BITCOIN as an alternative to regular currency

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marksmeets302
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Euler wrote:
Fri Sep 29, 2017 7:29 am
I agree, just waiting for the office cleaner to ask my advice on Bitcoins
Hmm. I'm not kidding: earlier this week I was speaking to customer support of my cable company. I don't know how we got there but at one point the guy asked me if was also (as in: just like him) trading bitcoins. Furthermore I can show you three e-mails I received the past two weeks from friends asking me to "make a bot that trades bitcoin". They all suggested we could split the profits. Then last week there was this man I spoke to at the gym who was in the mortgage advisory business and now contemplating to give up that job and instead go full speed ahead with bitcoins. And ethereum and ripple I must add, because evidently this man knew his cryptos.

I say run like hell :-)

EDIT: according to one of my sons three of his classmates have loaded up on bitcoin as well. Don't run, take the car.
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megarain
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EDIT: according to one of my sons three of his classmates have loaded up on bitcoin as well. Don't run, take the car.

genuine lol .. v good
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Euler
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Hash Power – A Documentary on Blockchains & Cryptocurrencies

Welcome Hash Power, an audio documentary that explores the world of blockchain and cryptocurrencies with leaders in the field including Naval Ravikant, Olaf Carlson-Wee, Fred Ehrsam, Ari Paul, Juan Benet, Muneeb Ali, Peter Van Valkenburgh, Jeremiah Lowin, Jameson Lopp, Jordan Cooper, Josh Seims, & Charlie Noyes.

http://investorfieldguide.com/hashpower/
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marksmeets302
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Funny thing with the mtgox failure: now that the price of bitcoin has exploded once again, the trustee has more assets than liabilities. That's something you don't see very often with bankruptcies. His idea is to give the surplus back to the shareholders. That's right, the same ones that are charged with fraud and caused the disappearance of millions (now billions) worth of bitcoin.
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Euler
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That is hilarious.

This feels so much like the dot com boom to me. Who knows how high it will go!
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Euler
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Bitcoin Can Now Buy You Citizenship in One of the World’s Happiest Countries

https://www.bloomberg.com/news/articles ... ium=social
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Alexeyporubay
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marksmeets302 What do you mean you made a bot that earned you 3 years itself, did not understand, bot what? bot at the exchange?
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marksmeets302
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Alexeyporubay wrote:
Fri Oct 27, 2017 9:39 am
marksmeets302 What do you mean you made a bot that earned you 3 years itself, did not understand, bot what? bot at the exchange?
The basic idea is very simple, and I suspect it will work in today's environment as well. It's after an idea of Claude Shannon and is also called Shannons daemon. You'll find a reference to it in Poundstone's Fortunes Formula. Let's say you've got some amount of money you're willing to risk. Use half that amount to buy bitcoins, keep the other half in cash. After a while the bitcoins will be worth more, or less. Let's say they went down. This means your bitcoin portfolio is now worth less than your cash portfolio. Buy an amount of bitcoins in such a way that the two are worth roughly the same amount. Now let's say the price of bitcoin goes up, to the original level. Sell bitcoins to make the two parts equal again. If you do the math, you'll see you made a little bit of money.

If you can repeat this rebalancing very often it will make you some nice profits. It works very well if there's a lot of volatility. I made a computer program that trades on this simple idea. Around 2012 or so the price of bitcoin often fluctuated by more than 10, sometimes 20% per day. It was very easy money. Unfortunately there's a huge tail risk: you have to keep your money and coins at an exchange because of the frequent trading. The exchange is the weak point here. You can make a lot of money steadily and then suddenly discover it's all gone. Another tail risk is that the price of bitcoin goes to zero; in this scenario you keep buying until all your cash is gone. If you know of ways to hedge against these risks, let me know.

You can extend Shannons daemon to multiple assets and do really marvelous things with it. For instance the permanent portfolio first introduced in the eighties by Harry Browne is based upon that same principle: you take a bunch of assets that are in itself highly volatile and keep them in equal proportions. The result is a portfolio that is very low risk but with a return that is comparable to a 100% stocks portfolio.
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marksmeets302
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CME launches futures on bitcoin:

http://www.cmegroup.com/media-room/pres ... tures.html

Personally, if I had to clear those futures I'd ask for a hefty margin :lol:
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marksmeets302
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This is hilarious: Someone ‘Accidentally’ Locked Away $300M Worth of Other People's Ethereum Funds:
https://motherboard.vice.com/en_us/arti ... -hard-fork

Especially this part: "If the story is true, it seems like Devops199 was jiggling door handles and when one door opened, they tried to close it and the whole house exploded."
steven1976
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Zenyatta wrote:
Sat Dec 14, 2013 3:43 am
burdo77 wrote:I will place a LAY on bitcoins, anyone wanna match my bet?
Sure. I'd be willing to buy 10,000 pounds worth of Bitcoins and sit on them for 4-5 years, at the end of which time I think there is a reasonably good chance I will have become a millionaire. The price of Bitcoins is going only one way...up!

"Wall Street is getting ready to dive into Bitcoin, pouring vast amounts of institutional and investor money into the digital currency that has been labeled a "bubble" by former Federal Reserve chairman Alan Greenspan and which not long ago was seen as the sole preserve of crypto-geeks, monetary-theory wonks and anti-government types.

So says Barry Silbert, founder and chief executive of SecondMarket, the online platform that allows its users to trade private company stocks. "We're three to six months away from Wall Street dollars moving into Bitcoin in a big way," he says."

Read more: http://www.entrepreneur.com/article/230 ... z2nPu1y7YP
I wonder if Zenyetta ever did go for it. With the price today over 9000 i guess he would have made his millions.
LinusP
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steven1976 wrote:
Mon Nov 27, 2017 7:38 am

I wonder if Zenyetta ever did go for it. With the price today over 9000 i guess he would have made his millions.
Not quite, probably just over $110k

https://twitter.com/elementus_io/status ... 8077667329
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Euler
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It's a classic bubble, as the price rises it will drag in even more people. Goodness knows where it will stop.
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megarain
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This ranks a my 2nd worst trading decision (just behind my decision to short Apple, when it was $80 or so (now double)).

I got out of the mkt before doing irreparable damage, but, will be tempted to re-enter, when the CME launches the contract, where it will be possible to short etc.

Maybe, for the last 2 yrs etc, its just been one-way traffic, as people can buy the cryptos, but, there has been no easy way to sell.

This new contract will change that.

One to add to the watch list.
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