Author Topic: The Fatal Mistake Crypto Investors are Making Now  (Read 363 times)

ilconsiglliere

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The Fatal Mistake Crypto Investors are Making Now
« on: January 09, 2018, 06:14:50 am »
http://thereformedbroker.com/2018/01/07/the-fatal-mistake-crypto-investors-are-making-now/

Its dot com v2.0 all over again. As I said before this is a total bubble. See below for some quotes.

" It quite literally takes less than 24hrs to do so for someone with mediocre tech skills. The only difficult part is convincing suckers, err sorry, I mean lovely people, that the coin you created is worth something. This simple fact has led thousands of scam artists throughout the world to create their own coins and sell them to unsuspecting retirees and “I wanna get rich quick” targets."

"While creating a cancer pill, even with step-by-step instructions, would require some materials, equipment and incur some costs, the production of a random generic e-coin costs pretty damn close to $0. All you need is a website and some hype."

The Gorn

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New ICO for your consideration
« Reply #1 on: January 09, 2018, 06:44:40 am »
An old Web 1.0 friend is back.

 Welcome to Goatse. Meme creation in the blockchain.

Goatse is going to change the world... again.


https://goatse.cx/

From http://www.crazyontap.com/topic.php?TopicId=331900&Posts=17

One comment:

Quote
It feels very unsafe though not knowing if you are going to reliably get a solid anus photo or be roped into accepting some futuristic cyber currency.
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unix

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #2 on: January 09, 2018, 07:37:49 am »
Good point.
Brawndo. It's got what plants crave.

ilconsiglliere

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #3 on: January 09, 2018, 08:37:42 am »
I remember the goatse from teh f*ckedcompany.com days. I dont dare click on it at work.

The Gorn

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #4 on: January 09, 2018, 08:44:53 am »
The link above is SFW. Except for the name, obviously, Honest.

Well, check it out at home.

The site even includes a white paper:

https://goatse.cx/goatse_white_paper.pdf

Quote
Goatse: A Blockchain-Based Incentivized Meme Creation Platform
Author: Goatse Nakamoto
Email: GoatseNakamoto@goatse.cx
www.goatse.cx

Abstract: Goatse is a blockchain-based incentivized voting system
that supports the generation of dank memes. It implements
cryptocurrency-based incentivisation for meme originators, with a
primary goal of allowing the internet’s talented meme artists to
achieve recognition and reward for their memetic work.
Prioritisation of fresh memes is achieved through community based
algorithms, which reward users for identifying hot OC (Original
Content) and the dankest memes. Goatse integrates with existing
normie social media channels to stretch the platform’s memetic
footprint and amplify the rewards for content creation. In simple
terms, Goatse aims to originate then propagate the freshest OC and
dankest memes through providing a fertile blockchain enabled
distributed meme ecosystem.
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ilconsiglliere

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #5 on: January 09, 2018, 03:45:16 pm »
Somebody is having the time of their life with the goatse crytocoin.

I say its time for GORN COIN! Lets do it!

The Gorn

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #6 on: January 09, 2018, 05:51:30 pm »
Mount Gorn is ready when the world is ready for us.  ;D
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ArnoldW2

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #7 on: January 09, 2018, 10:34:40 pm »
ilconsiglliere posted this link:
Quote
http://thereformedbroker.com/2018/01/07/the-fatal-mistake-crypto-investors-are-making-now/

I agree with the author of that article, except for this:
Quote
The thing that makes crypto-currencies such a speculative craze right now, their stratospheric increases in value, is also the reason the current crop will likely fail in their intended use as currencies.

The real problem is that there are not enough people using BitCoin -- yet.

As I write this post, the "market cap" of BitCoin is roughly $250 Billion.

According to the Federal Reserve, in November 2017, the M1 money supply was $3.6 Trillion and M2 money supply was $13.8 Trillion.  Here's the link if you're interested.

    https://www.federalreserve.gov/releases/h6/current/default.htm

If (yes, I know this is a big if) enough people start using BitCoin to drive its "market cap" to $2.5 Trillion (a 10 X increase), the price volatility will settle down because it will take vastly more dollars to drive its price up and down, and that would make BitCoin usable as money.  There will still be speculation, but it will be similar to speculating in other fiat currencies.  The conversion rates between dollars and other currencies (the Euro, the British Pound, etc.) do fluctuate, but usually much more slowly than the crazy ups and downs that you see with BitCoin.  If a fiat currency changes value suddenly, its prices crashes downward and never recovers, because the root cause was a government printing too much of it.  And smart currency traders can usually see such crashes coming.

