BitCoin

castellanosjc

Also why did BitCoin spike so aggressively ?

JaredBusch

Unless you're going to do something like mining coins on a web-site with lots of visitors, mining coins doesn't make much sense at the moment. I did a short write up on the dark side of the subject recently: https://www.travisdh1.net/cryptocurrencymining

Investment wise, Bitcoin itself isn't great at the moment (oh, how I wish I would've kept the 5 I had years ago now!) Litecoin and Monero might be worth considering.

You also do not really know what you are talking about.

There are multiple types of crypto currency that mine in various forms. Monero is an example of one that works like you say, but Bitcoin is one that does not.

You cannot generalize things like this.

But again, mining does not have a damned thing to do with investing.

FFS people.

travisdh1

@castellanosjc said in BitCoin:

Also why did BitCoin spike so aggressively ?

The obvious answer is because that's what people will buy a BitCoin for. As to why people suddenly thought they're worth so much more, I don't know.

scottalanmiller

@castellanosjc said in BitCoin:

Also why did BitCoin spike so aggressively ?

The general population heard about it and did what the general population does. First they create a bubble thinking that money is magic (pyramid scheme mentality) then they panic and cause a crash.

scottalanmiller

@castellanosjc said in BitCoin:

@scottalanmiller
Make sense, but have you "invested" in a cryptocurrency that you have faith will be of some worth down the line. Also what term would you use other that investment?

Heck no, I think it's a crazy market to get into. Sure the potential gains are large, but the risk is enormous and based on nothing.

scottalanmiller

Keep in mind that most currencies are useless today. As in, you can't spend them. Some, like BitCoin, have a few places where you can spend them. Most have nothing you can buy with them (nothing legal, anyway.) And BitCoin is losing, not gaining, places that you can spend it because of the volatility. FOr example, Steam used to take BC but doesn't any longer.

So you risk the "circle jerk" problem of investing with these currencies.... they are closed systems. You put money in to get the currency, you get nothing back - no way to convert back to usable currency. As long as people will invest, you can keep making money, but the moment that they stop there is literally nothing.

It's a currency version of a pyramid scheme in every sense. Only the top tier make anything.

bigbear

@scottalanmiller said in BitCoin:

@castellanosjc said in BitCoin:

@scottalanmiller
Make sense, but have you "invested" in a cryptocurrency that you have faith will be of some worth down the line. Also what term would you use other that investment?

Heck no, I think it's a crazy market to get into. Sure the potential gains are large, but the risk is enormous and based on nothing.

Yeah at this point, even if there is still growth to $100k to $1mm, its still not going to be as rewarding as it is for those who stumbled in early and stuck around.

Blind luck, no one could have predicted it.

StorageNinja

@scottalanmiller said in BitCoin:

Keep in mind that most currencies are useless today. As in, you can't spend them. Some, like BitCoin, have a few places where you can spend them. Most have nothing you can buy with them (nothing legal, anyway.) And BitCoin is losing, not gaining, places that you can spend it because of the volatility. FOr example, Steam used to take BC but doesn't any longer.

So you risk the "circle jerk" problem of investing with these currencies.... they are closed systems. You put money in to get the currency, you get nothing back - no way to convert back to usable currency. As long as people will invest, you can keep making money, but the moment that they stop there is literally nothing.

It's a currency version of a pyramid scheme in every sense. Only the top tier make anything.

I've got (Some) BitCoin. Bought it a year ago (needed a VPN service and some other things, and threw a few hundred in.
My biggest complaints with it are that...

Transaction times/costs are terrible. Lightning MIGHT solve this. Other cryto currencies have.
There are fewer and fewer places you can buy things with it. (I've bought a VPN, and mailed a bag of crap to someone).

My speculative holding (That reaches long-term capital gains tomorrow) is based on its value coming from the following things.

Greater Fool Theory. (Bubbles last a LOT longer than you would think). I even bought some in the dip the other morning and made a cool 15%
Defeating currency controls. Bitcoin Isn't actually as good as other cryptocurrencies out there, but it's the one that money gets brought back thru before it goes to cash. LiteCoin might replace it (because it was designed to not have the transaction/cost issues BitCoin does). With bearer bonds becoming rarer this is a big deal.

Harry Lui

@castellanosjc said in BitCoin:

Also why did BitCoin spike so aggressively ?

People, stupid people that thinks they can make a quick buck. Then stay in it for way too long, and eventually lose their paper money.

In 2000's, we had the housing bubble.
In 1990's, we had the dot com bubble.
In 1980's, we had the Japanese asset price bubble.
In 1970's we had the Gold and Silver bubble.

Now, we have BitCoin/crypto currencies bubbles. Read some finance bubble history before you invest in bubbles.

https://en.wikipedia.org/wiki/Economic_bubble#Asset_Bubbles

Dashrender

@harry-lui said in BitCoin:

@castellanosjc said in BitCoin:

Also why did BitCoin spike so aggressively ?

People, stupid people that thinks they can make a quick buck. Then stay in it for way too long, and eventually lose their paper money.

In 2000's, we had the housing bubble.
In 1990's, we had the dot com bubble.
In 1980's, we had the Japanese asset price bubble.
In 1970's we had the Gold and Silver bubble.

Now, we have BitCoin/crypto currencies bubbles. Read some finance bubble history before you invest in bubbles.

https://en.wikipedia.org/wiki/Economic_bubble#Asset_Bubbles

I don't think the BitCoin bubble will be as bad as any of those.

Harry Lui

@dashrender said in BitCoin:

Gold and Silver bubble.

I would argue the BitCoin Bubble already surpass them in value.

At least property and gold has physical form.
BitCoin is just data...

Baldwin_Cannon

Perhaps, but I've heard this opinion for years)

MasterPiece

Well, you can always go and check some cloud mining services online. There is the website that I use to recieve my data on crypto, you should find it somewhat useful in terms of general overview.

computerchip

I read this thread this morning with my morning coffee, was a great re-read.

scottalanmiller

@computerchip said in BitCoin:

I read this thread this morning with my morning coffee, was a great re-read.

Hey man, haven't seen you around in a while!

computerchip

@scottalanmiller

Hey man, been working like crazy, I lurk but don't get a chance to post very often.