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The Ultimate AFMB Cryptocurrency Thread


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On March 12, Bitcoin (BTC) closed at $3,858.  A little more than 9 months later, BTC is trading at over $27k, a 700% increase.  Today, JP Morgan placed a $650,000 price target/value on BTC.  Mind you, it came with no target date...but the prevailing thought process is that eventually Bitcoin as an asset class and store of value could equal the market cap of gold.

In a world where government stimulus packages in the trillions of dollars are starting to become commonplace, there is a growing sentiment that the days of the dollar being the reserve currency of the world are numbered.  Not imminently mind you, but the bottomline is that there is an industry that right now is operating in the shadows at the moment that is building the next generation of world finance and economic infrastructure.

I would say that Bitcoin is the brand of cryptocurrency at the moment...but other exciting and innovative projects like Ethereum, Chainlink, Filecoin, Cardano, Yearn Finance and others are building platforms and next generation financial vehicles that could make the type of global transformation we saw with the advent of the internet look quaint.

So what say you...are you aware of what’s happening here?  Have you taken a trip down the rabbit hole already?  Are you asking - WTH is this guy talking about?  Let’s have this be the place where we discuss this, trade ideas, discover new projects.

Deal?

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Just now, MoeBiden said:

I used to think bitcoin was ******** and honestly still kind of do.  The only thing that makes me thinks something like bitcoin could achieve anything close to permanence would be third world citizens removing the ability of their leaders/CIA to devalue their currency.  

This is also why I think it's highly likely that cryptocurrency will be snuffed out eventually.

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11 hours ago, MoeBiden said:

I used to think bitcoin was ******** and honestly still kind of do.  The only thing that makes me thinks something like bitcoin could achieve anything close to permanence would be third world citizens removing the ability of their leaders/CIA to devalue their currency.  

I think a lot of people do still question it’s validity.  At the same time, it’s been around since 2009, had multiple near death experiences and has been able to survive.  It certainly looks like it’s gaining a foothold.  And the global macroeconomic conditions that the pandemic wrought were ideal for its emergence as a store of value consideration for institutional investors which is why you are starting to see some serious money flow in.

Regulation is certainly on the horizon.  In many ways, it’s an absolutely necessary step for adoption and integration as the Central Banks begin and continue work and development on their own digital currencies.

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16 hours ago, MoeBiden said:

I used to think bitcoin was ******** and honestly still kind of do.  The only thing that makes me thinks something like bitcoin could achieve anything close to permanence would be third world citizens removing the ability of their leaders/CIA to devalue their currency.  

 In 2009, Gaddafi suggested a new gold dinar-based, pan-African currency, independent of the American dollar. 

You saw what NATO did to him.

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48 minutes ago, Corn Pop said:

 In 2009, Gaddafi suggested a new gold dinar-based, pan-African currency, independent of the American dollar. 

You saw what NATO did to him.

Right now, the US accounts for 25% of the worlds GDP but 80% of the worlds transactions are conducted using the USD.  Can’t imagine that is sustainable.

We take for granted how omnipresent the USD is and by in large, Americans are very...sheltered(?) in their view of how money/currency works and the challenges most of the rest of the world faces with regard to currency value/exchange/etc...

Why I think you’re seeing a lot of excitement this go round with BTC is the absence of sovereign ownership and control over it.  While that’s been the case throughout its entire existence, there seems to be significantly more confidence in its staying power and ability to form at least a foundational piece of a new native digital economy.

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Could BTC be at the cusp of a $1M supercycle?

Dan Held, growth lead at crypto exchange Kraken, is explaining why he believes Bitcoin’s current bull run could be part of a supercycle that takes the cryptocurrency all the way to $1 million.

In a recent video, the crypto veteran analyzes Bitcoin’s success and rapid price appreciation.

Held points out that Bitcoin’s founder, Satoshi Nakamoto, originally believed Bitcoin’s speculative nature would be the key feature that would help it grow. Held quotes Satoshi and likens the creator’s vision to that of a traditional marketing phenomenon known as the ‘viral feedback loop’ wherein content derives value simply from the number of people interested in it.

