Here’s an explanation of Bitcoin for those needing it explained to them.
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At least that’s a reasonably stable source of value, the big flaw in the gold standard. Crypto fails that very basic tenet of a currency.
until it’s not
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OMG thanks for that.
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If they audit you, and you cannot explain how you bought X, Y, or Z based on your income (which will not be paid in BTC), you are in for a rough time.
BTC is only good for the black market of goods and stashing illicit money.
The rest is hyped up nonsense.
Blockchain technology is a completely separate matter from using BTC as a store of value.
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Yes, was reading this morning about ransomware attacks. They believe over $350 million in ransoms was paid in Bitcoin in the US last year for ransomware attacks.
Looks like $250,000 in Bitcoin could possibly buy a Trump pardon at the end of his Presidency.
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This is still where I stand on BTC, happy to see a few others in the same camp. Thought maybe I was just getting old.
Get off my lawn!!!
Thing is, I’m not sure how long one can continue to scream “hyped up nonsense” after a decade has passed with over 10k% return. I mean yes, some people are going to suffer at the end, but the people who you’re yelling at today (or 5 years ago) won’t be the same people suffering.
“The market can stay irrational longer than you can stay solvent.”
Just because the bubble hasn’t burst, yet, doesn’t mean it’s a rational bubble.
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Just because something has irrational valuation doesn’t mean riding the wave is irrational. Do you only invest in things with perfect valuation? The whole reason the stock market works is because some people see things differently from you.
I mean, I’m a ridonkulously conservative investor, and yeah, perhaps I could have more wealth if I weren’t.
My brother has ridden the bitcoin wave pretty well ($2k to $20k, sold, bought back in after it crashed, almost to $100k now). :shrug: I know I wouldn’t have the patience/fortitude to do that.
I do not trust my ability to buy low and sell high.
With so many investments, a simple dollar cost average investment plan into bitcoin would have yielded huge results as well
Sure, but then it’s just gambling. If you’ve thrown out economic justification for the value of something then we’ve left investing.
I’m not so sure about that. What’s your definition of investing? If you think something is undervalued, there’s someone on the other side thinking it’s overvalued, otherwise you’d never be able to buy the stock in the first place.
Only within the world of day trading. People sell shares because they want to buy a house or are rebalancing, etc. Transactions aren’t all zero-sum.
That said, I do think a fair challenge to my “that’s not investing” is you could have a behavioral finance type view that bitcoin will go to x price for y reason and are trading based on that, which I imagine would sort of be investing (or pedantically trading)
It’s easy.
Think of it as a giant Ponzi scheme.
New “investors” buy BTC and drive up the price.
This is all stoked by some pretty obvious marketing campaigns. No doubt by the same folks who hold a lot of BTC in the background.
Explain to me how those prices hold up once the BTC converges to 21m coins (theoretical limit for BTC).
The answer is they don’t. They will crash.
Hence the advent of the multitude of other coins (like dogecoin: its a meme coin for gods sake) because people want to keep the speculation going.
Okay, but just yelling “it’s going to crash at some point” is not really demonstrating any level of investment acumen. An idiot can say that and be right 99% of the time. What you described applies to basically every unexpected movement in the market. That’s the thing about the market, it’s through these irrational movements that you can really profit.
Bitcoin has value because people believe it has value. Just like gold.
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Not like gold.
Gold is fungible and has value because it can be used in other industries (jewelry and electronics for example).
It’s commodity-like, but I would not describe it like Gold.
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the value of gold as for electronics is not why it has the value that it does. Otherwise silver or copper will be worth way more than gold.
99% of the value of gold is from hype and millennium of continued belief that it has value. Bitcoin has value for the same reason.