Any Crypto fans here?

[Milhouse86]

Hey everyone,
Just wanted to see how many people here are investing in Bitcoin and the wider crypto universe. I put my engine rebuild and dedicated track car plans on hold this year when Corona hit.

Instead of putting the money I had set aside for the car into the motor I took it, and a little more, and tossed it into Bitcoin and Ethereum. I could not be happier with my decision.

For the record I have been playing with crypto investments for a few years and I have been flipping homes and building businesses for almost 15 years. So not a noob. Just finally went big (in crypto) because I believe we are entering another super cycle. Crypto is a really good way to lose all your money if you are not experienced or lack discipline/careful planning so be careful.

So who else is loving the crypto space right now?? Where else are you getting 8%-12% APY on you USD much less seeing better returns then the S&P??

What are your favorite altcoins? I am digging Trust Swap, Chainlink, and Kava right now. I think I have my list down to about 16 coins. They are all projects I plan to be in for at least a couple months to a year. NOT DAY TRADING lol. It is truly fascinating to watch the infrastructure of a new financial system being built. It's incredible to watch history being made while standing in the middle of it. It's an exciting time!!

And I can't believe how quickly things started changing this year. I feel like every week we have some type of announcement in the space that before 2020, would have been the highlight announcement of the year!!! But right now we could list off a dozen such milestones.

So my plan is to start taking profits on some smaller altcoins plays this winter and buying parts with a goal to be running late spring next year.

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[gkubed]

I used to read up a lot about different altcoins ("up and comings") and put small investments in a few but I'm pretty sure none of them went anywhere. Nowadays I just have a little bit in Bitcoin and Ethereum...and a lot in Dogecoin.


1 Doge = 1 Doge


It's been pretty stagnant for a while. I had a theory that Dogecoin is kinda like an overall crypto index, but when BTC shot up the last time it didn't really take Dogecoin with it. Oh well. I'm getting some minor growth in crypto this year but nothing too wild, unlike $AMD...

[Milhouse86]

Originally Posted by gkubed

I used to read up a lot about different altcoins ("up and comings") and put small investments in a few but I'm pretty sure none of them went anywhere. Nowadays I just have a little bit in Bitcoin and Ethereum...and a lot in Dogecoin.


1 Doge = 1 Doge


It's been pretty stagnant for a while. I had a theory that Dogecoin is kinda like an overall crypto index, but when BTC shot up the last time it didn't really take Dogecoin with it. Oh well. I'm getting some minor growth in crypto this year but nothing too wild, unlike $AMD...

Haha f***ing Dode coin. King of the shit coins!!

Yah you should start paying attention again. Crypto has been kicking off really hard for about 6 months. The plays in Didi are unreal!! Yeah I recently sold all my AMD. I bought in a couple years ago at $12 so it was time to ring the register. But over the next 12 months I don't see a single equity or asset class that is going to touch Bitcoin. I have some close friends and family getting in Bitcoin and ETH right now. People just need to have an exit plan. Cuz it will drop 80% again. They are very predictable cycles.

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[p1l0t]

I was a big believer when bitcoin was the only game in town. Now that there are increasing numbers of crypto-currencies I fail to see how is anything special. I pulled all my money out. Granted I missed out on some recent growth but I think it's too risky since there is so much competition. Plus there is the risk of quantum computing cracking it at some point too now..

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[Milhouse86]

Originally Posted by p1l0t

I was a big believer when bitcoin was the only game in town. Now that there are increasing numbers of crypto-currencies I fail to see how is anything special. I pulled all my money out. Granted I missed out on some recent growth but I think it's too risky since there is so much competition. Plus there is the risk of quantum computing cracking it at some point too now..

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You may want to take another look. Nothing special??? Are you getting 12% interest on your cash anywhere else??

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[p1l0t]

Originally Posted by Milhouse86

You may want to take another look. Nothing special??? Are you getting 12% interest on your cash anywhere else??

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Depends where you measure from... It's negative since 2018 and keeps crashing when it gets halfway back... which is about where it is now.

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[Milhouse86]

Originally Posted by p1l0t

Depends where you measure from... It's negative since 2018 and keeps crashing when it gets halfway back... which is about where it is now.

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Do you know what interest is? Not trying to be a **** I promise. It's just your reply is talking about price action. That is different from interest. And I also clearly said interest on USD (Dollars). I also earn 6% interest on my Bitcoin holdings. And Chainlink which is an offline data oracle for processing off-chain data? Yah up 1500% this year. So not the same as last year. And no the % is not a typo.

