Grayscale, is this the next crypto domino to fall?

Ah, okay. So now we’re supposed to believe you only trade crypto on Coinbase for 5 minutes a month?

 

This is like 2 or 3% of my portfolio…it’s highly volatile. Casino is a good analogy. I welcome regulation and harsh punishment for the scammers like SBF. I think crypto is fun and interesting but I’m not getting to bet everything on it. Bitcoin might go $200,000, or it might go to $0. Don’t use money you can can’t afford to lose and you’ll be fine…

 

Yeah… what is the right amount of time to spend on Coinbase?

 

I make monthly purchases at times like these when it’s down, and accumulate… as soon as the purchase is made, I transfer it to my computer wallet.

in the past, in 2017 and 2020, I sell into the bull markets, maybe once or twice … transfer from my computer to coinbase, sell immediately, transfer the cash to my bank account…

Selling is slightly more risky because there is hold period on cash, but from what I understand, cash they are holding is different than crypto and they have to pay that out even if they freeze accounts.

 

Zero is the right amount of time, but nobody believes you spend more time here defending it than actual trading.

 

if the computer crashes I can recover the wallet with the “private key”… and if bitcoin goes to zero I’ll buy it all… lol…

 

Man, your last paragraph says it all. You’re not even sure if they hold your cash differently than crypto.

 

I’m not a trader… I never said I was…. I’m a buy and hold type…

 

How do you even store Bitcoin on your personal computer? It seems like that would be ripe for manipulation and fraudulent creation of tokens.

 

It's a new technology that's useful but not as a currency. Nobody uses it as one. And yes I understand blockchain before some crypto nerd jumps me.

Unfortunately it's got the trifecta that attracts suckers, it's new, it sounds cool, and it's unregulated. Because of these three things this generations best and brightest scammers have created massive ponzi schemes and scams in general.

It will probably always have value, as almost anything does, but finding a new sucker will get harder and harder. Don't expect another massive increase of gambling from the free covid money. Get out while you can, it's not an investment.

 

i said, “from what I understand”… I looked it up once… Cash held by coinbase is FDIC insured…I assume that means I’d eventually get it back should they declare bankruptcy and freeze accounts during their hold period…

 

If you want to get down in the weeds, Bitcoin is not really stored on your computer, it’s stored in the blockchain. Your computer wallet really just stores the private key that is linked to the tokens on the blockchain you own, and allows you make transactions on the blockchain with your tokens.

 

The only question on crypto is what its value will be when all the get quick rich suckers and those playing for entertainment are finally cleared out. We aren’t close to that point yet.

 

The problem is most people (including yourself) don’t just leave it sitting in cash. Most people are either invested in coin or withdraw their funds to their bank account. Without looking, I’ll guess FTX probably had FDIC coverage for USD cash. Pretty useless as most folks don’t just park USD with their crypto exchange.

 

I don’t know about that. I think there is going to be more carnage soon. I don’t believe Brian Anderson for a second. I expect Coinbase to blow up. All those guys are scammers. When that happens, it’ll drive more people away. Also, I think the government is forced to step in soon and put a halt to it. Too many people losing their shirts while these idiot billionaires are walking around behaving like bad asses.

 

Yeah, I don’t leave cash or crypto on coinbase… when you leave crypto on coinbase, or fix, or anything else, it’s not your private key linked to the coins… like I said in the first post… not your keys, not your cyrptos.

 

Crypto Brokerage Genesis Is Said to Warn of Bankruptcy Without Funding

 

Jeebus.

Sounds like the whole thing is a house of cards about to collapse.

I get that those with bitcoin or other crypto in cold storage aren’t technically going to lose their coins, but this cluster from these shady “crypto brokerages” can’t be good for the market itself or the underlying prices. That being said, who would have predicted a crazy real estate spike after the pandemic? I might have predicted the opposite based on deaths (vacant real estate) and economic malaise. But the inflationary pressures far outweighed these negatives. For all we know bitcoin prices will behave different from what seems obvious. But in the short term I don’t see how this doesn’t pile on more selling pressure.

 

Well, I don’t think you can compare a time-tested and true asset like real estate to Bitcoin. So just because people didn’t expect real estate to rise in 2020 doesn’t mean Bitcoin has that same surprise upside potential. The demand is simply not there, for the reasons you stated, plus the removal of liquidity from the markets as a whole by central banks.

So, I think you are right that the sell-off will continue. With the NY Fed testing a digital currency for the USD, the writing seems to be on the proverbial wall for crypto in the US. Regulation will result from these scams, perhaps outright ban. Once the regulation sets in, the illicit activities will cease and the value simply won’t be there.

Do not trust Coinbase. FTX was Coinbase a couple weeks ago. Nobody saw it coming, but the same setup is there with Coinbase.