Crypto's go exponential

Jim H
By Jim H on Fri, May 19, 2017 - 4:09pm

As of this writing, the total market cap of the top 100 crypto's, as monitored by this website;

https://coinmarketcap.com/

is $66.7B.  The chart of this action is below, and what you see is.. well.. the hockey stick that tells you something is growing in an exponential fashion, vs. linear.     

I am going to argue that this should not be surprising.  I am also going to argue that the action has only just begun, because, for one thing, as Mark Rees has pointed out, we are still in the early innings.  Few people own or understand cryptocurrencies.  Lots of dumb money is chasing garbage in this space... roughly half the current market cap is chasing coins that have no real value proposition (I count Ripple as ultimately valueless - as I read Mark so does he).  

So let's talk about it!

Where is the money coming from?  In case you have not been reading PP.com and other blogs like it (you won't hear the truth on TV or mainstream media) money (debt) and credit have continued their exponential growth after a brief pause in 2008-2009.  If you don't think we live in a wacky and distorted monetary world, just check out this headline from ZH;

http://www.zerohedge.com/news/2017-05-16/both-ecb-and-boj-are-months-awa...

...Germany is not the first country whose bonds are becoming scarce: the ECB has already deviated from the capital key in Ireland and Portugal, where it is running out of bonds to buy. However, the latter two countries are tiny in terms of supply compared to the budgeted monthly purchases from Germany. The German bond scarcity shows that the ECB would struggle to extend the scheme without further changes to its own bond-buying rules ..

So in a very real sense, there is so much money sloshing around that the pool of money is running out of, "assets" to buy.  Is it any wonder that the wonderful, elegant, useful, and money-like blockchain-based cryptocurrencies are being seen as an alternative asset class?  If all the Gov't bonds are worth $58T, and all the stocks and Corp. bonds are worth $116T, and the derivatives market is worth (notional) >/= $1Quadrillion, i.e. $1000Trillion.  Does $68B (total crypto market cap) still sound like a lot?  It's not.  Could crypto's someday reach $1T?  No doubt in my mind.. but there will be gyrations between now and then dumb money will fall away (as they get burned) and the leadership in the list may change (I would predict ETH taking the lead within a year).  

Oh, and Mark and I are not the only geeks (OK, Mark is geekier than me : ) writing about this stuff;

      https://www.wealthdaily.com/articles/ethereum-is-about-to-boom/8674

25 Comments

mrees999's picture
mrees999
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Posts: 223
Remember - the public doesn't know about the ethereum news

Don't think this surge is going to stop soon. The public doesn't even know about the news coming out next seek. What you've seen so far is the insiders taking positions.

HOLD ON FOR DEAR LIFE.

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1459
Seeking laminated 3x5 card instructions for Crypto-currencies

OK you crypto geeks with such enthusiasm:  Please make a 3x5 card basic instruction set for a person who doesn't know about, and doesn't really want to know (much) about how crypto currencies work.  After Charles encouragement, I am interested in participating in the decentralization of money creation.

1.  Open account here ______

2.  Buy Leger Nano S wallet here ______

3.  etc. etc.

Please do not tell me the pros and cons of countless approaches or give background information.  Just what will fit on a 3x5 card so I can start.

Thanks.

mrees999's picture
mrees999
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Posts: 223
Sand Puppy

Buy your ethereum at Coinbase.

I'll send you an extra Ledger Nano S  hard wallet I've got sitting around collecting dust for $20 only used one time. Just PM me. These things are good for millions of dollars and keep your funds safe.

Don't bother spending a lot of wasteful time learning how complex these things are. Just keep things nice a simple.

:-)
 

Tycer's picture
Tycer
Status: Platinum Member (Offline)
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Posts: 582
Thanks Mark

I've been following this for a year. So much pixie dust!!!

I finally had my aha moment and dove in yesterday. If Sand Puppy does not take you up on your offer on the ledger, I'd love to.

Kind regard,

Tycer Lewis

Jim H's picture
Jim H
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Posts: 2306
You know more than you think Sandpuppy

I am interested in participating in the decentralization of money creation.

Most people would not understand what you mean by this, nor the implications.  Previous to Bitcoin, and the follow on coins, the only really money-like assets that were not of a government were Gold and Silver.  They were decentralized because they come out of the earth!  Sure, governments could stamp their imprints on them.. but it still did not change the fundamentals of their creation.  Our founding fathers thought this idea (of decentralized Gold and Silver money) important enough to put it in the Constitution - little good though it has done us.  

