Altcoins

Originally Posted by Neo

And BTC's performance seems to be tied to equity performance, judging by recent months.

Crypto needs to do something different if it's to become a genuine hedge against both inflation and the stock market.

Have faith in ETH 2.0. If there's any software nerds like me on here it's now incredibly easy to write Smart Contract Block chain apps e.g. NFT and DeFi - have a look at Truffle. That's where crypto is heading in my opinion; paying for the transaction onto Blockchain apps as opposed to a pure currency per se.

Originally Posted by armchair

Seems like every alt-coin is tied to bitcoin performance. Once past their initial hype, they surge when bitcoin is rising then plummet when bitcoin falls.

BTC is the gold standard.

I’m very cautious of Alts that pump when BTC is trending down.

Originally Posted by Neo

And BTC's performance seems to be tied to equity performance, judging by recent months.

Crypto needs to do something different if it's to become a genuine hedge against both inflation and the stock market.

it should never be more than a secure method of payment. aside from blockchain, it's just witchcraft.

Originally Posted by Sharders

Have faith in ETH 2.0. If there's any software nerds like me on here it's now incredibly easy to write Smart Contract Block chain apps e.g. NFT and DeFi - have a look at Truffle. That's where crypto is heading in my opinion; paying for the transaction onto Blockchain apps as opposed to a pure currency per se.

https://twitter.com/denverbitcoin/status/1479966411648913409

Not sure what you mean Armchair?

Originally Posted by jem

it should never be more than a secure method of payment. aside from blockchain, it's just witchcraft.

This.

Which is what it was invented for.

95% of people who buy it don't have a clue what it is ffs.

Originally Posted by windy waffles

This.

Which is what it was invented for.

95% of people who buy it don't have a clue what it is ffs.

Agreed.

For those who don't know, Ethereum is a technology, Bitcoin is a "currency". Apples and oranges. Some analysts compare them to gold v diamonds in how they are traded, but I don't understand that analogy.

Reason I'm into Ethereum is because of the Smart Contract (form of Blockchain) technology that personally I think will kick off due to the massive benefits of decentralised and crypto asserted contracts.

To add something (anything at all, the same as to any database) to an Ethereum Blockchain you pay for the "gas fee" using ETH (ether, which is the actual currency) - so the value of Ethereum (if you're comparing it to BTC) is a function of the tech plus the perceived value of being able to add something to a Smart Contract via cryptocurrency.

BTC is just a currency. Ethereum is a technology that facilitates Block Chains.

As a software developer I can see the massive benefits and value of decentralised apps (dApps) built in Ethereum but I can definitely see how people whom know nothing about development couldn't see that.

Will have to see.

Originally Posted by Sharders

Agreed.

For those who don't know, Ethereum is a technology, Bitcoin is a "currency". Apples and oranges. Some analysts compare them to gold v diamonds in how they are traded, but I don't understand that analogy.

Reason I'm into Ethereum is because of the Smart Contract (form of Blockchain) technology that personally I think will kick off due to the massive benefits of decentralised and crypto asserted contracts.

To add something (anything at all, the same as to any database) to an Ethereum Blockchain you pay for the "gas fee" using ETH (ether, which is the actual currency) - so the value of Ethereum (if you're comparing it to BTC) is a function of the tech plus the perceived value of being able to add something to a Smart Contract via cryptocurrency.

BTC is just a currency. Ethereum is a technology that facilitates Block Chains.

As a software developer I can see the massive benefits and value of decentralised apps (dApps) built in Ethereum but I can definitely see how people whom know nothing about development couldn't see that.

Will have to see.

I know what crypto currency is, pal...

Originally Posted by windy waffles

I know what crypto currency is, pal...

he says clearly missing the point of that post

f***ing hell

also, 2022 thread?

Originally Posted by windy waffles

I know what crypto currency is, pal...

Didn't say you didn't.

Originally Posted by Sharders

For those who don't know, Ethereum is a technology, Bitcoin is a "currency". Apples and oranges. Some analysts compare them to gold v diamonds in how they are traded, but I don't understand that analogy.

BTC is just a currency. Ethereum is a technology that facilitates Block Chains.

I see BTC as digital gold, as it has a finite supply that is in high demand, which gives it the ability to be a store of value, as the supply reduces whilst demand increases, thus boosting it's price.

ETH is more like digital oil, in the sense that you purchase Ether tokens that are used to run the Ethereum blockchain, in the same way that oil is used to keep key industries running.

I'm no expert, but BTC's big advantage IMO, is that whilst, compared to something like gold, it has the ability to be a potentially excellent store of value, given how easily it can be held, and how fluidly and quickly it can be moved, it also holds utility as a currency. Gold needs to be stored in big vaults, at huge expense; theoretically someone could have their life savings in BTC stored on their mobile phone for free, and then just use that phone to complete any transaction they wanted, with the use of a fully transparent BTC blockchain, and without the need for a 3rd party.

I can see an argument that BTC can be the millennials gold but I don't see it gaining traction with the 40+ age group.

