Bitcoin Forum
December 11, 2016, 02:06:56 PM *
News: Latest stable version of Bitcoin Core: 0.13.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: "BTC is actually something you trade rather than something you use to buy stuff"  (Read 1097 times)
BitcoinPorn
Hero Member
*****
Offline Offline

Activity: 560


Posts: 69


View Profile WWW
January 12, 2012, 12:15:06 AM
 #1

Just read an article that had the writer reply to some comments made post article, found it interesting.  Here is the full article first.

How I became a Bitcoin trader
By Matthew DeBord




Quote
Readers of DeBord Report will know that I've become embroiled in a controversy/experiment involving Bitcoin, the cyber- or crypto-currency that's captured the hearts and minds of some passionate supporters in the technology world. In response to some commenters on the posts I've written so far, I decided to buy and trade some Bitcoin, just to see how it would go.

I suppose I could call this "Bitcoin Challenge" to parallel the "Bike Challenge" I'm also currently engaged in.

There are some superficial similarities. I haven't ridden a bike anywhere in more than a decade. I've also never traded currencies — or much of anything else.

However, my sideline career trading BTC is off to a decent start. I don't know why, but the price of Bitcoin has been headed up of late. Because this is just an experiment and not an attempt to make real money, a few weeks back I purchased $10 of Bitcoin. I bought BTC at $3.90 and, a few minutes ago, sold it at $5.40.

I wound up making $3.70, roughly, on the trade, after the fee charged by Mt. Gox, a Bitcoin exchange. I had to make the trade because I'd set a conservative 20-percent return objective and an optimistic 25-percent objective. A return of 37.5 percent meant that I'd beaten my optimistic goal by more than 10 percent. Just for some perspective, the total real return in the S&P 500 since the 1950s is only 7 percent.

Also, as you can see, I picked the $10 amount initially because it makes it easy for me to do the math.

What I'll do now is wait until the price either falls to my previous 25-percent goal and reinvest the original $10; or if the price keeps going up, I'll bank the original $10 and invest the $3.70. This will enable me to devise a sort of long-short position — I don't know if you can trade BTC short on Mt. Gox — by putting my profit at risk and letting the $10 sit around waiting for the price to fall to jump in.

I welcome anyone who wants to pick this strategy apart to do so because I have no idea what I'm doing...for now!

http://www.scpr.org/blogs/economy/2012/01/04/4168/how-i-became-bitcoin-trader/


After the article someone made the comment, "You are acting like a day trader in a volatile market.  This will be the way of BTC for a while until distribution is wider and assessments of its value is better understood."   to which Matt replied

Quote
This is actually why I'm doing this. I'm trying to prove -- to myself -- that BTC is actually something you trade rather than something you use to buy stuff. An instrument, not a currency. However, I've just gotten started and have some other tricks in mind. Thanks for your comment.


I do not know this guy or his history, but it seems if you want to start making money with Bitcoin with a guy who claims he has no idea what he is doing for now, Matt is your man.

1481465216
Hero Member
*
Offline Offline

Posts: 1481465216

View Profile Personal Message (Offline)

Ignore
1481465216
Reply with quote  #2

1481465216
Report to moderator
1481465216
Hero Member
*
Offline Offline

Posts: 1481465216

View Profile Personal Message (Offline)

Ignore
1481465216
Reply with quote  #2

1481465216
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1481465216
Hero Member
*
Offline Offline

Posts: 1481465216

View Profile Personal Message (Offline)

Ignore
1481465216
Reply with quote  #2

1481465216
Report to moderator
1481465216
Hero Member
*
Offline Offline

Posts: 1481465216

View Profile Personal Message (Offline)

Ignore
1481465216
Reply with quote  #2

1481465216
Report to moderator
FreeMoney
Legendary
*
Offline Offline

Activity: 1246


Strength in numbers


View Profile WWW
January 12, 2012, 12:35:27 AM
 #2

Heh, I'm going to put this bucket on my head to prove a bucket is something you wear and not something you put lobster in.

