Cryptocurrencies

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Governor of the Bank of Canada has equated it to gambling and the Tech boom.

TORONTO – Bank of Canada governor Stephen Poloz is sounding the alarm on Bitcoin, calling the purchase of the cryptocurrency “closer to gambling than investing.”

In a speech at the Canadian Club Toronto on Thursday, the governor said Bitcoin is not a reliable store of value and does not constitute “money.”

He added that buying the cryptocurrency “means buying risk” and urged those flocking to it to “read the fine print.”

“It is a situation which has the ingredients of something that could be a significant disturbance,” Poloz said to reporters after his speech when asked about Bitcoin’s wider ramifications. “I’m hopeful that the system will treat it cautiously from here.”

Poloz’s comments come one day after the chair of the U.S. Federal Reserve Board Janet Yellen called Bitcoin a “highly speculative asset” that “doesn’t constitute legal tender.”

But on Sunday, Cboe Global Markets launched Bitcoin futures and CME Group Inc. says it plans to follow suit on Dec. 17, giving investors more ways to tap the cryptocurrency.

The price of Bitcoin has soared this year, briefly touching US$19,000 earlier this month before slipping to roughly US$16,700 on Thursday late afternoon. At the beginning of the year, one bitcoin was worth roughly US$996.

Poloz said Thursday the Bitcoin price chart “looks like the left-hand side of an Eiffel tower. You don’t see that very often.”

He likened it to the tech boom and bust, roughly two decades ago.

“The good news is it did not have widespread effects,” Poloz said. “It was fairly restricted to stocks in that sector, and if you got in late you lost some money, but you knew it was high risk when you got into it.”
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Ron Swanson said:
Cost to mine can give you a basic fundamental value, supply, scarcity and demand then give you a market price. No different from Gold, really. In countries with unreliable currencies and social upheaval, crypto is seen as a vital way to preserve your personal wealth.
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Ok, that seems reasonable. Obviously, cost to mine varies with factors like competition, hardware costs, and cost of electricity, but I've seen $1,200 per BTC quoted. Let's assume it *normally* stays within the $1,000 to $2,000 range, which seems reasonable also because that's a better target for a useful transactional price of bitcoin.

So then I have a few questions, given that BTC cost roughly $997 on January 1, 2017, and costs more or less $17,556 right now:

Has the cost of mining BTC increased 1600% since January 1?
If mining costs have not increased 1600% year to date, what has caused the spike in valuation?
Is BTC overpriced at roughly 14.5x cost to mine?
 
Our bit coin who art in the blockchain

Crypto be thy name

Thy trillion dollar market cap come thy will be done, on earth as it is in the ether

Give us this day our daily increase

Forgive us our selling, as we forgive those who sell against us

Lead us not into Alt coins and deliver us from bitcoin cash

For thine is the increase, to infinity and beyond.

Forever and ever....

HODL!!!
 
Kev The Rat said:
Our bit coin who art in the blockchain

Crypto be thy name

Thy trillion dollar market cap come thy will be done, on earth as it is in the ether

Give us this day our daily increase

Forgive us our selling, as we forgive those who sell against us

Lead us not into Alt coins and deliver us from bitcoin cash

For thine is the increase, to infinity and beyond.

Forever and ever....

HODL!!!
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Kev, i was cheering for you.

But this!!! Is making me reconsider and putting you in with @Blue83 as a loon.
 

The guy on the daily politics BBC 2 today was a bit coin expert - he had written a book on it - yet admitted he had bit coin money stolen on linelol
It getting regulated next year and no annoyamous users as it will be taxed too much underworld activity on the web being used and money laundering!
 
Joey66 said:
The guy on the daily politics BBC 2 today was a bit coin expert - he had written a book on it - yet admitted he had bit coin money stolen on linelol
It getting regulated next year and no annoyamous users as it will be taxed too much underworld activity on the web being used and money laundering!
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If I bought 30BTC 3 years ago today for $345 each, and today they were worth $17,645 each, but yesterday they were stolen, then I would have lost $10,345 (-100%) on my initial investment.
 
