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Crypto Currency

Established Member

Re: Crypto Currency

I have a small (but recently moderatly impressive) amount of crypto. I'm cautiosly optimistic about it. I think right now is kind of late in the game to get into it, but I thought the same thing when I bought in several years ago just to see what all the rage was about. Fun fact: the free $10 referral btc I got from coinbase when I signed up is now worth several hundred dollars. At this point, I'm content to just hodl and see what happens. It might pay off my house someday or it might go down to nothing. Either way, for the few hundred bucks I have into it, it's been worth that in entertainment value alone over the years.

Message 31 of 64
Frequent Contributor

Re: Crypto Currency

I would say to apply similar investment strategies from the real world into crypto if you want to get into it.  Don't invest your entire life savings, diversify your portfolio, assess the risks that you are comfortable with based on the amount invested, age, income, etc.  Certainly, don't invest more money than you are willing to lose in case it all does go belly up.

 

That being said... my e*trade portfolio is up about 22% this past year.  My crypto portfolio is up about 2,500%.... so would I say stay away from crypto? NO WAY!!  At this point, I can cash out my initial investment in crypto and just leave the profits there so that if everything were to go belly up I would not have actually lost any of "my" money!


BK 7 Scores (12/2016): EQ-528. TU-486. EX-530.
Current Scores (11/2017): EQ-671. TU-665. EX-669.
Goal for 2017: 650's. - made it!! next stop 680's. www.cartkingz.com
Message 32 of 64
Regular Contributor

Re: Crypto Currency

26197848_2078176795802158_1400786115355360363_o-1.jpg

 

 

 



My credit .... It's over 9,000!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Message 33 of 64
Regular Contributor

Re: Crypto Currency

I think crypto is too risky. I'd rather buy stocks. the market has been great, cause I use Robinhood free stock app, I've saved over 6k the year before and almost 5k last year in commissions. That's an additional 11k that I put in market because of no fees. therefore, I think the potential return is greater
using Robinhood and less risk than fake currencies.
Robinhood will be starting free options trading in the next several weeks, than I think I will be buy some "put" options and catch crypto on the way back down to earth.
meanwhile Robinhood imo is a better option. <mod edit - sorry, that can't be promoted here>

my brother and his kid are heavy into bit coin, that scares the cap out of me, but there making money...

Current Scores as of 8/18/17 all FICO 8 EQ: 695 EX: 673 *fico2 699 TU:645 bio has more.
Message 34 of 64
Community Leader
Super Contributor

Re: Crypto Currency

I don't have a dog in this race.  But since the folks on this thread are interested in it, I felt like I should pass along a brief but fascinating piece I just saw on the huge gender gap in crypto investors:

 

http://www.cbc.ca/news/business/bitcoin-s-gender-divide-could-be-a-bad-sign-experts-say-1.4458884

Message 35 of 64
Valued Contributor

Re: Crypto Currency


CapCredit72 wrote:

From my observation Bitcoin is genuine however right now it's more of a pump and dump scheme tread carefully.


Bitcoin isn't genuine.  Their system can't scale. Bad technology.  The more value people associate it with it the more of the world electricity is used.  Bitcoin has no value.  People are manipulating the buy and sell prices. Most people dont' even use bitcoin they just buy and sell on an exchange.  Less and less places are accepting it for payment as it is slow and transaction fees are so high.  Some people will make money but the people holding the bag at the end will end up with nothing. 

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Message 36 of 64
Valued Contributor

Re: Crypto Currency


wa3more wrote:

invest in bitcoin  ? an oxymoron. It you want to speculate with 5% of your money, go ahead. But expect to get a low or no return.

 

How do you value bitcoin ?? There is your answer.


It has no value. It is just as overpriced at a penny as at 15000 dollars.  

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Message 37 of 64
Regular Contributor

Re: Crypto Currency

Is there an echo in here, or a parrot?


My credit .... It's over 9,000!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Message 38 of 64
Valued Contributor

Re: Crypto Currency


Shenron wrote:
Isn't the spade change every six months? Its not often.

Idk I don't take disagreement about this personally, I just can't relate to "its not worth the paper its printed on" and such comments which add nothing but negativity.

If people think its a bubble or bad investment fine, maybe it is. But I take issue with those saying it has no value, isn't backed by anything, etc.

I disagree but as I said earlier in the thread I'm not invested in crypto or anything else, just reading.

I appreciate every point of view. Just tying to make mine understood: the cryptocoin technology has tremendous value to a lot of people and even tough btc is inflated today, that doesn't make it worthless.

The dollar is backed by faith and credit in the FRS. Lol 😂


How do you determine Bitcoin price is inflated?  It has no intrinsic value so if you believe it has value how do you determine what's its value is?  It doesn't even work as a currency.  People aren't using it as a currency.  They are speculating that its value will go up.  Even if you believe crypto currency has value Bitcoin wouldn't be the one.  It is limited to one block every ten minutes and a block has around 4000 transactions.  There is no way it will be successful in its current form and the developers who are allowed to commit changes do not want to fix the problems.  

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Message 39 of 64
Valued Contributor

Re: Crypto Currency


SBR249 wrote:

To say categorically that cryptocurrency is not backed by anything is not entirely or technically true. 

 

The way that I understand it is that crytocurrency is backed by the processing effort expended on the part of those who originally mined each unit. Now that may sound a bit like nonsense but it does make sense on a certain level. Think of it this way, why is gold so valuable? Its industrial and practical applications account for only a tiny proportion of its value as an asset. The reason is that it's rare. But if you think about it, gold actually isn't rare. Trace amounts of it is common. But what makes gold rare is the fact that to recover or mine gold even from "economically viable" deposits takes an enormous amount of investment and capital and thus while the total amount of gold in nature may be high, the feasibility of obtaining it is low and thus gold is rare. The same principle can be broadly applied to crytocurrency, it is backed by the fact that in order to mine it, a certain amount of processing power is required and that amount increases over time per unit mined. No one can come along and take a shortcut and obtain crytocurrency without someone somewhere expending the requisite processing power. Thus, crytocurrency has a scarcity factor to it that is very similar to precious metals. As for its utility, I would argue that while there may be few tangible applications of cryptocurrency, they (and the technology that underpins them) actually has a lot of potential for many real-world applications. But again, like precious metals, the value of crytocurrency does not lie in its application but rather its scarcity. As long as people think its valuable, it will be. In the same way, as long as people think gold is valuable it is. Otherwise its simply a metal with certain useful but niche applications for which annual production far outstrips demand from those applications. 

 

I will also add that to say that fiat currencies derive their value from legal tender legislation is a very simplistic way of looking at it. Sure, the dollar is backed by the full faith and credit of the US government and $1 is worth $1. But what does that mean? What does $1 get me? The answer is that true value is determined by the market as it does all floating currencies. $1 could get me a loaf of bread one day and a car the next, if the markets say so. So in reality, the value of the dollar is also based on what people assign to it which is based on how people view the health of a nation's economy for instance, or how stable they think the government is. 


Gold does have some intrinsic value.  But funny you bring it up as the U.S. Government banned private ownership of gold for around 40 years ending in the mid 1970's.  They capped the price at 35 dollars during these years. Very possible for the government to ban crypto currencies as well.

 

Inflation at low levels is a good thing.   If the value of currency went up went up all the time there would be no incentive for people to invest in businesses.  No reason to lend out money.  

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Message 40 of 64