Bitcoin thread anyone?

Algo_Design_Kid · Apr 9, 2013

Quote from Daal:

there are always "reasons" that people think its going higher and its different this time. Anyone with a good trading experience can do their DD in 30 seconds by looking at the chart, this thing will implode soon

In the 10 minutes between conversations the price has jumped $5.00 How long would you be willing to lose money betting against this? Seems really stupid, honestly. Everyone thinks they can pick the top. I admit this will come down sometime, but when? And to what price? There is a SHITLOAD of money on the sidelines that is just learning about BTC.

Daal · Apr 9, 2013

Quote from Algo_Design_Kid:

In the 10 minutes between conversations the price has jumped $5.00 How long would you be willing to lose money betting against this? Seems really stupid, honestly. Everyone thinks they can pick the top. I admit this will come down sometime, but when? And to what price? There is a SHITLOAD of money on the sidelines that is just learning about BTC.

I would short when the price did something usual, like a % decline larger than the previous ones. Of course, shorting a bubble at highs is nuts. You got to short when the stampede starts

Algo_Design_Kid · Apr 9, 2013

I think you would be better off just DCA'ing like I do. Bitcoin is revolutionary in design. It is basically impossible to stop p2p transactions on this decentralized network. Just think about it. There are only 21,000,000 coins. They can be split up into .000000001 each. Bitcoin is going well over $1000, maybe not this year or the next, but in our lifetimes.

Also note the recent FinCen ruling about bitcoin. Basically, as long as you pay your taxes if you sell for cash, you are good. That's fine by me, if it makes me a millionaire, so be it. I think one day this will come to fruition.

Cdntrader · Apr 9, 2013

Quote from Algo_Design_Kid:

In the 10 minutes between conversations the price has jumped $5.00 How long would you be willing to lose money betting against this? Seems really stupid, honestly. Everyone thinks they can pick the top. I admit this will come down sometime, but when? And to what price? There is a SHITLOAD of money on the sidelines that is just learning about BTC.

You're probably right. Once you see a Bitcoin article in the local paper, it's "the top".

Daal · Apr 9, 2013

Quote from Algo_Design_Kid:

I think you would be better off just DCA'ing like I do. Bitcoin is revolutionary in design. It is basically impossible to stop p2p transactions on this decentralized network. Just think about it. There are only 21,000,000 coins. They can be split up into .000000001 each. Bitcoin is going well over $1000, maybe not this year or the next, but in our lifetimes.

There is ALWAYS a good "story". The chart says it all, everybody and their mothers are in for the short-run, they want to ride the momentum, this story has been out for years its the momentum that is getting people crazy right now. All of this people are weak hands, they will dump this awesome story as soon as it starts to crash

ssaya401 · Apr 9, 2013

I have 7 sitting in my silk road account I got for about $4 each. I'm either going to sell them.. or buy a lot of MDMA.

m22au · Apr 9, 2013

Quote from Daal:

I'm not sure. The higher it goes the more it draws people trying to make a quick buck in the momentum, they are all going to become sellers when it reverses. Its going to be really ugly and SUPER easy to make money as a short, thats why I wish there was an ETF. I ain't taking a risk at the wallet site that "lends" bitcoin at 10% APR, they won't pay me if I win

I am hoping that an ETF provider sets up a Bitcoin ETF. That would be the type of safe(r) product to short.

achilles28 · Apr 9, 2013

Quote from Pekelo:

So what? The argument was that Bitcoin has no intrinsic value whatsoever, but gold/silver/platinum have. Your stated fact doesn't change that.

If gold/silver loses their value transferring properties tomorrow, we can still use them for hundreds of things. We can make faucets, cups, sculptures, whatever out of it. Right now we don't do it generally, because the value property is more important.*

You're reaching. Gold's value is near totally determined by psychology, rather than it's underlying usefulness. Decorative metals, like nickel and brass, command upwards of seven dollars a pound....whoopeee

Quote from Pekelo:

If people get disappointed in Bitcoins tomorrow and abandon it, you can do shit with it. And that was the whole point...

* By the way this brings up a good point. Right now Bitcoin is deflating like crazy so its value generating property (investment tool) is more important, than its value exchanging (currency) property. Thus hording is encouraged and actual usage isn't.

Bitcoins value is underwritten by it's superior portability, privacy and safety relative to fiat. This is why the market won't be "disappointed" with cryptocurrencies anytime soon, no matter how much you insist this is tulip mania. Sowwie.

achilles28 · Apr 9, 2013

Quote from Daal:

There is ALWAYS a good "story". The chart says it all, everybody and their mothers are in for the short-run, they want to ride the momentum,

That's exactly where you're wrong. Market saturation of Bitcoin is nothing. Peanuts. Hardly a soul owns it. The very nature of a bubble is when the masses have broad exposure - 2007 US real estate, 1999 nazdaq stocks etc.

m22au · Apr 9, 2013

Quote from achilles28:

That's exactly where you're wrong. Market saturation of Bitcoin is nothing. Peanuts. Hardly a soul owns it. The very nature of a bubble is when the masses have broad exposure - 2007 US real estate, 1999 nazdaq stocks etc.

The difference here is that Bitcoin has risen tenfold since the breakout at $20 only 2-3 months ago.

The parabolic move since then will likely encourage a sell-off in the near future.