What do people think about alt coins? V.1 [discussion]

does this mean i should get out of ada?

 

Sell or hodl. I sold mine a few days ago. DYOR

https://www.tradingview.com/symbols/ADAUSD/technicals/

 

I completely agree about ADA, DOGE and DOT. I dont fully understand BNB but I wouldn't hold my anchor to that.

It might be really wise for people to understand the importance of owning their keys. Cryptobanks can go insolvent.

 

Yes, wouldn't want any speculative excess in cryptocurrency. Perish the thought.

 

So take a month off?
I just ordered a doge tshirt

 

The government is definitely threatened by crypto. As are most other prominent governments. They're going to try and do everything they can to regulate it out of existence.

I may try and form an exit strategy to back out while retaining as much profit as possible. Then I'll wait for the dust to settle with the inevitable regulation storm that will be happening in the near future.

 

yeah you are right im out

 

Btw - How is your Herbalife business doing?

 

Traditional finance is terrified of it. Government knows it can not regulate it out of existence. They tried this with piracy and the only thing that resulted was the greedy content distributors got squeeze out.

Turkey is doing their best to get their inflation under control but are very concerned its citizens will go straight to a global digital asset...thus banning crypto exchanges in their country. India is trying to do the same.

The United States is only admitting they have no way to accurately tax it. That is what 'regulation' means. Traditional finance is struggling to find ways to stop the hemorrhaging to these new cyberpunk billionaires, not just in crypto, but across the board. What secretly goes on behind the doors in traditional financing is now happening in the open with defi. For example, I can 'park' my 10 BTC on Blockfi and 'lend' it out for a few points or I can take a 'loan' out against my BTC while never triggering a sell. Whatever regulation they place on crypto will have a blowback on the traditional finance market.

Nobody cares about the 350 million dollar pokemon marketcap, but add 4 zeros to that and you can rest assure regulation will be following right behind it.

There is nothing to see here. The reality is nobody wants to hold large amounts of USD anymore and its going anywhere, even lumber. 50 years of runaway debt has made the dollar very unappealing. I hope you enjoyed your stimmy.

tl;dr: 2 trillion dollar market cap being secured by what is rapidly become a global store of value is still in its early stages.

 

I'm a sucker for anything that starts with Am!

 

That's right you said your nickname was 'Radio'.

 

Record low interest rates on US debt while the government is borrowing trillions of dollars a year tells a different story though. You're right that money is going everywhere - crypto, lumber, stocks, housing, etc. But it's also going into USD - demand for dollar assets is crazy high. It's not people trying to get rid of dollars - it's that virtually all the new money being made in the world is being made by rich people who have nothing to do with it. So they dump it everywhere - including US bonds. Crypto, at this point, is only a tiny share of that money. People poured more money new US bonds in the last year than the entire theoretical value of the crypto market (which only needs a fraction of that money to capitalize to that level).

 

I agree crypto is still a hobby for now (which plays into speculation), but I dont think retail are buying bonds trending to zero or below zero (europe). I guess some people still do a 60/40 allocation though march 2020 should've spooked them into questioning how diversified that allocation is. My hunch is that the %of domestic holdings come from Fed holdings and banks mandated to hold reserve assets. QE is like an end round way for the American people to buy bonds with pitiful returns while banks get the benefits from it.

It's mostly large financial institutions and foreign funds buying those bonds as collateral to trade with other groups. They're actually banking on the value of the bond increasing (vs future lower rate bonds) over the pitiful return on the coupon. The other perk is using the same bond as collateral multiple times. Not sure how this works when us rates hits near zero. Eurozone gets away with neg rates for now but they're not a reserve currency... US would then need another reason for parties to buy bonds that ostensibly lose value over time.

Btw, btc is showing more extreme signs of collateral overleveraging and rehypothecated fire sales when the value plummets. Saw an interview with FTX founder where he mentioned a meltdown event march last year that couldve left btc in the hundreds if it went on for hours. Not sure if circuit breakers would be a thing for a decentralized system or if it would be a "pure" feature...

 

Yeah, derivatives contracts are a huge red flag in Bitcoin. On the plus side, institutional investment probably puts a floor under Bitcoin as people like Elon Musk can come buy a billion in BTC if it crashes and stabilize it without thinking twice. But the level of leverage seems crazy, especially with all these new de-fi projects offering incentives to stake and do yield farming. It's not systemic risk in the sense that people can't leverage to the point beyond margin calls, but I wish I knew how to be a loan liquidator for these de-fi systems because there's going to be a ton of money to be made and a huge wealth transfer in loan liquidations if BTC or ETH have one of those -15% days again.

 

Here comes Helium with 5g! Don't be surprised if this cracks the top-10 by EOY 2021



(still working on bulk purchase for anyone who's contacted me. the supplier is a pita to pin down)

 

Cardano bouncing back nicely. Hope to this run pickup even more after the Africa event.

 

eh im still holding my ada. has a lot going for it.