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Email this4:57 pm
April 6, 2013
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savemoresaveoften said
… But isnt true the ONLY key is the "physical" key thats on some type of physical device ? Its not like someone can just "write' it down and be able to access their coins on ANY computer ? …
A Bitcoin private key is a 256-bit ECDSA key. It is just a big 256-bit number. The key/number can be printed, written down, or memorized.
It would look something like this in hexadecimal format:
1E99423A4ED27608A15A2616A2B0E9E52CED330AC530EDCC32C8FFC6A526AEDD
There's no tie to any physical device.
5:12 pm
January 10, 2017
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No, they won't. Cryptocurrencies have lots of undesirable issues as the result of trying to solve problems most people don't have.
Bank of Canada has actually been looking at digital cash, not a cryptocurrency, in case one day, people want the Bank of Canada to directly provide digital Canadian dollars. Don't need a blockchain. Just an account with the Bank of Canada.
In the old days we all went to a physical bank, it worked fine, but now we mostly bank online for speed and convenience, amongst other reasons. Cryptocurrency offers similarly improved benefits if done right.
Do you have a reference to say the BoC research into Digital cash does not include looking into cryptocurrency....or are you assuming it?
5:24 pm
January 10, 2017
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There's no tie to any physical device.
If a person decides to hold a 'cold' crypto wallet, it definitely is tied to a physical device, piece of paper or whatever. If you lose or break the device/paper, say goodbye to all of your cryptocurrency. It is actually worse than gold in this form. At least if you lose your gold someone can benefit by finding it. With cryptocurrency on a cold wallet, if the key is lost no one will ever see it again. This is a big problem with cryptocurrency. In fact, it is estimated a fair percentage of Bitcoin has already been permanently lost as noted below
"Estimates suggest that around 6 million BTC, or 30% of Bitcoin's supply, have been irretrievably lost."
10:48 am
April 6, 2013
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Lodown said
If a person decides to hold a 'cold' crypto wallet, it definitely is tied to a physical device, piece of paper or whatever. If you lose or break the device/paper, say goodbye to all of your cryptocurrency.…
A Bitcoin private key is just a 256-bit number. There's no tie to a physical device or paper.
One can print mulitple copies. Store one copy in a safety deposit. Another copy in a filing cabinet at home. A third in a locked box at the cottage. Any of the three copies is equally good.
Cold storage of a key just means the key is not accessible by a computer without human intervention. Could be stored on a USB stick in a desk drawer that someone needs to physically retrieve and insert into a computer. Cold storage doesn't mean there's only one copy.
Bank of Canada: Digital Canadian Dollar describes what Bank of Canada is looking at. One doesn't need to use a cryptocurrency to have a digital currency. That's just hype from fintechs that have a blockchain solution to sell and are now looking for a real problem for their solution to solve.
1:00 pm
November 18, 2017
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mordko:
I think governments still pose a major risk. Its harder for them to act the longer crypto is in circulation; governments would effectively “rob” bitcoin holders even though buying was completely legal.
Well, Bitcoin-style cryptocurrency is not illegal, but it's not explicitly legal either. I don't think there's any restriction on what any country's legislators might try to do.
RetirEd
6:15 am
May 9, 2020
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Figured I'd comment here before I made a new post.
Much like most or all of you here, I'm skeptical of Bitcoin and crypto at large. I'm young and have some funds, and want to bet against it long-term, possibly some amount short-term as well given that it is at an all time high.
I would be doing so within a Questrade TFSA account most likely.
Ideally looking for the cheapest (lower fees) and most efficient (most closely tracks Bitcoin's [and/or] cryptocurrencies' prices).
Would the answer be a Put Option?
*Going to due my due diligence before investing of course. Regardless, I'm willing to lose all I invest against this obviously given how risky and volatile it is.
Cheers!
6:25 am
April 27, 2017
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finance trance said
Figured I'd comment here before I made a new post.Much like most or all of you here, I'm skeptical of Bitcoin and crypto at large. I'm young and have some funds, and want to bet against it long-term, possibly some amount short-term as well given that it is at an all time high.
