I've addressed that previously, and we disagree, which is fine. But going back to a recent post: Let's say the Winklevoss Bitcoin ETF was listed on the NYSE or Nasdaq today: Would you short it at $594 ? If yes, with what percentage of your account value? Would you place a stop-loss on the position, and if so, at what price?
I do "get it", it's just that we disagree. But anyway, I'm genuinely interested in a strategy about the money management of a bearish trade on Bitcoin. If the Bitcoin ETF was listed today I'd love to short it at $594, but it could easily go to $1,000 by the end of the week.
Bitcoin is not really a currency. It is mainly a store of value at this moment. There is a big difference there. The acceptance of Bitcoin as a store of value is similar to acceptance of antique / famous painters' work as store of value. They do grow in exponential rate due to the one key factor - real limited supply.
m22au, I doubt you have no vested interest in promoting bitcoin given the number of posts of yours on the subject. I am waiting for the authorities to warn people about bitcoin, I wonder why this hasn't been done yet. Speculating that bitcoin could one day be a currency like the dollar or the euro is nonsense. You lose your wallet or device, you lose your bitcoins, if the web is down (even locally), no more bitcoin transactions ! How stupid to believe it can be a real currency and not an underground medium of exchange. And if it were worth one million or 100 K, you would buy stuff priced at 0.000..x bitcoin. How convenient is that ? As for the Winklevoss brothers, they look like idiots . These guys are just rich kids, turned famous thanks to their Facebook lawsuit who are now using their fame to pump up their personal investments in bitcoin. The big problem today is that the media have lost all integrity, they are just PR machines for corporations, govt and the rich and famous, feeding B.S. to an ever growing world of dummies.
The idea that I have a "vested interest in promoting bitcoin given the number of posts of yours on the subject" is fallacious for two reasons: first, I write about many things on Elitetrader. And although it may surprise you, I don't only post about a topic when I have a financial interest. second, I strongly doubt my posts on an Elitetrader messageboard would influence many people. You're right, Bitcoin has its flaws. Fiat currencies have flaws too. The Winklevoss twins' proposed ETF is separate to their Bitcoin investment. If they wanted to sell their coins they could do so today. The ETF is a way for them to earn management fees. I don't see how this is different to any other ETF manager.
I see you have not spent time understanding what Bitcoins are. Bitcoins are limited supply by design. Any change to the rules will make it incompatible with the existing coins in circulation. Hence not Bitcoin. No one can print more bitcoins than the prescribed cap. Everyone can create their own virtual currencies just like f$#ked governments printing fiat money. Remember fiat money is back by nothing. The claim that a democratic country's fiat money is backed by its people is an illogical statement because everyone can walk away from the country in a second. Bitcoins is now the accepted virtual currency and like the game of risk, monopoly or any business that needs market dominance like Google, Cisco, etc. acceptance matters. Other virtual coins are not widely accepted, yet. Hence Bitcoin has won the battle for dominance for now.
Agree... Why would anyone front money to buy a virtual currency ....its completely insane. It's the media driving the hype...
You are thinking like a newbie trying to call the top. You should be following the trend and be a buyer.