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Let's talk about cryptocurrency…

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  • The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4637
    Joined: 05/13/2011

    That looks like something PoF would drink.

    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

    #53174 Reply
    Liked by adventure
    EJ at Dads, Dollars, and Debts EJ at Dads, Dollars, and Debts 
    Participant
    Status: Physician
    Posts: 229
    Joined: 12/01/2016

    Always seemed like funny money to me. But I guess if you have money to play with, then you could drop 5 or 10K a year on such prospects. If you don’t have funny money, then you better stay clear.

    - EJ @ DollarsandDebts.com

    Cardiologist. Trying to help dads with personal finance so they can focus on the frest of life. Blogger at DollarsandDebts.com

    #54564 Reply
    CM CM 
    Participant
    Status: Physician
    Posts: 1210
    Joined: 01/14/2017
    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.

    Click to expand…

    Confession: I just spent $2 on the next winning Powerball ticket.  😀

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

    #58514 Reply
    Liked by Zaphod, hatton1
    Avatar G 
    Participant
    Status: Physician, Small Business Owner
    Posts: 1905
    Joined: 01/08/2016

    Just netflixed “Banking on Bitcoin.”  Educational and entertaining, but I still don’t understand how virtual currency works.

    Not gonna lie, I wish I had bought some bitcoin back in the day.

    Then again, I also wish I hadn’t cashed out SBUX and AMZN in 2007 to buy some of that hot new pharma company that no longer exists.

    #58529 Reply
    Liked by Craigy
    CM CM 
    Participant
    Status: Physician
    Posts: 1210
    Joined: 01/14/2017

    Confession: I just spent $2 on the next winning Powerball ticket.

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

    #58531 Reply
    Liked by Zaphod, adventure
    MDHubby MDHubby 
    Participant
    Status: Spouse
    Posts: 17
    Joined: 08/23/2017

    Bitcoin and other cryptocurrencies are fascinating to me (my education is in Software Engineering).

    I started following it seriously back in about 2012. I remember bitcoins being a few hundred bucks thinking that was ridiculous considering how “underground” it was. The average person would have no idea what a bitcoin was, yet this little string of numbers could be worth hundreds of dollars. It really rose to prominence because of its anonymity and appeal to those who don’t want people seeing their finances (read: Dark Web).

    Mining for bitcoin, even at that point, was a losing effort. I got into some smaller cryptos for fun where I would mine for Dogecoin, a sort of parody crypto that withstood the test of time (there have been hundreds of failed cryptos). After a couple years I kind of got out of it… 1000 dogecoin translated to about $.12, and there was no hope in sight for any significant rises. We did manage to fund the Jamaican bobsled team in 2014 and sponsor a NASCAR team, which was fun.

    I recently looked up the price of Doge and realized I actually had a few hundred dollars worth sitting on one of my old phones. I can certainly see the appeal of making a quick buck on these types of things but don’t be fooled: there are people who devote their life to playing this market. It is constantly manipulated and can be wildly volatile. Even with a solid understanding of hashing, blockchains, and mining, I avoid putting anything besides “fun” money in it.

    Just $.02 (or 11.5 doge) from a computer nerd.

    #61770 Reply
    Craigy Craigy 
    Participant
    Status: Spouse
    Posts: 2111
    Joined: 09/16/2016

    Bitcoin and other cryptocurrencies are fascinating to me (my education is in Software Engineering).

    I started following it seriously back in about 2012. I remember bitcoins being a few hundred bucks thinking that was ridiculous considering how “underground” it was. The average person would have no idea what a bitcoin was, yet this little string of numbers could be worth hundreds of dollars. It really rose to prominence because of its anonymity and appeal to those who don’t want people seeing their finances (read: Dark Web).

    Mining for bitcoin, even at that point, was a losing effort. I got into some smaller cryptos for fun where I would mine for Dogecoin, a sort of parody crypto that withstood the test of time (there have been hundreds of failed cryptos). After a couple years I kind of got out of it… 1000 dogecoin translated to about $.12, and there was no hope in sight for any significant rises. We did manage to fund the Jamaican bobsled team in 2014 and sponsor a NASCAR team, which was fun.

