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Anyone investing in this Crypto?


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On 5/11/2022 at 8:33 PM, Kevin Slater said:

Which I guess is one argument for holding your crypto in Fidelity. 

Kevin Slater 

Does Fidelity offer actual crypto you can withdraw to a wallet or is it an ETF type product?

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10 hours ago, Calix_V2 said:

This post wont age well, but you do you ✌

I grant that you may be right @Calix_V2 but I’m happy with my holding of shares in Berkshire Hathaway and my holdings of inflation-proofed bonds.
 

Perhaps I should make a mental note to check in a year’s time on whether your crypto holdings outperform my investments or not.

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13 minutes ago, MscleLovr said:

I grant that you may be right @Calix_V2 but I’m happy with my holding of shares in Berkshire Hathaway and my holdings of inflation-proofed bonds.
 

Perhaps I should make a mental note to check in a year’s time on whether your crypto holdings outperform my investments or not.

Again, you do you man.  This is a case of old money dying vs new money taking over where everyone can invest in and create generational wealth. BH & Warren Buffet is one example of the desperate attempt to keep the old system alive and old cats rich. It's a dying paradigm and he will never admit that crypto is a viable alternative to the current system for obvious reasons.  Crypto has too much momentum to stop it.  Countries are adopting it and incentivizing people to live on it/invest in real estate, etc.  Also might be noteworthy, Buffet's granddaughter is in the "new money" category and is a major proponent of crypto and NFT's. Another sign of the changing of the guard.

As far as use/utility goes, would love to see crypto applications being deployed in this industry like funds being held in a "2 of 3" multisig escrow service, where both the provider and client deposit funds.  The provider can see funds from the client in the wallet, sign the transaction and upon meeting, have the client sign and if for some reason the client bails or refuses, the 3rd party "mediator" signs the transaction and a pre-agreed amount is sent to compensate the provider for his/her time, eliminating no-shows or scams.  Benefit to the client would be equally as beneficial. Late/no-show? Pre-agreed amount sent to the client. Keeps everyone honest. 

You just can't do that with the current financial system the way crypto can.

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On 5/11/2022 at 8:13 PM, BnaC said:

An interesting twist indeed - 

coinbase warns bankruptcy could wipe out user accounts

Coinbase users would become “general unsecured creditors,” 

this description means that account holders are last in line to get payouts and if there’s a shortfall after secured creditors are paid, then the shortfall would come out of user accounts  

Is it theoretical or real?  Well, there have been a lot of black swan events in the last decade…imagine if the company filed bankruptcy and couldn’t pay the power bill 😳

 

Here's a Barons article that teases that out a bit more.

Kevin Slater

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On 5/16/2022 at 12:03 PM, Vegas_nw1982 said:

This is reason enough for me to avoid.

"I'm from the Government and I'm here to help"

I'd be more concerned with G7 countries adopting digital identity alongside CBDC's. 

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  • 4 weeks later...
On 5/14/2022 at 9:39 AM, Calix_V2 said:

Crypto has too much momentum to stop it.

I’m curious.  Where do you see that momentum going today?   Are you still bullish?

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7 minutes ago, Kevin Slater said:

To be fair, one could be just as snarky about the stock market today.

Kevin Slater

I wasn’t trying to be snarky.  I’m not a crypto believer and I’ve made that clear. So, for a curious disbeliever, the best way to understand something is to ask a true believer…that’s my motivation  

As for stock market comparisons, it’s going to be a bad day too…but crypto just had a bear market equivalency loss overnight.  That’s an eyebrow raiser. 

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https://www.cnn.com/2022/06/13/investing/bitcoin-price-celsius/index.html

Bitcoin and other cryptocurrencies are plunging Monday, and two of the world’s biggest cryptocurrency platforms have restricted activity as the market meltdown continues apace.

The Celsius Network, which has 1.7 million customers, said that “extreme market conditions” had forced it to temporarily halt all withdrawals, crypto swaps and transfers between accounts.

“We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets,” the company said in a blog post.

The UK-registered company has about $3.7 billion in assets, according to its website. It pays interest on cryptocurrency deposits, and loans them out to make a return.

Binance, the world’s biggest cryptocurrency exchange, said that it had temporarily suspended withdrawals on its bitcoin network. It said that bitcoin could still be withdrawn on its other networks.

The company said it made the decision because some transactions had gotten “stuck” and were causing a backlog.

“Binance will reopen withdrawals on the bitcoin (BTC) network once our withdrawal system becomes stable, and we will notify users in a further announcement,” the company said in a statement.

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I read an article about the founder of Binance a couple of weeks ago. If I recall correctly, he graduated from McGill University, my alma mater, in the late 80s.

He was cited as being Canada's latest billionaire, worth about $1.3 billion. I guess today that would be somewhere south of half a bil today.

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On 6/13/2022 at 6:12 AM, BnaC said:

I’m curious.  Where do you see that momentum going today?   Are you still bullish?

