Bitcoin and other forms of digital currency

[Val-E]

DJ has been all up since November when it was at 23k. It´s normal to have some type of correction and profit taking and recent political events haven´t helped.

Edited February 2, 2018 by Val-E

[Sauromosis]

It will be interesting to see if people think, "stocks are in trouble, will put my money in crypto" or, "stocks are in trouble, I have to protect my money by selling crypto."

[crayxlp]

10 minutes ago, brickolodon said:

..and some more. Dow plunged 600 points

BTC will go to 5k next week...or two.

 

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What do you think are the reasons for that? The Federal reserve situation since congress did not approve the tax bill ?

[enotoga]

3 minutes ago, crayxlp said:

Im not investing into bitcoin..just curiuos if that one can break through like 7000 USD barrier.. any thoughts?

Bitcoin is currently trading at $8,540 USD.  Personally, I think Ethereum (ETH) is in a better position to gain in value than BTC.   But I wouldn't do anything today.  In fact, I would wait for the dust to completely settle from this ongoing sell-off.   

[Sauromosis]

It's called "irrational exuberance."  The market has been going up for so many years that we are due for a correction.

Also, if the president receives an indictment, we could see a big red day that makes today look minor.

Edited February 2, 2018 by sauromosis

[TANV]

1 minute ago, sauromosis said:

It's called "irrational exuberance."  The market has been going up for so many years that we are due for a correction.

Also, if the president receives a subpoena, we could see a big red day that makes today look minor.

Don't forget, wages are starting to finally increase after 8 years.  Thus, we're starting to see investors worry about inflation now and shifting to Bonds.

[enotoga]

9 minutes ago, sauromosis said:

It will be interesting to see if people think, "stocks are in trouble, will put my money in crypto" or, "stocks are in trouble, I have to protect my money by selling crypto."

I agree, this will be very interesting, and it's compounded by the fact that interest rates are finally rising, which means inflation should begin to climb.  Traditionally this means money will start moving to gold, silver, palladium, and platinum.  I wonder if this will happen.

[Val-E]

So long as they stay the hell away from Lego it´s all good.

[Sauromosis]

1 minute ago, Val-E said:

So long as they stay the hell away from Lego it´s all good.

Ah yes, but do people overpay for rare lego sets when their stocks plummet and/or there's a recession?  

[exciter1]

It's called "irrational exuberance."  The market has been going up for so many years that we are due for a correction.
Also, if the president receives an indictment, we could see a big red day that makes today look minor.

Percentage wise, the drop today was only marginally significant. We’ll see what happens next week.

[Val-E]

3 minutes ago, sauromosis said:

Ah yes, but do people overpay for rare lego sets when their stocks plummet and/or there's a recession?  

One could argue they do considering the golden years happened during the subprime and eurozone crises.

[Quacs]

18 hours ago, enotoga said:

I agree, this will be very interesting, and it's compounded by the fact that interest rates are finally rising, which means inflation should begin to climb.  Traditionally this means money will start moving to gold, silver, palladium, and platinum.  I wonder if this will happen.

Why wouldn’t it?  Like flight to bonds, you should see it with gold and precious metals too.  Fed needs to start raising rates though.

[enotoga]

4 hours ago, Quacs said:

Why wouldn’t it?  Like flight to bonds, you should see it with gold and precious metals too.  Fed needs to start raising rates though.

"Why wouldn't it" is a great question.  I've asked myself that many times.  If you look at the charts for metals (gold and silver) over the past 20 years, one would expect to see a flight to metals on 911 or maybe at the start of the war in 2003, or during the banking crash of 2008/2009 at the very least.  But it never happened on any of those occasions.  The banking crash and market drop in 2008 was the perfect scenario for a metals rally because it was combined with massive money printing.   We finally did see a metals rally 4 years later in 2011/2012, but it was short-lived.   Silver is almost at rock bottom today.

Given all the massive money printing through QE1, QE2, QE3, plus European printing, and who knows what they're doing in Asia, it seems like we should be heading into a massive inflationary period and a massive rise in metals prices, but who knows.  These financial manipulators are tricky.  Maybe there's something to all this Illuminati talk

But Palladium and Gold have been moving up lately so maybe it is happening now.  What do you think about investing in metals ETFs like SLV, GDX, PALL? 

