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Let's talk about cryptocurrency…

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  • TheHappyPhilosopher TheHappyPhilosopher 
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    I recently listened to this podcast regarding cryptocurrency. It was pretty fascinating and I’m still not sure i completely understand it, but it seems like it has the potential to be a very disruptive technology in the banking and financial services industries. I’m curious if anyone either invests in or uses cryptocurrency (Bitcoin, Ethereum, etc) with any regularity. Will this remain on the fringe or will there be a tipping point in the near future? Random, I know…

    #52951 Reply
    Zaphod Zaphod 
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    Do not know anything other than I do not understand it at all. I have been following it from a distance for years, and more closely this year. Its obviously a bubble right now and have been tempted at times to put a small amount in and see where irrationality takes it (that was over 2000% ago, just a couple months), but I havent had a lot of luck when researching exchanges and feeling like there is a trustworthy source.

    Its definitely an ineficient market with a lot of naive participants, which are excellent traits to have in a market (sounds terrible but true). Someone put a huge trade on some exchange selling 2 million or so Ethereum and given all the margin (lol!) and basic stop losses the price cratered to 0.10 from over 300 in an 8s period.

    As far as the tech goes, it will probably be useful in the future for something once institutionalized. As far as cryptocurrencies go, the whole idea is ridiculous and typical bubble narrative and holds no water. All the supposed reasons why it makes sense are self defeating and others irrelevant, ie, limited supply of a type of coins but unlimited types of coins, store of value yet volatility through the roof?

    Clear speculative fever, and theres nothing wrong with identifying a bubble and putting a lottery ticket in, but you must separate whats really going on and make sure you are equally as happy burning that money as the expected value should be zero.

    #52952 Reply
    CordMcNally CordMcNally 
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    I don’t invest in things that I don’t understand so I’m on the sidelines. I’m not entirely sure a lot of people who say they understand it truly understand it. It’s fun to occasionally keep an eye on it to see what it does. I’ve thought about putting a few thousand into it and calling it the equivalent of putting that money on double zero in roulette but I don’t think I really trust any of the exchanges at this point. Besides, at least I’d get a free drink at the casino.

     

    PS: Zaphod: that was your post #1776. Fitting!

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #52955 Reply
    CM CM 
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    There is no way to value a bitcoin, and so, no way to invest.

    As Zaphod writes, you can view it as a lottery ticket. Whatever you’re willing to blow on lottery tickets, you might sink into bitcoin. For me, that would top out at maybe $2 every other year or so.

    Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried bags for Cyd Charisse (gracious). Hosted epic company parties after Friday night rehearsals.

    #52956 Reply
    hatton1 hatton1 
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    Even Crixus does not like bitcoin.

    Avatar rdo 
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    It’s the virtual currency that surfaced on the Internet in 2009.

    Although at the time, I don’t think anyone had any idea how revolutionary it would become.

    When Bitcoin started trading in April 2010, it was only worth $0.003.

    Yup, that’s 3 one thousandths of a dollar.

    Where’s the price of one Bitcoin now?

    It’s been bouncing around $2,000 to $3,000 this year.

    Can you imagine if you bought $10,000 worth of Bitcoin at the $0.08 price in July 2010?

    It would be worth over $250 million today.

    A guy named Laszio Hanyecz made the first real-world purchase with Bitcoin at a restaurant in Jacksonville, Florida in May 2010.

    He bought 2 pizzas for 10,000 Bitcoin.

    At today’s prices, that’s over $20 million….for 2 pizzas!

    They must’ve had some incredible toppings.

    Zaphod Zaphod 
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    It’s the virtual currency that surfaced on the Internet in 2009.

    Although at the time, I don’t think anyone had any idea how revolutionary it would become.

    When Bitcoin started trading in April 2010, it was only worth $0.003.

    Yup, that’s 3 one thousandths of a dollar.

    Where’s the price of one Bitcoin now?

    It’s been bouncing around $2,000 to $3,000 this year.

    Can you imagine if you bought $10,000 worth of Bitcoin at the $0.08 price in July 2010?

    It would be worth over $250 million today.

    A guy named Laszio Hanyecz made the first real-world purchase with Bitcoin at a restaurant in Jacksonville, Florida in May 2010.

    He bought 2 pizzas for 10,000 Bitcoin.

    At today’s prices, that’s over $20 million….for 2 pizzas!

    They must’ve had some incredible toppings.

    Click to expand…

    This is a great example of why it will never be a viable currency, who will spend it if they think its value will rise or fall dramatically? A core tenet of a good currency is a consistent value.

    Agree they are problems looking for solutions, and then they are settled in USD, which is the most hilarious part of it all. The amount of fraud going on in this space is absolutely insane, all these new coins coming online to 10-100s of millions on what is called an ICO, ugh, its nutty.