Also, I noticed that the author missed the obstacle of governments refusing to adopt BitCoin, or even opposing it.

Now that we've got some numbers, let's do a little math.

The total number of BitCoins is 21 Million (although not all of them have been "mined" yet).

   Divide assumed future market cap of $2,500,000,000,000  by 21,000,000 BitCoins yields $119,047.62 per BitCoin.

   John McAfee thinks that BitCoin could go to $1,000,000 each.  That would result in a BitCoin "market cap" of $21 Trillion,
   which would surpass the Federal Reserve's M2 of 13.8 Trillion.  That seems debatable to me, at best.

unix

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #8 on: January 11, 2018, 05:41:36 pm »

That maybe so, but I need assurance that it won't suddenly crash to zero.

I could have that assurance with say precious metals, they fluctuate but won't head to the bit bucket in a few nanoseconds.

What is the point of "mining"?  Why is that necessary, I don't get it?
Brawndo. It's got what plants crave.

jbucks

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #9 on: January 12, 2018, 07:01:20 am »
My very uninformed opinion on mining is this (at the BlockChain) level....

As I understand it, "mining" is the term used for all the (worldwide) compute power to do the processing of the blockchain processes.  Since there isn't a centralized processor for this, it appears the overall / distributed concept is that everyone that's set up a "miner" earns minuscule amounts of "things" (bitcoins, ethereium, etc) in exchange for this compute processing.

I think BlockChain shows some long term possibilities, but don't know if BitCoin, Etherium, etc. is "it".

Jim

ArnoldW2

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #10 on: January 12, 2018, 06:41:00 pm »
Unix wrote:
Quote
... I need assurance that [BitCoin] won't suddenly crash to zero.

The inventor of BitCoin made sure that there are only 21 million Bitcoins available to be mined.  There will be no more Bitcoins after they've all been mined.  This makes the chance of BitCoin falling to a price of zero much less likely, but it COULD still happen.  If it does, I think it will be because other crypto-currencies displaced it.

I hasten to point out that there is no guarantee that the dollar or the Euro or any other government fiat currency won't crash to zero either.

Unix wrote:
Quote
What is the point of "mining"?  Why is that necessary, I don't get it?

I had to read Satoshi Nakamoto's original paper to find out the answer.
His mining process prevents counterfeiting of BitCoins.
No matter how many computers participate, that process is the source of all BitCoins.
Verifying that each BitCoin came from that process is the first step in its blockchain.

Read sections 6 and 12 of Nakamoto's paper for more details.  Here's a link to the pdf:
     https://bitcoin.org/bitcoin.pdf

unix

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #11 on: January 13, 2018, 11:23:55 am »
My very uninformed opinion on mining is this (at the BlockChain) level....

As I understand it, "mining" is the term used for all the (worldwide) compute power to do the processing of the blockchain processes.  Since there isn't a centralized processor for this, it appears the overall / distributed concept is that everyone that's set up a "miner" earns minuscule amounts of "things" (bitcoins, ethereium, etc) in exchange for this compute processing.

I think BlockChain shows some long term possibilities, but don't know if BitCoin, Etherium, etc. is "it".

Jim

I see. So you are not "mining" anything. You are offering a service, for which you get paid, correct?

Brawndo. It's got what plants crave.

The Gorn

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #12 on: January 13, 2018, 11:31:14 am »
My very uninformed opinion on mining is this (at the BlockChain) level....

As I understand it, "mining" is the term used for all the (worldwide) compute power to do the processing of the blockchain processes.  Since there isn't a centralized processor for this, it appears the overall / distributed concept is that everyone that's set up a "miner" earns minuscule amounts of "things" (bitcoins, ethereium, etc) in exchange for this compute processing.

I think BlockChain shows some long term possibilities, but don't know if BitCoin, Etherium, etc. is "it".

Jim

I see. So you are not "mining" anything. You are offering a service, for which you get paid, correct?

Seems to me that one real area of opportunity spinning off from crypto currency is selling pick axes and shovels to the miners.

Er, selling plug and play crypto engines to those doing their own mining. The dedicated computer gear that performs the calculations.
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unix

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #13 on: January 13, 2018, 12:57:45 pm »
And the dedicated computer gear will be obsolete in 18-24 months.
Brawndo. It's got what plants crave.

The Gorn

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Re: The Fatal Mistake Crypto Investors are Making Now
« Reply #14 on: January 13, 2018, 12:59:33 pm »
And the dedicated computer gear will be obsolete in 18-24 months.

Imagine a Beowulf cluster of those.
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