Fundamental value of Bitcoin

[JackRab]

Ummm what abot this?

"If you are a United States resident, your Coinbase USD Wallet is covered by FDIC insurance, up to a maximum of $250,000."

Last time I checked USD was short for United States Dollar, the fiat currency... which isn't BTC... short for BitCoin...

The way I see it... your BTC is insured against theft etc, but only the ones that are held online which is only 2% of BTC held by CoinBase, bc it says so in their explanation. 98% is held offline... which has it's own merits... but not insured against anything...

And FDIC doesn't insure non-fiat currencies... so I also wonder which company insures CoinBase...

 

[SunTrader]

The haters keep hatin' but Bitcoin doesn't care. Day after day, week after week, month after month... And the hodlers are enjoying the gain$.

One day, the haters may be proven right, but what gain do they have to show for it?

They can make all the claims they want that they never have nor ever will lose a penny trading BTC or ETH or any other crypto. But then they never will make a penny trading any of them either.

Yet it won't hold them back from claiming to be traders lol.

 

[Hoi]

Online digital currency is insured... which is only 2% of the total... the rest is offline. And, it says nothing about what insurance is used. Definitely not FDIC, since that's on fiat for max of $250k.

pffff...!
The original issue, was that @schweiz stated that Bitcoin itself was dangerous because of 2013-MtGox.
Which is clearly refuted by our arguments:

1) Bitcoin security by itself has nothing to do with an third party Exchange (especially not an ancient one, while many improvements are implemented by exchanges now a days).
2) Online storages are tasty for hackers. And just because of this it's very comforting that exchanges do have insurances and hold only a very small fraction online (this small that a last hack (not Coinbase) was paid back to the customers by the exchange itself out off their own pockets).
3) Offline storages are heavily guarded in equal or better ways than Fort Knox. Yes, the better ones even use multiple underground guarded bunkers. And of course multi-key (person) passwords.

So for all those nanny state traders who "need" holding hand protections in this dangerous crypto environment: everything possible is done for you to feel comfortable

 

[Hoi]

... so I also wonder which company insures CoinBase...

Read somewhere it was Lloyds. But you can email them and ask.

 

[Surprise]

Btc is not safe I agree , many coins have been lost or stolen and third party exchanges going down and disappearing is common .

Without these exchanges btc is iliquid and not tradeable , you need these scammy exchanges but then they are not safe .

 

[schweiz]

Ummm what abot this?

"If you are a United States resident, your Coinbase USD Wallet is covered by FDIC insurance, up to a maximum of $250,000."

And what if you are NOT an American, like me and many others?

And for all the believers overhere, they must already be by far over the 250K insurance. Millionaires will lose 100% minus 250K. If they are at least US citizens, if not it will be a total loss.

Or are they the typical ET poster with a less than 5K account?

 

[Hoi]

And what if you are NOT an American, like me and many others?

And for all the believers overhere, they must already be by far over the 250K insurance. Millionaires will lose 100% minus 250K. If they are at least US citizens, if not it will be a total loss.

Or are they the typical ET poster with a less than 5K account?

I'm not American (thank god). And any hardcore believer like me, knows very well that you are responsible for your own wealth in crypto-world. We do not keep our coins and fiat on exchanges any longer than needed (a few hours at most). We do not need nanny protections (those are for you, newbies).

Anyway: high gains are correlated to high risks. You @schweiz are risk averse: so low gains will be your part. I have no problem with that, but you should not impose your way to others who have other ideas. I myself took huge risks to reward a 70x profit. You do your own thing, but don't bother us with your nanny trading advices, please.

 

[schweiz]

I'm not American (thank god). And any hardcore believer like me, knows very well that you are responsible for your own wealth in crypto-world. We do not keep our coins and fiat on exchanges any longer than needed (a few hours at most). We do not need nanny protections (those are for you, newbies).

Anyway: high gains are correlated to high risks. You @schweiz are risk averse: so low gains will be your part. I have no problem with that, but you should not impose your way to others who have other ideas. I myself took huge risks to reward a 70x profit. You do your own thing, but don't bother us with your nanny trading advices, please.

I am not risk averse, I try to take maximum profit with minimal risk. I daytrade the ES in far above average size, compared to the average ET trader. Professional traders should be, and mostly are risk averse.

I have a few friends who trade in cryptocurrencies and I beat them by far in return and even much more in $ value. My gains are far bigger then theirs. I past already a long time ago the 70x profits on initial investment, and had a much higher probability and smaller risk then the average cryptocurrency gambler.

I don't want to tell others what to do, I just give my opinion. But I understand your fear: the more negative postings the more risk the trust will disappear and the decline will start.
There is not a single real and economical argument that can explain why cryptocurrencies go up with 100% in days and why a bitcoin would now be worth thousands of % of the initial value.

You wrote:"high gains are correlated to high risks".
That's a very inaccurate statement made by most people. The proof that this is wrong are living examples like: Warren Buffet and Medallion/Renaissance. They have far above average returns with much lower risks then the average trader/investor. They surely don't have the huge bitcoin drawdowns.
Beside gains and risk there is also KNOWLEGDE. That is a part many people forget when they think about risk. Knowledge can hugely reduce risk.

 

[Hoi]

. But I understand your fear: the more negative postings the more risk the trust will disappear and the decline will start.
.

That comment would be true, if made to me in 2013. But after that year, no longer the case. Currently, after 4 full time years into crypto-space, I'm more sure than ever: Bitcoin will never disappear and no negative posting can make any impact on this.

.
There is not a single real and economical argument that can explain why cryptocurrencies go up with 100% in days and why a bitcoin would now be worth thousands of % of the initial value.
.

Oh yes there is. And in 5 to 10 years you will understand as well.

.
Beside gains and risk there is also KNOWLEGDE. That is a part many people forget when they think about risk. Knowledge can hugely reduce risk.

Heh? For once we 100% agree!
That's the VERY reason why I studied crypto for 3 months in a row in 2013, before I took my dive. And why I still spend 2 to 3 hours a day to read anything crypto related, and do this for 4 years in a row. ...... and I know for sure I made more than Warren in those 4 years.

 

[SunTrader]

And what if you are NOT an American, like me and many others?

And for all the believers overhere, they must already be by far over the 250K insurance. Millionaires will lose 100% minus 250K. If they are at least US citizens, if not it will be a total loss.

Or are they the typical ET poster with a less than 5K account?

It is American exchange insuring Americans. Not my concern about you. Do you care about my funds? Find one that insures you where you live.

LMAO if someone has more than $250K guess wha,t they have more than one account. Just like what people do with bank accounts. Oh wait no one keeps more than $250 in a bank account anymore - protection or not.