SerenityNigh said:
If I bought 30BTC 3 years ago today for $345 each, and today they were worth $17,645 each, but yesterday they were stolen, then I would have lost $10,345 (-100%) on my initial investment.
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So you are Still down the pan - what makes you think if you get hacked they would just take your profit?
They would clear you out !
 

Joey66 said:
So you are Still down the pan - what makes you think if you get hacked they would just take your profit?
They would clear you out !
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That's what he's saying mate
If he loses 100% then it's all gone, you can't lose more than 100%, tis mathematically impossible*

*Actually, this isn't true if you're leveraged, it's possible to lose more than 100%, but if you're leveraged on an investment without having a limit set, then you're a fool and deserve to be gobbled up by the city and spat out as regurgitated pulp

Kev The Rat said:
6 words - governor of the bank of Canada.

File under ignore.
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I'm finding it hard to disagree with this.

Nobody, you, me, or the governor of the Bank of England knows where BitCoin will end up. It ( BitCoin) is a great idea, and, chances are, it's in a bubble which will burst, but no-one knows how big that bubble will become before it bursts.

It ain't for me, because I'm happy with what I've got and feel no need to take the undoubted risks associated with BitCoin, but if people want to take a ride on the cryptocurrency rollercoaster, then it's their cash, so good luck to them.

I still hope you come a cropper though lol lol lol



 
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Woolly Blue said:
That's what he's saying mate
If he loses 100% then it's all gone, you can't lose more than 100%, tis mathematically impossible*

*Actually, this isn't true if you're leveraged, it's possible to lose more than 100%, but if you're leveraged on an investment without having a limit set, then you're a fool and deserve to be gobbled up by the city and spat out as regurgitated pulp



I'm finding it hard to disagree with this.

Nobody, you, me, or the governor of the Bank of England knows where BitCoin will end up. It ( BitCoin) is a great idea, and, chances are, it's in a bubble which will burst, but no-one knows how big that bubble will become before it bursts.

It ain't for me, because I'm happy with what I've got and feel no need to take the undoubted risks associated with BitCoin, but if people want to take a ride on the cryptocurrency rollercoaster, then it's their cash, so good luck to them.

I still hope you come a cropper though lol lol lol
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Hope being the operative word because jealousy is exactly what is fuelling most people's, including your's, negativity around this matter.

But here's a reason why the establishment continues to preach "only invest what you are prepared to lose" or "only invest 1% or less of your savings." And it has nothing to do at all with protecting you from your own stupid decision making.

It's because they know Bitcoin is literally going to go to the moon, and they don't want entire nations of people retiring early. No working = no income = no tax collecting. They desperately need to collect income taxes from everyone until your 65. Without that the whole ponzi system would collapse.
 
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Woolly Blue said:
That's what he's saying mate
If he loses 100% then it's all gone, you can't lose more than 100%, tis mathematically impossible*

*Actually, this isn't true if you're leveraged, it's possible to lose more than 100%, but if you're leveraged on an investment without having a limit set, then you're a fool and deserve to be gobbled up by the city and spat out as regurgitated pulp



I'm finding it hard to disagree with this.

Nobody, you, me, or the governor of the Bank of England knows where BitCoin will end up. It ( BitCoin) is a great idea, and, chances are, it's in a bubble which will burst, but no-one knows how big that bubble will become before it bursts.

It ain't for me, because I'm happy with what I've got and feel no need to take the undoubted risks associated with BitCoin, but if people want to take a ride on the cryptocurrency rollercoaster, then it's their cash, so good luck to them.

I still hope you come a cropper though lol lol lol
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Sometimes I think you're dead sexy, but that's usually when I'm tired or been drinking or both.
 

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