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Bitcoin in itself is quite useful, it’s something people will exchange for usd or things of value which the gov can’t censor or directly police. Bitcoin’s pric
by eaenki 6y ago
Bitcoin in itself is quite useful, it’s something people will exchange for usd or things of value which the gov can’t censor or directly police.
Bitcoin’s price is determined by zero fundamentals, so it will swing wildly if you zoom
Out enough, forever. That’s why if you ask me it makes logical sense to have 1-10% Of the portfolio betting long or short, because it has a much better than 1 in 10 chances of going x10 or -90% in relatively short timeframe. I didn’t backtest it but looking at a chart it looks like there are those many-sigma shifts every 2 years.
To that extent, if you’re interested in betting on it, you might want to use option contracts and make sure your max loss is fixed at the premium and the upside is unlimited.
- RIMR 6y agoBitcoin is useful for what? Getting around the law? For pumping and dumping?
- eaenki 6y agoIf you don’t trust your own gov, wether because they’re a bunch of crooks or you’re doing smth fishy, it’s useful.
- carlivar 6y agoWhich is why fiat conversion will eventually be heavily regulated. People forget private gold ownership was illegal for decades of the 20th century.
- eaenki 6y agoIt is still illegal in some countries. E.g Italy I know it goes back and forth between making it legal/illegal. I’d also argue that it is already heavily regulated- you need to give any fiat exchange ur docs. Loopholes with exchanges based in weird island territories will always exist.
- CyberDildonics 6y agoCryptocurrency is good for that. Bitcoin had a $28 AVERAGE transaction fee for the day four days ago. It is worthless for anything except for off chain speculation. No other crypto currency has this problem since this was done intentionally to cripple bitcoin.