There is a new industry in crypto that has blown up the past year. It's called Decentralized Finance or Defi. In February of 2020 you had about $500 million locked up in Defi earning interest or taking out loans backed by crypto.

It went from $500 million dollars of value in the system to $2 billion locked up in April. This week it crossed $6 billion. That's is huge development. All decentralized banking services.
Check out Crypto .com they are a good place to start learning with Defi.

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[p1l0t]

Originally Posted by Milhouse86

Do you know what interest is? Not trying to be a **** I promise. It's just your reply is talking about price action. That is different from interest. And I also clearly said interest on USD (Dollars). I also earn 6% interest on my Bitcoin holdings. And Chainlink which is an offline data oracle for processing off-chain data? Yah up 1500% this year. So not the same as last year. And no the % is not a typo.

There is a new industry in crypto that has blown up the past year. It's called Decentralized Finance or Defi. In February of 2020 you had about $500 million locked up in Defi earning interest or taking out loans backed by crypto.

It went from $500 million dollars of value in the system to $2 billion locked up in April. This week it crossed $6 billion. That's is huge development. All decentralized banking services.
Check out Crypto .com they are a good place to start learning with Defi.

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Sounds like spam to me

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[Dadhawk]

Originally Posted by Milhouse86

Do you know what interest is?

What you describe is not interest, its gain in value, similar to the stock market.

Interest is, when I invest $X for X amount of time, you will give me X% for the use of my money.

Gain is I'm going to buy Y for $X in hopes it is worth more in the future, but it may be less, or it may be zero.

The fluctuation is measured in percentages up/down, but it is not Interest, it is positive or negative gain.

What am I missing?

[Milhouse86]

Originally Posted by Dadhawk

What you describe is not interest, its gain in value, similar to the stock market.



Interest is, when I invest $X for X amount of time, you will give me X% for the use of my money.



Gain is I'm going to buy Y for $X in hopes it is worth more in the future, but it may be less, or it may be zero.



The fluctuation is measured in percentages up/down, but it is not Interest, it is positive or negative gain.



What am I missing?

Check out Blockfi

USA based company that has FDIC insurance on USD holdings and pays INTEREST on crypto. They also have insurance on crypto holdings and good security protocols. I understand the difference between interest and valuation changes. Like I said above, I am an experienced investor in multiple asset classes.

There are a couple platforms but I trust Blockfi the most.

And to the spam comment above I don't give a shit if anyone jumps in lol. Just conversation

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[Dadhawk]

Originally Posted by Milhouse86

Check out Blockfi

Thanks for the clarification. I believe most people consider cryptocurrency as a valuation type platform, not an interest bearing platform, hence my confusion.

[Milhouse86]

Originally Posted by Dadhawk

Thanks for the clarification. I believe most people consider cryptocurrency as a valuation type platform, not an interest bearing platform, hence my confusion.

No worries, it's all new!!

I use them to hold US dollars I want to keep liquid and accessable. You buy USD Coin with USD. USD Coin is a crypto like Bitcoin except it is always $1. So it keeps it's value and is backed by an $8 billion company that works closely with the IRS. So trustworthy...for crypto lol

But I earn 6% a year on my Bitcoin and 8.6% a year on my USD Coin. And it's easy to send back to your bank if you need dollars.

I just spend Bitcoin now. I have a visa card that allows me to spend BTC or other crypto. 3% (cash) crypto back on all purchasing. Paid my IL state taxes this year with it.

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[Dzmitry]

Not going to dwell on this, but in my opinion, Crypto is still very volatile and unpredictable for the future. There are various sources that say it will skyrocket and others that expect its continued decline over time or downfall. I may not fully understand this, so correct me if i'm wrong, but the interest you gain is on the cryptocurrency itself. In other words, to bring in an example, you purchase 1 bitcoin and place it into one of those accounts that compounds interest. Say it was worth 10K. But the value of the bitcoin is still where the danger lies. Sure, at 8-10% interest over a period of a few years, you may be sitting at around 1.5 bitcoin. But if after those years, Bitcoin is now worth 5K, you just went down 2.5K, no?

Assuming my example is correct, the risk holds true in cryptocurrency. Your assumption is that you have high expectations in its success, and therefore expect to make great gains from this. But this may not be the case.

EDIT: I was typing this before your latest post. I can see that if the value of the coin matches the dollar, the case is different then.

[Tcoat]

No such thing as a free lunch so even if the "coin" of choice is earning interest there must still be something that could go wrong and you lose it all.