    I recently looked up the price of Doge and realized I actually had a few hundred dollars worth sitting on one of my old phones. I can certainly see the appeal of making a quick buck on these types of things but don’t be fooled: there are people who devote their life to playing this market. It is constantly manipulated and can be wildly volatile. Even with a solid understanding of hashing, blockchains, and mining, I avoid putting anything besides “fun” money in it.

    Just $.02 (or 11.5 doge) from a computer nerd.

    Click to expand…

    I actually mined some dogecoin a couple years ago myself.  Not sure what happened to it.   😆

    That’s the thing, this coin market is, by definition, completely artificial, and it swings wildly at the hands of a small population of people dedicated to manipulating the market.

    As long as there are individuals out there excited by the prospect of big returns, the coins will stay alive. But without the constant infusion of new, uneducated money, hard to see a future…

    LEVEL 1 WCI FORUM MEMBER.

    #61938 Reply
    MDHubby MDHubby 
    Participant
    Status: Spouse
    Posts: 17
    Joined: 08/23/2017

    Bitcoin and other cryptocurrencies are fascinating to me (my education is in Software Engineering).

    I started following it seriously back in about 2012. I remember bitcoins being a few hundred bucks thinking that was ridiculous considering how “underground” it was. The average person would have no idea what a bitcoin was, yet this little string of numbers could be worth hundreds of dollars. It really rose to prominence because of its anonymity and appeal to those who don’t want people seeing their finances (read: Dark Web).

    Mining for bitcoin, even at that point, was a losing effort. I got into some smaller cryptos for fun where I would mine for Dogecoin, a sort of parody crypto that withstood the test of time (there have been hundreds of failed cryptos). After a couple years I kind of got out of it… 1000 dogecoin translated to about $.12, and there was no hope in sight for any significant rises. We did manage to fund the Jamaican bobsled team in 2014 and sponsor a NASCAR team, which was fun.

    I recently looked up the price of Doge and realized I actually had a few hundred dollars worth sitting on one of my old phones. I can certainly see the appeal of making a quick buck on these types of things but don’t be fooled: there are people who devote their life to playing this market. It is constantly manipulated and can be wildly volatile. Even with a solid understanding of hashing, blockchains, and mining, I avoid putting anything besides “fun” money in it.

    Just $.02 (or 11.5 doge) from a computer nerd.

    Click to expand…

    I actually mined some dogecoin a couple years ago myself.  Not sure what happened to it.

    That’s the thing, this coin market is, by definition, completely artificial, and it swings wildly at the hands of a small population of people dedicated to manipulating the market.

    As long as there are individuals out there excited by the prospect of big returns, the coins will stay alive. But without the constant infusion of new, uneducated money, hard to see a future…

    Click to expand…

    The thing with cryptocurrencies is that although they are a (albeit risky) investment mechanism, they are also just a form of currency. In fact they are currencies with significant upsides compared to traditional currency. I think bitcoin has its place as an instant, anonymous, and safe form of transacting “cash” for goods and services. In this regard, I think it is bound to stick around. In fact, with economic turmoil in world markets, I imagine many will turn to cryptos as a way of safely transacting internationally.

    #61944 Reply
    Liked by Craigy
    Avatar ITEngineer 
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    Joined: 05/09/2017

    Don’t forget the downsides. You can lose value overnight (when was the last time the US Dollar lost 20% of it’s value in one day?) Ethereum got hacked. Bitcoin is in a civil war due to transaction speed. It’s not all sunshine and rainbows.

    #61947 Reply
    Liked by Craigy
    Craigy Craigy 
    Participant
    Status: Spouse
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    Joined: 09/16/2016

    That’s the thing, arguably bitcoin et al are no more of an artifice than is the US dollar.  “In God We Trust” is no more backed by any physical object than your cryptocurrencies.

