How does everyone feel about crypto currency backed by gold ?

What does that even mean? If you mean whoever is behind the currency holds a gold reserve equal to the market capitalisation of the currency then that’s not going to happen.

ripple seems to have turned into more of a waterfall today.

It’s bouncing now – time to buy…?!

Yeah, looks like it’s starting to recover a bit (I’m watching & hoping as I bought some yesterday :p ).

The royal mint just announced a gold backed cryptocurrency , so presumably means something…

Not really a bitcoin then, sounds like just buying and selling cold using a blockchain to keep track of who owns what. In which case as there is a real asset being traded, with a known and relatively stable market value it is nothing like bitcoin etc where you just trade nothing.

so should just follow gold prices with very small changes in price over time? Unless people get caught up in the hype of crypto and drive the price of gold up?

Who wants to call the bottom?

https://cryptowat.ch/gdax/btcusd/1h

Hard to watch it crash at the mo.

seeing people call the bottom at $5000 for BTC. Alts are anyone’s guess. I dumped 25% of my ETH because I felt it was overvalued. Wondering if I should dump my XRP too and buy back in later. Let’s see.

Still long here and topping up.

>I dumped 25% of my ETH because I felt it was overvalued.

How do you decide the correct value of a crypto?!

And I’ve just got my BitStamp verification through. As part of my ‘proof of id/address’ I sent them a photo of a bill with a red ‘overdue’ to see what would happen 🙂 Nothing 🙂

It’s a brave person who buys against the trend right now. Maybe we are beyond Fear and now into<span style=”font-size: 0.8rem;”> Capitulation?</span>

The whole market has always been a bit crazy, none of the coins are worth anything in any meaningful sense.

I’m out, for now anyway 🙂

John McAfee has vowed to eat his penis if BTC isn’t 1mil by 2020, so there’s contrary opinions out there!

“How<span style=”color: #444444; font-size: 16px;”> do you decide the correct value of a crypto?!”</span>

<span style=”color: #444444; font-size: 16px;”>Number go up = good</span>

Number go down = bad

Well that’s just it, you can’t get a value other than a speculative one. Sure, there are a few uses for bitcoin and its ilk but no real acceptance out there. They are not really a currency.

@mudshark

I had a multiplier based on what I wanted out of it. It caught and ballooned up way more than that. I was greedy and let it run and sold on the way back down to lock in some profit. Nothing complex. Definitely some FOMO in there too!

There’s more complex analysis that can be done. For example there’s a crypto called Dentacoin. It’s market cap was above the value of the market it was trying to disrupt (dentistry). At that point it would be overvalued I guess.

with ETH nobody knows what the market for smart contracts could be. So much harder to assign a value. Mine was no better than a finger in the air guess if I’m honest.

Crypto is hugely speculative. In 2017 it formed a classic bubble, which is now bursting. Many people who got in late are going to take a big hit.

But in the longer run, ETH and maybe another ALT, which resolves Bitcoin’s fundamental problems, will form major asset classes and change the internet, especially in terms of contracts and E-Commerce payments.

This crash is probably the best thing that could have happened as too many people were getting involved in Crypto via gambling/speculation.

Don’t think you’re wrong there.

The tech has huge potential. At the same time,  just because it’s a bubble doesn’t mean there’s no money to be made. You need some discipline and a planned exit in addition to your entry.

I feel lucky I entered far enough in advance and was disciplined enough to take profits when they were there. I think once the SEC hearing is over, there will be an uptick in prices. The days of 100x growth on your stake may be over if they decide cryptos are securities and need to be regulated as such.

The decision I need to take now is should I take my gains and run, or should I ride it out? It’s tempting to take the money out, but I entered thinking of this as plan of a longer term investment period. To exit now would be a panic move. Maybe, there’s a medium to be struck?

In the past during downturns and bull runs I’ve been a passive observer. It’s more exciting to be more invested in it. I’m learning a ton of things!

@curiousyellow, probably best to continue with your long term strategy. The only thing that needs to be regularly revised is your investment allocation, e.g. how much is btc, how much is in eth, how much in alts. That’s where learning about the technology will pay off in investment terms, as a lot of coins are going to disappear over the next six months.

I think eth will surpass btc in market value this year.

Just because the Blockchain has a future, doesn’t mean any of the current currencies do. I suspect 99% will vanish and one or two might survive in some regulated form, but at grossly diminished values.

Blockchain tech is 10 years old now. Bitcoin has turned out to be badly designed in terms of innovation. Eth now has the bigger developer economy and some apps are gaining traction.

I think btc will hang around as digital gold. Eth will develop smart contracts and replace the need for middle man corporations.

