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People talk about crypto cycles like they talk about metal cycles and I'm not sure how to distinguish the two (and that's why I'm not invested in either).
by jimcsharp 4y ago
People talk about crypto cycles like they talk about metal cycles and I'm not sure how to distinguish the two (and that's why I'm not invested in either).
- strangescript 4y agoIt's almost as if all publicly traded markets are ponzi-schemes on some level, but with better regulation.
- benj111 4y agoOn some level yes. If you're day trading. But you are actually buying a slice of a company and its future earnings. With bitcoin what are you actually buying?
- WHATDOESIT 4y agoWhat are you actually buying while Forex trading? (I'd really like to know. To me, BTC trading and Forex trading sound exactly the same.)
- benj111 4y agoWell I don't do Forex trading but you are buying a currency backed by a government. My understanding is it's closely linked to interest rates.
- WHATDOESIT 4y agoSo you're buying into trust of that government. With BTC you're buying into trust of the technology and other network participants. Is it really so different? I don't trust governments so much - my local currency is currently facing 25% YoY inflation. I bought Bitcoin.
- cuteboy19 4y agoIt's much simpler. People want $ for £ for education tourism etc. Successful forex traders are just middlemen for these txns. The make sure that you can always sell $ even if there is no one to buy them at that exact moment.
- WHATDOESIT 4y agoWell, and isn't it the same for BTC then? In the city where I live, there's tons of Bitcoin ATMs everywhere - and people using them, pretty clearly to go around their everyday business, as if it was a bank ATM.
- cuteboy19 4y agoDifferences: 1. No one needs btc for education tourism etc. So there is no underlying demand that the general btc holder can middleman onto 2. You aren't supposed to hodl any kind of forex pair hoping it goes up forever. Also I forgot to stress that forex is trading and not investment
- WHATDOESIT 4y agoThese people I see around here need to go to a BTC ATM to have cash for the coffee stand right next to it. What's so different? The scale, OK, but anything else? Actually, people are buying land/houses and cars with BTC here, also the largest local web shop (a large EU seller too) - the local Amazon let's say - accepts it, and they claim it's used for a small but not insignificant chunk of the sales.
- cuteboy19 4y agoSo most of those places instantly convert the btc into usd. Prices themselves are listed in USD and you have to pay some markup for USD conversion too. It's sell pressure on btc so bad in any case
- 4y ago
- smcl 4y agoI mean on some level if you're doing this kind of trading then yeah BTC/ETH/etc trading is similar to trading real currencies. I think the difference is that the real currencies have a well-known utility at the moment - they're a means of exchange for goods and services. If you're selling EUR to someone, the chances are they're using that EUR to pay for these in the eurozone. If you're buying USD, you're also likely to need that to buy USD-denominated things. If you're a forex trader, you're trying to make money from people's need to use these currencies. If you're doing that for crypto, you're doing that but for people who are just also buying and selling crypto - not actual goods or services.
- MrMan 4y agowell if you extend the analogy between crypto coins and FX, a long-only strategy makes as little sense in crypto as FX. Why would I hold dollars or yen long-term, instead of investing in assets which are productive like equites or bonds.