To use chat, please login.
Back to contacts

Reasons why you should NOT trade cryptocurrencies

johndoe2016
Dec 28 2017 at 08:21
58 posts
Matt, It's quite interesting that you spend so much time digging up 'dirt' on bitcoin and cryptocurrencies considering your public fx systems all fail.

So I don't understand what you are doing here? Why advocate for a failed system (fx)?

Or maybe your profitable fx systems are not public.

BluePanther (BluePanther)
Dec 28 2017 at 10:55
1344 posts
johndoe2016 posted:
Matt, It's quite interesting that you spend so much time digging up 'dirt' on bitcoin and cryptocurrencies considering your public fx systems all fail.

So I don't understand what you are doing here? Why advocate for a failed system (fx)?

Or maybe your profitable fx systems are not public.


Hi John,

The topic of this thread is 'Reasons why you should NOT trade cryptocurrencies', however for the benefit of all readers I will humour you by answering your questions and hopefully satisfy your curiosity:

1. I would refer you to my first post for an explanation as to why I created this thread;
2. You may consider 'fx' ('foreign exchange' trading) a 'failed system', but I do not;
3. I do not share all my 'fx' accounts for a variety of reasons, but especially to avoid undue attention.

I encourage you to post useful information for the community. Any personal questions are best directed by PM.
Any news supporting cryptocurrency can be posted in Leo23's thread. Thanking you for your consideration.

johndoe2016
Dec 28 2017 at 12:59
58 posts
Regarding the article in post no 1

https://protradingresearch.com/2017/12/14/one-bank-believes-it-found-the-identity-of-who-is-propping-up-the-bitcoin-market/

I think it is fair but not more than that.

If you look at https://coinmarketcap.com/exchanges/volume/24-hour/

and

https://coinmarketcap.com/currencies/bitcoin/#markets

then JPY is not that big a deal today as it used to be. Now Korea seems to be a much bigger player than Japan.

The statement

'Cryptocurrency such as Bitcoin that have pure distributed systems do not have an underlying value like precious metals. Value is not guaranteed by an issuer because there is no issuer.'

You could say this is true but this is also true when stated about the national currencies in Zimbabwe, Venezuela etc.

So saying bitcoin has no value whatsoever is false.

The main problem now is people are looking too much at the price than building something that actually works and is good for people.

BTC lately has enormous fees and is slower than SEPA EUR transfers so the utility of it is getting close to 0%.

Also regarding FX then the main problem in fiat currency systems is the debt tied to it - which will never disappear in a million years. No matter which politician promises to eradicate it.

Painting something as 100% bad or good as the media tries so hard to do, is one of the most unintelligent things I have encountered so far and articles that do not cover all bases belong in the dustbin.

The thing about cryptocurrencies in general is that a lot of people with libertarian stances are getting a chance to show whether something like this can work without a centralized issuer that can intervene etc.

The central bank system is fine but 0% interest forever is not healthy + the debt is enormous + it is controlled by politicians which are out-of-touch with everyday-Joe's issues.

BTC will probably be the start of the next financial crisis but so it is in capitalist systems with their boom-and-bust cycles that go on forever.

BitUSD is a cryptocurrency that tries to solve the 'stable' currency problem.

BluePanther (BluePanther)
Dec 28 2017 at 14:30
1344 posts
South Korea mulls bitcoin exchange shutdown to quell speculative frenzy (Dec 28, 2017)
https://www.marketwatch.com/story/south-korea-mulls-bitcoin-exchange-shutdown-to-quell-speculative-frenzy-2017-12-28

Bitcoin tumbles 10% as South Korea moves to curb crypto trade (Dec 28, 2017)
https://www.marketwatch.com/story/bitcoin-tumbles-almost-10-as-south-korea-moves-to-curb-crypto-trade-2017-12-28

Bitcoin drops 11% as South Korea moves to regulate cryptocurrency trading (Dec 29, 2017)
https://www.cnbc.com/2017/12/28/bitcoin-drops-11-percent-as-south-korea-moves-to-regulate-cryptocurrency-trading.html

Bitcoin buyer beware: The crypto carnage could continue, says a real currency strategist (22 Dec 2017)
https://www.cnbc.com/2017/12/22/bitcoin-buyer-beware-the-crypto-carnage-could-continue-says-a-real-currency-strategist.html?recirc=taboolainternal

S. Korea Plans Measures To Curb Virtual Currency Speculation (12/28/2017)
https://www.rttnews.com/story.aspx?Id=2847771

Dove777
Dec 29 2017 at 13:24
10 posts
johndoe2016 posted:

'Cryptocurrency such as Bitcoin that have pure distributed systems do not have an underlying value like precious metals. Value is not guaranteed by an issuer because there is no issuer.'

