Cryptocurrencies

[TwoCitiesCapital]

On 9/13/2021 at 3:51 PM, fareastwarriors said:

Interactive Brokers

 

supported products include:

Bitcoin (BTC)

Bitcoin Cash (BCH)

Ethereum (ETH)

Litecoin (LTC)

 

https://www.interactivebrokers.com/en/index.php?f=49513

 

Cryptocurrency trade execution and custody are provided by Paxos Trust Company, a regulated New York limited trust company that affords investors secure technology and a high level of protection. Transactions have low and transparent tiered commissions from 12 to 18 basis points of trade value, with a minimum of $1.75 per order but no more than 1% of trade value.

 

 Might have to get rid of my Coinbase account and trade through IB!

[FairFacts]

3 hours ago, TwoCitiesCapital said:

 

 Might have to get rid of my Coinbase account and trade through IB!

No brainer….

[fareastwarriors]

6 hours ago, TwoCitiesCapital said:

 

 Might have to get rid of my Coinbase account and trade through IB!

How much does Coinbase usually charge? 
 

What about custody? Any concern with Paxos? 

[TwoCitiesCapital]

18 minutes ago, fareastwarriors said:

How much does Coinbase usually charge? 
 

What about custody? Any concern with Paxos? 

 

Dunno much about Paxos other than their stablecoin. Will definitely look into them, but I also trust IB has vetted them more than I could. 

 

Seems like Paxos is very regulatory friendly though, so have fewer concerns about them since they invite standards and scrutiny. 

[TwoCitiesCapital]

https://multicoin.capital/2021/09/16/daos-manage-risk/

 

Thoughts on DeFi token value and how sustainable a competitive advantage is. 

[TwoCitiesCapital]

China has just made all crypto transactions illegal. This is much wider reaching than their prior bans on mining and exchanges. 

 

Certainly not a bullish development, but how bearish is it seeing as just about everyone expected it from China at some point? BTC is only down 5% on the news. Fairly mild reaction IMO. 

[Parsad]

7 hours ago, TwoCitiesCapital said:

China has just made all crypto transactions illegal. This is much wider reaching than their prior bans on mining and exchanges. 

 

Certainly not a bullish development, but how bearish is it seeing as just about everyone expected it from China at some point? BTC is only down 5% on the news. Fairly mild reaction IMO. 

 

They won't be the first country to ban or at least crack down on crypto.  I think the death knell for some crypto is now occurring. 

 

It will be interesting to see how the underground economy for crypto was influencing or affecting other asset prices like real estate, luxury goods, etc.  

 

This guy managed to get $58M of crypto out just before the China announcement!  Cheers!

 

https://finance.yahoo.com/news/miner-cashes-1-366-btc-102712712.html

[Parsad]

The Federal government's efforts to crackdown on crypto or find alternatives:

 

https://finance.yahoo.com/news/explainer-u-regulators-cracking-down-152559798.html

 

European Union's efforts:

 

https://www.irishtimes.com/business/economy/eu-to-ban-cryptocurrency-anonymity-in-anti-money-laundering-plan-1.4626129

 

UK:

 

https://www.theguardian.com/technology/2021/jun/27/uk-financial-watchdog-cracks-down-on-cryptocurrency-exchange-binance

 

India:

 

https://www.coindesk.com/markets/2021/05/14/banks-are-already-cracking-down-on-crypto-indian-traders-say/

 

Australia:

 

https://www.accountantsdaily.com.au/tax-compliance/15797-crypto-crackdown-underway-as-ato-locks-in-data-matching-program

 

Mexico:

 

https://fortune.com/2021/06/29/banxico-mexico-bank-crypto-warning-billionaire-pliego-tweet/

 

That list will grow.  Cheers!

[fareastwarriors]

I guess @Parsad is not buying this dip!

[Parsad]

1 minute ago, fareastwarriors said:

I guess @Parsad is not buying this dip!

 

No...never could wrap my head around what was supporting crypto prices.  I believe in digital currency and blockchain technology, but not this batch of craptocurrency. 

 

They are the AOL of digital currency!  No one will remember them 20 years from now, and there won't even be collectibles since they are all digital!    Cheers!

[rkbabang]

8 minutes ago, Parsad said:

 

No...never could wrap my head around what was supporting crypto prices.  I believe in digital currency and blockchain technology, but not this batch of craptocurrency. 

 

They are the AOL of digital currency!  No one will remember them 20 years from now, and there won't even be collectibles since they are all digital!    Cheers!

 

Bitcoin and Ethereum will still be around 20 years from now and you will be sorry you couldn't see it.   But that's just my opinion.  Bitcoin is more analogous to the internet with Coinbase as AOL.  Oh well, one of us will be proven wrong.

 

[Parsad]

13 minutes ago, rkbabang said:

 

Bitcoin and Ethereum will still be around 20 years from now and you will be sorry you couldn't see it.   But that's just my opinion.  Bitcoin is more analogous to the internet with Coinbase as AOL.  Oh well, one of us will be proven wrong.

 

 

You may be right!  I would suggest that blockchain is the internet while Bitcoin is AOL.  Coinbase may or may not be LVLT.  Cheers!

[rkbabang]

8 minutes ago, Parsad said:

 

You may be right!  I would suggest that blockchain is the internet while Bitcoin is AOL.  Coinbase may or may not be LVLT.  Cheers!

 

Yes, that is possible.  I don't think so, but I still reduced my crypto from 40% of my portfolio down to 20% earlier this year.  And increased my real estate exposure with the proceeds.   As convinced as I am I don't want 40% in crypto even if it was almost entirely gains.   I'm now at about 50% stocks, 30% real estate and 20% crypto, which is still a lot of crypto, but wouldn't break me if it all went to zero.

