OT: for the crypto believers

[JungRebel]

I've seen a few on this board. What do you think about the SEC filing against Ripple? Implications for BTC and the alts?

 

[bulldogcountry1]

I’ve been wanting to put some play money on bitcoin for a few weeks, but the price went up as soon as I made up my mind.

 

[karlchilders.sixpack]

It can come down, just as quick.

 

[TrueMaroonGrind]

I don’t understand how to invest in it. If I don’t understand it then I don’t put my money in it. I get it is currency with a limited supply, but how do you predict the performance.

I’m Not a high roller but the gains on my best stocks have been good enough that I don’t bother with Bitcoin. Companies and consumers are what I am familiar with so I stay in my wheelhouse.

 

[jethreauxdawg]

For what?

What do you think about the SEC filing against Ripple?

Did LSU use it to get a recruit drunk and flip them from Bama?

 

[mstateglfr]

I don’t understand how to invest in it. If I don’t understand it then I don’t put my money in it. I get it is currency with a limited supply, but how do you predict the performance.

I’m Not a high roller but the gains on my best stocks have been good enough that I don’t bother with Bitcoin. Companies and consumers are what I am familiar with so I stay in my wheelhouse.

There is a limited supply, but over 3 million still need to be mined. So that will increase the supply, basically.

 

[Nicephorus]

Most BTC people and more savvy crypto people have a negative perception of ripple for many of the same reasons they are getting investigated. It’s a centralized platform where the founders held a lot of the tokens and have been steadily “dumping” them on retail for years for a fortune.

Ripple is a popular cryptocurrency because it is perceived as “cheaper” than Bitcoin and widely available on major exchanges hence is very popular new market participants.

Bigger concern for wider crypto market is the recent rumblings of potential US regulation of stablecoins aka dollar pegged tokens. The growth of “decentralized finance” which runs mostly on ethereum has been explosive the last half of this year and is fueled by stablecoins. Ethereum chain just passed 1 trillion dollars in volume for the year largely from “DeFi”.

 

[ckDOG]

I prefer my fake currency to be backed by the United States military.

I've seen a few on this board. What do you think about the SEC filing against Ripple? Implications for BTC and the alts?

Nm

 

[JenBielema]

I've seen a few on this board. What do you think about the SEC filing against Ripple? Implications for BTC and the alts?

Hey hun - it’s bullish for bitcoin. Keep buying and good luck.

 

[The Peeper]

I have as much faith and use for that Confederate money I bought at the souvenir shop/gas station/Subway by military park in Vicksburg as I do crypto

 

[mcdawg22]

I have see sawed on Bitcoin so much. At first I looked at it and said what’s it’s intrinsic value? Nothing. It’s pure speculation based on trading system. But then I looked at gold. What is its value? We say it’s valuable, but if I’m starving with 30 pounds of gold and you have 4 pounds of ribeyes, that gold isn’t going to get me through the week, but your ribeyes will. But then I hear people talking about Bitcoin, and they all want people to jump in. That worries me. People that are on a good tip don’t tell everyone to jump in, and people that want you to are one of two groups, Pyramid schemes or Cults. Both of those don’t end well for the late joiners.

 

[Nicephorus]

The gold analogy is probably most appropriate for Bitcoin at this point. It serves a largely the same role as a store of value in crypto these days. While it is much easier to transfer than physical gold, it still is not efficient for smaller transactions due to fees and speed. For large transfers though, it is considerably cheaper and faster than what a bank could provide.

Prevailing narrative since late fall has been the increasing number of large fund managers re-allocating a portion of their funds traditionally used to buy gold into Bitcoin. Basically the thinking being Bitcoin will continue to grow in popularity and has significant potential upside compared to gold over longer time intervals. This institutional buying is what has largely driven the most recent run up. Retail mania has not hit anywhere close to 2017 levels.

As far as timing an entry, who knows. Probably depends on you time horizon.

 

[Quincy A. Wagstaff]

The primary difference between bitcoin and Ripple (XRP) is centralization. The recent SEC filing against Ripple can't happen to bitcoin because there isn't a central entity to go after. Also, the SEC has already said that bitcoin is not a security.

 

[Quincy A. Wagstaff]

For those that want to learn more about bitcoin: https://casebitcoin.com/

For those that want to short it: https://www.ledgerx.com/

 

[Quincy A. Wagstaff]

There is a limited supply, but over 3 million still need to be mined. So that will increase the supply, basically.

There is a max supply (21 million BTC) and a predictable inflation schedule to get there. It started as 50 BTC every 10 minutes (every block). That amount cuts in half every 4 years:
2012-25
2016-12.5
2020-6.25
2024-3.125

In 12 years, about 18.6 million of the 21 million BTC have been issued. It will take about 120 years for the remaining 2.4 million to be issued due to the 4-year halving cycle.

The measure of an asset's scarcity is the stock to flow ratio. This is the ratio between the existing supply (stock) and the new supply (flow). The stock to flow ratio of gold is about 62. This means at current production levels it would take about 62 years to mine the above ground supply of gold. This S/F of ~62 is unlikely to significantly change. After the most recent halving, bitcoin's stock to flow ratio is 52. After the 2024 halving, the bitcoin stock to flow ratio will climb to 113, making it more scarce than gold.

