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mattmcginley7

Bitcoin and Ethereum

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Grayscale Says Metaverse Is a Trillion Dollar Market Opportunity

Revenue from virtual gaming worlds could grow to $400 billion in 2025.

https://www.coindesk.com/business/2021/11/25/grayscale-says-metaverse-is-a-trillion-dollar-market-opportunity/?s=09

 

Barry Silbert is the Founder of Grayscale or GBTC and he routinely talks about MANA and SAND. Follow the money 

 

 

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On 11/25/2021 at 9:47 AM, DaEagles4Life said:

Grayscale Says Metaverse Is a Trillion Dollar Market Opportunity

Revenue from virtual gaming worlds could grow to $400 billion in 2025.

https://www.coindesk.com/business/2021/11/25/grayscale-says-metaverse-is-a-trillion-dollar-market-opportunity/?s=09

 

Barry Silbert is the Founder of Grayscale or GBTC and he routinely talks about MANA and SAND. Follow the money 

 

 

Both Ethereum based games. Interesting 

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One of the most interesting properties about BTC and crypto in general is its lack of correlation with traditional markets. I think we might be seeing that property starting to break down a bit. Crypto got a ~10% hit on new Covid strain news alongside equities while gold went up. Something to keep an eye on.

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1 hour ago, TEW said:

One of the most interesting properties about BTC and crypto in general is its lack of correlation with traditional markets. I think we might be seeing that property starting to break down a bit. Crypto got a ~10% hit on new Covid strain news alongside equities while gold went up. Something to keep an eye on.

I think that's bound to happen with any currency as it becomes more widely adopted.

But remember there are layers of technological "infrastructure" underlying blockchain that are inextricably tied to market forces themselves, so as crypto grows that just becomes more and more the case. Just a simple example would be if raw materials for an ASIC mining chip manufacturer have a problem, coin values could be affected.

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1 minute ago, Toty said:

I think that's bound to happen with any currency as it becomes more widely adopted.

But remember there are layers of technological "infrastructure" underlying blockchain that are inextricably tied to market forces themselves, so as crypto grows that just becomes more and more the case. Just a simple example would be if raw materials for an ASIC mining chip manufacturer have a problem, coin values could be affected.

Right, but if one of its most appealing properties (from a portfolio construction perspective) is being diminished, that’s definitely something to keep an eye on. 

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This same correlation was seen in Mar '20 and Oct '18. Probably more occurrences dating further back as well. Not all instances/periods of conventional market instability can spook crypto investors, but a subset of the instances have and will continue to do so.

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On 11/26/2021 at 5:53 PM, we_gotta_believe said:

This same correlation was seen in Mar '20 and Oct '18. Probably more occurrences dating further back as well. Not all instances/periods of conventional market instability can spook crypto investors, but a subset of the instances have and will continue to do so.

The big stock market days Bitcoin seems to follow. But that's about it 

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2 hours ago, DaEagles4Life said:

Good read 

 

Not pricing in risk does not make a market more efficient. It makes it frothy. Liquidating leveraged longs in the face of increased risk is a good thing.

But it seems humans will never learn the lesson of leveraged risk, only the delight of leveraged reward.

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Maybe Saylor's best explanation ever. Carlson is pretty much stunned finding out that Bitcoin is probably the most important thing happening in the world 

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40 minutes ago, DaEagles4Life said:

Anyone up for the fun?! 

 

 

Ahem...

On 11/30/2021 at 9:23 PM, TEW said:

Not pricing in risk does not make a market more efficient. It makes it frothy. Liquidating leveraged longs in the face of increased risk is a good thing.

But it seems humans will never learn the lesson of leveraged risk, only the delight of leveraged reward.

 

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This might be a stupid question but what exactly does that mean? Is it that people borrowed money to buy bitcoin/crypto and now had to sell to repay? 

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3 minutes ago, Aspiritfall said:

This might be a stupid question but what exactly does that mean? Is it that people borrowed money to buy bitcoin/crypto and now had to sell to repay? 

Essentially, ya

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12 minutes ago, we_gotta_believe said:

Essentially, ya

So I would think that those who borrowed are panic selling to prevent any further losses basically the opposite of a short squeeze 

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Just now, Aspiritfall said:

So I would think that those who borrowed are panic selling to prevent any further losses basically the opposite of a short squeeze 

I haven't been following what's going on or the instruments available in crypto but they might not have a choice in the matter if they don't have enough to keep the trade open.