So here we are... decentralized money 2.0.  Like Silver, this money (blockchain-based cryptocurrencies) has lots of other uses besides just being a value token, i.e. money .. smart contracts, accounting applications, etc.  Corporations are jumping on the bandwagon (with ETH private branches mainly) not because this is trendy.... make no mistake... they smell efficiencies, aka cost savings.  This is a revolution.   

robie robinson's picture
robie robinson
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Posts: 1094
I'm with Sandpuppy

A simple set of directions.

Mohammed Mast's picture
Mohammed Mast
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Posts: 5
A simple set of directions

My first BTC were given to me as an xmas present by my cheapskate son in law. At the time they were $10 each he gave me 2. lol MY first purchase was a few months later at $90 each. I have lived through MT GOX, the Cyprus and Greek banking thefts and the discovery of BTC by the Chinese. It is astounding to me that not only are more people here not interested but actually are against crypto currencies.

Are they in a bubble? Yes probably so. I have seen all the wild price gyrations since the beginning. But it is wise to remember to never marry an investment until death do you part. Crypto currencies as an investment vehicle require the same due dilligence as any stock, bond, real estate, etc. 

If one has the stomach for it I don't think there is a better day trade or short term investment on the planet. If you are looking for something to buy and hold long term then you better stay abreast of world events. 

To think you are going to get everything you need to know on a 3x5 index card is the height of lunacy. However it is your money and I do sell bridges.

There are lots of places to learn about the world of crypto currencies. My current favorite daily read is Coindesk. Bitcointalk.org has a wide ranging forum that can provide a good bit of info. 

I would hope that this particular community would embrace crypto currencies just for the mere fact that it is decentralized and democratic (as much as you will find). For all the posts and commentary here about the evils of banking, and fiat currency it is quite amazing that the only solutions proffered here are guns, gold and gardens.

It is high time to join the real revolution that has any chance at making a dent in the neo feudalist agenda

Mohammed Mast's picture
Mohammed Mast
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Joined: May 17 2017
Posts: 5
A simple set of directions

My first BTC were given to me as an xmas present by my cheapskate son in law. At the time they were $10 each he gave me 2. lol MY first purchase was a few months later at $90 each. I have lived through MT GOX, the Cyprus and Greek banking thefts and the discovery of BTC by the Chinese. It is astounding to me that not only are more people here not interested but actually are against crypto currencies.

Are they in a bubble? Yes probably so. I have seen all the wild price gyrations since the beginning. But it is wise to remember to never marry an investment until death do you part. Crypto currencies as an investment vehicle require the same due dilligence as any stock, bond, real estate, etc. 

If one has the stomach for it I don't think there is a better day trade or short term investment on the planet. If you are looking for something to buy and hold long term then you better stay abreast of world events. 

To think you are going to get everything you need to know on a 3x5 index card is the height of lunacy. However it is your money and I do sell bridges.

There are lots of places to learn about the world of crypto currencies. My current favorite daily read is Coindesk. Bitcointalk.org has a wide ranging forum that can provide a good bit of info. 

I would hope that this particular community would embrace crypto currencies just for the mere fact that it is decentralized and democratic (as much as you will find). For all the posts and commentary here about the evils of banking, and fiat currency it is quite amazing that the only solutions proffered here are guns, gold and gardens.

It is high time to join the real revolution that has any chance at making a dent in the neo feudalist agenda

mrees999's picture
mrees999
Status: Silver Member (Offline)
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Posts: 223
Need a crypto expert? Keep it simple. New service announcement

By Extremely popular demand I'm going to do it.

There is a business opportunity here and I'm going to take advantage of it. In a nutshell. I've got the extremely rare and valuable expertise

1. Cryptocurrencies is one of the strangest and difficult to understand technologies based on blockchain. 

2.  It is difficult to purchase - and know how to keep secure. Somebody is needed to make this simple and as automated as possible.

3.  It is difficult to keep up - especially if you are not already an expert. New announcements and paradigm changing technologies come out every week.

4. Unless you are already an expert - you will never learn to do both catch up, and keep up.

5.  This is also the best opportunity to make life-changing amounts of money as we are now in the fetal stages of what will become one of the most powerful historical changes in world history. - The manner of how money itself functions.

6.  You need an expert, and I"ve got over 10,000 hours of heavy research into the technology and have a very rare and valuable talent. For one example - I've turned one $500 dollar investment into a quarter million dollars in just three years.

 

7. Securing your funds has been proven extremely dangerous and keeping your cryptocurrencies on exchanges or held by third parties has been disastrous. You want a way to keep all of your funds under your own control safely.

