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*** Official Bitcoin Price Discussion Thread ***

Discussion in 'Crypto Currency & Mining' started by morguk, Dec 28, 2016.

  1. Mynight

    Soldato

    Joined: Jun 16, 2013

    Posts: 5,381

    I guess it depends on where you think crypto is going. If you think it's going to come back up you'd be working in BTC otherwise it'd be GBP/EURO for cashing out I assume.
     
  2. Kaka

    Wise Guy

    Joined: May 11, 2004

    Posts: 1,329

    Location: Curitiba

    GBP always.
     
  3. uncle_rufus

    Mobster

    Joined: Mar 14, 2011

    Posts: 3,842

    GBP doesn't make that much sense though...

    BTC is at £5 and you have 10 BTC (lol if only)
    You trade half of it into SHT (****-coin), buying 10,000 SHT for £25 worth of your BTC
    The next day BTC drops to £2.50, SHT doesn't react right away and stays where it is
    Now on paper and in terms of GBP both your BTC and SHT holdings look like they're doing badly, so you HODL - don't want to make a loss...
    But actually your SHT is up 50% in terms of BTC!
    The next day BTC goes back to £5... (SHT unchanged again)... phew! You're breaking even again
    But if you'd sold yesterday you'd now have £75 of BTC at this point

    Obviously this is an extreme example and in reality the altcoin prices do follow BTC to some extent, so it isn't as obvious, but it's still the reason why it makes more sense to trade in terms of whatever base currency you started from. It does depend on where you think Crypto is going too I guess but since you need to convert back to BTC, say, to cash out then even if you don't think it's going to go back up you should still be paying attention to how much absolute BTC you traded for...
     
  4. Kaka

    Wise Guy

    Joined: May 11, 2004

    Posts: 1,329

    Location: Curitiba

    My main reason is most of my holding is a direct GBP paring.

    Other reasons include as price volatility as demonstrated in your post. Also, if BTC was to die tomorrow for example, what then? I'm confident GBP would outlive BTC.
     
  5. neoboy

    Capodecina

    Joined: Mar 16, 2004

    Posts: 11,664

    Location: UK

    This market is all about the level of exposure you're happy with really. I've put some FIAT in this week again to start trading but volumes seem lower than before, I need that volatility damnit :D
     
  6. mattpc

    Mobster

    Joined: Oct 18, 2002

    Posts: 4,726

    Location: Manchester

    Absolutely right neoboy! It's not different to any other investment. You need to feel comfortable about what you're exposed to and comfortable about how deep you are in to it. Because crypto is still relatively new, people forget that the same rules and ideas apply regardless. It's a bit like when ebay was a new thing and morons thought that they didn't have to pay tax on their income from it because it was ebay and somehow special! ;)
     
  7. 413x

    Capodecina

    Joined: Jan 13, 2010

    Posts: 16,381

    Location: Cardiff

    If you're always going to cash out to gbp then surely gbp is the only option?
     
  8. uncle_rufus

    Mobster

    Joined: Mar 14, 2011

    Posts: 3,842

    Why? The only time the GBP value is relevant is when you cash out... so you should pay attention to your BTC/ETH vs. GBP values at that point. When you're trading between the big coins and small altcoins the GBP price doesn't reflect the gain/loss that you're actually making
     
  9. 413x

    Capodecina

    Joined: Jan 13, 2010

    Posts: 16,381

    Location: Cardiff

    Id argue it does.
    It does not matter if you turn 1btc to 10 BTC if the value of that 1btc goes from 10k to 10 quid
     
  10. Telecaster

    Mobster

    Joined: Jun 17, 2012

    Posts: 4,934

    But it only matters if BTC goes to £10 if you cash out at £10. But nobody is daft enough are they?
     
  11. uncle_rufus

    Mobster

    Joined: Mar 14, 2011

    Posts: 3,842

    As I said before that's why you pay attention to the BTC/GBP ratio when you cash out, and as Tele says above you wouldn't cash out if it was that dire...
     
