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Tex Pro · 2013-11-21 11:33:00 · #376
(11-21-2013 11:18 AM)yolo Wrote: How I guard against downside risk by putting in low ball orders, and if the market swings down, I scoop it up low right before it goes back up again. Need to see the order book to catch/predict the low points.
This is decent strategy, but it still doesn't solve the problem since a lot of people already do this with their bots (in fact, the bots have even more complicated trading strategies).
With a bitcoin derivatives market (that clears), you could temper the entire market by having a way to easily hedge against risk.
For bitcoin to get wide acceptance, it needs to have much less volatility. If you look at the FOREX market, the volatility there is much less then on the bitcoin exchanges, and the reason for that is the fact that there are several ways to hedge risk using FX derivatives:
http://en.wikipedia.org/wiki/Foreign_exc...derivativePyre · 2013-11-21 12:00:00 · #377
(11-21-2013 11:22 AM)yolo Wrote: Now that the volatility subdued from the senate hearing, I see it hitting 900-1000 (Bitstamp price) in a week or two. I am currently long 60% (in Bitcoins), and short 40% (in dollars). The dollars are there to scoop them up low if the price drops.
Yes, I'm riding the momentum, gonna sell at 900-1000 and pick em back up when they go back to 600-700
Tex Pro · 2013-11-21 13:11:00 · #378
This is interesting:
‘Assassination market’: Bernanke tops ‘kill-list’ in crowd-sourced bitcoin fundraiser for wannabe hitmen
http://rt.com/news/bitcoin-assassination...chist-983/
My guess is it is a scam to steal bitcoins or a honeytrap operation run by the NSA to discredit bitcoin.
(11-19-2013 05:17 PM)void Wrote: (11-19-2013 01:53 PM)Acute Angle Wrote: Ripple.com
I looked it up, there is no possibility to mine that stuff. Just trading? The transaction fee gets brought back in the system and there are like 100 Billion of XRP for disposal at the moment? Idk, doesn't sound like instant profit. More like a long term investment.
No, you can't mine XRP (the native currency of Ripple) exactly, but there is a giveaway going on based upon donating your spare CPU capacity to the World Community Grid, which does research for worthy scientific causes. Search on Ripple WCG giveaway.
Ripple is not intended to be a speculative vehicle, unlike Bitcoin. It's more a protocol for very very cheap, instantaneous international money transfers.
But, as the founding company is intending to hold on to 25% of the issue, it's in their interests to let XRP rise gently. So, a long-term investment. But you may as well get some for nearly free while you can, right?
Satoshi · 2013-11-21 15:41:00 · #380
You guys who made some profit already from Bitcoins did you put it into new investments? I bought some Mastercoins and mining contracts. The first one since it seems like a valuble idea, the second because I will problabe profit from it, the contracts is one year and according to the mining profit calculator I will get my money back in 71 days.
(11-19-2013 09:21 PM)JackDavey Wrote: Opened a Ripple account today; it looks like a good service. Got a couple thousand XRP from a giveaway; can't figure out how to convert these into anything at all.
I've been trying all week to find a way to aquire bitcoin. Everywhere I turn, it seems, some kind of validation is required, and I haven't had any luck with that yet. OKPay tells me that they can't even validate anyone in the U.S. I'd like to get some, but just can't seem to figure out how.
You can convert XRP into BTC via a 'bitcoin bridge'. There's one in Israel of all places. You can find it by digging around in the Ripple forums. It's not straightforward as validation will be required, and the exchange rate is not good at the moment, but it's one way to acquire BTC.
pants · 2013-11-21 15:50:00 · #382
(11-21-2013 03:41 PM)friheten Wrote: You guys who made some profit already from Bitcoins did you put it into new investments? I bought some Mastercoins and mining contracts. The first one since it seems like a valuble idea, the second because I will problabe profit from it, the contracts is one year and according to the mining profit calculator I will get my money back in 71 days.
Friheten, can you elaborate on these Mastercoins, or point me in a good direction?
I found some stuff, but its a bit to code-techy for a mechanical engineer.
