Bitcoins/Litecoins/Virtual Currencies

Ravishing

Ravishing

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Sanrith Descartes said:
BTC has a floor price depending on the country. Its driven mainly by average electricity costs. This is why farming is more prevalent and profitable in countries with lower electricity costs. IIRC, in the US it costs about 6k on average to mine a BTC. Its been a while and the numbers could have changed somewhat, but that represented a basic floor price last I looked.
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I think the floor is still 15k.
But I didn't think we would be seeing 30k this soon, so who knows.
I will not be surprised to see it drop 50-60% from wherever it peaks
 
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Sanrith Descartes

Sanrith Descartes

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Ravishing said:
I think the floor is still 15k.
But I didn't think we would be seeing 30k this soon, so who knows.
I will not be surprised to see it drop 50-60% from wherever it peaks
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Dice Vegas GIF by The Weeknd
 
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Aychamo BanBan

Aychamo BanBan

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Sanrith Descartes said:
BTC has a floor price depending on the country. Its driven mainly by average electricity costs. This is why farming is more prevalent and profitable in countries with lower electricity costs. IIRC, in the US it costs about 6k on average to mine a BTC. Its been a while and the numbers could have changed somewhat, but that represented a basic floor price last I looked.
Click to expand...

I know nothing about Bitcoin. If it costs $6000 to farm but is worth $32000, why not farm forever?
 
Ravishing

Ravishing

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Falxy-US said:
I know nothing about Bitcoin. If it costs $6000 to farm but is worth $32000, why not farm forever?
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I don't know where the 6k comes from but I imagine that's just electricity costs. They are spending millions building BTC farms, and to continually update them.
 
Sanrith Descartes

Sanrith Descartes

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LachiusTZ said:
For gains, sure.

But stocks have become a joke as far as revenue. Even the aristocrats are like 5%? 8 at most with gains?
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Nah, book value tells us if the company closed its doors tomorrow and cashed everything in what is it worth. Price to book is how much it is valued above that. On Black Monday there were company's trading for price to book of less than 1.0 which meant their share price was less than if they shut down and sold off the furniture and gave it back to shareholders. Macys is the prime example of this with the value of its flagship Herald Square property. That block of 34 St was worth more than the rest of the company combined.
 
LachiusTZ

LachiusTZ

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Sanrith Descartes said:
Nah, book value tells us if the company closed its doors tomorrow and cashed everything in what is it worth. Price to book is how much it is valued above that. On Black Monday there were company's trading for price to book of less than 1.0 which meant their share price was less than if they shut down and sold off the furniture and gave it back to shareholders. Macys is the prime example of this with the value of its flagship Herald Square property. That block of 34 St was worth more than the rest of the company combined.
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Gotcha, yeah.

To be honest, I don't think that matters anymore.

Unless you are R$ and scavenging businesses.

We are in this weird place where returns don't exist, only gains.

So... As soon as the gains stop... Hope you are the first one out I guess?

Edit:. This goes for crypto as well.
 
Break

Break

Silver Baronet of the Realm
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As the new years drinking binges end, will the bitcoin spike end too?
 
Flobee

Flobee

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Break said:
As the new years drinking binges end, will the bitcoin spike end too?
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Could be over. Could just be starting too. I don't think Bitcoin is expensive at $30k. Lets see how the markets feel over the next few months.

If you're not at least seeing a glimmer of a future where BTC is a relevant asset world wide then I don't think you're paying attention. Not a certainty but clearly more likely than it was just a few years ago. As the market cap rises more and more institutions can justify making purchases. If that trend holds we really could be at the beginning of a run rather than the end of one.
 
Ravishing

Ravishing

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Flobee said:
Could be over. Could just be starting too. I don't think Bitcoin is expensive at $30k. Lets see how the markets feel over the next few months.

If you're not at least seeing a glimmer of a future where BTC is a relevant asset world wide then I don't think you're paying attention. Not a certainty but clearly more likely than it was just a few years ago. As the market cap rises more and more institutions can justify making purchases. If that trend holds we really could be at the beginning of a run rather than the end of one.
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There is a lot of potential but it's not mature enough by any means to be secure in thinking it's a safe haven for investment.
Wait till the economy really faces the ripple effects from the pandemic, then we'll see how BTC fares.

I've continually said there are 2 factors to BTC price:
1.) Mining costs - the Halving 6 months ago has doubled the cost of mining.
2.) US Market trends - The markets are all ATH. BTC follows the markets. DOW is down about 2%.. BTC is down 5%. When March closures hit, BTC went to $3500.

Putting money into BTC or the markets sounds like the worst idea right now and if you think BTC operates in a vacuum, you're naive.
 
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Flobee

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Ravishing said:
Putting money into BTC or the markets sounds like the worst idea right now and if you think BTC operates in a vacuum, you're naive.
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You're totally right.

However increase your timescale beyond the next 1-3 years and in my opinion putting money into the market right now is fine. Don't invest more than you're willing to lose and don't expect it to be liquid at its current value at any given short-med timeframe. It's not that BTC operates in a vacuum, its just the fastest horse in the race.
 
Ravishing

Ravishing

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Flobee said:
You're totally right.

However increase your timescale beyond the next 1-3 years and in my opinion putting money into the market right now is fine. Don't invest more than you're willing to lose and don't expect it to be liquid at its current value at any given short-med timeframe. It's not that BTC operates in a vacuum, its just the fastest horse in the race.
Click to expand...

When BTC hit near 20K in 2017, I bought some up at 12K on its way down.
It then stayed <10K for the next 3 years.

Sure, it was a "smart" buy looking back now, but do you really want to see red for years?

Just get in before the next halving and you'll be fine.
The price will settle somewhere and then fluctuate with the markets for the next 2-3 years, until it halves again.
There's no rush. It might stabilize in the 20Ks or maybe it sees <20K again. I think we see both happen in the next few years.
 
Break

Break

Silver Baronet of the Realm
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How do you see your cost basis on Coinbase? does anyone use it? I'm pretty sure I'm way up, but I have no easy way to tell what I actually transferred in precisely enough for uncle sam.
 
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