Wednesday, April 10, 2013

The Bitcoin frenzy and why gardening is the new black

Champagne © fintag

News comments:
Bitcoin mania is with us and I am late to the party.

If I had bought a bag in March I would now be able to pay for Obama's 2014 budget.

You probably know what they are all about (one of 21 million emails with value kept in password protected encrypted wallets - oh and if you forget your password then the Bitcoin dies) or you don't (aren't currencies meant to have an underlying asset such as gold and act a bit like a derivative?). Even so there are lots of views. Of course in the world of trading we love bubbles as long as we enter and exit at the right time. When Goldman Sachs have pointed their computing power to mining these coins and rumors abound they are looking to set up a fund, you have to take it all seriously and mingle like crazy. Even while I type this I could have probably made 2%. East India. Tulips. Madoff.

Its a great wave to be on. Once the AML and KYC has been sorted and the Japanese custodian bank has accepted your real currency, then away you go and off to trade on a nasdaq lite exchange called mt.gox. There are no spreads so its a bit wild west and its clear 21 million will not be enough to create a true liquid currency (unless its broken down into itcoins, tcoins, coins, oins, ins, ns and s units) but long term this could be getting early google / microsoft / apple stock for the price of really coming to terms with a currency being bits and bytes instead of paper and a promise.

It is fintag's sudden realization that the worlds currencies are just bits of paper with "hope" value and printing and inflation will soon wipe out most of the indebted world (Argentina et al) and so force us all into gardening. And farming. You see, once the USD is worth paper, it won't be a good substitute for real food.

Unless of course you have a pile of Bitcoins in which case you will run the world, while the rest of you will be forking the ground, scattering seeds and praying for rain.

Today's shorts:
Bitcoins to be North Koreas new currency (businessinsider)

The Magic Tricks of Guff and Oxygen Exchange (mtgox.com)

Today's longs:
Bitcoin billionaires are the new hippies (businessinsider)

Gossip:
Goldman Sachs to launch a Goldcoin note that sits on top of a box of air (subprime 2.0).



4 comments:

Bermuda said...

Old news FinTag, pay attention - I posted this to you many many months if not a year or two ago, it's Litecoin now FTW, get 'em while they're still a real steal at just over +/- $1

Bermuda said...

btw, here's a charity that I set up for a wonderful kid at the beginning of last year, it will give you an intro to virtual currencies a little & how poor a trader I am, but please feel free to ask any thing as I've been at this day & night for over 3 years now.

https://sites.google.com/site/hannahlogo/home

Bermuda said...

Anyway I'm delighted that your featuring virtual currencies on your blog & appreciate your insights as always.

Of course the funds are in no way linked to any email addresses though, unless you choose to park your private keys there.

Anonymous said...

For me Bitcoin is really a next bubble to burst, I was especially surprised some time ago, when it has become a trend to invest in Bitcoins. Actually dollar itself not being redeemable in gold can not be called a real currency, all the digital currencies are somewhat very vague nowadays. Still we often get funds online and entrust our own personal money in doubtful undertakings.