Another key difference between the supply of gold and bitcoin is that the bitcoin supply can be audited. We can know with 0.00000001 BTC precision the supply of bitcoin. This supply can be independently verified by anyone in the world without having to trust anyone. We can only estimate the supply of gold.

We also can only estimate the future supply of gold compared to bitcoin's hard-coded inflation schedule. If gold mining production increases or if Elon Musk starts mining gold on asteroids, the stock to flow ratio of gold will go down.

 

[natchezdawg]

Dawg61 and mstateglfr will be here to soon to tell you how wrong you are for supporting the Confederacy.

 

[FreeDawg]

Huge effects on the entire crypto space. If we’re looking specifically at Ripple, I think if it’s as the government alleges, company leaders did some shady stuff. They’ll litigate that out at great cost to XRP holders. I am one but I’ve liquidated a huge part of my holding. Now there are several problems with this suit I believe. The SEC’s stance is that crypto startups can’t sell tokens to fund the projects. That will have a massive effect on the entire market. Analysts are already lining up several projects, like Chainlink, who will be next if that the stance the US is taking. It’s kind of hypocritical to give BTC regulatory clarity and we literally don’t know who created it and China controls the hash rate. The bright side is that this case should be a precedence case the rest of the space can go
forward from here. That said, it’s total ******** how they did it. Several US agencies, including the Dept of Treasury, have said XRP is a currency. Jay Clayton is a JP Morgan guy married to a Goldman Sachs wife. He files this bombshell and resigns the next day. He’s protecting the investors but causes a $50B bloodbath on something he won’t even see through. Ripple execs are Biden supporters and think they’ll be better for crypto. It looks at least a little politically motivated by traditional market guys. The whole world is pivoting to digital currency and systems and the US is dragging its feet.

Specifically to XRP, I hope they get delisted by all the us exchanges as this shakes out and tanks the price. Sorry current holders. I just fund my foreign exchange and buy at a huge discount. 95% of Ripple’s business is overseas. Big in Asia. They’ll probably better served leaving the US anyway which is sad. I was hoping the biggest US crypto company would get backed to be an international leader propped up by our government. Instead we got China and Russia dominating with BTC and ETH. This space makes the stock market look tame.

 

[KeyserSoze1999]

One can make good money at the moment with Bitcoin and other crypto currencies...AT THE MOMENT...but always remember cyber accounts get hacked everyday and US Government regulations and tracking of Bitcoin will happen one day. So don't go "All In" on crypto currencies or anything for that matter - remember the wise words of The Wu Tang Clan "You need to diversify...

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[bullymcbullerson]

What happens to the US dollar if crypto sees widespread adoption or even becomes the world reserve currency? It can’t be good for it, and it seems that China would be the biggest benefactor especially if they control some of the major crypto currencies.

 

[FreeDawg]

There isn’t currently a crypto that could even be considered for the reserve currency in reality. BTC couldnt be, ETH either. You could make an argument for XRP since it’s goal is institutional currency transfer w/odl but that looks not to likely the way it’s under attack from the sec at the moment. What the US and other countries are going to do is issue a govt backed stable coin. But the question is what is backing it? Fiat is **** because they keep printing more devaluing it further. The usdx is fascinating to watch. It’s been down trending and it’s about to to tank. Will be interesting to watch over the next few years.

 

[JungRebel]

Slightly unrelated but does the US in fact print money? I thought we borrowed it from the Fed Reserve.

 

[natchezdawg]

The Treasury just prints it..

The Fed controls how much is actually printed, how much is in the economy, etc.

 

[BoomBoom.sixpack]

The gold analogy is probably most appropriate for Bitcoin at this point. It serves a largely the same role as a store of value in crypto these days. While it is much easier to transfer than physical gold, it still is not efficient for smaller transactions due to fees and speed. For large transfers though, it is considerably cheaper and faster than what a bank could provide.

Prevailing narrative since late fall has been the increasing number of large fund managers re-allocating a portion of their funds traditionally used to buy gold into Bitcoin. Basically the thinking being Bitcoin will continue to grow in popularity and has significant potential upside compared to gold over longer time intervals. This institutional buying is what has largely driven the most recent run up. Retail mania has not hit anywhere close to 2017 levels.

As far as timing an entry, who knows. Probably depends on you time horizon.

Kinda how I see it. If Bitcoin becomes something close to a standard for transactions, then since it has a fixed supply then it will grow in value. where the analogy calls apart is that gold has unique properties that led to it becoming a standard for holding value. It is completely reusable, hard to increase the supply, practical for coins, aesthetically pleasing, etc. there are reasons most other metals could not replace it. But Bitcoin is not unique. Any other crypto can replace it in a minute. Same for the others.

 

[Leeshouldveflanked]

Can you buy Hookers and Blow with Bitcoin?

 

[karlchilders.sixpack]

Probably! Well, I'm shure you can.

 

[Dawgbite]

Can you buy Hookers and Blow with Bitcoin?

You need a University of Mississippi Athletic Department card for that.

 

[KeyserSoze1999]

But make sure the card comes with the Red Athletic Gym Bag.***