ESOC Crypto Corner

[deleted_user]

Stupid people avoid risk. Smart people manage risk!

It is like not going outside because you're afraid of the sun burning your skin. But you can bring an umbrella, you can walk in the shade, you can cover up, you can wear sunscreen.

Is that supposed to be some sort of analogy of investing? Jesus lol

[Papist]

Stupid people avoid risk. Smart people manage risk!

It is like not going outside because you're afraid of the sun burning your skin. But you can bring an umbrella, you can walk in the shade, you can cover up, you can wear sunscreen.

The difference being that "managing risk" is little more than impulsively selling stock based on a hunch. A better analogy would be someone approximating how long they can stay out in the sun without getting burned, and dashing back inside at the last possible second. It's arbitrary, it's messy. and you're bound to get burned (pun intended) eventually.

[Jam]

Dose managing risk include investing a portion of your funds in high risk ventures, not all of it.

[Gendarme]

Korean plans are:
companies are banned from trading/owning BTC
BTC exchanges will be monitored by government
all private transactions will have to be under 'real name', meaning by using biometrics and social security number.
no BTC purchases in real market allowed (coffee and stuff)

Sounds to me you guys should get out even take a loss if need be.

My experience is that whenever the Korean government announces "'plans"', it turns eventually into law unchanged.

You need to remember that this is precisely the reason Bitcoin was created in the first place. Government crackdown on Bitcoin was always expected. It may be a bad investment choice in the short term as speculators leave the market, but this is actually the very environment it was designed to function in.

This is FUD rather than an actual threat to Bitcoin. The crackdown on exchanges can be mitigated through decentralized exchanges, and cracking down on miners won't do a whole lot as there is no required level of mining. Right now there are 16 exahashes/second on the network and it can easily afford losing some without making a >50% attack feasible. Furthermore there is an increasing appeal for privacy coins which will in combination with decentralized exchanges most likely seal the deal.

This is not a war the governments can win through traditional means. Letting some opposition from South Korea scare the shit out of you just shows you that you are not one to be in crypto for the long term, because this was expected. The health of crypto will be better without all the lambo-dreamers, and events like this remind everyone of why we are in this in the first place and how urgent it really is. I'm glad this happened even though I "lost" money.

[fightinfrenchman]

Cryptocurrency is potentially a great way to make a lot of money really quickly. It's not going to be useful in the longterm as an actual currency, though

[Gendarme]

A screenshot of the BitConnect subreddit before it was locked:



A very sad situation of life-savings lost and reported consequent suicides. Another Ponzi-scheme; another tragedy.

[Snuden]

An interesting case indeed!
I am not to say it was a ponzi or not, however, I am 100% sure that IF they did what they claimed to have been doing, it could very well be legit.

Even without the "Trading bot" it could have sustained itself, at least for a much longer period of time.

As far as I know, people with outstanding loans have been paid out in full.

[Gendarme]

https://twitter.com/francispouliot_/sta ... 9401232386

[Snuden]

There is ONE golden rule in Crypto: Never invest money you can't afford...

[deleted_user0]

https://twitter.com/francispouliot_/sta ... 9401232386

sigh... people doing business with money that isn't theirs is the whole reason the financial system is so fucked up... and why you have crashes and why people pull out at the first sign of a dip

[Goodspeed]

What even happened?

[Gendarme]

I haven't read about it, but I think BitConnect promised high interest on deposited crypto (e.g. deposit BTC and we will give you an annual 60% return), which is exactly what Bernie Madoff did. It's Ponzi 101 and I'm surprised so many fell for it. Again, I haven't actually researched and I'm just saying what I've heard and read in other communities.

[Goodspeed]

Ah so it was a ponzi scheme which broke down when the market crashed and many people tried to pull their money at the same time?
Makes sense.

[Gendarme]

https://medium.com/@anesthesteve/bitcon ... 8dd2daef2f

[Snuden]

They were not able to generate an infinite amount of tokens, I do believe they had a max supply just like any other token.

One of reasons I believe it might could have been sustainable is because of token (BCC and BTC) appreciation. This is unfortunately not mentioned in the article Gendarme linked to.

I have heard of several cases, where people actually could have made more money simply by holding their BTC, rather than convert them to BCC and stake/lend on the platform.

Then there is the obvious manipulation of the BCC itself, every 1-2 month the price would dip, only to shoot up 60-70% within a day. Without a doubt the company themselves were the big buyer during such dips.

For now I am most inclined to believe the official story, which is they closed shop because of legal issues.
If that's not the case, then they will soon leave for good with millions of $ from their BitconnectX ICO sale ($50)

Another reason, why I wont call them a SCAM in the traditional sense is because they actually paid out every single BCC to their users, unfortunately a BCC is only worth 10% of what it was worth 2 days ago.

xD

[Snuden]

1,500,000 members worldwide.

[lejend]

Keep in mind that a lot of these posts are trolls. Especially 4chan posts accompanied by a picture of a pink guy. These are people role-playing as failed investors. And who commits suicide because they list a few thousand dollars? These are either fakers or people with deeper underlying problems unrelated to money. If it wasn't for the crypto, there would've been something else to make them lose their money and minds.

It is a mistake to think, "oh, this individual risked and failed. I'm now justified in not risking anything at all." Learn to manage risk. You can do research before investing into anything. You can diversify your investments. You can use sell stop orders.

Just because something isn't completely safe, doesn't mean it shouldn't be done. Fortune favors the bold.

[Snuden]

Technically nobody have lost money, they have the amount of tokens that they bought - the demand for those tokens are just not very high right now.
Pretty much like 95% of all tokens these days.

People are just quick to call SCAM! Whenever something goes slightly different than expected.

[kami_ryu]

-- deleted post --

[Snuden]

Might be better to buy an alt coin below $0.001 and hope for the best.

[Gendarme]

With $50 your best bet is an ICO. I myself invested $100 into Krios which seems like a great project.

[deleted_user]

Keep in mind that a lot of these posts are trolls. Especially 4chan posts accompanied by a picture of a pink guy. These are people role-playing as failed investors. And who commits suicide because they list a few thousand dollars? These are either fakers or people with deeper underlying problems unrelated to money. If it wasn't for the crypto, there would've been something else to make them lose their money and minds.

It is a mistake to think, "oh, this individual risked and failed. I'm now justified in not risking anything at all." Learn to manage risk. You can do research before investing into anything. You can diversify your investments. You can use sell stop orders.

Just because something isn't completely safe, doesn't mean it shouldn't be done. Fortune favors the bold.

were you trying to create an analogy I need to know

[Goodspeed]

With $50 your best bet is an ICO. I myself invested $100 into Krios which seems like a great project.

How is it new?
Reading about this I'm getting some real dotcom flashbacks lol. Just do something that's already been done but add tokens/crypto to it and you will automatically get a ton of investors. So many of these startups are exactly that.

[Gendarme]

Where has it been done? I'm not aware of such a platform.

[Goodspeed]

https://www.google.nl/search?q=outsourc ... e&ie=UTF-8