“I feel like a lot of people are looking at the market and they’re going, ‘Oh well Bitcoin will just have a typical cycle.’ I think there’s a ton of different reasons why that won’t be the case… Satoshi actually hypothesizes that speculation would lead to Bitcoin’s inception and adoption…

For example, Satoshi says, ‘As the number of users grows, the value per coin increases. It has the potential for a positive feedback loop; as users increase, the value goes up, which could attract more users to take advantage of the increasing value.’ He wrote this before Bitcoin was worth even a penny… We can see this over time. The dotted lines of the halving events and we see these speculative bubbles occur and these we hypothesize are due to a reduction in supply and increase in demand…

In traditional marketing sense, this is called a viral feedback loop… A viral feedback loop is [when] someone discovers a piece of content, let’s say you see a funny dog video that’s associated with a website, and you go to the website to try it out, you find value there and then you share it with your friends…

Satoshi understood this and he brought this into money. He understood that he could create a viral feedback loop on just the price alone. As the price increases, people become more aware of it, and then other people buy in with that expectation of the price going higher and they tell their friends about it.”

The former Uber executive says that the Covid-19 pandemic has provided the perfect macro circumstances for Bitcoin to show its value.

“What’s really unique about this cycle though, and I’ve been around for all the other cycles… this one is very different. Never before has it had such strong fundamentals against a macro backdrop which highlights exactly why it’s needed… 

Never before have we seen Dutch GDP ratios like this. Never before have we seen inflation this high. It is truly unprecedented. This is what’s so interesting that folks don’t think that they need Bitcoin until this moment happens when it shakes them out of their reality and they go ‘Oh, I get why Bitcoin’s valuable.’ Just like getting earthquake insurance. Most people don’t think about getting earthquake insurance until an earthquake hits… And Bitcoin is exactly like that, it’s insurance against money and devaluing of money by governments and the lack of trust of banks.”

Held says that institutions finally understand the value of Bitcoin and are entering the market, setting the stage for a super cycle.

“So Covid brought Bitcoin’s focus and value and made it really obvious for the world. And because of that, a new participant entered, the institutions… Institutions post-Covid were searching for a safe store of value. You’ve got $18 trillion of negatively yielding sovereign debt and Bitcoin offers such a greater value than gold… These institutions manage over a $100 trillion…

What’s going to happen in 2021 and 2022 when everywhere you can buy Bitcoin: every bank, every brokerage. All that pent up purchasing and demand for Bitcoin flows into the market. So you get the institutions and retail who are going to flow trillions of dollars into Bitcoin over the next couple of years. And that’s why I think this is a supercycle. What happens when ownership of Bitcoin moves from 0.01% of the world to 1%? A 100x increase. Price will move much more than that.”

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On 12/30/2020 at 7:23 PM, TheDirtyWordII said:

Right now, the US accounts for 25% of the worlds GDP but 80% of the worlds transactions are conducted using the USD.  Can’t imagine that is sustainable.

We take for granted how omnipresent the USD is and by in large, Americans are very...sheltered(?) in their view of how money/currency works and the challenges most of the rest of the world faces with regard to currency value/exchange/etc...

Why I think you’re seeing a lot of excitement this go round with BTC is the absence of sovereign ownership and control over it.  While that’s been the case throughout its entire existence, there seems to be significantly more confidence in its staying power and ability to form at least a foundational piece of a new native digital economy.

NESARA?

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On 1/11/2021 at 5:14 PM, AF89 said:

Coinbase has been down for like 3 or 4 days which is severely hampering my wagering habit <_<

For as much as this market has exploded, its infrastructure is completely chicken wired together it feels like.  Overall, it’s user experience has to very much kick it up a few notches.  And don’t get me started on some of the DeFi platforms.

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  • 3 weeks later...

I got into Bitcoin about 3 years ago, just as it was reaching its first big peak, then ended up losing roughly 60%, as it slid over the next two years. I just left it alone, because I went into it understanding that it would be volatile. 

Last year (to now), its shooting towards 40k (at 38k as of today), so I'm up 300% 😅.

I think it's one of those things to put some of your money in, to hedge against a dollar collapse, but nothing substantial that you'll end up needing quickly. 

The biggest drawbacks, in my opinion, are 1) the ease of liquidity -- takes too long to buy or sell (unlike stocks via online platforms), 2) the fees to convert between dollars and cryptocurrency (and vice versa) are extremely high, and 3) yes, Coinbase has really poor user experience. 

Coinbase is set to go public very soon, but I'd like to see other players in the game. Again, their UX is pretty poor. 

 

Edited by GhostOfBukowski
wrong grammar
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