Crypto thread

Exactly! When I take on positions in the markets, it's for 20-30k. No way I am risking that much in an asset with a zero intrinsic value. Some of the stuff I read on this site boggles the mind.

@Gamble: Crypto is not an "an asset with a zero intrinsic value." The coin reflects the value of the blockchain technology behind it.

It's OK that you don't believe the two are connected and it's certainly your right to not want to invest in this emerging technology. But crypto isn't going anywhere anytime soon.

Good read here, if you haven't already:

https://www.nytimes.com/2018/01/16/magazine/beyond-the-bitcoin-bubble.html?rref=collection%2Fsectioncollection%2Fmagazine&action=click&contentCollection=magazine&region=rank&module=package&version=highlights&contentPlacement=1&pgtype=sectionfront

The coins do not derive value via the technology..you have it backwards. Blockchain will increase in value as its use expands. Blockchain will be used in a multitude of ways (securing medical records for instance) with crypto being just one. Crypto is simply a speculative investment. It gains in price are simply a result of fresh cash infusions...the only way it goes up if people are willing to pay more for it. Strip down any other asset (any s&p stock for instance) and you will have cash, inventory, real estate, equipment and other assets that have a tangible value. Crypto has zero tangible value...only the price value created by fresh cash infusions. Believe what you want, but the history books on economics will not be disproved.

@Gamble: The coins were introduced as a way to reward those using, and improving, the blockchain. It's open source technology, after all.

Whether they have become speculative instruments is another matter.

You can hold out. You can kick your and cry out about the markets (in which I'm fully invested and for many of the reasons you suggest) but blockchain technology, and the coints that are derived as a result, will only grow from here.

Well its even worse than this....the wild west is ok, some of the forex and options markets are wacky, that is ok..some are illiquid and not working so efficiently but the crypto space is much much worse...getting into the action is not functioning properly, getting money IN is a pain in the neck, you have to go to one place to buy one thing (and pay vig doing that) then go to another place to buy the second thing and maybe even a third place to finally get what you want and all along you are paying vig to do so...and then your funds are not safe all these steps along the way. And then there is not a verifiable stable place you can trust to purchase and hold the crypto you have to dodge hacking and security issues and hope an exchange doesnt lose your transaction or all your funds. Then you have to take various steps to sell and get the funds back to USD if you are not holding ultra long term and not caring...but then also hoping you dont get hacked and lose your holdings.

This is not a functioning market...it is a wreck. I am not looking to hop through all these hoops and take risks for the current levels these things are at. If anything I am more intriuged at mining...that seems to have one stop only...you mine and you store it, thats it.

If this were more orderly and efficient then I would for sure be interested...and what seems strange to me is this space is allegedly created to work around the ill functioning currency market, but it is flawed and messed up itself. They need to get security and funding sorted out, especially since this is allegedly a security centric arena?

Yeah. All that but maybe I can turn $500 into 5 million. Unfortunately, this is the dream many are buying into. I am exagarating of course, but not by much with the way some people think. 

Well I'd never invest in IBM or blue chips, I do more research than that...but it is tough to beat the S&P even if you work hard and research.

The process needs to be simplified and more secure if it is going to be anything that lasts.

@Meraby...thanks for your time spent in the service...mine is a service family as well.

Bottom line: we all have different perspectives and different levels of comfort. And I don't think either WallSt. or Gamble have much FOMO in their blood. They just see this differently. And that's good. We all need reality checks.

But bottom line? I believe the technology is here to stay, the coins will reflect that and I'm in.

I'm also taking the Jags +7 tomorrow, so what do I know?!

How can the technology stick when it is supposed to be superior and great yet I've never seen more hacking and theft ever in this short ammt of time..how many exchanges have been hacked and peoples holdings lost? Many many...for something so superior and great it is way too difficult to transact and secure right now and that soils the entire enterprise to me. You are supposed to be replacing or enhancing something (the whole concept of crypto currency) and you cant do that or make it easier to transact for those who want to transact?

Maybe that's his new coin?

The facts are that I bought IBM at $22 per share in 1992. I am still holding it today, so I have a 633% gain in my investment. Over the 26 years that I have owned the stock, IBM has provided value to customers all over the world, providing value to customers and shareholders alike. So maybe it will only gain 6% in 2018. That's fine with me. Investing is not as easy as buying these crypto currencies, making a fortune, and living an easy life.....I suppose many of you will learn the hard way. I own many stocks with % gains similar to my IBM holding that many of you hope to gain in cryptos. Beware though, for Bitcoin to gain 633% from here it will need to hit $700,000 in YOUR LIFETIME from it's current price. That should put it in perspective for all of you dreamers. Good luck!

@Gamble: I think, perhaps, you're suggesting crypto is a black-and-white, us v. them scenario. It is not.

I believe in the traditional markets, I have my retirement money stashed there and am *very* happy with the the current state-of-affairs. Absolutely no quibble. I can get my money out as fast as I can put it in.

I think what you're reading here is there's a new investing option in crypto, and one which may well prove quite fruitful. It's full of risk, no doubt, and it's not a one-size fits all. Further, I am not trying to retire on my coin investments. I'm simple adding to my investment basket.

You don't agree with that, and that's fine. Doesn't make it wrong, just different.

I root for your IBM, without an investment in the firm. You can do the same for my ETH, XRM, etc.

Jamie....It sounds like you are doing this the right way by taking a small % of your portfolio and settting it aside for cryptos. The reality is that you are likely in the minority on covers as well as worldwide. The WSJ ran an article about South Korea (and USA citizens) citizens running up huge credit card debts to buy cryptos. Detox denounced 6% returns as being for people "keeping it safe". Well, I am retired in my 50's and have made a fortune compounding 6-9% yearly returns. Suggesting to people that if they want big gains, "they need to take a selfie on coinbase and throw money around on shady exchanges" (those were his words) is just silly advice. Getting rich is not that easy. He himself said he has been doing this from a month and a half. I have been investing nearly 30 years and I have done very well compounding returns. Some years are better than others, and a ton of research was and is still required. Anyone that thinks bitcoin or any crypto will match the 633% return over the past 26 years of IBM, starting at the crypto prices of January of 2018?....well, I wish them luck.....they will need it! As I said previously, it will need to hit $700,000 from today's price to do that. 

Correction. 100k would be the target bitcoin price. Not surprisingly, there are "experts" out there predi ting it will happen this year. 

Those "experts" are a dime a dozen, just like the football/basketball "gurus" on this site. I don't take Scalbrine's advice any more than I take that of the Fast Money crowd over on CNBC.

I happen to just like the fluidity of the crypto market for daily trade purposes. I think for someone with a little extra computer time, there's money to be made.