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7 minutes ago, we_gotta_believe said:

I haven't been following what's going on or the instruments available in crypto but they might not have a choice in the matter if they don't have enough to keep the trade open.

I rarely ever buy on margin because I don't like to but I was awake when everything dropped 25 percent last night and said to myself OOOOOOH girl treat yoself and picked up a little bit of etherium at 3800... 

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4 minutes ago, Aspiritfall said:

I rarely ever buy on margin because I don't like to but I was awake when everything dropped 25 percent last night and said to myself OOOOOOH girl treat yoself and picked up a little bit of etherium at 3800... 

I've always viewed on margin like betting on parlays in sports handicapping. Sounds good in theory because of the potential gains, but mostly a trap for overconfident novices who don't understand how the cards can be stacked against them.

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Just now, we_gotta_believe said:

Buying on margin is like betting on parlays in sports handicapping. Sounds good in theory because of the potential gains, but mostly a trap for overconfident novices who don't understand how the cards can be stacked against them.

Yeah I don't like to but I only bought a little bit... Enough that I can pay it back fast or dump some lousy performing stocks... It's not enough to put my account in danger I won't do that 

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1 hour ago, Aspiritfall said:

This might be a stupid question but what exactly does that mean? Is it that people borrowed money to buy bitcoin/crypto and now had to sell to repay? 

Not stupid at all. Essentially yes, but I'll give you a more detailed explanation.

A lot of people trade assets -- bitcoin, stock, corn futures, options, whatever. The idea here is generally shorter term profit. You're looking for small moves over small time frames rather than holding for years on end. Because you're operating in short time frames, you will use leverage to amplify your profits. If you make a long BTC trade using 10x leverage, and the price goes up 1%, then you've made 10% on your trade.

The problem comes when you start losing money. To use the same example, if BTC went down 1%, then you've lost 10%. At some point as the trade keeps going against you, you either have to close the trade and eat your losses or eventually you will get what is called a "margin call" -- basically when the exchange forces you to either add more money to the account or close the position since they're the ones who lent you the money to lever up your trade. So what happens is you might get a quick drop in price, this forces people who are long to sell, that pushes the price down further, and that forces other people to sell, and that forces the price down further. And this can keep happening very quickly until almost all of the levered trades are closed. That's why you see these huge crashes in BTC. So many people are long with insane amounts of leverage that when the first domino falls it turns into a death spiral.

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5 minutes ago, TEW said:

Not stupid at all. Essentially yes, but I'll give you a more detailed explanation.

A lot of people trade assets -- bitcoin, stock, corn futures, options, whatever. The idea here is generally shorter term profit. You're looking for small moves over small time frames rather than holding for years on end. Because you're operating in short time frames, you will use leverage to amplify your profits. If you make a long BTC trade using 10x leverage, and the price goes up 1%, then you've made 10% on your trade.

The problem comes when you start losing money. To use the same example, if BTC went down 1%, then you've lost 10%. At some point as the trade keeps going against you, you either have to close the trade and eat your losses or eventually you will get what is called a "margin call" -- basically when the exchange forces you to either add more money to the account or close the position since they're the ones who lent you the money to lever up your trade. So what happens is you might get a quick drop in price, this forces people who are long to sell, that pushes the price down further, and that forces other people to sell, and that forces the price down further. And this can keep happening very quickly until almost all of the levered trades are closed. That's why you see these huge crashes in BTC. So many people are long with leverage that when the first domino falls it turns into a death spiral.

Well that makes sense thanks... I mean it sucks to see the price come down so hard but at the same time it creates buying opportunities 

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11 minutes ago, Aspiritfall said:

Well that makes sense thanks... I mean it sucks to see the price come down so hard but at the same time it creates buying opportunities 

Just be careful. Crypto crashes are insane. That wasn't even a 40% drop peak to trough. They can be 80% or more in crypto.

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8 minutes ago, TEW said:

Just be careful. Crypto crashes are insane. That wasn't even a 40% drop peak to trough. They can be 80% or more in crypto.

Yeah I held through last time I'm not going crazy and only putting in what I can afford to lose... 

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For me margin calls should be fast. Get in and get out when you see the buying opportunity present itself like it did on Friday night. 

Always up your stop loss as well. 

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