I would be doing so within a Questrade TFSA account most likely.
Ideally looking for the cheapest (lower fees) and most efficient (most closely tracks Bitcoin's [and/or] cryptocurrencies' prices).
Would the answer be a Put Option?
*Going to due my due diligence before investing of course. Regardless, I'm willing to lose all I invest against this obviously given how risky and volatile it is.
Cheers!
Different ways of shorting assets but buying a put option is the safest. I really wouldn’t because I don’t like betting.
6:39 am
March 30, 2017
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finance trance said
Figured I'd comment here before I made a new post.Much like most or all of you here, I'm skeptical of Bitcoin and crypto at large. I'm young and have some funds, and want to bet against it long-term, possibly some amount short-term as well given that it is at an all time high.
I would be doing so within a Questrade TFSA account most likely.
Ideally looking for the cheapest (lower fees) and most efficient (most closely tracks Bitcoin's [and/or] cryptocurrencies' prices).
Would the answer be a Put Option?
*Going to due my due diligence before investing of course. Regardless, I'm willing to lose all I invest against this obviously given how risky and volatile it is.
Cheers!
Put option requires the least capital and "safest" (basically pay the premium and thats it, ur potential loss is capped) compare to shorting which will requires a high margin in the account, esp for volatile underlying.
As you already point out, its volatile, which means premium on options are also expensive. Time is your enemy when you own options.
Take a look at the prem on options you may be interested in, chances are you will be "vow thats expensive"
8:34 am
May 9, 2020
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savemoresaveoften said
Put option requires the least capital and "safest" (basically pay the premium and thats it, ur potential loss is capped) compare to shorting which will requires a high margin in the account, esp for volatile underlying.
As you already point out, its volatile, which means premium on options are also expensive. Time is your enemy when you own options.
Take a look at the prem on options you may be interested in, chances are you will be "vow thats expensive"
the premium is a one-time fee I'm hoping? I'm researching the available choices, but as you mentioned, if time is the enemy for someone holding put options, and I'm looking to bet against Bitcoin long term, is it a suitable investment?
9:18 am
March 30, 2017
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finance trance said
the premium is a one-time fee I'm hoping? I'm researching the available choices, but as you mentioned, if time is the enemy for someone holding put options, and I'm looking to bet against Bitcoin long term, is it a suitable investment?
Premium is the price you pay for the option. You can choose long or short dated option, and obviously the longer time you have before the option expires, that option is going to cost more, for the same strike price etc.
I suggest you read up and be completely comfortable how an options works etc and then decide.
In the simplest sense, if you own the option, worst case is it expires worthless and your loss is the premium you paid for it. But there are also different trading strategies you can use as condition changes.
6:28 am
May 9, 2020
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thanks! ya I looked quite a long time into it. basically came away more ambivalent than before researching (as it probably should be), but still would invest a small amount.
Looks like can't do anything with crypto on Questrade, unless I did a put against BITO or a crypto/bitcoin ETF... Will look in Wealthsimple, not sure if I can only buy it there though, as opposed to put option.
Any idea what the premium for a put option would be on Bitcoin, say 3 month and 3 year (max I read is available)? Tedious for me to navigate the trading systems and find out myself honestly.
6:36 am
April 27, 2017
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Try TikTok. Thats where you can find all the very best financial info in entertaining formats.
8:19 am
May 9, 2020
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mordko said
Try TikTok. Thats where you can find all the very best financial info in entertaining formats.
haha. I realize I sound lazy in the above question, but Ive spent a lot of time researching these last few days, and actually just not use to the UI of the platforms, + find all the unfamiliar terminology/choices throws me off, even though most of it is unnecessary. These forums are always 100x more helpful and straight to the point, with at least some more credibility than TikTok I'd like to think.
10:07 am
March 30, 2017
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finance trance said
Any idea what the premium for a put option would be on Bitcoin, say 3 month and 3 year (max I read is available)? Tedious for me to navigate the trading systems and find out myself honestly.
This is indeed lazy...
A google search should return the answer in less than a sec, you also learn where to get it next time too.
