Bitcoins - about to hit $5,000 per coin today!

[obsidian]

Yep, just  put another 10.5k into btc when I saw the spike down..

Cool. Did you do this with fiat from a bank account or you happened to have the funds in stable coins? I told myself to sell some ETH for stable coins when it hit $2k but was too lazy to move and don't want to complicate my taxes too much. Next time it pumps to 2.5k or 3k I might. You have to decide if it is worth the tax hassles. I am still getting a steady influx of ETH on a weekly basis via mining. I am getting ETH for under $300 because I am basically trading an electrical bill for ETH.

[obsidian]

Read the comments. Hilarious!

[obsidian]

[polychronopolous]

So are you then basically paying the debt off with the interest? The BTC amount in escrow stays the same but the interest is paid into a fiat checking account?

Also, what's in it for the company paying out interest? If you put your BTC in escrow are they investing those funds that the BTC represents? Why would they pay out 9% interest? They must be making money somehow...

BlockFi allows you to take out a loan on their platform, as do a few others.

I threw some numbers in there for a 50k loan

Collateral amount 2.84BTC(current BTC price of 51,149)
Monthly payment - $335.75
Loan to Value - 35%
Interest rate - 7.9%

Here is a good listen with the founder of BlockFi where he explains the services his platform provides.

Here is another couple links to their website where they discuss the process

https://blockfi.com/resource-center#items2

https://blockfi.com/how-to-payoff-or-refinance-your-crypto-loan

[gib]

BlockFi is pretty amazing, if legit. Lots of rumors about how they are taking risks behind the scenes. I am not sure where they are legally based nor how well regulated or transparent they are. But yes, their basic operating model is legit. What I would say is that margins of businesses such as theirs will come down massively as similar companies and smart contracts enabling DeFi ramp up.

[gib]

Didn't some getbiggers bought Bitcoins? They should cash in while it's still hot now!


Bitcoin spikes 70% in a month; nobody knows why
http://www.cnbc.com/2015/11/03/bitcoins-price-jumps-more-than-70-in-one-month.html


Bitcoin to be 6th largest reserve currency by 2030:
http://www.cnbc.com/2015/11/03/bitcoin-to-be-6th-largest-reserve-currency-by-2030-research.html

We have "cashed in" our fake money fiat cash (which we know ALWAYS devalues over time) which is why we now HODL our BTC (which we know, despite volatility), ALWAYS increases over time.

[gib]

I'd be pissed if my parents left me Bitcoin as inheritance.  They might as well pass down a glass of tap water to you.

Leaving BTC for your kids is provably one of the best things a parent could leave. If you have kids or loved ones, I think it would be essential to leave them Bitcoin. Not only because of the huge increases in value over time, but also for the immediate access and transferability anywhere globally, immediate divisibility, avoiding the hassle of estate wind-up, taxes, etc.

What is vital though is that create a mechanism to give each intended recipient a safe way to access and retrieve the coins.

You could also set up a smart contract structure that vests the coins on a certain date, or drip-feeds value over time.

Imagine immediately becoming a wholecoiner or even a quartercoiner overnight. You would be set up for life in the future. A wonderful way to pass on generational value.

[Mayday]

So are you then basically paying the debt off with the interest? The BTC amount in escrow stays the same but the interest is paid into a fiat checking account?

Also, what's in it for the company paying out interest? If you put your BTC in escrow are they investing those funds that the BTC represents? Why would they pay out 9% interest? They must be making money somehow...

Your BTC goes into escrow. You take out a loan that covers living costs plus the loan repayments. You make repayments from the loan money.

While in escrow the BTC appreciates in value, just like if you mortgage your house it still appreciates in value.

The thinking is BTC appreciates at a rate faster than you accumulate debt and interest. Therefore let’s say you take a 5yr loan, at the end of the first year you have the BTC revalued and take out a new loan against the new valuation. Rinse and repeat.

It’s the same idea as mortgaging a house except the rate of future value increases massively outstrips your debt accumulation allowing you to constantly close and open new loans based on higher asset valuations.

9% interest is 4 times higher than a bank loan so it’s a great return for the lenders. In a nutshell the lenders are institutions with shares and large capital which they use as security to acquire loans at 0.25% which they lend to you at 9%. They make a killing!

[gib]

Your BTC goes into escrow. You take out a loan that covers living costs plus the loan repayments. You make repayments from the loan money.

While in escrow the BTC appreciates in value, just like if you mortgage your house it still appreciates in value.