    The technology may be useful in some aspect that is not terribly obvious or related to currency at all, but again, I’ve read several articles and can probably recite verbatim how they supposedly work per standard articles, but its straight up meaningless gibberish to me. Its been a terribly humbling process, I just am not very tech saavy as to how things work on a code level. That makes it dangerous for anyone who doesnt I’d assume as well, how would you be able to tell bs from reality? I know I couldnt, I dont have the foggiest.

    #53013 Reply
    Liked by RocDoc, Craigy
    The White Coat Investor The White Coat Investor 
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    Wow. Thought Crixus would be all over that. Mostly because he seems to like most investments I dislike.

    Not big on investing in any currency, much less a cryptocurrency. The only reason they’re getting any attention at all are the crazy good returns the last little bit.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #53015 Reply
    Liked by RocDoc
    Avatar davidfranklin65 
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    I’ll fess up that I put a few bucks into this, but such a small amount that if it blew into the wind, I wouldn’t miss it.   Here’s my Facebook post/confession on this, which I think sums it up pretty well:

    FB Post:  Bitcoin/Ethereum – just invested a really tiny amount in each (what I can afford to throw into the wind). History will tell if I’m an idiot or a among the other geniuses who got into this.

    #53099 Reply
    Craigy Craigy 
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    Currency has to be, by definition, in circulation, something that flows through the marketplace.  It seems like the only people who actually spend bitcoin or transact affairs using bitcoin are either people who have made a fortune speculating on bitcoin and trying to cash out (and often trying to evade taxes in the process) or criminals using it for anonymity.

    If you leave out those just cashing out, it’s only a true currency among criminals.  Other than that, it’s purely a speculative device, which should seemingly have it inevitably go the way of the tulip bulb or beanie baby.

     

    LEVEL 1 WCI FORUM MEMBER.

    #53111 Reply
    Craigy Craigy 
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    It’s the virtual currency that surfaced on the Internet in 2009.

    Although at the time, I don’t think anyone had any idea how revolutionary it would become.

    When Bitcoin started trading in April 2010, it was only worth $0.003.

    Yup, that’s 3 one thousandths of a dollar.

    Where’s the price of one Bitcoin now?

    It’s been bouncing around $2,000 to $3,000 this year.

    Can you imagine if you bought $10,000 worth of Bitcoin at the $0.08 price in July 2010?

    It would be worth over $250 million today.

    A guy named Laszio Hanyecz made the first real-world purchase with Bitcoin at a restaurant in Jacksonville, Florida in May 2010.

    He bought 2 pizzas for 10,000 Bitcoin.

    At today’s prices, that’s over $20 million….for 2 pizzas!

    They must’ve had some incredible toppings.

    Click to expand…

    If you had tried to buy $10k worth of bitcoin in 2010, you probably would have moved the entire bitcoin market with your purchase.

    If that guy never bought his pizzas for 10,000 bitcoin, in addition to the other silly examples of the time, bitcoin never would have been popular enough to have any value.

    LEVEL 1 WCI FORUM MEMBER.

    #53113 Reply
    Avatar StuRedman 
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    I have some fun money in btc and eth.  Dumb?  Probably, but who knows.  If it takes off yay, if not no worries.  Make sure to secure your coins in a wallet that isn’t on an exchange.  Hardware or paper is probably best.  I use a Trezor.

    #53142 Reply
    Zaphod Zaphod 
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    I have some fun money in btc and eth.  Dumb?  Probably, but who knows.  If it takes off yay, if not no worries.  Make sure to secure your coins in a wallet that isn’t on an exchange.  Hardware or paper is probably best.  I use a Trezor.

    Click to expand…

    I wouldnt mind putting some funny money in every now and then, of course its up over 1000% since I first considered it now. Then I remember Im already doing risky trading as it is, and dont know which exchange is trustworthy, etc..

    Who do you use?

    #53149 Reply
    Avatar adventure 
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    Wow. Thought Crixus would be all over that. Mostly because he seems to like most investments I dislike.

    Not big on investing in any currency, much less a cryptocurrency. The only reason they’re getting any attention at all are the crazy good returns the last little bit.

    Click to expand…

    But does @Crixus like this? Would you?

     

     

    #53150 Reply
    Liked by CM
    Avatar StuRedman 
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    Status: Physician
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    Joined: 01/09/2016

    I started with circle, which stopped trading USD for btc.  I am using coinbase now which is associated with GDAX.  No problems with them thus far for me, they have had some questionable outages when prices move fast, but I am not day trading so it doesn’t bother me.  I have enjoyed learning about the tech and the gains are fun too…

    #53158 Reply

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