8. Most people just want easy answers. I'm the guy for your KISS (Keep it Simple Stupid).

9.  I've figured out a way to do all of this. I do almost all of it for you and offer a monthly subscription based service where I allow you for a fee, to see what I'm doing week by week. I’ll explain why I do in a weekly newsletter so you can learn by doing – not spending months reading the boring complex material.

10. I'm not a licensed financial advisor and I don't give financial advice. I simply open my books (wallet) so you can follow me as a one-of-a-kind expert. Learn from the best, without wasting valuable time. Just do it.

11. This is a brand-new business model, and I will only take a limited amount of people for this service on a First Come First Serve Basis.  Send me a PM for more details.  Serious inquires only.

sand_puppy's picture
sand_puppy
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Posts: 1459
Decentralized but Observable by the Oligarchy

I just want to point out again that crypto currencies may decentralize money creation (good), but they transact over the global electronic network which is under complete surveillance by oligarchy insiders (very bad).

Transactions will be visible to the NSA (government) and the private corporations hired to data-mine your stuff.  This is the group that seeks "full spectrum dominance" and "total situational awareness." 

Crypto-currency transactions are performed in front of the "TV" in Winston Smith's apartment (Orwell's  1984).

So I am not too ecstatic about a blow for freedom being struck here.

-------------------

Quoting from Carroll Quigley, Tragedy and Hope

"The powers of financial capitalism has another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole." [Quigley, pp.324]

------------------

"There does exist, and has existed for a generation, an  international Anglophile network which operates, to some extent in the way the radical Right believes the Communist act. In fact, this network, which we may identify as the Round Table Groups [comparable to the CFR in the USA].   [Professor Carroll Quigley, Tragedy and Hope, p.950]

"At the end of the war of 1914, it became clear that the organization of this system had to be greatly extended... the tasks was entrusted to Lionel Curtis who established, in England and each dominion, a front organization to the existing local Round Table Group. This front organization called the Royal Institute of International Affairs, had as its nucleus in each area the existing submerged Round Table Group. In New York it was known as the Council on Foreign Relations, and was a front for J. P. Morgan and Company.... In fact, the original plans for the Royal Institute of International Affairs and the Council on Foreign Relations were drawn up at Paris." [Carroll Quigley, pp.951-952]

sand_puppy's picture
sand_puppy
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Posts: 1459
Buying My First Crypto-Currency: Part 1

To many of you this will be pretty obvious.  But to me it is new and unfamiliar territory. 

I am writing this as it is my experience that experts often do not remember the issues of the rank beginner.   They start teaching at the 3rd grade level when the kindergarten level was actually needed.

The software at Coinbase.com was very easy to use and it lead me through step by step.

1.  I went to Coinbase.com and found the "Get Started" button. which brought me to here.

2.  It asks me if I am setting up a business or individual account.  I click 'individual.'  Next screen.

3.  It directs me to enter my email and full name and the state where I live.

4.  It sends me an email that contains a link that I click on.  (This confirms that I control this email account.)  Next screen.

5.  About here in the process, it asks me to create a password.  I do this.  It advises that it is "too weak" but hey, it is the most complex string of digits, symbols and numbers I am likely to remember, so we will use it anyway.

6.  It asks for my phone number.  I enter my cell phone number.

7.  It sends a text message ('6 digit secret code') to my cell phone.

8.  It has me put that '6 digit secret code' sent to my cell phone into the next screen.  (This confirms that I control this phone.)

9.  Now it give me the option of linking either a credit/debit card, or a bank account, with my new coinbase account.  I choose the debit card option and enter my VISA debit card info.  It then says my card has been rejected.  Hmmm.  I'm flexible.  I can adapt....

10.  So I choose the bank account option.  I enter the name of my bank.  It shows me a picture of a typical check and points out where the 9 digit routing number is along the bottom, and has me enter that.  Then shows me the account number and has me enter that.

11.  It explains that Coinbase will make 2 small deposits (in the range of 1 cent to 99 cents) into my checking account over the next couple of days.  In 3 days, after these deposits have been made, I should return to the coinbase.com website and enter the exact amounts of those deposits.  (This will confirm that I control this bank account.)

------------------

So that is where the story pauses.  Part 2 next week.

This Ledger "wallet" stores ethereum coins off the internet.  It is a little device about the size of a thumb drive.

I can't wait to learn how the purchase works and how to get the ethereum coin onto the Ledger Nano S wallet device.  No idea.  A cable???

Ah yes.  It comes with a cable.

Some how, the wallet connects to the computer, the computer to coinbase.com and somehow the coins can be transferred to the wallet.  I think.  This will be next weeks project.