 

[TwoCitiesCapital]

16 minutes ago, rkbabang said:

 

Yes, that is possible.  I don't think so, but I still reduced my crypto from 40% of my portfolio down to 20% earlier this year.  And increased my real estate exposure with the proceeds.   As convinced as I am I don't want 40% in crypto even if it was almost entirely gains.   I'm now at about 50% stocks, 30% real estate and 20% crypto, which is still a lot of crypto, but wouldn't break me if it all went to zero.

 

 

 

I dunno. Bitcoin and Ethereum have the same network effects that have benefitted Facebook and other tech cos. 

 

And Bitcoin has survived 12 years and multiple 70-90% crashes. Something tells me it has staying power that AOL never had. 

 

Ether is plagued with problems - I think they'll get them fixed, but it's possible some other service supplants them. I don't currently see a viable competitor to BTC. 

 

[Fly]

11 hours ago, TwoCitiesCapital said:

China has just made all crypto transactions illegal. This is much wider reaching than their prior bans on mining and exchanges. 

 

Certainly not a bullish development, but how bearish is it seeing as just about everyone expected it from China at some point? BTC is only down 5% on the news. Fairly mild reaction IMO. 

 

Same as it ever was...

[Parsad]

I dunno. Bitcoin and Ethereum have the same network effects that have benefitted Facebook and other tech cos. 

 

So did AOL and MySpace.

 

And Bitcoin has survived 12 years and multiple 70-90% crashes. Something tells me it has staying power that AOL never had. 

 

Overstock has survived 20 years and multiple 70-90% crashes.  It has staying power, but is far from the dominant player that AMZN is...which started at roughly the same time.

 

What will crypto be like 10-20 years from now and who will be the dominant player?  Don't know...but BTC has less than a 10% chance of being it.  

 

Cheers!

[Parsad]

4 hours ago, Fly said:

 

Same as it ever was...

 

I would normally agree with this sentiment, but the way they dismantled BABA, tore a new arsehole into Didi and beat down on Macau...something is different this time.  They are also not pleased with Evergrande and the unrest it could create if the malaise spreads.  Beijing is cleaning house and taking names!  Cheers!

 

 

[JRM]

There is some speculation that Tether is backed by a lot of garbage Chinese paper, possibly including Evergrande bonds.  Would make for good entertainment if true.

[ANP301191]

+1 to @Parsad comments - this time the crackdown feels different.

 

I believe the Fed and the ECB (add any other central bank) will eventually launch their own digital currencies, much like what has happened in China a few months ago. The blockchain aspect and the businesses that have really built some value add will remain useful, but some of the prices that people are paying for NFTs and "digital" real estate does seem awfully bubbly.

[SharperDingaan]

China's actions just makes BTC stronger. Technically, all that really happens is that the hash calculation gets easier as Chinese processing power is withdrawn. While banning BTC just temporarily reduces immediate demand, until it displaces elsewhere - and further proves the use case.  

 

SD

 

[TwoCitiesCapital]

I mean since China has spent 7 years ensuring that it's influence on crypto was minimized, I honestly could care less if it's "different" this time. 

 

Without their banks handling it, their companies mining it, or their people spending it...what could they possibly do to it? 

[fareastwarriors]

DeFi bug accidentally gives $90 million to users, founder begs them to return it

 

About $90 million has mistakenly gone out to users of Compound, a popular decentralized-finance staking protocol, and the founder is begging users to voluntarily return the tokens.

 

“Keep 10% as a white-hat. Otherwise, it’s being reported as income to the IRS, and most of you are doxxed,” Robert Leshner, founder of Compound Labs, tweeted late Thursday.

 

https://www.cnbc.com/2021/10/01/defi-protocol-compound-mistakenly-gives-away-millions-to-users.html

 

 

Must've missed my account

[TwoCitiesCapital]

1 hour ago, fareastwarriors said:

DeFi bug accidentally gives $90 million to users, founder begs them to return it

 

About $90 million has mistakenly gone out to users of Compound, a popular decentralized-finance staking protocol, and the founder is begging users to voluntarily return the tokens.

 

“Keep 10% as a white-hat. Otherwise, it’s being reported as income to the IRS, and most of you are doxxed,” Robert Leshner, founder of Compound Labs, tweeted late Thursday.

 

https://www.cnbc.com/2021/10/01/defi-protocol-compound-mistakenly-gives-away-millions-to-users.html

 

 

Must've missed my account

 

Mine too. 

 

Hopefully this works out for them. Seems like crypto companies need to tighten up their controls. This happened to BlockFi too, so not limited to DeFi code flaws. 

 

 

[TwoCitiesCapital]

In other crypto news, U.S. gov't officials reaffirmed desire to regulate, and not restrict, crypto. 

 

Stablecoins are now being discussed for regulations that would be similar to banks, but tailored to their business models. Discussed in the WSJ today. 

 

And historically Q4 has been the best performing quarter for BTC. 

 

We've spent months consolidating between 40-50k and tested, and survived, multiple attempts to break critical supports. Who is ready for the resumption of the bull market and new highs before year end?

[wachtwoord]

On 9/25/2021 at 12:05 AM, rkbabang said:

 

Bitcoin and Ethereum will still be around 20 years from now and you will be sorry you couldn't see it.   But that's just my opinion.  Bitcoin is more analogous to the internet with Coinbase as AOL.  Oh well, one of us will be proven wrong.

 

 

Why on Earth do people say Ethereum in the same breath as Bitcoin? Wouldn't buy it at 1% of the current price ...