Is it too soon to talk about Crypto yet?

[MinnesotaEric]

Actually, retail isn't really participating in this rally because they think they've missed the boat.

CZ got caught up in the out-going administration's "I hate Crypto" policy which didn't define anything the industry asked about and inforced "rules" nobody knew about because they were not made clear in the first place. Eventually Greyscale won court cases and the SEC had to reverse calling crypto "securities" which had forced retail investors out of USA-based exchanges. Worse, now through X we're finding out the SEC was pretty much directed to do lawfare by Senator Warren and bureaucratic appointees within the SEC (The Consumer Financial Protection Bureau was a monster created by Senator Elizabeth Warren through the Obama Administration and amounted to a regulatory & lawfare bureau to sue dissenters into submission).

So the big bump up was after 4-years of unclear, hostile regulation coming at the the crypto industry being lifted (and what really hurt is a bunch of these companies are USA-based and were under pressure from regulators who weren't defining their rules while delisting their crypto from American exchanges through Wells Notices). Now we have the most pro-crypto administration coming into office and a refreshing change of winds coming from the SEC.

Anyway, CZ went to jail because he allowed US citizens to trade unregulated "securities" by the SEC who was forced through the courts to reverse their positions, and suddenly we're getting all kinds of different US-based crypto ETFs for domestic and foreign investors.

 

[MinnesotaEric]

Web3 is Going Just Great is a great source. Very well researched.

I don't see any Cardano scams on that site. That site also needs a search feature.

I will say this, the guy who most recently lost his $BTC though a Ledger hardware wallet apparently signed a phishing contract six months before he realized his wallet had been drained. Even more reason to put Bitcoin contracts on the Cardano chain (according to @IOHK_Charles proper security and privacy is coming to native Bitcoin users).

That said, given your other post, it sounds like you're coming down on the coming "apocalypse."

 

[OffgridTractor]

Carry $100,000 in currency, metals, or diamonds through an airport.

While you could be robbed, you'll get caught with it and they will confiscate it because they assume you're up to "no good."

I can carry $100K in Bitcoin on a thumb drive and without the key phrase, even I cannot get at it.

Try to send me $100,000, immediately.

Your bank had better have a Medallion Bond.

There will be a waiting period.

I can send $100K of Bitcoin in ten minutes to anybody on the internet.

Store your wealth long term.

Real estate has maintenance and carrying costs and has depreciated against the value of Bitcoin.

Fiat currencies dilute themselves as sovereign debt accumulates. The last twenty years has halved the value of the US dollar. You've been collecting interest? well, your actual buying power has halved (minus 50%) over the last 20 years.

Invest in metals? Not as bad as holding cash, but the buying power of Gold is negative 5% a year because the value of gold has not kept up with inflation because as the price goes up, people are incentivized to go dig more of it up.

Since its inception, Bitcoin is up 149% per year with compounding interest and the total amount of Bitcoin is fixed.

Sure, ok. 149% of what? Sounds like a bubble. Still no value for anything

I needed to send $100k of anything in 10 minutes on the spot, I'd be questioning my judgement.

Buying BTC right now would be very poor economics indeed, as it's as high as it's ever been. Buy low.

 

[MinnesotaEric]

Sure, ok. 149% of what? Sounds like a bubble. Still no value for anything

I needed to send $100k of anything in 10 minutes on the spot, I'd be questioning my judgement.

Buying BTC right now would be very poor economics indeed, as it's as high as it's ever been. Buy low.

Well, on chain Bitcoin transactions continue to trend upward and everybody gets Bitcoin at the price they deserve. Here is page one of the draft for the next Administration establishing a Bitcoin Reserve (on the campaign trail, it was called a Bitcoin Stockpile much like our fuel and oil stockpiles). Think about Bitcoin becoming a nation state reserve asset and work from there. Game theory will definitely be in play. If we're right about this in 5 years everybody will be looking back on this time period and think to themselves that the signs were so obvious. It'll be like November 2022 After FTX's crash and retail investors could see the writing on the wall with the court cases and front run the inevitable commercial adaption of Bitcoin except now we all get to front-run the national adoption of Bitcoin as a reserve asset to bolster the value of fiat currencies and deter national debt.

 

[Fuddyduddy1952]

"Since Bitcoin does not have any particular central authority, the government could just require every node that operates in the U.S. to have a license, effectively rendering the use of Bitcoin illegal since presumably most individuals would be incapable of going through such an arduous process."
Computer Science › Bitcoins › r..
There is fear of the executive order leaning towards a cashless society, some say unfounded, but it's still just ethereal. I agree with Warren Buffet, he's been around a long time and another president could overturn Executive order 14067.
It stinks...but that's me.

 

[drssg]

A couple of years ago, processing one Bitcoin transaction required enough electricity to power an average US household for 48 days. I don't know the current data.

I see no way that there is that much business value. People complain about the big evil credit card companies charging 3.5%, and they provide fraud protection services.

IMO, the vast percentage of Bitcoin owners are not using it as an alternate currency. It is a high-risk investment. When it makes money, it's because a lot of people buying it, because they think it will make money. I don't see a legitimate underlying product.

How Much Energy It Takes to Power Bitcoin

The creation of bitcoin, and any transactions involving it, require energy. Find out how much energy the bitcoin network consumes every year.

www.thebalancemoney.com

 

[MinnesotaEric]

A couple of years ago, processing one Bitcoin transaction required enough electricity to power an average US household for 48 days. I don't know the current data.

I see no way that there is that much business value. People complain about the big evil credit card companies charging 3.5%, and they provide fraud protection services.

IMO, the vast percentage of Bitcoin owners are not using it as an alternate currency. It is a high-risk investment. When it makes money, it's because a lot of people buying it, because they think it will make money. I don't see a legitimate underlying product.

How Much Energy It Takes to Power Bitcoin

The creation of bitcoin, and any transactions involving it, require energy. Find out how much energy the bitcoin network consumes every year.

www.thebalancemoney.com

The price swings are a FEATURE, not a detriment. Last week Bitcoin traded a little over $108,000, when Bitcoin dropped below $100K, it became a feature.

While most people don't know this, most power made is wasted so having a constant load from miners helps the power companies. Forbes explains how it works in Germany at this link and how it works in Texas at this link. This link at EE Power looks at case studies of Bitcoin miners stabilizing grid power demands. The following video explains how Bitcoin miners stabilize energy grids.

 

[rumwrks]

When it makes money, it's because a lot of people buying it, because they think it will make money.

Moreso it's Tether dumping fake printed dollarooo like substances into the ecosystem to pump the value so the whales can dump on the chumps. How you can have over 100 billion in vaporware.. boggles my mind. I shoulda been a criminal.

In before "tether is fully backed", if that's true why haven't they ever had a real audit and keep side skipping the issue (and no their "attestation" is not an audit plus there were non trivial conflicts of interest there).

 

[paulsharvey]

Ok, so Bitcoin (and similar) people often miss the point. Its not really meant as an investment, but a means of transaction. Look at El Salvador; they moved to it because it saves readmitted money without the added fees from Western Union and other wire services, allowing something like an extra 7% of their people's money in.

 

[paulsharvey]

The El Salvador example is good, because it shows some potential, along with some if the problems. Looks like only 1.4% of readmittances are in Bitcoin, while Mexico is closer to 4%. There was issues with the coin wallet app, which hurt the effort, but it still is a legit way to move money nearly instantly across boarders.