BITCOIN: How does it work. Can someone simplify this phenomena

[Etschell]

its going to be shorted hard on the 10th. ive already heard the chatter.

[GB-man]

Originally Posted by Etschell

its going to be shorted hard on the 10th. ive already heard the chatter.

That was my thoughts. People trying to get in before the options become available

Derivatives are an instrument that keeps prices in check. A much needed service to this vehicle.

[RW16610]

Originally Posted by Etschell

its going to be shorted hard on the 10th. ive already heard the chatter.

Yeah, I got a sense of that as well. Influential hedge fund managers and others expressing this.

[77T]

Originally Posted by GB-man

That was my thoughts. People trying to get in before the options become available

Derivatives are an instrument that keeps prices in check. A much needed service to this vehicle.

It’s certainly become a hot topic for all sides of the question. Monday should be most interesting. But will the options open on time? If they can’t mark to market does it get canceled?

I find the idea of a derivative for a virtual currency product akin to a prop bet at Vegas for a fantasy team that nobody owns...

The clearinghouse will be be eaten alive with liquidity issues methinks. The volume of Buys v. Sells today was inordinately high an imbalanced.




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[GB-man]

Valid point! For better or worse I am completely on the sidelines here. Anyone buying in at these levels has huge stones. Might as well buy vix futures as a stand alone bet

Originally Posted by 77T

It’s certainly become a hot topic for all sides of the kquestion. Monday should be most interesting. But will the options open on time? If they can’t mark to market does it get canceled?

I find the idea of a derivative for a virtual currency product akin to a prop bet at Vegas for a fantasy team that nobody owns...

The clearinghouse will be be eaten alive with liquidity issues methinks. The volume of Buys v. Sells today was inordinately high an imbalanced.




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[armen34]

Originally Posted by Etschell

its going to be shorted hard on the 10th. ive already heard the chatter.

[mcorliss]

BitCoin is grounded in the bigger fool theory...literally. The early smart(er) money scammers promote it to drive up the price. Human nature (greed) then takes over and draws in all the woeful suckers (dumb money) to be left holding the empty bag. P.T. Barnum was definitely right!

If you want to speculate in an area with explosive growth potential and with solid financials, look at one of the top three publicly-traded Canadian Cannabis companies: Aphria Inc, Canopy Growth, and Aurora Cannabis (each with existing market values between $1.5-2.5 Billion). Their stock prices have already tripled this year, and will likely do the same in 2018 when Recreational Adult-Use Cannabis is finally launched in Canada before Summer 2018.

They are already the largest Medical Cannabis companies in the world and have even begun shipping products into Germany, Italy, Australia, Argentina, Uraguay, Mexico, and many other countries legalizing marijuana nearly every month. The U.S. is woefully behind the curve on Cannabis, and that gives Canadian companies like Aphria Inc. a huge first-mover advantage in establishing key supplier/client/customer relationships and developing recognizable brands. Constellation Brands (maker of Corona, Svedka Vodka, Kim Crawford Wine) has already made a $200MM investment (with warrants to purchase another $200MM) in Canopy Growth to produce Cannabis beverages. Look for other multinationals from the beverage, tobacco, and candy industries to make additional large strategic investments or outright acquisitions in the aforementioned three companies.

The whole Cannabis and Industrial Hemp industry is expected to be THE fastest growing industry over the next 5-10 years. Personally, I’ve already made over half million dollars with several Cannabis companies since April, and still have over a million dollars of exposure via my Aphria Inc. shares. 2018 is going to be an interesting ride for both...publicly-traded Cannabis companies and BitCoin...although I expect them to trade in completely opposite directions.

Choose your investments wisely!!

[beshannon]

Originally Posted by Syed117

Selling on Coinbase is fairly easy.

Coinbase wallet I believe is instant and deposit to a bank account takes about 3 days.

Selling is pretty simple, the only annoyance is waiting 3 days for a bank deposit.

Aside from the price differences between exchanges, the wait time is unacceptable for any kind of serious trading or investment opportunity. In addition the commissions that Coinbase levies on the trade are absurd.

So no, it is not really simple when you have must wait even after their service hopefully is not being interrupted yet again.

[Etschell]

Originally Posted by beshannon

Aside from the price differences between exchanges, the wait time is unacceptable for any kind of serious trading or investment opportunity. In addition the commissions that Coinbase levies on the trade are absurd.

So no, it is not really simple when you have must wait even after their service hopefully is not being interrupted yet again.

i would use gdax. you can also instant buy on coinbase but the fees are higher.

[77T]

Isn’t the new T+2 settlement rule for exchange traded securities about the same delay that BC exchanges offer currently?

Of course that’s just the time delay to get the cash into your bank. Sellers still risk exposure to a “Mt. Gox” event with any BC parked in an exchange.


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[vacano]

online wallets are being hacked hence the dip in price

[beshannon]

Originally Posted by Etschell

i would use gdax. you can also instant buy on coinbase but the fees are higher.

I am trying to figure out a way to arb the spread between the exchanges, slow transaction time makes this a problem.

Let others hold, the real money is in the trade.

[Cryten]

Originally Posted by Etschell

its going to be shorted hard on the 10th. ive already heard the chatter.

With such a rapid rise I'd be surprised if it wasn't.

[superdog]

As I understand it, unless you have a buyer, you can’t sell it. If it tanks, and no one is buying, it’s literally unsellable.

Not something I’m interested in anymore. It would have to be perfect timing to make money. It seems, based on my rudimentary understanding anyway.

I’m trying to be a long term guy. This is too risky for me.

[Magwitch]

The world would be a much better place with less greed.