There will be a better version of bitcoin that ultimately wins the race.

And the markets bounce back a bit! Lambos to the moon people!

Wait… is it Tesla Roadsters to Mars now?

There will be a better version of bitcoin that ultimately wins the race

Agreed, I’m just hoping it’s Ripple

I’ve been keeping my eyes on this thread for a while and have decided I’m going to have a dabble in the whole cryptocurrency thing. So I’m going to throw in a couple of hundred quid and see what happens (Well prepared to lose the lot).

I have signed up to Coinbase but haven’t purchased anything yet as from what I’ve read it’s actually next to impossible to get any money back out of it to a UK based bank account. So I’ve also been looking at blockchain.info. For those of you using this is it any easier to actually get any money out of it and back to GBP?

Thanks

You can get money back all ways.

Blockchain.info can come back to debit card no problem. You will have fees.

Cheapest method but most convoluted is:

Bank – revolut (euros) to coinbase then to gdax (coinbase’s linked pro trading platform) fees are free then. Reverse to come back.

I have been all the way and it’s worth time and effort plus revolut is so flexible and useful irrespective.

For beginners i would recommend blockchain.info – IF they accept your debit card.

Search on you tube for gdax free trading and watch the film.

Ask me any questions ive made all mistakes for everyone already. 🙂

Thanks, I’ll have a look at that gdax free trading video later on.  What are the actual fees like through Blockchain?

Off the top of my head for debit card they were 3% im sure. A bit less than coinbase.

I transferred from Coinbase to Revolut and then to my bank. Done this for both bitcoin and Ethereum. Bit of a pain to get it all set up but ok once all approved and working.

I transferred from Coinbase to Revolut and then to my bank

Did you buy with coinbase or gdax? Coinbase there is still a fee.

Bought with Coinbase as well. I bought some in November then sold half when they doubled to get my money back and now the plan is to leave them for a few years and see what happens.

Thanks lads. Gav in what way was it a pain getting the payments set up from Coinbase > Revolut > your bank?

And did you sell in Coinbase then transfer from your GBP wallet to Revolut?

It was just a pain researching it all, setting it up and then getting the accounts verified etc. Revolt > my bank was no problem. Like I said once it’s all up and running it’s fine. Also didnt help reading loads of articles about it not working or money going missing and at the time I was trying to get the money out asap but I’ve never had any issues with the few transactions i did.

Anyway I sold in Coinbase (but you have to sell in euros) then transferred to my euro account in Revolut (make sure you set up a euro and sterling account). Then transferred from euro Revolut account to sterling bank.

They make it easier to buy in Coinbase but a lot harder to get your money out!

If you get a Fidor bank account you can transfer to Kraken for a flat fee of £2.50 using a SEPA transfer. Your money shows up on Kraken as Euros.

Transfer back in from Kraken via SEPA to any bank that accepts them. Kraken charge .09 of a Euro for a transfer out in Euro. Your bank then applies whatever the exchange rate is for the money inbound.

verification on Coinbase was a pig, so I gave up after a while.

Thanks, I now feel slightly more confident about being able to get money out once I’ve put it in, even if it’s a bit of a hassle at first 🙂

For sure.

I’d also suggest having a target for what you want the coins you buy to reach. This will keep you disciplined. Know what you want from it, and take profits as you get there. Know what you want your money to do for you.

Also, if you’re going to buy and hold instead of actively day trade, then look at taking your coins off the exchange and holding them in an offline wallet. Exchanges get compromised all the time.

At the very minimum have 2FA setup.

Good luck.

You can use Vaults on Coinbase to add extra security for Buy and Hold.

The key is to remember all these Cryptos could be worth zero in a couple of months and trade accordingly, i.e. only put in what you can afford to lose and don’t bet the house on it. There is a lot of misplaced anger in the sector – the idea that there is justice in the world, and that Crypto will reform a corrupt monetary system – which gets in the way of making good decisions.

Last time I checked there is no justice in the world and never will be.

I’ll be sure to have 2FA verification activated at least. It’s just a bit of fun to be honest, I’ll throw in £200 and see what happens, If I manage to double my initial input I’ll remove what I’ve put in and then in theory it’ll have cost me nothing but my time. I’m not expecting to retire on the proceeds 🙂

Just to be clear to take advantage of no fees you have to buy btc thorough gdax.

There’s a kiosk in Moorgate (London) that buys and sells various crypto – bitcoin, ether and some others I think – guy at work sold £50 of bitcoin yesterday there – you get a receipt with a QR on it and then visit the kiosk again when it has confirmed to get the cash – waited about 16 minutes yesterday, Fees were around 10 percent.