Could it be 'trillion'?
Don’t forget that the eth staking unlock should be in March. That should mean more volatility is on the way.
Does T stand for Terra?
Or do, then I can cash in and buy back later.
It’s the pre sh1tting in the woods phase.
Please don't Fomo in folks.
Couple of most welcome green days, wont be long now until we see 1T market cap again
Some nice pump today
ADA up 30% over a week, still an absolute bargain at 32c
What's a bear rise when it's at home?
Generic January bear rise.
Some decent movement overnight. Long time since this has happened.
The bonk will probably be disappointing, and won’t last long.
edit, bonk sitting at 269 on coingecko
Nothing for me, I only have 3 sol left there, would have liked a bonk
Anyone with a Sol wallet check your balance. I was dropped 40million BONK, about 500 dollars. Just traded half into usdc.
What’s Michael Saylor saying?
..
There were crazy gains... if you take a five year period up until today, there was 500% growth in the first 4 years of that period, with the majority of that occurring in year 4. Yes, year 5 has seen a lot of that growth wiped out, but you can't deny it happened. Looking at a start-point and end-point alone gives a very limited perspective.
Compared to Dow Jones, if you do want to cherry pick a 5-year start-point to end-point view, BTC still has 70% vs 40%. Copper looks to have gone from $3.1 to $3.65 in the same period... so an 18% gain...
Comparing the charts to the Dow there have been no crazy gains over the past 5 years though.
I just looked briefly at investments in copper, a real world necessary material, and over 5 years bitcoin looks like a very poor second.
Now I just picked copper at random but I've no doubts plenty of relatively in demand physical materials are hammering bitcoin on investment returns.
One of the main reasons people invest in it is to make crazy gains, as long as people are doing that it won’t stabilize.
I really don't mean to be smart, but we have high inflation at the moment and if anything Bitcoin and other crypto has turned out to be a kind of inverse hedge if anything. People might be better off shorting it as a hedge against inflation, but most people would not take that kind of risk. If you think about it too, it actually makes sense. Crypto is seen as a highly speculative asset and in times of high inflation those types of assets will get smashed, we have the same with tech growth stocks. If you are interested in hedging inflation, there are various types of inflation proof bonds and things, you can also buy property or stocks in companies that would be unlikely to be affected during the high inflation.
I think it all comes back to speculation being the main use case and that relies on the asset being volatile. Would anyone buy Bitcoin to hold if there was not a chance of above inflation increase? Also, trading firms (prop trading and hedge funds etc) will trade anything that suits their strategies, so I wouldn't see their involvement as any particular buy in to a belief in the long term viability of the crypto world, I work in one of these companies developing trading strategies.
A hedge against inflation. It's a narrative that hasn't played out well so far due to the price volatility, but theoretically if price were to stabilise it would be a good hedge given the supply is capped at 21m BTC. Fiat, on the other hand, keeps on printing.
As we progress towards central bank digital currencies (CBDCs), and the level of control they will confer to governments, censorship-resistant mediums like BTC might also become increasingly attractive.
What would a compelling reason for someone to use bitcoin to store value then? We don't normally keep non productive wealth in foreign currencies for example. I have never had say X and thought, I might store half that in japanese yen.
Very true about store of value function being undermined by volatility. But it should be a positively reinforcing cycle. As market cap grows, volatility diminishes and the utility as a store of value increases. The speculation on the other hand is largely associated with the volatility.
I assume above you are talking about allocating 5% of your investments to Bitcoin, rather than keeping 5% of your total assets (including property)?
Agreed regarding debt. I have no idea why someone would borrow money to buy an expensive car (some might need to borrow to buy a basic car out of necessity). If you can't pay for it in cash, you can't afford it.
In Ireland, buying a property is definitely important as the rental sector is so bad. I don't personally see it as "wealth" or an investment as such, but for a lot of people it represents the largest portion of their assets. I think its important to max out the pension to get the tax benefit, this will be a better investment than most other things, since by putting money in you have already near enough doubled it. For younger people they probably feel they need to get a deposit before contributing significantly, which is unfortunate.
For a 20-something graduate, living at home, looking to save a deposit for a property, I think it is much better to be putting it into a broad equity ETF and add to it over a 10 year period or so, rather than trying to hit the home run with 5x (or 500x 😀) longshot.
I've No debt which is the best investment you can have.No car loan, no overdrafts, no credit cards. Then I've Property, pension, cash, stocks, bitcoin.
I'm with you until bitcoin.
I've invested that 5% in a couple of things which are far less volatile and deliver steady appreciation.
Incidentally somebody wanted to pay me for something in bitcoin many years ago and I declined. If only.........
I'd never touch it now because I can't see it making 1000% returns again.
I don't think it is awful advice, but 5% of worth while not enormous is still very substantial to be putting into something that is like buying a lotto ticket. I would favor putting it into an equity index tracker or something like that. In your suggestion, you have very little investment other than pension and bitcoin. I think the valuation of bitcoin is based entirely on hype. Hype is affected by external things and so cannot be predicted. There are a lot of things that could have a huge negative impact on bitcoin, like regulation etc. Given the collapse of FTX, I think this has become likely to happen soon. What about if there is an audit of tether and it is nowhere near backed (it isn't, it is backed by cash or equivalent assets apparently)?
It would be interesting to do a review of "expert" opinion on bitcoin valuation at the end of 2022 from say 2021, to get an idea of their forecasting skills.
Great advise. I’m young so Bitcoin is going to be quite a bit more than 5%.
I'm fine with it being a store of value. Even though I've been interested and investing in this space since 2016 crypto is less than 3% of my overall portfolio.
Order of things to do:
Get something like YNAB and get your finances under control.
Max your pension contributions (especially if your company will match it)
Buy any stocks your company gives you a discount on.
Have min 6 months cash flow in case you lose a job or have a major life event.
Have a property purchased.
Then take less than 5% of what you are worth and buy bitcoin.
If it flops you still have 95% of your wealth. If it takes off you have a great opportunity. You won't be a millionaire but it might help you to get ahead of the cycle of living in debt / going from pay cheque to pay cheque.
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