Mohammed Mast's picture
Mohammed Mast
Status: Member (Offline)
Joined: May 17 2017
Posts: 5
A+ It is very easy as you

A+ It is very easy as you have demonstrated to set up an account and start purchasing your coins. You can also get coins by earning them, ie. work or trade for them.  There are places such as bitcointalk.org where you can sell goods and services. The very first purchase with BTC was 2 pizzas for 10k BTC. 

I suggest staying abreast of ETH at Consensys. and Coindesk, Bitcointalk.org and of course Reddit.

Coinbase is an excellent choice to place your trades. They keep most of their coins offline (cold storage). 

Congrats

mrees999's picture
mrees999
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Joined: Aug 16 2013
Posts: 223
Ethereum Sale Ends Today

The public will start to find out on Monday what the insiders have known what's coming for months. Then you will see the price really explode. You aint seen nothing yet.  People that took my advice three years ago and spent $500 on Ethereum will have 1.1 million dollars come Christmas if Investing.com predictions are correct.

Some of you are already asking what I"m doing now. I'm still years ahead of almost all of you. Some of you guys are just NOW catching on to what I was advising three years ago?  Find my name and see for yourselves if what I'm saying is true.

Just imagine how much money you would have made with an open mind.

https://m.investing.com/analysis/an-ethereum-price-forecast-for-2017-200190384

thatchmo's picture
thatchmo
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Posts: 397
OUCH!

Well, I knew there would be a learning curve here.  Bought .233 BTC a month ago.  Put in Nano S.  Thought I'd diversify and exchange half of it to ETH this morning.  Exchanged a trial minimum amount on Shapeshift- took about 25 minutes to complete.  Now I check my wallet, and I have the $3 of ETH, but only $10 of BTC.  Can't seem to see any activity that would indicate where my .22 BTC are now....any ideas?  Aloha, Steve.

ao's picture
ao
Status: Diamond Member (Offline)
Joined: Feb 4 2009
Posts: 2220
some thoughts that come to mind
(1) If it sounds too good to be true, it isn't.
  Turn your $500 into 1 million dollars.  Hmm ...
 
(2) You can't get something out of nothing (unless you have a lot of willing suckers). 
    Digital information turning into money.  Sounds like modern alchemy. 
 
(3) Limited time only offer.  Hurry, hurry, come and get it while supplies last.  Don't be left out.
    Psychology 101, infomercial section. 
     
(4) If you don't understand it, don't invest in it.
    A little too complex for me, even with a Mensa level IQ. 
 
(5) If you don't hold it, you don't own it.
    Try holding bites and bytes in your hand.  Oops, there goes an electron.
   
(6) I know more than any of you.  Trust me. 
    Yes,you do, on this subject, but I understand human psychology, personalities, and
    expression indicators very well and the bells and buzzers they trigger so no
    thank you.
      Tulips and Enron anyone?
 
(7) With all this money to be made, why aren't you raising every possible bit of cash to invest and why are you wasting time pushing Ethereum to us, the unenlightened ones?
    Reason: As Levi Strauss learned, there's more money to be made selling something
    to the miners than in what is being mined.
 
8) This plays right into TPTB hands.
    Beta testing the future one world currency ... both psychological and
    economic shock testing. 
        Wait until you can only use cryptocurrency at your local garage sale
        and get taxed on the transaction ... and on any and every transaction for
        that matter.
        And if you don't want to comply, your access gets turned off or modulated.
        It's coming, for sure, but I'd rather my conscience be free and know that I didn't contribute to it.
 
9) Never invest in anything in the exponential blow-off phase.
    Reminds me of 2001 and a 400% increase in NetBank value in 4 days (or thereabouts).
 
10) This graphic:
 
That doesn't mean that some folks won't make a lot of money from this.  They will.  But it does mean that someone like myself, who is two years or less from retirement, isn't interested in playing and risking
ANY assets on this.  
 
As the great fighter, Joe Lewis (martial arts, not boxing), would say.  "Don't be first and don't be last."
That adage has served me well.
 
 
mrees999's picture
mrees999
Status: Silver Member (Offline)
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Posts: 223
Shapeshift

I found out the hard way that it's really important to put in a 'refund address' That is where any funds go that don't work out for any reason. For a btc transfer it needs to be a btc wallet address.

Their customer support is excellent though. Give them the transaction ID and they will locate it and send it to you for the wallet address you provide.

mrees999's picture
mrees999
Status: Silver Member (Offline)
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Posts: 223
BOOM!!!