Play Bitcoin Poker at sealswithclubs.eu. We're active and open to everyone.
gnar1ta$
Donator
Hero Member
*
Offline Offline

Activity: 756


View Profile
January 12, 2012, 12:39:02 AM
 #3

Heh, I'm going to put this bucket on my head to prove a bucket is something you wear and not something you put lobster in.

Probably not a good idea to mix the two. Unless you want a lobster haircut  Cheesy

Losing hundreds of Bitcoins with the best scammers in the business - BFL, Avalon, KNC, HashFast.
teflone
Hero Member
*****
Offline Offline

Activity: 770


You're fat, because you dont have any pics on FB


View Profile
January 12, 2012, 12:39:39 AM
 #4

Heh, I'm going to put this bucket on my head to prove a bucket is something you wear and not something you put lobster in.

LMFAO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

For Canadians by Canadians: Canada's Bitcoin Community - https://www.coinforum.ca/
k9quaint
Legendary
*
Offline Offline

Activity: 1190



View Profile
January 12, 2012, 12:55:36 AM
 #5

One real use of BTC is in forex arbitrage, not BTC speculation. BTC exist everywhere simultaneously. So if I buy BTC with USD and then sell BTC for British Pounds. I have sold USD and bought GBP. When I am tired of owning GBP, I can trade them for BTC and then buy any currency I like without having to move my money from one bank to another, or from one country to another.

When BTC is used as a pass-through mechanism like this, the price of BTC becomes irrelevant to the trade. I need X amount to move a particular volume of another currency through BTC.

Bitcoin is backed by the full faith and credit of YouTube comments.
BitPay Business Solutions
Hero Member
*****
Offline Offline

Activity: 756


View Profile WWW
January 12, 2012, 02:43:42 AM
 #6

When BTC is used as a pass-through mechanism like this, the price of BTC becomes irrelevant to the trade. I need X amount to move a particular volume of another currency through BTC.

When used as a money transfer mechanism the price of bitcoin doesn't matter either.  In my Prague presentation I talked alot about this.  I'd like to see this idea catch on.

BitPay : The World Leader in Bitcoin Business Solutions

https://bitpay.com

Does your website accept bitcoins?
racerguy
Sr. Member
****
Offline Offline

Activity: 271


View Profile
January 12, 2012, 06:21:50 AM
 #7


When used as a money transfer mechanism the price of bitcoin doesn't matter either.  In my Prague presentation I talked alot about this.  I'd like to see this idea catch on.

The price matters a bit because if large purchases move the price too much then it's useless.
notme
Legendary
*
Offline Offline

Activity: 1540


View Profile
January 12, 2012, 06:22:55 AM
 #8


When used as a money transfer mechanism the price of bitcoin doesn't matter either.  In my Prague presentation I talked alot about this.  I'd like to see this idea catch on.

The price matters a bit because if large purchases move the price too much then it's useless.

Volume matters a bit, price is irrelevant.

https://www.bitcoin.org/bitcoin.pdf
While no idea is perfect, some ideas are useful.
12jh3odyAAaR2XedPKZNCR4X4sebuotQzN
notme
Legendary
*
Offline Offline

Activity: 1540


View Profile
January 12, 2012, 07:30:26 AM
 #9


When used as a money transfer mechanism the price of bitcoin doesn't matter either.  In my Prague presentation I talked alot about this.  I'd like to see this idea catch on.

The price matters a bit because if large purchases move the price too much then it's useless.

Volume matters a bit, price is irrelevant.

Of course price matters. It's impossible for Bill Gates to move a mere 1/800th of his net worth with Bitcoin. That's not fair.  Grin

Sure it is...  he just has to spend it.  Then the merchants can resell him the came coins to buy more shit to sell him.

https://www.bitcoin.org/bitcoin.pdf
While no idea is perfect, some ideas are useful.
12jh3odyAAaR2XedPKZNCR4X4sebuotQzN
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!