The thinking is BTC appreciates at a rate faster than you accumulate debt and interest. Therefore let’s say you take a 5yr loan, at the end of the first year you have the BTC revalued and take out a new loan against the new valuation. Rinse and repeat.

It’s the same idea as mortgaging a house except the rate of future value increases massively outstrips your debt accumulation allowing you to constantly close and open new loans based on higher asset valuations.

9% interest is 4 times higher than a bank loan so it’s a great return for the lenders. In a nutshell the lenders are institutions with shares and large capital which they use as security to acquire loans at 0.25% which they lend to you at 9%. They make a killing!

Yep - your counterparty risk though if your give money to BlockFi is  that they are not legit, overleveraged, etc and you lose your underlying coin. But in theory their model works, and the business is a good one. (Those counterparty risks will be solved with smart contracts over time).

[Mayday]

Brutal attack on BtC right now. Just watched it rip down 2k in about 45 seconds lol.

[gib]

Brutal attack on BtC right now. Just watched it rip down 2k in about 45 seconds lol.

Yep and some of the alts being brutally raped hard.

I am around USD $350K down over 24 hours. Not feeling concerned at all. 

For anyone worried, especially newbies, I would suggest chilling and zooming out. Long term trend is well intact and will be for years. 2025 halvening event will be before us before we know it...

[Mayday]

Yep and some of the alts being brutally raped hard.

I am around USD $350K down over 24 hours. Not feeling concerned at all. 

For anyone worried, especially newbies, I would suggest chilling and zooming out. Long term trend is well intact and will be for years. 2025 halvening event will be before us before we know it...

I’d be a lot happier if ETH didn’t look like it caught Aids!

We have a near complete unwinding of the ETHBTC ratio back to 0.032. If the ETHBtC chart means anything the bottom is 0.029 which is where it tapped last time before a strong rally.

It’ll be fine but given I just got a 61k estimate to fix my car motor seeing ETH adds a nice solid kick to the nuts for the day.


Depending on how ugh the price goes this year we may see future halvings play a vastly diminished role.

[Bindare_Dundat]

I’d be a lot happier if ETH didn’t look like it caught Aids!

We have a near complete unwinding of the ETHBTC ratio back to 0.032. If the ETHBtC chart means anything the bottom is 0.029 which is where it tapped last time before a strong rally.

It’ll be fine but given I just got a 61k estimate to fix my car motor seeing ETH adds a nice solid kick to the nuts for the day.


Depending on how ugh the price goes this year we may see future halvings play a vastly diminished role.

Blood in the water now. All coins  getting destroyed. Therses probably more mass panic selling today.  Wonder if people are still putting lasers in their eyes after this kick in that balls to the price?

Im still holding bitcoin  but don't think this one is stopping anytime soon. Probably headong below yesterday's lowest wick. everyone is going to run stories of how shit cryto is and you'll.lose all your money, etc...

What is wrong with yoir car for a bill that high?

[Mayday]

I have price targets as 44.9k then 41.2k.

Jan price assault saw day 2 as brutal then the lowest days coming in at 12-13 then 18-19.

Motor is fucked and that particular car isn’t a cheap one.

[obsidian]

Blood in the water now. All coins  getting destroyed. Therses probably more mass panic selling today.  Wonder if people are still putting lasers in their eyes after this kick in that balls to the price?

Im still holding bitcoin  but don't think this one is stopping anytime soon. Probably headong below yesterday's lowest wick. everyone is going to run stories of how shit cryto is and you'll.lose all your money, etc...

What is wrong with yoir car for a bill that high?

It's ok don't panic. Worse than can happen is you can lose your entire investment lol! Only invest what you are willing to lose.

Best thing that can happen is you can make great money. Crypto is a different beast. The price drops will fuck with you and if you sell on the way down someone else will snap it up and then before you wipe your eyes out the price shot up past the point you sold and now you end up with less crypto. Safest time to sell is when everything has been going up like a rocket and you want to take a little profit to spend.

I've been watching Ethereum on Binance and Coinbase. The price went below $1,400 and now it has shot back up to over $1,500. It might yoyo a few times.

Realize these are growing pains for the crypto market. Let some people take profits now. They might be the ones ending up with less crypto when all is said and done.

If you have a car to fix then yes sell and use the money.

All those saying the gas fees will kill Ethereum. Well people might just decide Ethereum is a store of value so Cardano, Polkadot and Binance can do smart contracts. Perhaps Ethereum goes the way of Bitcoin and is just a store of value.

