Cryptocurrencies
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@nta Yeah - I remember people doing the same thing back in 1987 when the share market was romping along.
We had a guy from a/the fledgling NZ futures exchange come to university and make a presentation on buying share futures. He was emphasizing how great the opportunity was, because you could "control" a shitload of share value, without actually having much cash yourself - which sounded quite appealing to a poor student. Luckily exams came up and I never got around to doing anything about buying in prior to the market crashing.
Buying futures on my credit card..... I'd still be paying it off!
I got a very cheap lesson in caution!
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Youtube has a number of people (in cars for some reason) lamenting their investment strategy:
I don't share investment tips for one obvious primary reason: It's not my area of expertise. Actually make that two: I don't want people blaming me.
What I will say is try to work out what value a coin provides, i.e. what solution does it present? That or trade on the ignorance of others.
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@antipodean said in Cryptocurrencies:
What I will say is try to work out what value a coin provides, i.e. what solution does it present?
Hence Power Ledger & Ripple being in my portfolio. Maybe they'll come off, maybe they won't.
But the base tech seems good, with a use case, and a future.
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@Tim I agree - they're talking about triangulation and peak forecasting and "5th-wave" bullshit, and it works maybe once or twice and suddenly everyone is honking down on that pipe and putting their belief in it.
Try to buy low-ish.
Try to sell high-ish.That's no different to anything else. Was talking to a mate about it on the weekend, who is a pretty smart financial cookie - he said that besides the lack of regulation in the classic sense, the fact that this is built mostly on human confidence, and the belief that a company's value is in what the share market says, crypto only differs from shares in that its fucking stupidly quick to move anywhere.
Companies are frequently over-valued on the share market. There is only so much actual money to go around - that's why stock market crashes = suicides.
Look at Tesla for a company whose market cap far exceeds their assets. Made a profit in ONE quarter BUT that doesn't scare people off.
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A fool and their money are easily parted
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@antipodean Hey! I resemble that remark
In any case, I'm still tempted to throw in another $1k while its cheap as shit, BUT that is currently stymied by fucking school fees, fucking guitar lessons, fucking dance school, chances of wife catching on ...
All Ords here down 3% this morning
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@nta said in Cryptocurrencies:
@Tim I agree - they're talking about triangulation and peak forecasting and "5th-wave" bullshit, and it works maybe once or twice and suddenly everyone is honking down on that pipe and putting their belief in it.
Try to buy low-ish.
Try to sell high-ish.That's no different to anything else. Was talking to a mate about it on the weekend, who is a pretty smart financial cookie - he said that besides the lack of regulation in the classic sense, the fact that this is built mostly on human confidence, and the belief that a company's value is in what the share market says, crypto only differs from shares in that its fucking stupidly quick to move anywhere.
Companies are frequently over-valued on the share market. There is only so much actual money to go around - that's why stock market crashes = suicides.
Look at Tesla for a company whose market cap far exceeds their assets. Made a profit in ONE quarter BUT that doesn't scare people off.
The valuation of listed companies at any point may be wildly out of line with the value of the underlying cash flows expected from holding the investment.
But unlike crypto, shares in real companies represent a proportional ownership in some underlying asset(s), which generally has/have a resale value. This provides a floor, because if a share reaches prices well below the underlying DCF of the cash flows they will generate, someone big and ugly will come and take over the company.
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Finally crypto gets the credibility it's been missing.
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Was watching one exchange yesterday - BTC poked its head back above AUD15k for the briefest of moments.
That's about a 30-35% increase on a week ago depending where you're buying/selling. Now holding steady above AUD15k.
Most of the coins I'm in have doubled since two weeks ago. Should have bought more
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There never seems to be much middle ground with crypto, eh?
Its either a lever to true freedom or a massive bubble that is a total scam
I note the guy in charge of BTC is being done for money laundering, and asking for 15BTC to help fund his defense.
That's USD$173k right now.
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@antipodean Homeland Security confiscated his phone so he can't access his accounts