General Crypto, HODLing, and Taking Profits (1 Viewer)

Jackypoo said:
Okay well what's the utility? What can I buy with bitcoin?
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Anything you want provided the other party will accept it.

A better example is Solana. It can process more transactions per second than Mastercard and do so for fractions of a cent in cost. I suspect that might be appealing to retailers who resent the 2% Mastercard charges. Adoption happens slowly, then all at once.

What if I am going to Vegas for WSOP and need to bring $20k. I can carry cash (risky) or I can wire funds to a casino (secure, but inconvenient and expensive). Crypto solves that problem.

What if I want to save money and earn more than .1%, or borrow money at a rate lower than banks. Defi connects the dots more efficiently and cuts out the middle man, replacing them with smart contracts.

Liquidity pools allow users to provide liquidity to decentralized exchanges and begin to make money that market makers like coinbase or brokers earn for themselves. I’m already doing this and earning APRs of 17% (not counting change in value of the tokens, which can dramatically reduce or enhance returns)

The power of this stuff is eye opening and if you haven’t seen it in action I don’t fault you for not seeing the potential. Crypto is so much bigger than bitcoin or whatever meme coin is trending. It’s technology disrupting finance in ways that the big players are only just beginning to realize. That what excites me. I DGAF whether any particular coin does well or not.
 
Whats some good altcoins to pick up now or soon considering the market is down a lot?
 
Jackypoo said:
All cryptos are scams tho, right?
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If you know how to look for the good ones it's really profitable. I wouldn't call most of them scams, but there are some out there. They are just failed projects/groups in most cases. You can just tell alot by just looking at the charts. Pump and dumps are normal for any crypto/stocks, but as long it has a linear progression in a reasonable amount of time it's the real deal.
 
DirtyTIVA said:
FDIC insures deposits up to $250k per account/account holder.
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Gotcha, about the same as in Norway then.:tup: Based on the above comment I was curious to know if it was somehow insured a 100% which would be very surprising. Crypto in general absoloutely is more risky though, no doubt. But also has a higher upside than keeping money in the bank, lol.

Will be interesting to see how the risk adjusted return graphs will look in a few more months for the big coins, like BTC and ETH.
 
Marius L said:
Gotcha, about the same as in Norway then.:tup: Based on the above comment I was curious to know if it was somehow insured a 100% which would be very surprising. Crypto in general absoloutely is more risky though, no doubt. But also has a higher upside than keeping money in the bank, lol.

Will be interesting to see how the risk adjusted return graphs will look in a few more months for the big coins, like BTC and ETH.
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Risky depends on which crypto you purchase. It's the same with stocks. There are some really volatile stocks out there.
 
ktran said:
Risky depends on which crypto you purchase. It's the same with stocks. There are some really volatile stocks out there.
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I agree. I meant the crypto space in general being more risky as in counterparts risk, in relation to for example bank accounts being insured for up to 250k usd, while coinbase accounts are lost if they go broke.
 
Crypto is an early adopter gamble. I know I'm gambling!

Borderless instant transfer of funds is likely something that has utility. How much that utility will be worth is what we're finding out. I don't think anyone has a good idea what the future potential of crypto is. I doubt that Facebook and Google knew that the majority of their income would come from advertising when they started... And much like MySpace and Yahoo, there will be losers along with the winners.
 
Mike mac said:
YOU ARE ALL WITNESSING THE DEATH OF BTC. AS SOON AS XRP GETS regulatory clarity..... xrp will blast. could be any week now!
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I think both of those have both utilities. Bitcoin is not built for financial. It is way to slow of transfer time. And XRP is the opposite of what decentralized which crypto is supposed to be. XRP is backed by banks and people looking at crypto to get away from banks and the current financial system we have right now.
 
I don't dabble much in crypto (only have some Ether and Solana), but curious what crypto will look like during the upcoming recession.
 
Highli99 said:
Anything you want provided the other party will accept it.