Jeans · 2013-11-21 19:51:00 · #383
(11-21-2013 03:50 PM)pants Wrote: (11-21-2013 03:41 PM)friheten Wrote: You guys who made some profit already from Bitcoins did you put it into new investments? I bought some Mastercoins and mining contracts. The first one since it seems like a valuble idea, the second because I will problabe profit from it, the contracts is one year and according to the mining profit calculator I will get my money back in 71 days.
Friheten, can you elaborate on these Mastercoins, or point me in a good direction?
I found some stuff, but its a bit to code-techy for a mechanical engineer.
Can you also elaborate on the mining contracts? On the face of it they look like a safe, if not wildly profitable investment.
Where are you buying these contracts from, and what is a good deal on one more or less. How many bitcoins can you expect to be mined into your wallet and over how long a period of time?
Quote:You can convert XRP into BTC via a 'bitcoin bridge'.
Today I discovered
Kraken, an exchange with differing levels of verification. Very easy to set up. The same services are unavailable to me as an American as with the other exchanges, except that I can transfer XRP from Ripple to my Kraken account. Already bought a small amount of Bitcoin this way.
Ripple, I'm hoping, can successfully be funded through SnapSwap (which is what they recommend for USD). SnapSwap site is terrible, but I deposited a small amount of cash to their account yesterday, and am waiting to see if it gets credited to me. I think there is an XRP giveaway associated with this process, but the site is unclear on this.
yolo · 2013-11-21 20:37:00 · #385
I think Bitcoin's volatility comes mostly from it still being a new, small, and illiquid market, with a shallow market order depth. Compared to the foreign exchange market, which handles $5.3 trillion dollars in transactions daily, Bitcoin has yet to reach $100 million daily trading volume. If someone were to come in and drop $10 million into Bitcoin, or sell $10 million of Bitcoin, that's gonna move the market like crazy. On the other hand, take $10 million to a Forex market, and that's just a drop. I think that's a major cause of the volatility today.
http://en.wikipedia.org/wiki/Foreign_exchange_market
https://blockchain.info/charts/trade-volumeyolo · 2013-11-21 20:51:00 · #386
Personally, I held on to 60-70% of my coins and sold about 30-40% of them just in case it's in a "bubble" and bursts back to a $200-300 level. If it bursts, I'm prepared to scoop them up low as weak hands sell. If it doesn't burst and continues to go up, then I'm still a happy camper. In the meantime, I employ various strategies with the 30-40% of USD to make a little extra side income trading on volatility swings on Bitstamp. So far so good, but maybe I've been just getting lucky this past month.
I do have some pre-orders in ASIC hardware from 3 mining companies. I like to spread my eggs in different baskets. So far, one of them (give you a hint, they're Swedish) has pulled through. The other two... not so much, still waiting. I would not sign in on any mining/group buy contracts - there is already too much risk in the mining game. I wouldn't trust anyone else except myself to do it right. That's just my style though - I'm sure there's legit gigs out there.
i bought 1 at $80.
am I a genius now?
Steve9 · 2013-11-21 21:52:00 · #388
Satoshi · 2013-11-22 01:17:00 · #389
(11-21-2013 03:50 PM)pants Wrote: Friheten, can you elaborate on these Mastercoins, or point me in a good direction?
I found some stuff, but its a bit to code-techy for a mechanical engineer.
They are built on top of the bitcoin protocol opening up opportunity for a lot. Like the next layer. Really I'm not into all the detajles and it's can fail. However it could be a great success to. If you are interested in investing in it I advise you to do your own research.
(11-21-2013 07:51 PM)Jeans Wrote: Can you also elaborate on the mining contracts? On the face of it they look like a safe, if not wildly profitable investment.
Where are you buying these contracts from, and what is a good deal on one more or less. How many bitcoins can you expect to be mined into your wallet and over how long a period of time?
I bought 33GH for one year for 1000$. According to the profit calculator I have used it will have my money back in two months. Will post the site when I got my first payout which will be today or next friday. I don't wanna post it if it's a scam, however from what I've read it's legit.
