iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,220 Blog Posts

Bitcoin Has Bottomed, Agreed?

I think it’s fair to say Bitcoin has bottomed. Anyone with a solid head on their shoulders and not some empty container of brains knows it’s true.

Look at it.

 

While it’s true, people who own crypto-currencies are the laughing stock of the world. Wall Street ruined their party, pissed in their punch, and shit on their lawn. But all bad things end in time and perhaps it’s time for revenge of the nerds — as the digital currency presses higher and increases it’s attractiveness for degenerate gamblers.

Personally, I have a portfolio of shitcoins, but really prefer to play this move via the stock market. OSTK is my preferred method. Keep an eye on it today and tomorrow — for the stock is cheap and all of the weak disabled hands sold out of it yesterday.

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22 comments

  1. irma vep

    [ I don’t know nothin’ ‘bout birthin no bitcoin. ]

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  2. irma vep

    Good advice if one must dabble.

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  3. oldmantrader

    What happened to the crypto guy who wrote a few articles here?

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  4. kdogg1787

    Fly, what kind of work do you have happening in your house by previously mentioned contractors? I have a new stone patio with several bar and fire pit going in this week along with a new AC unit. Contractors running a muck. We now have stadium seating for watching all the hillbilly yard games of accurate toss. It would be a disservice if I did not give thanks to you and Exodus for caddying me along these past few years to make all of this possible.

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  5. stkfulano

    Fly, how can you compare typical stock market fuckery of bottom, topping, this and that…securities, buy, sell demand, all that dastardly stuff we are used to…..to a “MONEY” YOU CAN LITERALLY MAKE ON YOUR COMPUTER ??

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    • roguewave

      MONEY” YOU CAN LITERALLY MAKE ON YOUR COMPUTER
      That’s what the Fed does.

      90-some% of USD is digital.

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      • stkfulano

        You are correct, as the Fed has been creating dollars out of thin air for decades. But we can’t, we can only make fake bitcoin money 🙂 SCAM OF THE CENTURY

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  6. edge

    Most likely, that POS has bottomed.

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  7. roguewave

    How to explain bitcoin to an older crowd i.e You

    What is Bitcoin? Should I care?
    A well known champion of bitcoin, Andreas Antonopolis, calls bitcoin “the most exciting, most interesting and probably the most important technological invention in the last 20 years“. And that may be a gross understatement. Nothing like bitcoin has ever existed before in all of human history.

    “Bitcoin is digital money, but saying that is like saying the internet is a fancy telephone“.

    Some other ways to describe bitcoin:
    digital gold, a store of value, international money, a worldwide currency, a cryptocurrency

    Some other bitcoin adjectives:
    censorship resistant, trustless, unconfiscatable, borderless, open, neutral, voluntary, non-violent enforcement

    Over the centuries, due to war, famine, natural disaster, persecution, taxes (NY, NJ), etc., people needed to move to other parts of the world. In some cases, those migrating had some money or property in their home countries. Could they bring any of their wealth to their new home? Not easily. Maybe they could sew some gold coins into their clothes to fool the border guards. Because of the difficulty in taking your wealth with you, many immigrants arrived at their new destination with literally, just the clothes on their back.

    Recently, it’s become much easier to travel; but bringing some wealth with you was still very difficult. Try getting on a plane with a pocket full of gold coins or a suitcase full of cash. It’s likely you and your money will go separate ways.

    Today, with the invention of bitcoin, you can now take $20, $100, $5,000 or millions with you anywhere in the world and then convert it to the local currency or buy things as needed. However, you MUST remember your bitcoin password. In the bitcoin world, your password is known as your “private key”. If you forget your private key; you’ve lost all of your bitcoin(money). With bitcoin, you are your own banker and your own bank.

    Now you probably have more questions than when you started reading. There’s a lot to it. This is barely the tip of the iceberg. Researching bitcoin beyond this point is referred to as going down the bitcoin rabbithole. It never ends.

    So, should you own any bitcoin?
    I can’t tell you how much bitcoin you should own. I can tell you that zero is the wrong amount. This in not financial advice.

    If every millionaire in the world wants to own 1 bitcoin; they cannot do it. There are more than 21 million millionaires in the world but there will only be 21 million bitcoins (and 5 million have already been lost – see above re private keys.

    The price of 1 bitcoin on Jan. 12, 2019 was $3,669. Today: $5,282. Did I mention that the price of bitcoin is highly volatile? Also, you don’t need to buy a whole bitcoin. You can buy almost any amount e.g. $5’s worth, $100, $9,765.57, a million… (to 8 decimal places)

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    • edge

      I’m sure it will be OK as long as it doesn’t interfere with CBs ability to conduct monetary policy.

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      • roguewave

        When it gets bigger, it will interfere with CBs ability to conduct monetary policy. The genie is out of the bottle. They can’t un-invent it. They can’t jail Satoshi Nakamoto.

        “You never change things fighting the existing reality. To change something, build a new model that makes the existing model obsolete”. —R. Buckminster Fuller?

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      • roguewave

        “Bitcoin and the bigger Blockchain Ecosystem are the new financial system. It will slowly grab more market share, take over the global economy, and eliminate traditional middlemen such as banks. ”

        Marco Wutzer
        Disruptive Profits newsletter

        PS I have no connection whatsoever with Marco Wutzer and can’t afford his letter.