A better example is Solana. It can process more transactions per second than Mastercard and do so for fractions of a cent in cost. I suspect that might be appealing to retailers who resent the 2% Mastercard charges. Adoption happens slowly, then all at once.

What if I am going to Vegas for WSOP and need to bring $20k. I can carry cash (risky) or I can wire funds to a casino (secure, but inconvenient and expensive). Crypto solves that problem.

What if I want to save money and earn more than .1%, or borrow money at a rate lower than banks. Defi connects the dots more efficiently and cuts out the middle man, replacing them with smart contracts.

Liquidity pools allow users to provide liquidity to decentralized exchanges and begin to make money that market makers like coinbase or brokers earn for themselves. I’m already doing this and earning APRs of 17% (not counting change in value of the tokens, which can dramatically reduce or enhance returns)

The power of this stuff is eye opening and if you haven’t seen it in action I don’t fault you for not seeing the potential. Crypto is so much bigger than bitcoin or whatever meme coin is trending. It’s technology disrupting finance in ways that the big players are only just beginning to realize. That what excites me. I DGAF whether any particular coin does well or not.
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Credit cards charge what they do because they can, not because there are hefty costs associated with the transaction.

I’d be happy if crypto forces them to lower prices I guess but e-transfer is already prevalent where I live (Canada) and does the same thing at zero cost. You just log into your bank and send to the persons email. That’s it. Pretty much everyone uses it. I have no idea why this isn’t common in the states through banks (or maybe it is and I’m not aware) but you do have alternatives at low to zero cost.

As for moving money across the border via crypto, you still have to convert to physical cash or else will be at the mercy of whatever fees the person/company providing the service is pricing it at.

“What if I want to save money and earn more than .1%, or borrow money at a rate lower than banks. Defi connects the dots more efficiently and cuts out the middle man, replacing them with smart contracts. “

Who saves money at .1%? Getting money into stocks is easier than it ever has been. Fees are not high unless you’re constantly entering and exiting and using it like a chequing account.

“Liquidity pools allow users to provide liquidity to decentralized exchanges and begin to make money that market makers like coinbase or brokers earn for themselves. I’m already doing this and earning APRs of 17% (not counting change in value of the tokens, which can dramatically reduce or enhance returns)”

If you’re getting 17% to lend crypto for liquidity it’s either a massive inefficiency that will smooth out over time, or you’re assuming a lot of risk you’re not aware of in some way or another. Who are you lending to that’s paying 17%? Usually this is a sign of almost certain insolvency.
 
Stufflymcstuff said:
Credit cards charge what they do because they can, not because there are hefty costs associated with the transaction.

I’d be happy if crypto forces them to lower prices I guess but e-transfer is already prevalent where I live (Canada) and does the same thing at zero cost. You just log into your bank and send to the persons email. That’s it. Pretty much everyone uses it. I have no idea why this isn’t common in the states through banks (or maybe it is and I’m not aware) but you do have alternatives at low to zero cost.

As for moving money across the border via crypto, you still have to convert to physical cash or else will be at the mercy of whatever fees the person/company providing the service is pricing it at.

“What if I want to save money and earn more than .1%, or borrow money at a rate lower than banks. Defi connects the dots more efficiently and cuts out the middle man, replacing them with smart contracts. “

Who saves money at .1%? Getting money into stocks is easier than it ever has been. Fees are not high unless you’re constantly entering and exiting and using it like a chequing account.

“Liquidity pools allow users to provide liquidity to decentralized exchanges and begin to make money that market makers like coinbase or brokers earn for themselves. I’m already doing this and earning APRs of 17% (not counting change in value of the tokens, which can dramatically reduce or enhance returns)”

If you’re getting 17% to lend crypto for liquidity it’s either a massive inefficiency that will smooth out over time, or you’re assuming a lot of risk you’re not aware of in some way or another. Who are you lending to that’s paying 17%? Usually this is a sign of almost certain insolvency.
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You can see the rates for various yield farms on Raydium. Def high risk. Some yields are several hundred percent.
 
