Merged mining litecoin calculator
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This weekend, over , new Coinbase accounts were opened, presumably by people who had an overzealous nephew at their Thanksgiving dinner on Thursday, telling tales of unbridled riches and the wholesale changing of the world that is most assuredly imminent thanks to crypto currency. According to one source, there are now more open accounts on the Coinbase platform than there are brokerage accounts at Charles Schwab although the Schwab accounts are undoubtedly bigger, for now.
Like all manias, when it turns people are going to be wiped out. But each crash has brought in a cavalcade of media attention, which in turn has brought in new interest from the public and, as a result, fresh record highs in the ensuing recoveries. Do you really think the sixth major crash is going to be the one that does the trick? Let that sink in. Another opposing thought you must accommodate is the fact that Bitcoin players can make an awful lot of money while the mania grows, before the comeuppance.
Stories of teenage multi-millionaires have begun to pop up in the mainstream press. There will be more of these stories. This is how the mania sucks in more evangelists. The first thing one does upon buying in is informing their family and friends while posting to social media. They want to be in the club too. There is some social signaling going on here. I get it too. The transmission mechanism is flawless.
Speaking of the dot com boom, I think this is the same thing. The people who are buying into this mania most heavily, in an emotional sense, were in elementary school for that. I understand the way in which price action looks similar, but not how it felt. Market manias and depressions are visceral, they must be felt. There is the Grayscale Bitcoin Investment Trust, which acts like a closed-end fund holding coins, verifying their authenticity and arranging storage and security.
How much should these services be worth for investors? How about between 40 and 80 percent? And because familiarity breeds content, investors in the throes of a speculative mania are always in search of the next way to play. Consider Marathon Patent Group, a publicly traded patent troll whose share price has jumped from 50 cents to 8 and half dollars in just a few months. On November 2nd it announced the acquisition of a Bitcoin mining operation and from there the stock went absolutely ballistic.
The stock market had rewarded it for having done so, to say the least. Bloomberg story from October:. Usually when a company rebrands itself by diving into the digital currency space, the stock waits until after the announcement to take off.
I saw this movie already. This sort of thing happened all the time when dot coms were all the rage. Minor league companies that were going nowhere had a chance to reinvent themselves or, at least pretend to and they jumped at it. It ended badly for just about everyone. There were numerous examples of this sort of thing in the early days of the web. Mastercard just announced a blockchain patent to great fanfare while Square is launching a Bitcoin payment system under the Square Cash umbrella.
In many ways, Bitcoin represents the perfect mania — as there are zero cashflows or dividends or earnings involved with this asset class, there is literally no traditional way in which to value it.
The coin seems to trade on the speed at which it is adopted, mainly by speculators as opposed to users at this point. Consider commentary like this, which attempts to understand whether or not its current price can be maintained.
A Giffen good is a product that people consume more of as the price rises and vice versa — seemingly in violation of basic laws of demand in microeconomics such as with substitute goods and the income effect.
Veblen goods are types of luxury goods for which the quantity demanded increases as the price increases in an apparent contradiction of the law of demand. There are approximately The community has its own customs, experts and colloquialisms, the most famous of which is HODL. And maybe this guy is now worth a hundred million dollars, who knows. You can see the term hodl in crypto discussions everywhere. One other thing worth mentioning — one of the hallmarks of every real investment mania is the degree to which it makes its participants feel like geniuses.
This mania is no different, and everyone is susceptible, myself included. I recently shared this chart with some friends, half-joking that I singlehandedly sparked the massive recent rally in Bitcoin. Get your rose petals ready for my path. I sardonically remark that my post about buying into Bitcoin, which went viral within the traditional financial media real, may have been the moment where it became non-embarrassing for financial professionals to admit being interested or involved.
From Bear to Bull: So, how much credit do I deserve? Probably none, this was going to happen anyway. But I think just the fact that I would even entertain this idea says a lot about how similar this is to other manias.
Over the coming weeks and months, several things are probably going to happen that could serve to bolster the bulls even more so than the price action alone has already. Bears would argue that this will lead to a two-way market and more price discovery, which will force some sanity into the price.
A major brokerage firm the rumor is Goldman will begin crypto market making activities for its clients, unashamed and in all seriousness. And then of course, there is the white whale — the first ever Bitcoin index ETF.
This could unlock the speculative fervor of pretty much everyone for whom the prospect of transacting outside of a brokerage account had kept them out of the pool. As I mentioned the other day, the new regulator in charge of speeding up the ETF approval process was formerly the lawyer for the Winkelvii twins, whose failed bid to launch a Bitcoin ETF has become a watershed non-moment for the faithful. So it appears as though it just got real. The post-crisis environment finally has its first true blue investment mania and we are literally witnessing history in the making.
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