BTC becoming store of value is good, or bad (?)
- Thread starter tradertweets
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Sorry bud if the truth hurts. I assume you are holding gold and regretting that you never got into bitcoin and now its too late since your gold has depreciated over 50X against bitcoin.
If you had 10k in gold in 2017, and moved it all to bitcoin you would now have 8.3 bitcoin worth half a million instead of having about 20k in gold...worse yet you now can only afford 1/3 of a coin. It's like a crypto inflation bubble. There was an article about this how the wealthy are having their fortunes diminished relative to bitcoin.
This isn't the same article but I think it is talking about the same phenomenon.
https://bitcoinmagazine.com/markets...-deep-freeze-your-portfolio-desperately-needs
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I don't know if you are a bad reader, or what is the matter with you...Sorry bud if the truth hurts. I assume you are holding gold and regretting that you never got into bitcoin and now its too late since your gold has depreciated over 50X against bitcoin.
If you had 10k in gold in 2017, and moved it all to bitcoin you would now have 8.3 bitcoin worth half a million.
I compared BTC to gold, and criticized both for being conservative, boring, ranging assets.
Seriously don't get it where you jumped on the train that I am advertising gold!
I bought my first BTC in 2016.
I still hold BTC, I am invested in altcoins,
next to stocks / ETFs.
I am just laying out, why I don't think that BTC is, speculative wise, a great investment any more.
BTC wont get to where your price prediction is, simply out of the reason that there are more interesting altcoins
(with which it has to share market capitalization).
BTC infrastructure is not guarantee for 100k, 200k etc.
It can be replaced by a better technology.
(Only difference to gold, as it, clearly, cannot be replaced ever).
I don't want to call sour grapes but alt coins will always be alt coins...as they say the tide lifts all boats, so alts are forever dependent on the whim of bitcoin. For the little guys sure maybe an alt will perform slightly better since you can't afford much bitcoin...like buying snap instead of aapl or something, but for big money its not a problem.
Your title and your posts are conflating different concepts
Bitcoin is a store of value, the best money in the history of mankind
Altcoins do outperform bitcoin during bull market cycles, but they are also further out the risk-curve. This does not take away from the concept of bitcoin as the best SoV
Bitcoin will demonetize real estate, stocks, bonds, and 1 bitcoin will be worth $1M by 2030 and 1 bitcoin will be worth millions of $ in the next 20 years
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If you say you bought your first bitcoin in 2016, then you also know about massive returns from eth, xlm and remember PIVX when John McAfee pumped it and literally hundreds of $ or thousands of $ investment became worth millions of $ within a few days?
July 2020, during the heat of DeFi summer, I could have converted my AMPL token holdings to over 1000 Ethereum (Eth was $250 each)
https://www.elitetrader.com/et/threads/ampleforth-token-ampl.347381/
But here's the thing, those are hindsight... I could have also put everything on Sol at less than $10 and rode it to $250, or Fantom at less than 10 cents and rode it to over $3
You're confusing going out the risk-curve of crypto assets and knowing which will be the massive outperformers to bitcoin... and there will probably be many during this bull market cycle
But you have to pick today, not after the 2 years hindsight
You have another thread Ethereum will flip bitcoin, go ahead, convert everything you have all your investments to Eth today...
which by the way as someone already replied on your thread, btc/eth ratio has been going in bitcoin's favor for a while now
Here's what I can tell you, bitcoin as a store of value is the very best, imho, as it's a base monetary asset, the best money in the history of the world
You can buy a brand new laptop, format it to linux and compile bitcoin from scratch and put $1M worth into the bitcoin wallet if $1M is a significant amount to you (after you've backed it up and tested it) and leave it there for 1 month, 2 months, 1 year.... you'll sleep like a baby
Try doing the same thing with Ethereum and see if you'll sleep like a baby for 1 month, 2 months, 1 year....
Ethereum is a complex system with all the features, and an ever changing technology (POW to POS) and an ever changing monetary policy (inflationary, delfationary, recall the massive changes EIP the past few years)...
And do you even realize the browser based wallet and the introduction of security surface attack vectors as you're forced to use hardware wallets to mitigate risks for browser-extension wallet, i,e. Ledger customer hacks, Ledger live remote updates remote access to private keys
You would know all of these if you bought your bitcoin in 2016... you would understand and not conflate important investment concepts
Woah,
I am not confusing or conflicting anything.
I said, during the bullrun many altcoins are better than BTC, during bearish times it's more the opposite.
Holding BTC to speculate is nonsense by now, in regard of the profit other coins can bring.
Eth, ada, xrp tech is much more advanced, and once people start to use cryptos more in daily life's - which could happen by now -
they will drop BTC like nothing (first and foremost because of high tx fees),
and use eth, ada, xrp or another coin.
Crypto adoption will make BTC less important, not more.
good luck.
Bitcoin is not for speculation, as your title suggests, bitcoin is a Store of Value, think of it like your life savings bank account
It is the cornerstone of my net worth, and consider it my unit of account
I have a thread for going out the risk curve...
Currently 2 active trades for this bull market
MSTR leaps call options and Popcat meme coin
Good luck to you, too
Interested in your altcoin bets for this cycle, if you wish to share, as we do not know what will be the massive outperformers, yet, this bull market cycle has not gotten heated, yet
I am a bit into small coins,
but the general ones are definitely top 20;
eth, sol, ton, ada, xrp and so on.
Picking small coins is a very intense research procedure, all I can disclose for now is Monero.
New, important & unique tech is always a key feature, a coin should have.
I think I am invested in 50+ coins...
You can make money in a trading range if:
1) there is sufficient volatility
2) trading fees are low enough
3) there is sufficient leverage available
If there is not enough volatility, then maybe leverage can be used to augment that.
The cost of actually sending BTC from wallet to wallet is one cost. On an exchange, trading SPOT BTC will be another cost (lower). Trading derivatives, like futures, can be yet an even lower cost.
The cost of wallet to wallet might be so high that you would never really want to short BTC (or go flat). In which case you could speculate on long term holdings over four, ten or twenty years. There are good arguments that BTC will best gold over the same periods.
The smaller the trading fee the more likely you could also speculate on the short side using shorter and shorter time frames.
Using the same methods of technical analysis, if I could make 300% per year speculating in a stock or 100% per year speculating in BTC, I would choose the stocks, if the tax rate were about par.
But if I could make 100% per year in either BTC or a stock(s), I would choose to add liquidity to the BTC ecosphere just to support it.
1) there is sufficient volatility
2) trading fees are low enough
3) there is sufficient leverage available
If there is not enough volatility, then maybe leverage can be used to augment that.
The cost of actually sending BTC from wallet to wallet is one cost. On an exchange, trading SPOT BTC will be another cost (lower). Trading derivatives, like futures, can be yet an even lower cost.
The cost of wallet to wallet might be so high that you would never really want to short BTC (or go flat). In which case you could speculate on long term holdings over four, ten or twenty years. There are good arguments that BTC will best gold over the same periods.
The smaller the trading fee the more likely you could also speculate on the short side using shorter and shorter time frames.
Using the same methods of technical analysis, if I could make 300% per year speculating in a stock or 100% per year speculating in BTC, I would choose the stocks, if the tax rate were about par.
But if I could make 100% per year in either BTC or a stock(s), I would choose to add liquidity to the BTC ecosphere just to support it.