BITCOIN as an alternative to regular currency

Post Reply
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

‘Bitcoin whales’ control third of market with $37.5bn holdings

Wealth in nascent cryptocurrency concentrated in mystery group of 1,600 investors

https://www.ft.com/content/c4b68aec-6b2 ... 230fa67aec

Data from Chainalysis, a blockchain research company, seen by the Financial Times showed that in April this year, there were some 1,600 bitcoin “wallets” — the digital stores held by individual users — containing at least 1,000 bitcoin each.

Just under 100 wallets contained between 10,000 and 100,000 bitcoin, roughly worth between $75m and $750m at today’s prices.

That the bitcoin market is so tightly held stands at odds with bitcoin’s mission to democratise finance by setting up an alternative monetary systemfree of central bank control and open to all. It also brings risks for smaller speculators.

However, by April 2018, the data showed the amount held by long-term investors, at about 6m bitcoin, was much closer to matching the amount held by short-term speculators, with 5.1m bitcoin.

Chainalysis estimated that many longer-term holders sold at least $30bn worth of bitcoin to new speculators over the December to April period, with half of this movement taking place in December alone.

“This was an exceptional transfer of wealth and conditions for it to occur again are unlikely to form again soon,” said Mr Gradwell.

Experts also warn there are opportunities particularly for larger players to engage in market manipulation owing to the lack of regulation and the existence of informal over-the-counter markets.

“A number of these larger holders do communicate with each other, they know [each other], they take stock of market activity,” said Dr Garrick Hileman, head of research at Blockchain and co-founder of Mosaic.io, a platform for market intelligence on crypto.
Zenyatta
Posts: 1143
Joined: Thu Mar 11, 2010 4:17 pm

$6K threshold finally breached, let's see how far it can fall...
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

Feel significant that it couldn't hold above $6k
Ginger8585
Posts: 11
Joined: Wed Nov 16, 2016 10:09 pm

Euler wrote:
Sat Jun 09, 2018 8:33 am
‘Bitcoin whales’ control third of market with $37.5bn holdings

Wealth in nascent cryptocurrency concentrated in mystery group of 1,600 investors

https://www.ft.com/content/c4b68aec-6b2 ... 230fa67aec

Data from Chainalysis, a blockchain research company, seen by the Financial Times showed that in April this year, there were some 1,600 bitcoin “wallets” — the digital stores held by individual users — containing at least 1,000 bitcoin each.

Just under 100 wallets contained between 10,000 and 100,000 bitcoin, roughly worth between $75m and $750m at today’s prices.

That the bitcoin market is so tightly held stands at odds with bitcoin’s mission to democratise finance by setting up an alternative monetary systemfree of central bank control and open to all. It also brings risks for smaller speculators.

However, by April 2018, the data showed the amount held by long-term investors, at about 6m bitcoin, was much closer to matching the amount held by short-term speculators, with 5.1m bitcoin.

Chainalysis estimated that many longer-term holders sold at least $30bn worth of bitcoin to new speculators over the December to April period, with half of this movement taking place in December alone.

“This was an exceptional transfer of wealth and conditions for it to occur again are unlikely to form again soon,” said Mr Gradwell.

Experts also warn there are opportunities particularly for larger players to engage in market manipulation owing to the lack of regulation and the existence of informal over-the-counter markets.

“A number of these larger holders do communicate with each other, they know [each other], they take stock of market activity,” said Dr Garrick Hileman, head of research at Blockchain and co-founder of Mosaic.io, a platform for market intelligence on crypto.

Im currently setting up a brokerage/pool service and we have been involved in the OTC side of things... there is ALOT of very large transactions going on the behind the scenes. unfortunately its only retail invetsors who seem to drive the price at the moment and they havent the liquidity or the sentiment to drive it the direction we need/want.

and theres definitley massive manipulation going on to supress the price whilst this accumatltion takes place. interestingly just enough to keep it above mining costs.

G20 said regs due in Q2... cant wait, desperately needed
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

The Prophets of Cryptocurrency Survey the Boom and Bust

Inside the ongoing argument over whether Bitcoin, Ethereum, and the blockchain are transforming the world.

https://www.newyorker.com/magazine/2018 ... m-and-bust
User avatar
wearthefoxhat
Posts: 3205
Joined: Sun Feb 18, 2018 9:55 am

Euler wrote:
Sun Oct 21, 2018 10:05 am
The Prophets of Cryptocurrency Survey the Boom and Bust

Inside the ongoing argument over whether Bitcoin, Ethereum, and the blockchain are transforming the world.

https://www.newyorker.com/magazine/2018 ... m-and-bust
Thanks for link.

I got into Bitcoin more for the "investment" reasons rather than how to use it as an alternative to fiat currency. That would of been a by-product if the rise had continued in the same way it did in 2017. :roll:

I have a 1000 day mining contract where the mining warehouse is based in Iceland-Reykavik. Even though it's mining "dust" on a daily basis, its' success is underpinned on how high the Bitcoin ends up on the 1000th day. I have projected the figures based on it's current mining performance and if the Bitcoin price is the same as it was on the day the contract was agreed, then the initial investment doubles. (subject to capital gains tax).