You could say this is true but this is also true when stated about the national currencies in Zimbabwe, Venezuela etc.

Precisely why there are no major active interest in trading Zimbabwe or Venezuela currencies because any attempted valuation of them is highly subjective and unreliable.

johndoe2016 posted:
So saying bitcoin has no value whatsoever is false.

The general narrative on Bitcoin is that it lacks intrinsic value not that it lacks value. There is a big difference in meaning. Currently the value is driven by greater fools and eventually even the supply of fools run out even if there is one born every minute. Such valuation eventually disappears quicker than it emerges because fear outranks greed any day.

johndoe2016 posted:
BTC will probably be the start of the next financial crisis

Do you have any evidence to back up such a rhetorical statement?

johndoe2016 posted:
BitUSD is a cryptocurrency that tries to solve the 'stable' currency problem.

If providing stability is its goal then it has failed miserably.

BluePanther (BluePanther)
Dec 29 2017 at 14:39
1344 posts
@johndoe2016 @Dove777
Thanks for your contributions.

India's finance ministry on Wednesday issued a warning against trading and transacting in crytpocurrencies such as Bitcoin, saying they do not have any intrinsic value and likened them to Ponzi schemes.


India Equates Cryptocurrencies To Ponzi Schemes In Warning (12/29/2017)
https://www.rttnews.com/story.aspx?Id=2848107

BluePanther (BluePanther)
Dec 29 2017 at 16:22
1344 posts
BluePanther (BluePanther)
Dec 29 2017 at 17:05
1344 posts
BluePanther (BluePanther)
Dec 30 2017 at 03:49
1344 posts
Not everyone is so bullish. Roy Sebag, who said he first invested in bitcoin in 2011, said he sold most of his 17,000 bitcoin between May and June because he believes the long-term value will be zero. “It’s completely devolved from the original promise,” said Sebag, founder and chief executive officer of Goldmoney, which oversees about $2 billion of assets. “Bitcoin and cryptocurrencies in general are exhibiting a mania, fueled by speculative fervor.”

Wall Street Keeps Valuing Bitcoin Higher and Higher (August 21, 2017)
https://fortune.com/2017/08/21/bitcoin-analysts-price-forecast/


IRRATIONAL EXUBERANCE - Robert Shiller wrote the book on bubbles. He says “the best example right now is bitcoin.” (September 05, 2017)
https://qz.com/1067557/robert-shiller-wrote-the-book-on-bubbles-he-says-the-best-example-right-now-is-bitcoin/


Novogratz Says Crypto Will Be ‘Biggest Bubble of Our Lifetimes’ (November 29, 2017)
https://www.bloomberg.com/news/articles/2017-11-28/novogratz-says-bitcoin-to-win-out-over-other-digital-currencies

BUZZKILL - Bitcoin bull Novogratz thinks it could plunge to $8,000 (December 22, 2017)
https://qz.com/1164278/bitcoin-plunge-former-goldman-sach-trader-novogratz-warns-the-cryptocurrency-has-much-farther-to-fall/


CRYPTOCRAZE - Beverage companies are juicing their stocks by rebranding with cryptocurrency jargon (December 21, 2017)
https://qz.com/1163073/beverage-companies-are-juicing-their-stocks-by-rebranding-with-cryptocurrency-jargon/


EXPONENTIAL ISN'T QUITE RIGHT - The nutty math that really shows how quickly bitcoin has grown (December 17, 2017)
https://qz.com/1158913/how-quickly-is-the-value-of-bitcoin-growing/


What Is Bitcoin Really Worth? Don’t Even Ask. (DEC. 15, 2017)
https://www.nytimes.com/2017/12/15/business/bitcoin-investing.html


SIGNIFICANT VOLATILITY - Coinbase is investigating claims of bitcoin cash insider trading (December 20, 2017)
https://qz.com/1161391/bitcoin-cash-bch-price-spike-leads-to-coinbase-insider-trading-probe/



Bitcoin's Real Value Could Be Zero, Morgan Stanley Analyst Says (December 26, 2017)
https://fortune.com/2017/12/26/bitcoin-price-value-bubble-crash-says-morgan-stanley-analyst/


How To Buy Bitcoin - Advice From Your Trusted Financial Adviser (December 25, 2017)
https://fortune.com/2017/12/25/how-to-buy-bitcoin-humor/

BluePanther (BluePanther)
Dec 30 2017 at 14:51
1344 posts
Please login to comment .