoin. This shows from the fact that the ETH/BTC currency pair has been quite stable through this entire rise.
Anyway all this is just trying to make sense of a lot of crazy stuff going on, and in the end I wanted to market weigh ETH by selling some of my BTC to ETH but I could only go up to 5%. Curious about your thoughts and allocation.
All of the protocols in pink are on Ethereum. Ethereum is the prominent smart contract network. Decentralized finance is the biggest current use case. The network is so busy that a smart contract transaction costs $50-$100. And the applications are so useful people pay that price all day everyday. Within a month Optimism launches and will increase transactions exponentially while bringing costs down 100x. No longer will it be a minimum $10k to make a transaction worth it. Ethereum has many more reasons than Bitcoin to see value in it.
I do see value in ethereum and all of DeFi. But how do I value ether? Why is ether valuable and why should it cost X?
I’m finding it really hard to answer this question. I understand ether is used for fees for compute power on the network, but why would it make sense to market weigh ether in a portfolio? Or even just expect its price to go up?
I can’t seem to wrap my head around this. There’s already 10x of ether as opposed to btc and that makes sense because it needs to be used for smart contracts etc.
But what’s the rationale in buying and holding ether? That part is confusing to me.
I get the store of value argument for btc and thus the rising price. But for ether I’m coming up blank.
Do you have any insight into this?
If DeFi has to grow big then it's going to be on the back of low transaction fees and doing things better, which means the token shouldn't cost a lot. Thus wouldn't it be better for the network if Ether (and thus compute power on the decentralized network..) is cheaper and more smart contracts can be processed for better prices?