The future of Crypto

The problem with BTC vs. fiat price drops is not the investors losing money.
Good trader makes money shorting the asset as well.
The real issue lies with miners.
The level where BTC mining brings profit is around $6,000.
If the price stands below that level for long time, a lot of miners will be OOB.
The exception: Chinese mining companies are still profitable around $1500-$2000.
So problem solved?
No. The problem is blockchain is independent only when none is able to control more than 50% of miners.
And that could happen in China.

Your thoughts?

Does Crypto have a future?

Molly141 posted:
Does Crypto have a future?

😂😂😂

Sure it does. Even on decreasing price you can make profit by shorting it

togr posted:
Sure it does. Even on decreasing price you can make profit by shorting it

It is like in Weimarer Republik tackling with hyperinflation. If you have money, buy anything you can. It's a bit late thought..

A lot of guys consider crypto as simply spending fiat to buy BTC.
World of crypto is much more diverse. If you want to hodl why not buy XRP which is going to be used by international banks to settle transactions.

togr posted:
A lot of guys consider crypto as simply spending fiat to buy BTC.
World of crypto is much more diverse. If you want to hodl why not buy XRP which is going to be used by international banks to settle transactions.

This is interesting: Where did you get this info? Could you cite us the source?

togr posted:
The problem with BTC vs. fiat price drops is not the investors losing money.
Good trader makes money shorting the asset as well.
The real issue lies with miners.
The level where BTC mining brings profit is around $6,000.
If the price stands below that level for long time, a lot of miners will be OOB.
The exception: Chinese mining companies are still profitable around $1500-$2000.
So problem solved?
No. The problem is blockchain is independent only when none is able to control more than 50% of miners.
And that could happen in China.

Your thoughts?

That is a very interesting comment about the discrepancy in mining costs leading to control of BTC. But even is Chinese miners held 50% they would not necessarily be all working together. If they did then it would need to be kept secret otherwise the interest in BTC would collapse. So achieving control would be extremely difficult in practice

just an image ,


 

Molly141 posted:
Does Crypto have a future?

Of course, it has! But will take time to make the ground. This is why, long term view is very much important.

Sorry for what was possibly a dumb question, I only know what I have seen banded about facebook/

niceGLer posted:

togr posted:
A lot of guys consider crypto as simply spending fiat to buy BTC.
World of crypto is much more diverse. If you want to hodl why not buy XRP which is going to be used by international banks to settle transactions.

This is interesting: Where did you get this info? Could you cite us the source?

https://ethereumworldnews.com/top-ten-u-s-bank-pnc-to-use-ripple-for-international-payments/

Jdimitrov posted:

togr posted:
The problem with BTC vs. fiat price drops is not the investors losing money.
Good trader makes money shorting the asset as well.
The real issue lies with miners.
The level where BTC mining brings profit is around $6,000.
If the price stands below that level for long time, a lot of miners will be OOB.
The exception: Chinese mining companies are still profitable around $1500-$2000.
So problem solved?
No. The problem is blockchain is independent only when none is able to control more than 50% of miners.
And that could happen in China.

Your thoughts?

That is a very interesting comment about the discrepancy in mining costs leading to control of BTC. But even is Chinese miners held 50% they would not necessarily be all working together. If they did then it would need to be kept secret otherwise the interest in BTC would collapse. So achieving control would be extremely difficult in practice

Well yes it is not sure that this will happen. But China is centrally planned and controlled economy. In such country the risk of global control of BTC blockchain is immense.

Molly141 posted:
Sorry for what was possibly a dumb question, I only know what I have seen banded about facebook/

What's the thing on Facebook?

I mean eveyrbody going on about how it was guaranteed money, then it crcashed.

Molly141 posted:
I mean eveyrbody going on about how it was guaranteed money, then it crcashed.

Well crypto is volatile there is no guarantee you will profit from hodling, but you could have make a lot of money shorting it.

There is no asset with the price always growing.

togr posted:

Molly141 posted:
I mean eveyrbody going on about how it was guaranteed money, then it crcashed.

Well crypto is volatile there is no guarantee you will profit from hodling, but you could have make a lot of money shorting it.

There is no asset with the price always growing.

Initially bitcoin was marketed generally as a non-inflationary currency. It was told that it is deflationary, and because one can't increase the amount of bitcoins its value is going to increase. What has happened to cryptocurrencies is actually lot worse. Although, when I saw the graph of BTCUSD I saw classical signs before market crash: that is exponentially rising value.
With a classical inflationary currency one usually has a lot of time to react in normal inflationary conditions.

Most of the people would have been satisfied with bitcoin maintaining its value.

I suspect that cryptocurrencies in general have lost their credibility for a long time. Besides, there are tens of alternatives for investing on cryptos. Who can say this is the right one?

Thousands of alternatives these days

Treeny posted:
Thousands of alternatives these days

Yes it is; but end of the day it’s a good sign in trading industry! I am really excited to see the movements of crypto market.