:classic_laugh: Take a look around you, everything is down as Slater said. However, unlike traditional investments are going down the toilet, can you easily get out of positions in a matter of seconds and reallocate them to other assets or buy back in at these discounts using well configured trade bots/signals, etc?  It's a different playing field with different time horizons that you are ignorant to, but that's alright.  If you know the crypto markets and how to make them work for you, you're golden.  We are in the middle of the "Great Retail Shakeout".  People with paper hands allow for others to buy these juicy dips and continue to accumulate.  True wealth is made in bear markets, in case you're not aware.
For you, I'd stick to whatever your investment manager tells you to do!  Less to think about.  You can continue your anti-crypto sentiment while I DMOR & accumulate like a boss. This really is a young man's game.  But you do you!  All the best to you and your investments. ✌

@BuffaloKyle yes Celsius had red flags from the second I started digging into their publicly available financials (stated reserves, VC funding, etc) and sadly, saw it coming.  Now we are seeing a potential depeg with the degen Sun throwing 2 billion to fight the shorts.  This is the type of stuff people lose their life savings over.  While there are some solid projects out there, the risk is still present. With that, the projects with unsustainable yields/poor tokenomics/shady teams will die out and the cream will rise to the top. 

This asset class is not for everyone.  DYOR! 🤙

 

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  • 3 weeks later...
On 5/16/2022 at 12:03 PM, Vegas_nw1982 said:

This is reason enough for me to avoid.

"I'm from the Government and I'm here to help"

Actually it started as a libertarian movement to create something alternative to government controlled currency.

If you do a little research you'll find out governments or countries don't like crypto but accept it because it's legal.

Obviously some have to repeat a catchy phrase because it might fit into this argument but in this case your reply makes no sense.

 

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On 6/13/2022 at 9:18 AM, Luv2play said:

I'm also not a believer in crypto currencies but thought they were not supposed to be linked to equity markets. Also not supposed to be influenced by inflation. 

Now it appears they only go up when markets are bullish and inflation is low. As a hedge crypto appears to be a dud.

The only alternatives to having cash in the bank that I like are having real estate and owning physical gold not bonds. 

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1 hour ago, mike carey said:

Ok, so perhaps this is leaping too quickly to judgment, and rather too harsh, but ...

FWoBarwWIAADpLf?format=jpg&name=small

When you look at the statistics of ownership (from Coinbase for example), Crypto ownership is high under the younger demographics (under 40) and minorities. They have been particularly hard hit by what CNBC calls the “Crypto Carnage”.  https://www.cnbc.com/2022/06/14/cramer-tuesday-more-crypto-carnage-oilers-upgraded-oracle-wows.html

I guess that means I have a slightly different take on “diversity in the industry” 🤷‍♂️

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I am currently investing in crypto.  It has been around since 2009, has a huge following, and has a very positive track record.  Bitcoin is up around 70% over the past 3 years even with the recent crash.  It swings wild, but if you don't panic there is real money to be made here.

I got out after the last crash and noticed a trend.  When Bitcoin crashes, it tends to drop by 75-80%, then it tends to come back at 4x its previous high.  Right now, it has fallen approximately 72% from its last high.  I primarily invest in Bitcoin and Etherium and I use a hardware wallet to stay away from the exchange volatility.  I see it as a 2-5 year play and I'm investing slowly over time.

Investing 101 is buy low and sell high.  Real Estate is high right now (it won't stay there), Stocks are just starting their downward trend IMHO, Crypto is much closer to a potential bottom and buy point.  Can't predict the exact bottom, but that is where dollar-cost averaging comes in, and when it peaks again it won't matter that much if I bought at the true bottom.

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1 hour ago, Kevin Slater said:

What is exchange volatility, like price fluctuations?  (If so, how does a hardware wallet help with that?)

Kevin Slater

Because of the crypto market volatility, there are rumors that some of the exchanges may fail.  Coinbase is one of the most popular exchanges in the US.  Your cash deposits are insured with Coinbase, but your crypto deposits are not.  If Coinbase failed, you'd likely be named a creditor to the liquidation (good luck).  Exchanges have also been hacked in the past, so there are a few good reasons not to leave your assets on an exchange.

When you transfer your digital assets to a hardware wallet, you remove them from the exchange to mitigate these risks.  When it comes time to sell, you can transfer the assets back to an exchange to make a withdrawal.

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39 minutes ago, jtwalker said:

Because of the crypto market volatility, there are rumors that some of the exchanges may fail.  Coinbase is one of the most popular exchanges in the US.  Your cash deposits are insured with Coinbase, but your crypto deposits are not.  If Coinbase failed, you'd likely be named a creditor to the liquidation (good luck).  Exchanges have also been hacked in the past, so there are a few good reasons not to leave your assets on an exchange.

When you transfer your digital assets to a hardware wallet, you remove them from the exchange to mitigate these risks.  When it comes time to sell, you can transfer the assets back to an exchange to make a withdrawal.

Thanks for explaining!  I'd call that institutional risk rather than exchange volatility. 

Kevin Slater

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