Maciano · 2013-11-22 05:23:00 · #390
(11-21-2013 09:52 PM)Steve9 Wrote: The Great Rotation :
http://www.zerohedge.com/news/2013-11-18...on-bitcoin
Zero Hedge is now recommending Bitcoin? That's pretty good. Huge following. Their arrogance did annoy me for a while. Honest dissent is great, but no-think snobbery betrays close-mindedness.
In general I'm losing patience w/ anarcho-capitalists, hard money activists & Austrian economists who have been hammering everyone for years about hyperinflation & the decline of the US dollar, but now shrug at Bitcoin for being 'fiat', no intrinsic value, or bubble/Ponzi/whatever. They keep telling us Wall Street likes Fed funny-money to keep their profits and socialize the losses, then they claim bankers to be predators for supporting it. I charge them with the same thing: finance experts who have an uncontrollable hard-on for gold/silver are biased. They're not recommending it for ideological purposes, but because they've massively invested in these assets themselves. Pure self-interest. That's why they bash any alternative to precious money. They've been waiting for the bull-market in gold for years, but it hasn't come -- instead precious metals are going down, hard.
Re bitcoin they're as useless as Paul Krugman is for your personal finances.
chyamor · 2013-11-22 10:10:00 · #391
back to near $800
Jaylow · 2013-11-22 12:24:00 · #392
Tex Pro · 2013-11-22 13:05:00 · #393
Satoshi · 2013-11-22 13:08:00 · #394
(11-22-2013 12:24 PM)Jaylow Wrote: This news is massive for bitcoins.
Hold your coins!
The media attention is more important than you can buy a spacetrip.
However it's not a new currency its been around for three or four years now.
chyamor · 2013-11-22 15:35:00 · #397
wouldnt the number of bitcoin in circulation need to increase, thus brining the price down in order for this to actually work in main stream . You hear how subway is now accepting bitcoins which makes no sense since 1 bitcoin is $700+
Satoshi · 2013-11-22 16:05:00 · #398
Anyone who has bought at anytime, except maybe some
days last week have made a profit already. Do you think the price will drop say bellow the last all time high witch was broken 18 days ago at 266$? It's to many buyers. Some coins who been stored for a long time goes out in circulation now as the price goes up, spreading the wealth.
(11-22-2013 03:35 PM)chyamor Wrote: wouldnt the number of bitcoin in circulation need to increase, thus brining the price down in order for this to actually work in main stream . You hear how subway is now accepting bitcoins which makes no sense since 1 bitcoin is $700+
They will increase. As of now about 12.000.000 or something is minted. The total will be 21.000.000 but that wont happen for a hundred year or something. The price of them don't need to go down. They work in the opposite way from for exempel the dollar, were the value of one $ goes down. Bitcoin is bade to increase in value. If you wanna buy a sandwich on subway the price will be 0.013 if the price of it is 10$. At one point it will be easier to calculate in micro bitcoins witch is 0.001 of a bitcoin. In this case your sub will be 13 mBTC. If the price keep rising micro bitcoins at 0.000001 is easier, or at the end in satoshi witch is the smallest part of a bitcoin today, 0.00000001. However if its ever a need for it it will be possible to add more zeros and break them down even more. My wallet is at the moment 0.41078174 BTC or 41078174 satoshi. Witch one do you prefer. This give the currency a better value than for example the dollar, in witch you will lose value by keeping it. A bitcoin is better to save since it will increase in value. Someone might say that it might lead to hording and all coins frozen to get higher value. What happens then is that the price will go up, and someone might consider selling since money is no fun if you don't use them right.
Hope this answers for your questions.
Tex Pro · 2013-11-22 16:13:00 · #399
There will be other cryptocurrencies needed to provide liquidity for its use as a currency in daily transactions.
I personally am accumulating a position in litecoin since it has the next largest network after bitcoin.
Fundamentally, the market will determine how many cryptocurrencies there can be due to the following:
Value of mining the currency > Cost of energy to mine the currency
Tex Pro · 2013-11-22 16:33:00 · #400
Also, other currencies besides bitcoin will be needed to punish people who just horde bitcoin and don't use it for transactions. In a sense, the other currencies will eat away at the monopoly power of bitcoin.
This is similar to the reason why there are multiple credit card networks instead of just one.