Ethereum not having a finite supply might help it in the long run - whether it is proof of stake or proof of work. Because those staking or mining would have an incentive as new ETH is slowly minted - and thereby securing the network. With Bitcoin why would miners keep securing the network if they are not getting any BTC payments as reward once all BTC has been mined? Some say they would be paid in fees. From where would this money coming from? The fees would have to be high enough to keep enough miners in the game to provide great security.

[obsidian]

[Bindare_Dundat]

It's ok don't panic. Worse than can happen is you can lose your entire investment lol! Only invest what you are willing to lose.

Best thing that can happen is you can make great money. Crypto is a different beast. The price drops will fuck with you and if you sell on the way down someone else will snap it up and then before you wipe your eyes out the price shot up past the point you sold and now you end up with less crypto. Safest time to sell is when everything has been going up like a rocket and you want to take a little profit to spend.

I've been watching Ethereum on Binance and Coinbase. The price went below $1,400 and now it has shot back up to over $1,500. It might yoyo a few times.

Realize these are growing pains for the crypto market. Let some people take profits now. They might be the ones ending up with less crypto when all is said and done.

If you have a car to fix then yes sell and use the money.

All those saying the gas fees will kill Ethereum. Well people might just decide Ethereum is a store of value so Cardano, Polkadot and Binance can do smart contracts. Perhaps Ethereum goes the way of Bitcoin and is just a store of value.

Ethereum not having a finite supply might help it in the long run - whether it is proof of stake or proof of work. Because those staking or mining would have an incentive as new ETH is slowly minted - and thereby securing the network. With Bitcoin why would miners keep securing the network if they are not getting any BTC payments as reward once all BTC has been mined? Some say they would be paid in fees. From where would this money coming from? The fees would have to be high enough to keep enough miners in the game to provide great security.

You guys laughed at me when I said ethereum was sucking and look at it now. You could have saved yourself.from this dump instead of riding it all the way back down.

I like crypto, I like Bitcoin but sometimes you have to put all the hype videos down and.look at the charts. The volume was dropping, the RSI was showing waining momentum.and boom,  this is the result.

It doesn't help that Twitter addict Musk cant stop tweeting retarded shit. Honestly,think he does more harm than good with his posts.

Id love to see things explode upwards but I dont have a problem cashing out instead of blindly grabbing more and more while its tanking in this environment.

Things will probably rebound but people need to stop and breath once and while instead of listening to guys like bitboy who are obviously gambling degenerates.

[Humble Narcissist]

Leaving BTC for your kids is provably one of the best things a parent could leave. If you have kids or loved ones, I think it would be essential to leave them Bitcoin. Not only because of the huge increases in value over time, but also for the immediate access and transferability anywhere globally, immediate divisibility, avoiding the hassle of estate wind-up, taxes, etc.

What is vital though is that create a mechanism to give each intended recipient a safe way to access and retrieve the coins.

You could also set up a smart contract structure that vests the coins on a certain date, or drip-feeds value over time.

Imagine immediately becoming a wholecoiner or even a quartercoiner overnight. You would be set up for life in the future. A wonderful way to pass on generational value.

Again, it has no real value.

[Mayday]

Dude, a few of us here don’t exit due to tax implications.

We still piss and moan because it gives us something to do but the reality is it doesn’t matter until exit time.

ETH doesn’t suck. You do realise the heavy hitters are 20%-35% ETH allocation yeah? What the big boys do is all that matters.

[obsidian]

You guys laughed at me when I said ethereum was sucking and look at it now. You could have saved yourself.from this dump instead of riding it all the way back down.

I like crypto, I like Bitcoin but sometimes you have to put all the hype videos down and.look at the charts. The volume was dropping, the RSI was showing waining momentum.and boom,  this is the result.

It doesn't help that Twitter addict Musk cant stop tweeting retarded shit. Honestly,think he does more harm than good with his posts.

Id love to see things explode upwards but I dont have a problem cashing out instead of blindly grabbing more and more while its tanking in this environment.

Things will probably rebound but people need to stop and breath once and while instead of listening to guys like bitboy who are obviously gambling degenerates.

LOL take a deep breath. We have "been there done that"!  It's kind of cute to see your frustration!

Musk tweeted last year that Tesla stock was overpriced and boom it shoots to the moon. He probably wanted the BTC and ETH prices to drop so he could buy the dip. That's why he responded to Peter Schiff's tweet saying BTC and ETH is kinda high lol! The SEC can also not fault him because he is not hyping up the price. He is saying hey cool it down it is too expensive.

