Crypto 360°

Sunday, 3 January 2021

Happy Birthday Bitcoin

submitted by /u/IOGCharles
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source https://www.reddit.com/r/btc/comments/kpgu9d/happy_birthday_bitcoin/

$34k BTC New All time high

Welcome $34k. Next up $35k. HAPPY BIRTHDAY BITCOIN!

submitted by /u/Mari0805
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Anyone else using Bitcoin as a store of wealth as the Fed pumps cash into circulation?

Disclaimer: Not an economist. But, I've done some research on the current financial environment of the US dollar and the economy, and we are definitely in uncharted territory. Over 20% of all USD was printed last year, and a lot of it went to buying stocks through quantitative easement.

In this post I break down investment vehicles into 4 main groups.

Cash and bonds.
Equity (stocks, real estate, anything regularly traded on the equity exchanges and has been propped up by quantitative easement.
Gold. You can buy this on equity exchanges but it behaves differently, so I separated it.
Alternative Investments (baseball cards, rare antiques, piles of dogshit, whatever).

My understanding of what is currently happening:

Interest rates are basically 0. That means bonds are not a feasible investing vehicle. So, you can't invest your cash risk free.
Over 20% of all USD was printed in 2020. Just look at the M1 money supply.
This money has been used to buy all kinds of financial assets (stocks, junk bonds, real estate, ETFs, etc.) which has propped up the stock market. People are also starting to speculate that assets are rising in price as a hedge against inflation.
Consumer prices (the price of a cheeseburger) has not really changed because... this money is not being spent. It sits in the stock market because there's nothing else to do with it. Do you want to open up a business right now? Go on vacation? Buy more clothes? There really isn't anything to do except pay down debt and buy assets, which is what people have been doing. But the USD is still there.

I'm under the impression that the price of equity has been rising because of both inflation and the fact that the FED is buying it up. The demand is artificial and can't last forever. So, shouldn't stocks be overvalued even after taking inflation into account? Shouldn't we expect a big dip when things start opening back up and people want to use their cash for something that isn't overvalued?

Enter Bitcoin. I would like to know people's thoughts on my understanding of Bitcoin. I am not an expert. It is similar to the USD in that it has no intrinsic value. The main difference is that no government can just decide to print more of it. What is the actual value of 1 bitcoin? Unlike gold or real estate, it doesn't really have a true value. It can be mined, so if price sky-rockets to $1 billion then the number of miners will increase which helps stabilize prices, however I find it a better hedge against inflation than other assets because:

Gold. Has 'intrinsic value' in that it can be worn as a sign of wealth. It also has practical uses because of its physical properties, but that doesn't really affect the price. It can be used as a hedge against inflation, but unless people believe we are entering some apocalyptic scenario, there is only so much people are going to be willing to pay to wear gold on their wrist, unlike bitcoin, which isn't tied to something intrinsic.
Cash. Governments can print more, as the Fed is doing right now. You want cash on hand if you think the price of assets are going to fall. Cash right now is obviously a terrible investment.
Equity. The reasons listed above. Artificial demand + printing money means stocks are overvalued.
I believe real estate, since it is seen as a traditional investment and is available on equity exchanges under the form of REIT's and others, has gone the way of stocks. The FED has been purchasing REITs and mortgage bonds as a part of QE.
Alternative investments (baseball cards, piles of lumber, whatever you can think of). I find these similar to gold, but they have 1 advantage. There is only so much people are going to be willing to trade for baseball cards, however you can't really buy these on equity exchanges. The FED hasn't been propping up the price artificially, so why should I believe their prices can be inflated by QE? I would also like to know people's thoughts on this.

The cons of bitcoin are that it can simply be banned. I don't have the foresight or knowledge to know what kind of havoc that may cause, or what could be used to justify it. It is also a digital asset, if the nukes fall, I guess you were better off with gold or piles of lumber weren't you.

This is all coming from the point of view of an individual investor, which I am. I am not a hedge fund who has billions to invest. I have a few hundred thousand, and it's extremely liquid right now. I don't think the general public has caught on to the idea that maybe 'gold that has no intrinsic value' might actually be a good investment vehicle.

Edit: Formatting

submitted by /u/suspicious_gardener
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Don't "wait for the dip"

There was a dip. 6%. About two hours ago.

I don't want to hear anybody whining about "waiting for the dip" who didn't jump on that one, or the 5% dip last week, or the 5% dip the week before that, or the 5% dip the week before that. What, is 5% not enough of a discount for you? It's not like the rest of the world is going to sell their Bitcoin, crash the price by 50%, then wait for you to notice.

Sure, there will be bigger percentage drops in the future, but there's no guarantee they'll take us below where we are today. Get in or stay out, but don't complain about the dip that never comes ... especially if you're not going to act on the ones that do.

submitted by /u/na3than
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While Bitcoin Tapped New Price Highs, 78,000 Short Positions Worth Over $800 Million Got Liquidated | Markets and Prices Bitcoin News

submitted by /u/NoLimitInvestment
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source https://www.reddit.com/r/btc/comments/kpf526/while_bitcoin_tapped_new_price_highs_78000_short/

Anyone else feel Bitcoin is their only shot?

Disabled vet here, who used to work in tech but my PTSD and TBI have all but made it impossible to keep up with the field and eventually became fully unemployable at VA standards. I do part time jobs here and there as I can but it's not sustainable between MH and seizures.

I have a teenager who I have been saving for since I don't want him to start out like I did, having to enlist because of no other opportunities, so between trying to stretch necessities and taking care of him there hasn't been much left.

Discovered BTC several years ago. Bought and stupidly sold at a loss. Got back in the game in early 2019 and have been stacking sats since.

Feels like this is a rare opportunity to rise above my lot in life so to speak and I think because of that I worry that maybe it's all some kind of pyramid scheme because.. seriously can the powers that be really let this happen? I can't contribute to society much anymore so I'm supposed to always be on the bottom rung.

And that mindset is what made me sell years ago and I worry I'll psych myself out and do it again.

Anyone else feel it's too good to be true?

And because I've been DCAing here and there its not anything I haven't already mentally written off or will completely collapse if BTC does.

Just doesn't feel like something people like me can accomplish.

Edit: thank you for coming to my therapy session 😆 these last couple of months have been a ride.

2nd edit: I'm a mom not a dad haha. The username doesn't let on I guess.

submitted by /u/Repulsive-Diver1838
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