Bitcoin, and other tulips


#906

No one lot more than three years ago, two about 3 months ago, one about a month ago. No point selling, it’s gambling money.


#907

According to The Oz arbitrageurs are the only ones likely to make any coin. (See what I did there…)


#908

#909

This is a good explanation of the technology behind the coins however it doesn’t address that if the banks really want to do it why would they go to an existing coin when they have the funds and size to simply start their own?

Mining (or processing transactions) isn’t high tech. It’s easier than hosting a website.


#910

Yves Mersch, a member of the ECB’s executive board, said the central bank shared the views voiced by Agustín Carstens, the head of the Bank for International Settlements, who on Monday condemned bitcoin as “a combination of a bubble, a Ponzi scheme and an environmental disaster”.

Not a ponzi scheme, a glorious three dimensional triangle.


#911

The ‘environmental disaster’ part makes me put on my dubious face.


#912

I’m not dubious it is an environmental disaster (the amount of power consumed by crypto miners is horrifying)

I am dubious that European Central Bank Guy gives one tiny little damn about BCs environmental issues though.


#913

Well, exactly.
So what’s it really about?


#914

Cryptos allow,

  • money laundering
  • tax evasion
  • no protection for investors

Of course regulators hate them.


#915

Do banks not do the first two?
Even more of a reason to hate them, of course, competition.
Which is kind of the point of my dubious face.


#916

Ssssshhhh…don’t look now but the crypto market seems to be climbing a liitle (touch wood)


#917

Hopefully not a false dawn. Hodl all the way!


#918

Of course another thing that banks hate is instability and unpredictability in global financial markets.

And having a large amount of investment tied up in assets that 1) are untraceable so you don’t know who owns them and can’t predict what they’re likely to do, and 2) may suddenly become worthless overnight is a recipe for that.


#919

as wim said, don’t banks in general face the first 2.
And while there is the illusion of protection for investors, people lose their money all the time in investing, and plently of people break the rules and get away with it.

regulators don’t have an issue with cryptos, banks do because they are losing their control and power.
not to overthrowing the system levels, hell not even probably 1% to that point, which is odd. or maybe they see there is a possibility that this could be used as well maybe not a new cash system, but a barter system i guess.

tax evasion, I’m not sure how that is going to work. I get the concept and the why and how. but again if you put in 10 grand to an australian exchange, and then 5 months later pull out 200 grand, you don’t automatically become exempt from paying tax.
and we all know the tax man will come after you sooner or later, they always get their cut, well from the average guys, i mean hey not as if any people or companies prior to the last 6 months in crypto’s have ever used any other means for evading tax, nah it’s a totally new concept brought on by those pesky crypto terrorists right.


#920

XVG, anyone?


#921

How often is bitcoin audited?


#922

Q: Can I claim BTC is a loss come tax time?
cheeers.


#923

Getting kinda predictable.
Sell now.
Buy in the morning.


#924

From another forum, but this sums up what I’d understand crypto’s as.

50 people have marbles. They all believe their marbles are worth a poo poo ton of money so they hold them. On a daily basis about one person exchanges a marble for some amount of money with a guy who just outbid a smarter guy.

On day 1 a marble goes for $1000
Day 2 $2000
Day 3 $3000, etc.

On day 1,000, everyone holding a marble has purchased their marble from one of the original marble holders. Marbles are currently $1,000,000. Everyone’s a millionaire. “Market Cap” 50M

Guy 1 bought his marble for $1k, sells his marble. He makes $999k pure profit. Buyer spent 999k

Guy 2 bought his for $20k, tries to sell his marble but there aren’t many buyers so he settles on $750, walks away with $730k so he’s pretty happy.

Guy 3 bought his marble for $720k and is extremely nervous so he tries to dump his marble. There aren’t any buyers. He manages to get someone to bite for the fantastic bargain of $372k. He loses just a lot of money.

There are now 50 people holding an egalitarian distribution of theoretically $18,600,000, “Market Cap.” They all thought they were millionaires but marbles actually are only good for putting up your butthole and no one’s interested in that recently for some reason. Not for $372k anyway. After a month of decreasing volume the price drops to 35¢ and 42 people lose a poo poo ton of money. They gave away let’s say $14,000,000 to people who all believed in marbles.

The 42 people sigh and put their marbles up their buttholes. It feels like home.

You can’t put bitcoins up your butthole.

Hopefully none of you have taken out a mortgage or $,$$$ loans doing this.


#925

I get people holding, and that’s fine.
But when prices are rising and falling by 30% every day or three, spare me your sympathy.