8:59 am
January 25, 2024
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mordko said
Try TikTok. Thats where you can find all the very best financial info in entertaining formats.
Yes! All those very 'knowledgeable' and 'experienced' influencers and smartalecks are right people to listen and blindly follow. Same as any other advisor on any 'social' platform.
If they are so smart how come they still work 9-5 or even worse creating all that 'content' and not enjoying leisure life at some mansion frolicking in private Olympic pool surrounded by well endowed girls and/or boys?
11:27 am
May 9, 2020
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savemoresaveoften said
This is indeed lazy...
A google search should return the answer in less than a sec, you also learn where to get it next time too.
there's probably a large difference between us here in financial aptitude and familiarity, because a Google search to find the put option premiums for a specific put (on say BITO) did not give me a clear answer. I come away more confused, which is why an approximate number would be helpful.
What might take you very little time takes me much much longer for this reason, and other reasons. It's why places like this forum are very helpful.
12:24 pm
April 27, 2017
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finance trance said
there's probably a large difference between us here in financial aptitude and familiarity, because a Google search to find the put option premiums for a specific put (on say BITO) did not give me a clear answer. I come away more confused, which is why an approximate number would be helpful.
What might take you very little time takes me much much longer for this reason, and other reasons. It's why places like this forum are very helpful.
You do realize that this is a forum called “High Interest Savings”, right? I can’t quite figure out if you are just trolling.
What you are suggesting is a pure bet with odds stacked against you. If you really want to do it, this isn’t the place to get info. Wallstreetbets might work out better if TikTok isn’t your thing.
7:39 pm
March 30, 2017
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finance trance said
there's probably a large difference between us here in financial aptitude and familiarity, because a Google search to find the put option premiums for a specific put (on say BITO) did not give me a clear answer. I come away more confused, which is why an approximate number would be helpful.
What might take you very little time takes me much much longer for this reason, and other reasons. It's why places like this forum are very helpful.
Not sure what "clear answer" you are looking for. But the above search literally takes a few seconds. Not sure what you are confused about.
Based on what you have said so far, options trading is probably not for you.
If you come to this forum and expects to be spoon fed, at least it wont be from me.
10:19 pm
May 9, 2020
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mordko said
You do realize that this is a forum called “High Interest Savings”, right? I can’t quite figure out if you are just trolling.
What you are suggesting is a pure bet with odds stacked against you. If you really want to do it, this isn’t the place to get info. Wallstreetbets might work out better if TikTok isn’t your thing.
I've been here a while and can only suspect you know I'm not trolling, but of course posing that question is an effective way to ridicule and put me down. I asked the question under a thread on crypto/bitcoin, disclosing full well I knew that it is speculation. If you feel it's the wrong place, I apologize. You may ignore it. Your initial answer before was indeed helpful for me.
I try to be tactful in my wording, knowing full well many people get upset by the mere mention of bitcoin or investing that they deem to be stupid or silly. I personally think this mindset is immature, and feeling superior to people on WallStreetBets or TikTok is a waste of time.
Like most here it seems, I access crypto to be worthless, and was curious to explore options against it. It's right I don't know enough to make such an investment, it's why I have been researching and was asking for some clarity here, where I've found it before. If it's not nice, no need to say it! Financial learning and discussion should be welcoming to all.
10:26 pm
May 9, 2020
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savemoresaveoften said
Not sure what "clear answer" you are looking for. But the above search literally takes a few seconds. Not sure what you are confused about.
Based on what you have said so far, options trading is probably not for you.
If you come to this forum and expects to be spoon fed, at least it wont be from me.
same message to you as to mordko.
No where in that page does it show a specific premium number for a specific duration put option, plus any other specific metrics which I don't understand. What may be self-evident to one person, is not to others.
It's okay, I've passed on trying a put option anytime soon. You're right it's not something I know enough about, hence why I'm at the stage of learning/asking more knowledgeable folks.
I try to do my best effort to research, and only sometimes ask here when I'm unable to find the answer myself. Again, I worded that initial sentence very poorly (it's not that it's tedious, it's that I couldn't actually find the answer when I tried).
Please write your comments in the forum.