Edited February 3, 2018 by enotoga

[Quacs]

1 hour ago, enotoga said:

"Why wouldn't it" is a great question.  I've asked myself that many times.  If you look at the charts for metals (gold and silver) over the past 20 years, one would expect to see a flight to metals on 911 or maybe at the start of the war in 2003, or during the banking crash of 2008/2009 at the very least.  But it never happened on any of those occasions.  The banking crash and market drop in 2008 was the perfect scenario for a metals rally because it was combined with massive money printing.   We finally did see a metals rally 4 years later in 2011/2012, but it was short-lived.   Silver is almost at rock bottom today.

Given all the massive money printing through QE1, QE2, QE3, plus European printing, and who knows what they're doing in Asia, it seems like we should be heading into a massive inflationary period and a massive rise in metals prices, but who knows.  These financial manipulators are tricky.  Maybe there's something to all this Illuminati talk

But Palladium and Gold have been moving up lately so maybe it is happening now.  What do you think about investing in metals ETFs like SLV, GDX, PALL? 

PMs are typically a good hedge for inflation, but we’ve only seen rates above 5% once since the turn of the century so there’s really been no major financial reason to hold any.  That said, I still have a very small portion of my portfolio in GLD right now and will be moving more into it soon.  GLD hasn’t been a great recent performer but if rates start to go up, I want more gold.  I don’t have any issue buying ETFs since they are backed by their respective metals, but my personal preference is to hold metal-backed ETFs like GLD rather than industry sector ETFs like GDX.  I have also thought seriously about putting some $ into bullion and may be pulling the trigger on this soon.

[thirsty]

Gold appreciating due to inflation is a bit of meme.  It is actually currency crisis and the lack of confidence In $$$'s that really moves gold. 

I think the near triple in price last decade was a pretty good run, and the six bagger into 2011 for a useless rock that doesn't pay interest was right up there with the run in the 70's.  Not quite steller, but damn good.

I have long suspected that Bitcoin siphoned off major safe haven flows that would have gone to gold, which goes along way to explaining its performance the last half decade.  It will be US dollar strength that really dictates where gold goes.  If it strengthens I expect one more final smash and long term bottom, then rocket ride to the moon.  I've long said the biggest bubble of them all is Govt bonds, all levels, all nations.  Interest rates moving up is sign that pig is just about to get slaughtered. 

[TANV]

Friends, all I can say is.... DIVERSIFY DIVERSIFY DIVERSIFY!

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[crayxlp]

Id like to know whether all these investors investing into crypto ever heard of the dangers of "solar erruptions" / blasts that could entirely wipe out ANY electronic system on Earth.. Its scientifically proven that it could.. 

[pharmjod]

Yeah if that magnitude of event happens we will be looking at a black sky event and unless you are a prepper that has invested in guns, ammo, water and survival gear we are all screwed.

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[Guest TabbyBoy]

This current crash (the second in 2 weeks!) was the last straw, so I sold all of my ETH at €850 and XRP at €0.80 as we're heading to the bottom fast, a bit like turning the clock back 6 months or more. I'll be buying back the same amount of ETH at €425 and XRP at €0.40 which should be next week. I've decided that I will now NOT be re-investing the profit into crypto as regulation has now killed it for the long term and we'll only see very slow growth from now on. I think current coins have had their day for speculating and only something totally new and revolutionary will provide rewards similar to last year.

The BP cryptofolio is now down 50% and is still dropping. I've now lost faith in any recovery for the next 6+ months due to the recent government crackdowns.

Just pretend to cash out now and see how much you would've made by buying it all back in a week from now.

Has the crypto bubble burst?

YES !!! Not because of a bubble per se, but because of greedy/ignorant governments wanting to tax and ban it. Their plans are working!

DON'T keep anything on an exchange at this time as they could collapse without notice due to the current global crackdown. I cashed in just in case, but left my accounts and wallets active, but empty.

[thirsty]

49 minutes ago, TabbyBoy said:

This current crash (the second in 2 weeks!) was the last straw, so I sold all of my ETH at €850 and XRP at €0.80 as we're heading to the bottom fast, a bit like turning the clock back 6 months or more. I'll be buying back the same amount of ETH at €425 and XRP at €0.40 which should be next week. I've decided that I will now NOT be re-investing the profit into crypto as regulation has now killed it for the long term and we'll only see very slow growth from now on. I think current coins have had their day for speculating and only something totally new and revolutionary will provide rewards similar to last year.