BTC volatility AND a recent thoughts that it is tending towards increased correlation with equity markets make it less attractive as a replacement in a portfolio for gold.

A small allocation in addition to gold may not be a bad thing though.

Originally Posted by tatty

I can see an argument that BTC can be the millennials gold but I don't see it gaining traction with the 40+ age group.

BTC volatility AND a recent thoughts that it is tending towards increased correlation with equity markets make it less attractive as a replacement in a portfolio for gold.

A small allocation in addition to gold may not be a bad thing though.

Disagree. Once the 40+ age group start seeing the 5-yr return comparisons between a more widely-adopted BTC and gold, I think gaining traction won't be an issue.

I remember when Facebook first emerged and nobody thought it would be used by anyone other than University students. BTC will be adopted by every age group just as social media has been adopted over the last 15 years. Altcoins less so, but I think the majority of alts will dissapear.

Originally Posted by Neo

Disagree. Once the 40+ age group start seeing the 5-yr return comparisons between a more widely-adopted BTC and gold, I think gaining traction won't be an issue.

I remember when Facebook first emerged and nobody thought it would be used by anyone other than University students. BTC will be adopted by every age group just as social media has been adopted over the last 15 years. Altcoins less so, but I think the majority of alts will dissapear.

Do you mean as a widely used currency or as an alternative investment?

Originally Posted by tatty

Do you mean as a widely used currency or as an alternative investment?

As an alternative investment.

Like I said, I'm far from an expert on this, but from what I understand, BTC's utility as a day-today currency isn't it's biggest strength, as there are other cryptos that are easier, quicker and cheaper to use for day-to-day transactions.

However, I do feel it has the hallmarks to be a major option as a long-term investment, both as an inflation hedge replacement for gold, and a profit-returning growth investment replacement for equities.

I think a sensible portfolio will have a blend of stocks, bonds, gold and BTC, but I do feel that the returns that will be realised on BTC investments will start to eat into the gold market, as investors will turn their gold investments into BTC.

The obvious threats are from the intervention of government legislation, and also tech issues such as hacking. However, it's been over a decade now since BTC emerged, and no amount of government action has stalled it's long-term rise, and it's proven to be technologically unhackable and incorruptible up until now.

Just my two Satoshis, but I personally am not seeing many advantages to gold over BTC, other than the historic legacy of gold being a highly-valued and desirable commodity, and it being something that you can physically touch, both of which are admittedly key factors in it's favour. Technology drives the world forward though, and just like cars replaced the horse-and-cart which existed for thousands of years, cryptocurrency could have the same impact.

Originally Posted by Neo

As an alternative investment.

Like I said, I'm far from an expert on this, but from what I understand, BTC's utility as a day-today currency isn't it's biggest strength, as there are other cryptos that are easier, quicker and cheaper to use for day-to-day transactions.

However, I do feel it has the hallmarks to be a major option as a long-term investment, both as an inflation hedge replacement for gold, and a profit-returning growth investment replacement for equities.

I think a sensible portfolio will have a blend of stocks, bonds, gold and BTC, but I do feel that the returns that will be realised on BTC investments will start to eat into the gold market, as investors will turn their gold investments into BTC.

The obvious threats are from the intervention of government legislation, and also tech issues such as hacking. However, it's been over a decade now since BTC emerged, and no amount of government action has stalled it's long-term rise, and it's proven to be technologically unhackable and incorruptible up until now.

Just my two Satoshis, but I personally am not seeing many advantages to gold over BTC, other than the historic legacy of gold being a highly-valued and desirable commodity, and it being something that you can physically touch, both of which are admittedly key factors in it's favour. Technology drives the world forward though, and just like cars replaced the horse-and-cart which existed for thousands of years, cryptocurrency could have the same impact.

You may well be right, and there have been a number of big hitters in the investment world who have been getting involved recently.

Even the ultra-cautious Ruffer IT has built a stake.

Would probably say the 50+ bracket. It has far too much volatility* if you are anywhere near approaching jacking in the day job, IMO.


* In addition to its longer-term future being extremely difficult / impossible to predict.

Originally Posted by tatty

You may well be right, and there have been a number of big hitters in the investment world who have been getting involved recently.

Even the ultra-cautious Ruffer IT has built a stake.

The hedge fund c***s that have built whale positions in 2021 are getting ready to dump at the right time IMO, but they will buy back in at the next crash.

Originally Posted by Coracao

Would probably say the 50+ bracket. It has far too much volatility* if you are anywhere near approaching jacking in the day job, IMO.


* In addition to its longer-term future being extremely difficult / impossible to predict.

If you're 50+ I'd say having the bulk of your portfolio in equities currently, particularly insanely overvalued US stocks, is probably more of a risk than crypto, tbh!

Originally Posted by windy waffles

I know what crypto currency is, pal...

that's one passive-aggressive comma

Originally Posted by Neo

I see BTC as digital gold, as it has a finite supply that is in high demand, which gives it the ability to be a store of value, as the supply reduces whilst demand increases, thus boosting it's price.

bitcoin is finite, but crypto that replicates every aspect isn't. what's the point?