  12. Th0nt

    Soldato

    Joined: Jul 21, 2005

    Posts: 6,437

    Location: N.Ireland

    As long as you can guage the 'value' by using your preferred monetery method is doesnt really matter does it..

    The main thing to do is grow the portfolio, if you dont make any gains then well somebody else is unfortunately.
     
  13. uncle_rufus

    Mobster

    Joined: Mar 14, 2011

    Posts: 3,842

    The point is it's so much easier to gauge the change in what you've invested by not thinking of it in terms of FIAT (until the point you cash out)... You can think in terms of FIAT if you want but to genuinely work out whether something is a profitable trade becomes a lot harder (as you need to factor in the change in the price of BTC from when you made the trade)... Thinking in terms of Crypto is easier and that is how you grow your portfolio
     
  14. Th0nt

    Soldato

    Joined: Jul 21, 2005

    Posts: 6,437

    Location: N.Ireland

    In this bear phase I lately just focused on obtaining more of the token/coin than I previously had which works equally well. For example I started off the other week with 13 LUX and through trading the ups and downs increased that to just over 18 LUX on that exchange (just by trading when I spotted an opportunity).

    When it comes to cashing out assuming the price has not changed too much or it has gone up then its winner chicken dinner (as you sold 18 rather than HODL onto the 13).

    -ed- this is ofc time consuming and luck based on catching the waves right. Can be stressful to some too but if your mining and making some on the trading its at least covering the electric worst case scenario.
     
    Last edited: Nov 3, 2018
  15. Kaka

    Wise Guy

    Joined: May 11, 2004

    Posts: 1,329

    Location: Curitiba

    I disagree, it isn't easier to gauge since you've introduced another step in the exchange process. You now need to track not just the trading pair between BTC/GBP (or other FIAT) but also your Alt coin/BTC. Eventually you will need to cash out.

    This only changes for me if BTC is widely adopted and truly becomes a FIAT replacement.
     
  16. MoRT489

    Soldato

    Joined: Aug 21, 2006

    Posts: 6,620

    But if you’re comparing to FIAT you could see a winning trade as a loss e.g. you’re trading ALT vs BTC you can significantly increase your value in BTC terms but the GBP value could be down on what it was before the trade (because e.g. the whole crypto market is down) - but that’s totally irrelevant to the trade you are making as neither the ALT nor the BTC is tied to the GBP for the trade your are making.

    It’s a good idea to keep an eye on the FIAT you will at some point cash out to, but until you’re ready to cash out it is mostly irrelevant. I say mostly because at some point the GBP cash value will be too high or too low to ignore and cash in your chips.
     
  17. 413x

    Capodecina

    Joined: Jan 13, 2010

    Posts: 16,381

    Location: Cardiff

    You could make all the good trades in the world and end up with so much BTC. But if you haven't been keeping an eye on it it is overall a bad trade.


    As above, if BTC became a fiat alternative that would be different
     
  18. 413x

    Capodecina

    Joined: Jan 13, 2010

    Posts: 16,381

    Location: Cardiff

    As I always know how much "BTC" I have I always know how much BTC I have. At any time I need to know when to cash out. As BTC can do double digit day on day, I feel I can't not know it
     
  19. MoRT489

    Soldato

    Joined: Aug 21, 2006

    Posts: 6,620

    That doesn't make your ALT/BTC a bad trade, it just means you might have missed your exit point back to FIAT.
     
  20. uncle_rufus

    Mobster

    Joined: Mar 14, 2011

    Posts: 3,842

    The only legitimate argument for thinking of every alt/BTC trade in terms of FIAT would be if you do immediately cash out after making each trade (i.e. you trade your alt coin back into BTC and then sell back to FIAT right away)... In theory doing that there might be a few situations where you can profit in FIAT whilst technically not profiting in terms of BTC, but it's both riskier and harder to work out