Crypto currency. Anyone else giving it a go?

Nick70

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Apr 20, 2016
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i bought a bunch of litecoin recently. Also, 2/10 of a bitcoin.
I'm starting to look at some of the other 'alt coins' too. I know it's volatile but, there is a lot of money being made. And it really looks like crypto is here to stay.
Thoughts?
 
Never have understood why you would do it. What is it based on? What is backing it?
 
Been in it for a while, both buying a mining. While you're right and there is (a lot) of money to be made, do yourself a favor and read about the underlying technology. In my opinion the blockchain has the potential to make a large impact in the way we do things in the future

There is a decent doc on netflix called "Banking on Bitcoin" that explains the blockchain. The rest of it goes into the history of btc and other crypto currencies, if you're interested in that as well
 
On the sidelines on this. Many times I've been told if you cant explain why a financial instrument goes up or down, stay clear of it. So for now, I'm out
 
I’m a fairly aggressive investor but this craze is too risky for me so I’m steering clear. I’m sure that lots of people will make a lot of money with it but I suspect even more will lose.
Timing the market for more traditional investments rarely works out for the average individual investor, think back to all the day traders of the late nineties who lost their shirts, I suspect that trying to time the bitcoin market might be even harder.
 
The only way you can benefit is if you got in at it's infancy... like my son did when it was worth $10.

I only wish I would've got in when he told me about it 5 years ago. I'll watch it and buy in when the bottom drops out.
 
I am a day trader but have not touched bitcoin. I might throw $100 in it here soon just cause but have in my mind that there is a good chance I will lose that $100. That being said, I will day trade bitcoin related stocks and now options but holding overnight is risky.
 
On the sidelines on this. Many times I've been told if you cant explain why a financial instrument goes up or down, stay clear of it. So for now, I'm out
Amen. Same here. I don't know what it is, how it works or what makes it go up and down. I watched the recent runup and predicted it would be due for a large pull back. The next day it did.

Too volatile for my tastes.
 
I have a buddy setting up to “mine” it... which is rediculius it’s so imaginary... I mean a computer processses data to get small amounts of it... but when asked what the data is, or who is the processed data goes to. They got nothing... I mean it is legitimate worth money and is being g traded but the fact it’s not tangible is odd to me.
 
I have a buddy setting up to “mine” it... which is rediculius it’s so imaginary... I mean a computer processses data to get small amounts of it... but when asked what the data is, or who is the processed data goes to. They got nothing... I mean it is legitimate worth money and is being g traded but the fact it’s not tangible is odd to me.

It's like any currency trading - it's based on the fact that it can be eventually converted back to real goods someplace. When faith in the backer is strong the currency is stable - when faith in the backer is poor it's value crumbles. Right now Bitcoin has a lot of interest and people have faith that when they buy Bitcoin that there will be a market to sell to convert back to real currency.

Long term I believe there are a lot of advantages to crypto-currency - especially when compared to dealing with International Banks for moving money around the world. However, right now there are many reasons why people are buying Bitcoin so there is a strong market for sellers. The problem is if the buyers dry up the value could plummet as people race to cash out when they need the money invested. Think of it like the real estate boom in Florida (and other areas) pre-2008. People were buying properties that they did not want just to flip. When the market for buyers ran out so did the boom and hence the crash.

-Kevin
 
Nope, getting out of stocks and into bonds now, at my age. 5 years to retire. NOPE< NOPE < NOPE
 
I have a buddy setting up to “mine” it... which is rediculius it’s so imaginary... I mean a computer processses data to get small amounts of it... but when asked what the data is, or who is the processed data goes to. They got nothing... I mean it is legitimate worth money and is being g traded but the fact it’s not tangible is odd to me.

Just because it’s a digital asset does not make it imaginary. Fiat currencies can be just as volatile. It’s hard to wrap our heads around it being so new, but if you utilize offline hardware wallets, in some ways you are more secure than letting some bank control your savings. As long as the coin retains value of course.

That being said, BTC has its issues. It is the king at the moment and very visible in the news but high fees and slow transaction times are its Achilles heel. Lightning network and Segwit look to fix those problems, but it’s a race to get them implemented.

There are other cryptos that have the potential to overtake it. Ethereum is right at the top of that list with litecoin close behind. (In my opinion)

Transactional anonymity, the ability to scale globally, and being your own bank are just a few of the many reasons blockchain and crypto technology may be here to stay, whether it’s in the form of btc or not b
 
Nope, getting out of stocks and into bonds now, at my age. 5 years to retire. NOPE< NOPE < NOPE
Not yet! 2018 looks to be another good year. I’m riding the market for a while longer.
 
