20i Reseller Hosting

Is Bitcoin the Next Big Thing?

Discussion in 'Business Discussions' started by accelerator, Jun 2, 2015.

  1. ausername United Kingdom

    ausername Retired Member

    Joined:
    May 2017
    Posts:
    340
    Likes Received:
    38
    There are people who literally believe that bitcoin is going to become the next currency, that fiat will die, and therefore they think that converting bitcoin to cash is the opposite to banking.... its sad, but there will be people lose literally everything to bitcoin if it pops.
     
  2. Domain Forum

    Acorn Domains Elite Member

    Joined:
    1999
    Messages:
    Many
    Likes Received:
    Lots
    articles.co.uk
     
  3. dee

    dee Well-Known Member Acorn Supporter

    Joined:
    May 2013
    Posts:
    1,963
    Likes Received:
    238
    Ride it while it lasts . I think we're heading towards a cashless society definately, but whether it ends up being bitcoin ...who knows. My gut says something with more accountability. Governments don't like anything they cant control.

    I suspect it'll be blockchain based though.
     
  4. Edwin

    Edwin Well-Known Member Exclusive Member

    Joined:
    Apr 2005
    Posts:
    9,891
    Likes Received:
    566
    Question for the expert investors: is there some kind of option or similar that pays off handsomely if the underlying stock (or whatever) rises very sharply, but which becomes worthless if it trades in a narrow range or drops?

    I thought if something like the above were available for Bitcoin, in both price movement directions, you could take out one betting it will rise really high and the other betting it will fall a lot.

    Since the one thing Bitcoin seems to be is volatile, I imagine there’s a very good chance one bet would pay off and one become worthless, leaving you well ahead overall.
     
  5. dee

    dee Well-Known Member Acorn Supporter

    Joined:
    May 2013
    Posts:
    1,963
    Likes Received:
    238
    not that i'm even vaguely in the expert bracket, but guess you could take out a couple of binary options in both directions ? Trouble is as always, where do you set your take profits ?

    The other option maybe to just hedge until the price deviates hugely from say the 100 day moving average, take profit on the one thats in the bucks , then wait for it to retrace back towards the mean and close the one thats in loss , but for far less loss than the profit if that makes sense.
     
  6. getmein United Kingdom

    getmein Active Member Exclusive Member

    Joined:
    Sep 2008
    Posts:
    291
    Likes Received:
    13
    That's the function of a call option, but you'd need to consider timing of this move and what 'very sharply' means - because both of those will have a big impact on the price of that option. In principle a 1 week option on apple stock increasing by 30% in price is going to be very cheap because of the very low likelihood of it happening (both the magnitude of the move and the timing) whereas the likelihood of it happening in 6 months is likely higher, so premiums will be higher.

    That strategy called a straddle (you buy a put and a call at the same price) and your breakeven is a big move in either direction that will cover your premium costs for both products. I just had a look at some prices for BTC options and the spreads (buy/sell) are pretty big, which is another cost to factor in. Volatility of these products is so high that prices for options products will likely be high - which is going to take a big chunk out of your potential profits. Also have to consider if you've got any counterparty risk one thing if you're buying these options from Goldman Sachs another if it's tradebitcoin.rich and they disappear...


    The move might just not be big enough or happen fast enough for you to profit over and above all your costs. Lots of other risks in any strategy with BTC - one of the primary ones being execution can you get out when you want at the price you expected - events of the last few days suggest that's not always the case.
     
  7. Edwin

    Edwin Well-Known Member Exclusive Member

    Joined:
    Apr 2005
    Posts:
    9,891
    Likes Received:
    566
    Thanks to both of you. I feel slightly less ignorant after those detailed explanations! :)
     
  8. dee

    dee Well-Known Member Acorn Supporter

    Joined:
    May 2013
    Posts:
    1,963
    Likes Received:
    238
    @getmein actually sounds like he knows what he's talking about. SO what he said....
     