I don't have any plans to travel the world using Bitcoin as my understanding on how to use it daily is limited, when I get to cash out the contract, the rules and regulations may have changed again!
ec0n0mist
Posts: 173
Joined: Mon Dec 29, 2014 5:17 pm

I'm surprised it's so muted in this corner given that a very significant support level for BTC just got breached.
You do not have the required permissions to view the files attached to this post.
User avatar
PDC
Posts: 2272
Joined: Sun Jul 24, 2016 5:52 pm

There goes $5,000 and taking Nvidia with it, I hope Euler got out while the going was good as the last week or so has been brutal.

Management at Nvidia has screwed up, inventory is in a mess, built up 70% in the last 9 months, revenue decline expected next quarter, woof!
User avatar
Naffman
Posts: 5626
Joined: Sun Aug 11, 2013 5:46 am

The furry animals tipping advice is almost as good as his share/crypto tips :P

Think he'll be licking his paws after doing his nuts in the crypto exchange Digitex :P
wankerbadger.png
wankerbadger1.png
You do not have the required permissions to view the files attached to this post.
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

PDC wrote:
Mon Nov 19, 2018 7:06 pm
There goes $5,000 and taking Nvidia with it, I hope Euler got out while the going was good as the last week or so has been brutal.

Management at Nvidia has screwed up, inventory is in a mess, built up 70% in the last 9 months, revenue decline expected next quarter, woof!
I always sell into strength. The future is inheritably uncertain so why not sell when everybody wants to buy. ;)

I'm a deep contrarian, but the only problem with that is if somebody shouts 'fire' I'd probably run towards it!!!!
User avatar
PDC
Posts: 2272
Joined: Sun Jul 24, 2016 5:52 pm

Euler wrote:
Mon Nov 19, 2018 8:42 pm
I always sell into strength. The future is inheritably uncertain so why not sell when everybody wants to buy. ;)
Glad to hear you took your chips off the table.

The problem with that is timing it though and figuring out when in the strength is the time to sell as you can risk leaving a lot of chips behind.

Take Amazon for example, 2008 it was around $80 a share, 2 years later it had doubled in value to $160. Great everyone is buying and it is really strong, the contrarian is selling into the strength and you pat yourself on the back for a double bagger. But hold on, the price keeps going up, contrarian says not to buy into the strength, maybe even short it, but it keeps going up, still the contrarian says no, and it keeps going up and keeps going up and hits a high of around $2,000!

Yes you got the 2 bagger and doubled your money but by being a contrarian and selling out into the strength you miss out on a 25 bagger.

Have you been selling out of your Berkshire Hathaway, selling into the strength?
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

I account managed amazon when they were about to go bust and one of the guys sold his 250,000 shares. That's bad timing.

True investment isn't about timing to be honest, it's about placing a price on a company, seeing a yield and adding or trimming positions based on that. My play on Nvidia was all about bitcoin so hadn't really expected to be holding it forever.
User avatar
PDC
Posts: 2272
Joined: Sun Jul 24, 2016 5:52 pm

Euler wrote:
Tue Nov 20, 2018 10:54 am
I account managed amazon when they were about to go bust and one of the guys sold his 250,000 shares. That's bad timing.

True investment isn't about timing to be honest, it's about placing a price on a company, seeing a yield and adding or trimming positions based on that. My play on Nvidia was all about bitcoin so hadn't really expected to be holding it forever.
Now that is what you call bad timing! He must be sick to his stomach everyday, wouldn't fancy being the delivery driver knocking to see if he can take in his neighbours Amazon parcels :lol:

I don't see much point in selling out like he did, I very rarely sell anything, as companies go down they become so irrelevant to the overall portfolio it just isn't worth it and better to hold on for an Amazon or a Netflix type situation.

You don't need many of them in your life time to make up for all of the losers.

I will assume by not answering the Berkshire question you aren't quite the contrarian you say you are ;) I wouldn't sell either.

Bitcoin is taking another hammering today, nearly saw the $4,000 level go earlier though rebounding a bit now.
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

Because Berkshire doesn't pay a dividend you are effectively handing your return over to the management to invest. I'm happy for that to continue.
User avatar
PDC
Posts: 2272
Joined: Sun Jul 24, 2016 5:52 pm

Euler wrote:
Tue Nov 20, 2018 11:17 am
Because Berkshire doesn't pay a dividend you are effectively handing your return over to the management to invest. I'm happy for that to continue.
Yes as am I, I like the ~$15 billion growth in banking positions they took in the last quarter. Also with the current sell offs I am sure they are adding to that Apple position.

Sorry for taking the thread off topic but do you invest in residential property much? For me the government has and is making it so much harder I am thinking about exiting entirely.
Post Reply

Return to “Cryptocurrency”