Good news keep coming: Bitcoin plunges below $24,000 | Page 7 | Investing | Discussion forum

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?

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.

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!

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"

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.

Try TikTok. Thats where you can find all the very best financial info in entertaining formats.

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.

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.

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.

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).