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    • numbersgame

      As a member of the “older corwd”, I feel it is my palce to expalin how naive this advice is: “I can’t tell you how much bitcoin you should own. I can tell you that zero is the wrong amount.”

      The main problems are:
      1) You do not distinguish between crypto-currencies genrally and bicoin specifically. Your above advice is good for cryptos, but not for bitcoin.
      1) You do not understand the purpose of a currency. The purpose is to make transactions cheaper and easier (ie, you don’t have to bring your goat to market and swap it for wheat right then and there). This is the fundamental flaw with BitCoin: as usage increases, so does transaction cost. BitCoin is only good for specualtion, not for long term investment.

      Maybe this will help millenials:
      BitCoin = MySpace

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      • roguewave

        The actual quote is, “Zero is the wrong number.” Anthony Pompliano
        https://www.youtube.com/watch?v=UMK_A0mF8PQ

        if you’re an institution today and you have zero exposure to the crypto currency asset class or market, you’re violating your fiduciary duty given that it was the best performing asset over the last decade. It has very unique characteristics when it comes to lower levels of correlation, upside the per unit of risk that you take by allocating capital here. Those institutions that are on zero percent exposure have to do what we call get off zero.

        Pomp: Each portfolio is different, so some it’s 10 basis points, 50, 75, 200, 500, whatever the basis point number is, it’s all about what their goals are, what their current allocations are, all of that, but zero is the wrong number.

        “Your above advice is good for cryptos, but not for bitcoin.”
        Nope. Most shitcoins will go to zero. Some to millions.

        “as usage increases, so does transaction cost”
        Yes, thousands of software engineers have been sitting idle for the last 2 years.
        It appears, you haven’t heard of the Lightning network. Anyone who knows anything in the space is familiar with Lightning, ergo…

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        • roguewave

          Education is your responsibility.
          https://bitcoinist.com/jack-dorsey-lightning-square-cash/

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        • numbersgame

          You seem to be conflating BitCoins and cryptocurrency.

          You said that all institutions should have exposure to “the crypto currency asset class or market” but then you disagreed with me for saying the same thing (“Your above advice is good for cryptos”)?

          Also, you seem to be confusing transaction *cost* with transaction *speed*. The Lightning Network *temporarily caches* BitCoin transactions, but does not *validate* them or it isn’t BitCoin anymore.

          Every Bitcoin transaction must be *eventually* validated by a BitCoin miner. The mining algortim increases in cost *by design*. Both the energy use and the payment for processign BitCoin transactions keep gettign higher.

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          • roguewave

            To be fair Lightning Network is still experimental. It looks very promising but much work is still needed. However if LN failed bitcoin would not fail.

            “Every Bitcoin transaction must be *eventually* validated by a BitCoin miner.”

            Eventually. You could buy a coffee with a lightning payment. When that is verified months later is of little concern to you. You drank your coffee.

            Lightning is a contract. Very few contracts have to be taken to court to collect. Only when there is a problem do you go to court or in this case, post them on the bitcoin blockchain.

            The mining algortim increases in cost *by design*. Both the energy use and the payment for processign BitCoin transactions keep gettign higher.

            Energy use and energy cost are not the same. Some mine bitcoin using flare gas at wells or refiners. If that gas is not used it has a value of zero.
            It seems Bitcoin transaction costs will continue up in the longer term. Only larger ones will be posted on the blockchain. Small transactions will use lightning or something similar. (You wouldn’t buy coffee with gold – too much friction.)

            PS No one really knows anything for sure in the crypto space. That’s a fact. It’s early days. Internet early ’90’s.
            It could go to zero or $1,000,000. Place your bets, or not.

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          • roguewave

            To be fair, your stocks may or may not be real. They are not validated just because your transaction settles. Only when the company is sold.

            Dole Foods had a total of 36,793,758 shares issued and outstanding; however, there were 49,164,415 (claims)shares in owners accounts. No one knows s*** for sure. If you did that; you’d go to jail.

            “I don’t know the outcome of the Dole Foods situation. I have not seen any FCC enforcement actions in the Dole Food situation, which means somebody lost money there. Why has there not been litigation? Why have there not been enforcement actions? It’s the sort of thing that regular mom and pop investors out there look at this kind of thing and just think the system is rigged against them. And guess what? In a lot of ways it is!”
            Caitlin Long

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    • stkfulano

      Rougewave,

      It all sounds good but with one major flaw. Your bitcoin could be worth 1 dollar or $12,000 depending on the month. Sorry, but without fixing that, all bitcoiners will live in anxiety for the rest of their life.

      FIX THAT FIRST.

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      • roguewave

        The fluctuations will lessen as volume grows and it will take time – years. But if you look at Fly’s chart above, bitcoin started at zero, then to a penny and eventually to $20,000, now back to $5000.
        Like any speculation, you should understand it before buying any significant amount. However, buying $10’s worth is a fast way to learn about it.

        It’s more like digital gold now than it is like cash.
        To buy some milk you wouldn’t convert a gold coin to do that. If you were buying a vacation home maybe you would sell your gold to do it.

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  8. numbersgame

    If Bitcoin ever reaches $8000 ever again, I’ll join Exodus.

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