I will be the first to admit that I know almost nothing about Bitcoin or any crypto-currency or mining or any of the terms that go along with it. I was a financial advisor for years and I would NEVER have suggested to a client that he pursue crypto-currency except with a very small amount of money that, if he lost every cent he would not feel too bad about.

It's like any currency trading - it's based on the fact that it can be eventually converted back to real goods someplace. I wouldn't bet much on that eventuality at this point. And is it really a "fact" that it can be converted, or is that just what everyone wishes/hopes for?

When faith in the backer is strong the currency is stable - when faith in the backer is poor it's value crumbles. Right now Bitcoin has a lot of interest and people have faith that when they buy Bitcoin that there will be a market to sell to convert back to real currency. Hmmmm, I recall hundreds of people in not-too-distance past saying things like "Invest in real estate because it NEVER goes down.

Long term I believe there are a lot of advantages to crypto-currency - especially when compared to dealing with International Banks for moving money around the world. Really? I can ask my bank to wire any amount of money from my account to your account anywhere in the world and it gets done instantly. How much easier can it get than that, and what advantages does crypto-currency have over that ability?


However, right now there are many reasons why people are buying Bitcoin so there is a strong market for sellers. I think the primary reason is called "greed". People see it climbing by leaps and bounds and many are jumping on the bandwagon, never thinking that the bandwagon may soon run out of steam.

The problem is if the buyers dry up the value could plummet as people race to cash out when they need the money invested. BINGO!!!

Think of it like the real estate boom in Florida (and other areas) pre-2008. People were buying properties that they did not want just to flip. When the market for buyers ran out so did the boom and hence the crash. BINGO AGAIN! And what makes one think that this same thing could not happen with Bitcoin. All it takes is a market where there are more sellers than buyers at that particular moment. The first few sellers (relatively speaking) get their selling price. The next few not so much and once the snowball starts rolling down that hill it will only stop when some buyers figure it's cheap to buy Bitcoin at that price and start to step in.

That's what happened within the past week or so. The price started to drop, sellers panicked and tried to dump their Bitcoins and that caused about a 27% drop in the price (IIRC) The price only started to recover when some buyers figured it was cheap and stepped in to start buying. Then there was a flood of buyers and the price rose almost as fast as it had dropped.



-Kevin
 
Not yet! 2018 looks to be another good year. I’m riding the market for a while longer.
He should still do very very well in corporate bonds for the upcoming year.
 
You guys responding to me did not read al my post I am aware it worth real money, and not fake/imaginary.

but the fact that to get it.... not buy it, you mine it... there is only so much out there as it has to be mined... and mining it is imaginary... it’s a datat processing with no goal. No transfer of end user data. Just process this file/ part of a bit coin..... but why? What’s the purpose of data processing with no use of the data.
 
Here is the problem, yes....it's digital money, so yes it can be imaginary (fraud) easily. Anyone who says differently is delusional. There is no "gold standard" to back Bitcoin. Yes, I understand even the US Dollar is technically no longer backed by gold, as we simply have more greenbacks than we have gold to back. The only way I would have ever invested one cent into Bitcoin was at the very beginning, when it was less than $1.00 per coin. People are now mortgaging their paid in full home to buy bitcoin. A fool and their money are soon parted.

Mining, the more that is mined (created), the harder it is to mine. Whoever came up with this idea and was able to sell it off to the world is a genius. Albeit, a very wealthy person, living lavishly. No one can tell you what it is, how it is valued, or if it will ever be a stable (backed) currency. Those who bought it recently thinking it's the next big boom is going to be the next .com and housing market losers.

Here is the best "gotcha" out there. Easy to buy, difficult to sell. They need this snowball to keep growing as to continue collecting those credit card dollars. Mass selling devalues Bitcoin. This should be your first HUGE clue.
 
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In Germany before WWII inflation was extreme. One sees old newsreels of people with wheel barrels full of money to but a loaf of bread. The currency was stabilized by attaching it to a real commodity (Farm land). The new cyber currency does not seems to be attached to anything except the value people have attached to it. When loans are called from people that borrowed to buy it that is when its true value will appear. I do not have any buy at a dollar it was the same price as some lottery tickets.
 

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