  9. ClassicalGuitar United Kingdom

    ClassicalGuitar Active Member

    Joined:
    Jul 2010
    Posts:
    569
    Likes Received:
    9
    The exchange that currently accepts paypal is Virwox

    They allow you to deposit money to your account via Paypal, convert funds to SLL, then with SLL you can exchange for bitcoin and withdraw to your wallet.

    Their fees are more than most exchanges (this can be reduced with limit orders), however someone looking to dip their toes into Crypto immediately with a small purchase may find the process quicker to pick up small amounts of bitcoin, to trade or swap for altcoins etc
     
  10. dog

    dog Active Member

    Joined:
    Feb 2017
    Posts:
    354
    Likes Received:
    25
  11. websaway United Kingdom

    websaway Well-Known Member

    Joined:
    Mar 2007
    Posts:
    4,980
    Likes Received:
    116
    Strange how the B*tcoin price doubled over the last two weeks and yet has not fallen on news of the UK's intention to regulate it's users. One must assume that these moves were suspected by sophisticated investors two weeks ago. Not sure what to deduce from that scenario.
     
  12. huyatc Vietnam

    huyatc New Member

    Joined:
    Dec 2017
    Posts:
    1
    Likes Received:
    0
    It converts my bitcoin on the fly to buy whatever i want in whatever fiat currency it is in. Appreciating 'real money'.
     
  13. ausername United Kingdom

    ausername Retired Member

    Joined:
    May 2017
    Posts:
    340
    Likes Received:
    38
    So the bitcoin transaction fee is currently about a fiver.

    Can somebody explain to a layman how they can ever get this down to something like 10 pence?

    Because nobody is going to want to pay for their Starbucks coffee in bitcoin if they don't?

    That seems to be one major flaw at the moment.... how and when will this become cheaper?

    If Bitcoin is going to rely on transfer into another cryptocurrency in order to make micropayments, then why wouldn't that other cryptocurrency just be more suitable from the off and become the one which is adopted?
     
  14. ian

    ian Well-Known Member

    Joined:
    Jan 2008
    Posts:
    3,844
    Likes Received:
    268
    It is a major floor, but Bitcoin will be able to develop this over time and I'm sure produce something similar; or buy out another existing crypto such as Litecoin that is miles ahead in terms of technology.
     
  15. martin-s United Kingdom

    martin-s Well-Known Member

    Joined:
    Jul 2012
    Posts:
    3,356
    Likes Received:
    232
    Adoption > technology

    Proven time and time again
     
  16. TallBloke

    TallBloke Active Member

    Joined:
    Mar 2008
    Posts:
    431
    Likes Received:
    33
    • Funny Funny x 1
  17. dee

    dee Well-Known Member Acorn Supporter

    Joined:
    May 2013
    Posts:
    1,963
    Likes Received:
    238
    • Like Like x 1
  18. TallBloke

    TallBloke Active Member

    Joined:
    Mar 2008
    Posts:
    431
    Likes Received:
    33
    I thought about it :)
     
    • Like Like x 1
  19. dee

    dee Well-Known Member Acorn Supporter

    Joined:
    May 2013
    Posts:
    1,963
    Likes Received:
    238
    I'll sell you it..... much cheapness
     
    • Funny Funny x 1
  20. ausername United Kingdom

    ausername Retired Member

    Joined:
    May 2017
    Posts:
    340
    Likes Received:
    38
    I hand regged CryptoWallpapers.com the other day, going to whack up a cheap php script and add the odd wallpaper. 'Bitcoin Wallpapers' apparently gets 1k to 10k searches per month, 100 to 1k for numerous other coins. Just an easy little project to give the odd hour to when I need a little break from more serious business.
     
  21. markb United Kingdom

    markb Active Member

    Joined:
    Jul 2009
    Posts:
    816
    Likes Received:
    17
    Anyone think its a good time to invest in Litecoin or Ripple?