    I don’t know if I’d go as far as saying bitcoin is a safe form of transacting cash, if anything it’s more prone to fraud, but it’s definitely more anonymous by its nature.

    LEVEL 1 WCI FORUM MEMBER.

    #61967 Reply
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6339
    Joined: 01/12/2016

    That’s the thing, arguably bitcoin et al are no more of an artifice than is the US dollar.  “In God We Trust” is no more backed by any physical object than your cryptocurrencies.

    I don’t know if I’d go as far as saying bitcoin is a safe form of transacting cash, if anything it’s more prone to fraud, but it’s definitely more anonymous by its nature.

    Click to expand…

    The USD is backed by the “full faith and credit” of the US. That means the productivity of the wealthiest country on earth with one of the largest nuclear arsenals amassed. It is most definitely backed by something physical.

    That cryptos have such volatility make them terrible currencies.

    #61987 Reply
    Liked by nfldoc, Craigy, hatton1
    Ways To Build Wealth Ways To Build Wealth 
    Participant
    Status: Student
    Posts: 14
    Joined: 06/07/2017

    It’s interesting this thread started as I literally watched this the other day. I wonder what will happen when all of the bitcoins are in digital circulation. How close is that to happening and when it does will everything fall apart or will its value become stable.

    27 year old podiatry student, father and personal finance blogger at
    waystobuildwealth.com

    #62076 Reply
    Craigy Craigy 
    Participant
    Status: Spouse
    Posts: 2111
    Joined: 09/16/2016

    That’s the thing, arguably bitcoin et al are no more of an artifice than is the US dollar.  “In God We Trust” is no more backed by any physical object than your cryptocurrencies.

    I don’t know if I’d go as far as saying bitcoin is a safe form of transacting cash, if anything it’s more prone to fraud, but it’s definitely more anonymous by its nature.

    Click to expand…

    The USD is backed by the “full faith and credit” of the US. That means the productivity of the wealthiest country on earth with one of the largest nuclear arsenals amassed. It is most definitely backed by something physical.

    That cryptos have such volatility make them terrible currencies.

    Click to expand…

    It’s a fiat. There’s no getting around that.  You can’t go and swap them out for a portion of the nuclear arsenal.

    USD etc. only has value because the public agrees to give it value.  Obviously the public who agrees to give the USD value is tremendously larger and stronger than the amount of people who agree to give bitcoin value, and thus its stability.  Arguably the only thing that separates bitcoin from the dollar is the amount of people who buy into it– the same can be said for bitcoin vs dogecoin or preferring monopoly money vs zimbabwe dollars.

     

     

    LEVEL 1 WCI FORUM MEMBER.

    #62090 Reply
    Avatar hightower 
    Participant
    Status: Physician
    Posts: 1501
    Joined: 12/07/2016

    Only thing I know about bit coin is that I don’t understand it at all.  I know that my brother in law bought a small bitcoin miner a long time ago when it could actually mine enough to justify the electricity it uses.  I have ZERO idea how the hell those little machines work though.  It’s subjects like these that really humble me.

    #62158 Reply
    Liked by Zaphod
    Avatar Raddoc123 
    Participant
    Status: Physician
    Posts: 109
    Joined: 07/03/2016

    I’ve been a buy and hold 3 fund indexer for 10 years.  I became intrigued by cryptocurrencies recently after doing some research and made a small investment (about .5% of portfolio).    I realize that the idea may fall flat on its face as there are issues with scale and governments are certainly going to intervene at some point.  But the idea is compelling and has a chance of being revolutionary.  What would people think of the internet, personal computers, index funds in the 60s?  We have exposure to most industries through our index funds but little to digital currencies.    I did some research and am using coinbase and a vault within coinbase for extra protection.  I am fully ready for bitcoin and etherium to go to 0, but I believe there is a chance that we are seeing the internet of the finance world being born.

    #62168 Reply

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