When I see the line go down my heart beats faster.
There are, so it seems, two ways to make money from the market. There are more than two ways, I mean, but here are two of the simplest:
- Trend. Work out where you think the market’s going. Sell what’s in decline and buy what’s in ascent. So, if you think bitcoins will be worth more in a month than they are now, buy them now and sell in a month.
- Volatility. Work out where the market is oscillating between. Ensure the difference covers your transaction fees, and then buy and sell at those points. So if bitcoins are jumping between 92 and 87, buy at 87 and sell at 92.
But, you’re probably wondering, what does this have to do with us?
First, let me say one thing: I’m convinced that the exchanges are the end of civilisation. Well, maybe not the end, but an end. They’re a black hole, a tear in civilisation into which things fall. It could widen and engulf the world, it has almost done so a few times, or it could become stable and merely become a well fenced sinkhole. I believe the only reason we’ve got as far as we have is because the barriers to entry are considerably high—most people can’t get involved, they don’t have enough capital.
I am telling you this because I believe that at the end of the market exchanges is what we’re after. Or, at least, that what I see when the markets tumble off the cliff is the same thing I see when I look into your eyes. The black depth of the unknown, the potential-but-not-yet.*
The knowledge that I have to do something, with no idea what will come it. The risk, and the chance of undreamt rewards.
The chart has risen again, hitting a ceiling at 90. I have put an ask in at 92.15. It’s just broken 90. If it gets filled, I will put in a bid at 87. We’ll take it from there.