Highli99 said:
For those holding crypto, I HIGHLY suggest keeping them in a cold wallet like Ledger Nano. This article came out today and stuns me: https://www.yahoo.com/finance/news/coinbase-warns-users-could-lose-160832167.html

@Tommy set up that wallet!
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Coinbase did one thing really well at the beginning: made it easy to buy crypto. Their "innovation" was being the only crypto exchange allowed on the ACH network for so long.

Since then they have consistently dropped the ball, this is just the latest. The CEO needs to go.
 
Marius L said:
Don't you loose your money (or some portion of it) if your bank goes bankrupt in the US?
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In the US, generally deposits are FDIC (Federal Deposit Insurance Corporation) insured up to $250,000 per depositor, per bank.

FDIC FAQ

Q: What happens when a bank fails?

A: First, as the insurer of the bank's deposits, the FDIC pays insurance to depositors up to the insurance limit. Historically, the FDIC pays insurance within a few days after a bank closing, usually the next business day, by either 1) providing each depositor with a new account at another insured bank in an amount equal to the insured balance of their account at the failed bank, or 2) issuing a check to each depositor for the insured balance of their account at the failed bank.
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Many banks are FDIC insured (credit unions are covered through a similar fund called the NCUA), but some are not. To be a member of these insurance funds, the financial institution has to agree to comply with a laundry list of standards and policies and are subject to regular audits by the insurer.

Securities brokerages have something similar with the SIPC.

The issue with Coinbase is the grey area of what crypto is. Is it currency, security, or digital asset? Depending on how the legal system interprets it, will possibly determine how those assets are handled in bankruptcy.
 
Bitcoin still has some falling to correct itself. Potentially around 20k-15k. Most alts will follow.
 
Okku said:
WOW I have never seen anything like that.
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I take the part it looks like a healthy growth. It shot up so fast I'm not surprised it fell so fast. Usually it takes years what they did in a in a year. $5 to $100 in a year, you'd suspect some volatility to happen.
 
Anyone think Bitcoin could come all the way back to the $10k stability point?
 
Pinkdan said:
Anyone think Bitcoin could come all the way back to the $10k stability point?
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At 15k-ish if it drops slowly. If it does go to 10k-ish I'd probably be for a few minutes and bump back up. Strongly not below 6k. So around 7k-15k.
Screenshot_20220512-150929~2.png
 
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I only have a little SOL and BTC now but it is safe on the Ledger now.

PXL_20220512_200916165.jpg


A friend of mine has like $7K in some stable coin that was earning interest. I forgot who it was with but they put a hold on withdrawals and it no longer gains interest. That's crazy!
 
Tommy said:
A friend of mine has like $7K in some stable coin that was earning interest. I forgot who it was with but they put a hold on withdrawals and it no longer gains interest. That's crazy!
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It was stablegains.com
 
Highli99 said:
I don’t know which Cryptos will win and which will go to dust, but I am certain this intersection and finance and technology is going to disrupt major players including but not limited to payment processors, banks, investment companies, and many others.

Decentralized finance is a wild and interesting world, full of risk for sure, and quite immature with high barriers to entry for the uninformed. And yet having explored it I can say it is only a matter of time.

In 2000 you could live well without ever going Online. We were only scratching the surface of the internets capabilities. The world still existed in analogue. That is no longer true. Shut the internet down today and you’d have zombie accopolypse in a matter of weeks, if not days.

Adoption rates for crypto mirror those of the internet and are at a similar rate of the internet in 2000. If you extrapolate usage and maturity of these products it’s not hard to imagine where this is going. Then we can go back to laugh at late night hosts making fun of technology they didn’t understand.

Just because you don’t see the utility yet doesn’t mean it doesn’t exist.
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Interesting perspective.
 

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