PRICE up nearly 40% again overnight. Doubled since Thursday.  YOU AINT SEEN NOTHING YET.

MarkM's picture
MarkM
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Joined: Jul 22 2008
Posts: 833
Increase limits

So I opened a coinbase account linked to my bank account. It set a limit that I could raise some by verifying my id. Did that. Still wanted a higher limit and the note on the box said that could be obtained by a purchase.

Purchased the max, now it says I must wait 30 days to increase my limit. Any thoughts?

thatchmo's picture
thatchmo
Status: Gold Member (Offline)
Joined: Dec 14 2008
Posts: 397
Ahhhh....

Thanks for the info Mark.  I think you were right on the "refund address" thing.  I contacted SS's cust service and they asked for the various IDs.  As I went to source them, I noticed that my BTC had "mysteriously" found their way back to my "tulip pot" (Nano S)....at a 10% increase in value since yesterday, of course....Away we go....Aloha, Steve.

PaulJam's picture
PaulJam
Status: Bronze Member (Offline)
Joined: Dec 4 2016
Posts: 31
coinbase limits

I ran into some limit issues too.  The limits are set by some kind of algorithm based on your trading patterns and your id verification.  You can request different limits if you suspect that your limit is inappropriate.  The algorithm does indeed sometimes set inappropriate limits.

Mine sank down to 50$ per week, after starting out much higher, and increased to $200 after ID verification.  I contacted them to request an increase, they replied that the limit was appropriately set for me, yet shortly thereafter it magically reset to much, much higher.  A mystery.....

thatchmo's picture
thatchmo
Status: Gold Member (Offline)
Joined: Dec 14 2008
Posts: 397
Consider yourself lucky that

Consider yourself lucky that you have access to Coinbase.  TPTB in Hawaii have disallowed their operation here.  Same with Circle....Hard to make a BTC purchase without the Localbitcoin premium and uncertainty....Aloha, Steve.

davefairtex's picture
davefairtex
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 4246
your exchange matters

I had a really fascinating extended discussion with a bitcoin arb trader over this past weekend.

This guy makes his living by exploiting BTC price differentials between exchanges.  I got the sense it was a good living.

The primary problem is all about transferring money between exchanges and banks.  Bankers don't like bitcoin - and he said the New York bankers really don't like it.  And if they get together and they decide they don't want to accept currency transfers in or out of a particular exchange, customers at that exchange can no longer withdraw their money.  It is now locked up inside the exchange.  So what happens is, the price of BTC/USD on that exchange goes through the roof, as people on that exchange turn their deposits into BTC (at a premium) and then transfer them elsewhere.

Of course, if you can manage to talk your bank into accepting currency transfers from the "blocked" exchange, you can make serious money.

It will be really interesting to see how this all plays out.

Below, an article about an exchange in Taiwan that started having problems when the banks there decided to start implementing US anti-money-laundering (AML) regulations.  He mentioned this recent event to me specifically.  I had no idea what he was talking about until I looked it up later.

https://news.bitcoin.com/bitcoin-exchanges-victim-banking-problems/

So definitely enjoy the rally, and hopefully mrees can tell you which exchange you should pick.  The exchange is critical - it defines what price you'll pay for your bitcoin (higher in a "blocked" exchange) as well as enabling you to actually take profits, turn your BTC into USD, and buy that sports car you've always wanted.

mrees999's picture
mrees999
Status: Silver Member (Offline)
Joined: Aug 16 2013
Posts: 223
Coinbase limits

They are very strict and they are getting hammered with new account requests. With verification and constant use,  that builds trust, I've seen mine raise from 15k to 50k per week. I've used their GDAX exchange a lot as well so that might help.

I think its wise to also open an account with Gemini out of New York. The fee is only .25 percent and they credit your bank transfers much faster. A lot of people I've read are switching. Might even be an option in Hawaii?

Never hurts to have the bandwidth of two.

thatchmo's picture
thatchmo
Status: Gold Member (Offline)
Joined: Dec 14 2008
Posts: 397
Alas, Gemini is also not

Alas, Gemini is also not doing business in Hawaii....Aloha, Steve.

thatchmo's picture
thatchmo
Status: Gold Member (Offline)
Joined: Dec 14 2008
Posts: 397
Bitcoin Core wallet?

So, my local BTC mentor- she mined 1K BTC in a year with a HP laptop in '09, which she lost to Mt. Gox....- suggests NOT keeping coins on a hardware wallet due to the possibility of failure, and then having to count on the mfgr to fix it.  She suggests keeping on the Bitcoin Core software wallet.  Comments?  Thanks, Aloha, Steve.

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