ETH is doing what it has always done. Go look at the 2017 charts. Bitcoin dropped close to $11,000 from it's highs. Watch the video I just posted. The guy makes a lot of sense. Cryptos are going to pump because governments all over the world are printing money left and right. For all we know Ethereum might very well pump to 10k and beyond this bull run.

The fiat money is losing value. What are people going to do with it? Get a scarce asset or buy more TVs? We all have enough TVs right now. You can't save the fiat because the banks don't offer good interest rates and you know it is just losing value as it sits in a bank account.

[obsidian]

Again, it has no real value.

Why not?

[Bindare_Dundat]

LOL take a deep breath. We have "been there done that"!  It's kind of cute to see your frustration!

Musk tweeted last year that Tesla stock was overpriced and boom it shoots to the moon. He probably wanted the BTC and ETH prices to drop so he could buy the dip. That's why he responded to Peter Schiff's tweet saying BTC and ETH is kinda high lol! The SEC can also not fault him because he is not hyping up the price. He is saying hey cool it down it is too expensive.

ETH is doing what it has always done. Go look at the 2017 charts. Bitcoin dropped close to $11,000 from it's highs. Watch the video I just posted. The guy makes a lot of sense. Cryptos are going to pump because governments all over the world are printing money left and right. For all we know Ethereum might very well pump to 10k and beyond this bull run.

The fiat money is losing value. What are people going to do with it? Get a scarce asset or buy more TVs? We all have enough TVs right now. You can't save the fiat because the banks don't offer good interest rates and you know it is just losing value as it sits in a bank account.

Lol what frustration?  I sold 80% of my eth when it was alot higher than it is today. No regrets. I have plenty of time to buy back in if it goes to where you think it will.

Youre the one enjoying the current losses, not me. Why in the hell would I ride bitcoin down to 11 thousand? Makes zero sense.

Feel free.to gamble away. Ill stick to being more.conservative.

[obsidian]

Lol what frustration?  I sold 80% of my eth when it was alot higher than it is today. No regrets. I have plenty of time to buy back in if it goes to where you think it will.

Youre the one enjoying the current losses, not me.

Feel free.to gamble away. Ill stick to being more.conservative.

Just remember your tax rate is higher if you do day trading and hold stocks or cryptos short term. But good for you if you sold some higher up. I probably will cash out some ETH (15-20) at some point before the end of the year but that money will exit the crypto market because I want to cover some initial expenses. Of course if the market takes a complete shit then I won't cash out.

[obsidian]

Then there is this lol!

https://www.coindesk.com/flash-crash-ether-traded-for-half-price-to-700-on-kraken-during-mondays-sell-off

Ether (ETH, -20.32%), the second biggest cryptocurrency by market capitalization, at one point traded near $700 on cryptocurrency exchange Kraken during Monday’s massive sell-off.

Amid the market melee that pummeled crypto assets across the board, ether’s prices went as low as $1,546.53, according to CoinDesk 20. However, that number was a staggeringly low $700 on Kraken.

In a one-minute time span, the ETH/USD pair on Kraken dropped to $700 at UTC 14:20 Monday from $1628,82 just approximately three minutes prior.

The breathtaking drop wasn’t relegated to ether. Trading of cardano (ADA, -10.93%) (ADA)  suffered a similar fate on Kraken, with the ADA/USD pair slumping to $0.156 at 14:23 UTC from $0.842 three minutes prior. During the same hour, the lowest price of cardano recorded on CoinDesk 20 was at $0.835.

“We saw the price of some digital assets such as ether and ada have a sharp downward movement this morning on multiple trading venues just after 14:00 UTC,” a spokesperson from Kraken told CoinDesk in response to the abnormally low prices of ether and ada on the exchange. “Kraken also saw a surge in sell orders around this time.”

“We’re communicating directly with clients and ask that anyone with questions about their account please open a ticket,” the spokesperson said, declining to comment further on the issue.

This is not the first time this type of “flash crash” occurred on Kraken, according to Trustnodes, which noted the problem on Kraken back in 2018. The report indicated that such incidents usually occur when a trader accidentally entered a wrong number during trading, a behavior nicknamed “fat finger error.”

Ether’s trading volume on Kraken logged more than $888 million on Monday alone, more than double that of Friday’s figure.

At press time, ether is trading at $1,749.94, down 8.92% in the past 24 hours, according to CoinDesk 20. On Kraken, it’s at $1777.02, down 8.19%.

[Bindare_Dundat]

When every crypto channel has more scam responses then legit people in the comments  by a factor of 10, you know its time to sell. Lol