[Raypep]

Originally Posted by Cryten

With such a rapid rise I'd be surprised if it wasn't.

This is where I stand as well, as many of us, we missed the boat. I'm not in this situation, however if I had bitcoin right now, I feel like I'd sell it (within the last week or so), I noticed today (as i'm writing this) bitcoin lost about $1k USD since yesterday.

My curiosity lays with other cryptocurrancies, NEO, Etherium, Lite etc. I'd hate to miss the mark again, however such is life.

[Etschell]

tbh who knows what any coins are worth. blockchain is worth trillions. its pretty apparent.

[joesetx]

Three words:

Dutch Tulip Market

[bayerische]

Originally Posted by joesetx

Three words:

Dutch Tulip Market

I got 13 words:

Many will be left penniless and then blame someone else for their foolishness.

[mmmmp]

Originally Posted by Tony64

Like it. Very good liquidity.

"Liquidity"....Ha! Well done!

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[TC94]

Originally Posted by superdog

As I understand it, unless you have a buyer, you can’t sell it. If it tanks, and no one is buying, it’s literally unsellable.

Not something I’m interested in anymore. It would have to be perfect timing to make money. It seems, based on my rudimentary understanding anyway.

I’m trying to be a long term guy. This is too risky for me.

You can buy or sell cryptocurrencies within seconds on exchanges. There is no liquidity problem. There are so many misconceptions out there about how cryptocurrencies work. It means nothing to me whether someone wants to buy or sell, but the things people throw out as “facts” are way off the mark. I heard a reporter yesterday quoting the price in London trading overnight compared to New York next morning. It isn’t traded in a city. It has no physical location.

You can see 24 hr trading volumes here: https://coinmarketcap.com

Originally Posted by joesetx

Three words:

Dutch Tulip Market

What if I told you that story is mostly myth? None other than Smithsonian Magazine history article as my reference:

https://www.smithsonianmag.com/histo...ver-180964915/

And whether or not bitcoin value goes up/down, its ridiculous to compare the utility of a new technology in 2017 to a flower.

[locutus49]

Dumbest post ever. Gold used to trade for a set price in America, something like $35 an once. Now it trades like a stock and the price varies wildly. This is known by virtually anyone with the most basic knowledge of investing.

Gold only has the value we assign to it, it has industrial and jewelry uses. But no intrinsic value.

Originally Posted by pickettt

The difference lies here; forget the numbers arbitrarily assigned as to its "dollar value" and realize that 1 ounce of gold will trade for exactly the same as it did one hundred years ago. Every other "currency" has been, or will be devalued.

Regarding Bitcoin, I'm not into it. However, buy low and sell high is a basic principle that can't be argued with. Though it's not for me, I wish success to everyone playing that game.

[pickettt]

Originally Posted by locutus49

Dumbest post ever. Gold used to trade for a set price in America, something like $35 an once. Now it trades like a stock and the price varies wildly. This is known by virtually anyone with the most basic knowledge of investing.

Gold only has the value we assign to it, it has industrial and jewelry uses. But no intrinsic value.

I think you misunderstood.

[77T]

I think this thread is a microcosm of the larger public interest in BC. Interested people range from those who are very informed to people who have little knowledge of crypto currency.

Also, some have a well-rooted skepticism in historical hyperinflated valuations when high demand (buyers) makes prices rise due to low supply (sellers).

And then there are people who are strong supporters and others who doubt the very underpinnings of BC value.

While opinions vary, the fact is we are just over 24 hours away from learning what happens when the CBOE and others trade futures based on BC.

If it adds any value to the discussions here, I’ve pasted a couple of articles that raise some questions on the sell side.

Investopedia article has an interesting reference to transaction fees when mining is no longer possible once the 21 million BC cap is hit. And the impact of fees that you pay to transact. And who owns the most BC (apparently the inventor of BC). https://www.investopedia.com/news/wh...ion-are-mined/

Another reference I’m sharing is a historical reference when a demand/supply imbalance occurs in a product that has an intrinsic value that people lose sight of. This happens when people rush into a market where they may not understand the fundamental and financial risks and only focus on the price. https://www.investopedia.com/terms/d...ket_bubble.asp

And surely tulips are not BC’s - I agree - it is the buying pattern that looks similar. But there have been other bubbles that burst - even in hard assets like real estate: https://www.investopedia.com/features/crashes/

Please understand that I take no sides on BC - despite those cautionary stories I posted above. They are only shared for whatever value they offer to TRF’ers who may be ready to pounce into buying Monday.

If I still had all my computers I’d maybe mine a fraction or two while I’m asleep. But I also won’t be calling or putting on the CBOE.


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[jhilly8982]

Originally Posted by 77T

But I also won’t be calling or putting on the CBOE.
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No options on Bitcoin yet, correct?

As for the futures trading slated to start tonight on CBOE and the 18th on CME, it will be interesting for sure. A few big proprietary firms have said they will be providing markets. As to size and volume, who knows.

[77T]

Yeah my syntax should have been that I’m not "going long" or "going short," when BC trading on the futures market begins.



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[jhilly8982]

Originally Posted by 77T

Yeah my syntax should have been that I’m not "going long" or "going short," when BC trading on the futures market begins.



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I was just joking with a buddy, it would be scary to own it at this level but even scarier to short it.

[subtona]

News is trading is being halted in some markets while bitcoin plummets...

Comments from those with insight?

https://www.today.com/video/bitcoin-...-1123023939908

[gettocard]

I’m broke,so problem solved.

[locutus49]

Bitcoin will remove money from those who don't understand economics.

Investing removes money from the impatient, and rewards the patient. Warren Buffet.