Month: April 2021

The Bitcoin club

| roger nunn

There is a gradual public acceptance that there might be some value in crypto currencies, specifically Bitcoin. Those who invested early on and didn’t lose their private keys have made significant increases in their wealth.

I remember being interested in the idea in 2012 but didn’t buy any because it was a lot more complicated at the time. Buying and trading wasn’t easy and of course now I wish that I had made the effort.

Everything is clear with hindsight so now I’m looking forward to get it right this time. I know that is always some risk but without being involved I can’t expect to benefit.

I have small holdings of a number of crypto currencies and some bitcoin. Some bitcoin here means some part of a bitcoin.

In the long run I believe that the value of bitcoin will continue to rise and eventually owning one whole bitcoin will be like being a multi millionaire in today’s world.

So owning one Bitcoin will be like being a member of an exclusive club, and those people who are lucky enough to hold thousands now will be the wealthy ones.

Bitcoin has crashed.

| roger nunn

Bitcoin has just dropped by about 10%. It’s a disaster, we must sell quickly!

I don’t believe that at all, I’m just mimicking the feeling that a get from the press whenever bitcoin dips. I also chose 10% as being representative rather than exact because it has happened many times and fully expect it to happen again.

Unfortunately the disaster type of comment sells stories and in so doing creates more selling and price drops. It’s very sad for those who get emotionally involved with their holdings and sell as the price drops, thereby losing money.

I like the volatility of crypto as it allows me to make money. I sell some of my holdings as the price rises, thereby making some profit.

When the price drops I buy some more and then wait for it to rise, so enjoying the volatility.

Stable prices are more boring, something that will happen as the market matured. In the meantime long live volatility.

Crypto, what to read about.

| roger nunn

I think it’s great to be involved, even though only slightly, in one of the new developments in finance.

As it is a new (ish) technology, it is changing very rapidly with new ideas appearing all the time.

Decentralised exchanges are a good example of rapid change. A year ago trading was done through an exchange who listed the coins and facilitated exchange, changing a fee on the way.

Exchanges have proliferated and got rich in the meantime. They have made it easy to buy crypto and then exchange it or return it to fiat.

Now we have decentralised exchanges appearing that automatically match transfers without direct fees. The exchange works differently with users being able to stake their crypto and share in the fees generated.

My problem is that however much I read (and watch) there is more new stuff being generated, creating new parts of the crypto world.

So I will follow the new developments such as creating NFTs and only get deeply involved when it seems to lead to change.

Spreading the word on crypto

| roger nunn

Yesterday I made a short presentation to family members to explain what crypto is all about.

I have been interested in bitcoin since around 2015 and spent many hours reading and watching videos before starting to trade it myself.

I went through the 2017 boom and the drop that followed, all the while learning about it and watching new developments.

Now I am even more convinced as to its long term viability, especially as I believe that the decentralised consensus is an excellent way of linking the power of spending to real democracy.

However, finding a way to present this view of the future without appearing to be a fanatic proved to be very difficult.

I ended up by talking about the reason for bitcoin’s development and the benefits it can bring wherever value needs to be maintained or transferred.

I am working on totally non technical presentation that gives a newcomer an idea of What and Why, followed by How.