The BP cryptofolio is now down 50% and is still dropping. I've now lost faith in any recovery for the next 6+ months due to the recent government crackdowns.

Just pretend to cash out now and see how much you would've made by buying it all back in a week from now.

Has the crypto bubble burst?

YES !!! Not because of a bubble per se, but because of greedy/ignorant governments wanting to tax and ban it. Their plans are working!

DON'T keep anything on an exchange at this time as they could collapse without notice due to the current global crackdown. I cashed in just in case, but left my accounts and wallets active, but empty.

That is what killed gold in the early 80's.  The government changed the rules on exchanges turning them all into banks, at that point they were liable for all settlements unless they could advance forward customer info.  There is a moral to this story...

[Val-E]

1 hour ago, TabbyBoy said:

This current crash (the second in 2 weeks!) was the last straw, so I sold all of my ETH at €850 and XRP at €0.80 as we're heading to the bottom fast, a bit like turning the clock back 6 months or more. I'll be buying back the same amount of ETH at €425 and XRP at €0.40 which should be next week. I've decided that I will now NOT be re-investing the profit into crypto as regulation has now killed it for the long term and we'll only see very slow growth from now on. I think current coins have had their day for speculating and only something totally new and revolutionary will provide rewards similar to last year.

The BP cryptofolio is now down 50% and is still dropping. I've now lost faith in any recovery for the next 6+ months due to the recent government crackdowns.

Just pretend to cash out now and see how much you would've made by buying it all back in a week from now.

Has the crypto bubble burst?

YES !!! Not because of a bubble per se, but because of greedy/ignorant governments wanting to tax and ban it. Their plans are working!

DON'T keep anything on an exchange at this time as they could collapse without notice due to the current global crackdown. I cashed in just in case, but left my accounts and wallets active, but empty.

Now if that Nexo battle suit would just start appreciating, I have this contest in the bag!

[Pseudoty]

I have been following this guy since November and so far he has been spot on as far as BTC goes. As we can see the weak hands are folding. 

 

[Val-E]

Weak hands with cold wallets can´t handle hard forks. Am I a Bitcoin analyst or a carer in a retirement home?

Edited February 5, 2018 by Val-E

[Guest TabbyBoy]

There are those that have weak hands and those that have a strong grip..... for too long! There's a time to bail and that was 3 days ago. It would seem impossible, but ETH is in a really sleep decline now. There is certainly panic selling going on right now and I can't blame them as they'll only lose more by holding. We could even reach the levels of a year ago, the drop is already beyond half way there!

Could ETH go below €450 this week? Very likely! €300 next week? Absolutely!

Remember that this is by far the biggest ever crash (and it IS a crash!) and it will take a very long time to reach the levels of yesterday let alone the all time highs. I think that it's basically game over now as the banks have really screwed us.

If anybody is planning in investing now..... DON'T.... you couldn't pick a worse time.

Lloyds in the UK banning crypto is the worst crypto news to hit us so far. HSBC are also banning it as they refused to credit my last €50K withdrawal from Kraken. Some UK banks now have a Black List of foreign banks linked to exchanges. However, I got my Santander EUR account to accept the credit. What's the point of amassing a huge cryptofolio if no bank will accept any withdrawal?

Seriously guys, the crackdown is getting serious. Try a test withdrawal to your bank ASAP in case they've also blocked deposits from exchange accounts.

As it stands now in the UK:

Lloyds... no credit card debit/credit allowed via ICO or exchange bank - VERY bad news!

HSBC... no credit card or current account debit/credit above £25K allowed (my main £ account).

Any bad news from US and EU banks?

A friend who works for the Financial Ombusdman Service says that all UK banks could soon not be accepting demands or payments from accounts held by exchanges. They say it's to tackle money laundering, but we all know that they want a piece of the action and to keep control. Only a tiny % of crypto transactions are used for illegal means, not enough for them to crack down like this.

If you can't "bank" your winnings, is there any point? You can't use eBay either as you have a 99% chance of being scammed AND paying chargeback fees.

I'm done with crypto for now. My main portfolio is now empty and I'll only be buying ETH back and only if it drops to below €250. I did say €425 earlier, but I think that'll be reached within hours, not days! I've kept my BP one going just in case, but I now expect it to be worthless by March.

Personal crypto speculation is over, we'll now have to use registered brokers and fund managers who will keep most of the profits!

[Val-E]

"Looks like I picked the wrong week to" meme placeholder.