Has Anyone Bought Bitcoin?

[Fredm]

Please just explain to me in simple terms how a currency can be built off of this mining process, and why others can make more Bitcoin (or any of the other digital currencies), off of that process? Wouldn't that be the same as someone buying their own printing press to print $100 bills? Except with Bitcoin, you're talking about a much larger scale.

"Miners" are compensated, in the currency being transacted, for providing the massive computer power required (the price of operating a distributed ledger without requiring trust) to deliver the authenticating "proof". It's an expensive, high risk, effort. So, to use your analogy, it is not the same a someone buying a printing press to print $100 bills. In the physical world, it is more like gold prospecting.

The concept of creating an asset/currency out of nothing, that is neither backed by a tangible store of value nor a sovereign promise, is hard for me to wrap my head around. I guess I am too old to come to grips with the reality of "digital currency". But, but, but.... there is no longer any question that value propositions exist. The outstanding question is which crypto-currencies will prevail as the use-standards. This is the new Wild West. No question about it. It is a huge speculation bubble. People will be hurt. In the end, I assume it will have to be regulated, and taxed just like all assets are.

Bitcoin, Ether, and other "digital gold" assets, are just use-cases. The blockchain technologies that underlie them is changing the world as we know it.

I know you said you do not want to be sent to a link. But here it is. As a data base administrator, you will want to read this four part blockchain primer. It is smart, understandable, and points to the enormous resources being deployed in pursuit of answers to questions I don't know enough about to even ask.

 

[Chrispee]

Like many, I think that the blockchain technology has a plethora of uses and will be the positive takeaway in all of this. I'm not into crypto currency as an investment vehicle personally, but it can definitely be argued that there are historical parallels that suggest crypto can be successful. I think it's crazy that people invest in gold, silver, diamonds etc based on scarcity (or perceived scarcity), but they have survived the test of time.

 

[ace2000]

The concept of creating an asset/currency out of nothing, that is neither backed by a tangible store of value nor a sovereign promise, is hard for me to wrap my head around. I guess I am too old to come to grips with the reality of "digital currency".
Bitcoin, Ether, and other "digital gold" assets, are just use-cases. The blockchain technologies that underlie them is changing the world as we know it.

Unless someone can understand this concept of creating "money" out of nothing, then I'd advise not investing in it - I guess you could look at it as a gambling proposition, but that's all it is.

In the computer industry, I don't need to understand how mining works, but do need to realize that there is a real threat of sinister people hijacking servers and utilizing that processing power. And the hijacking threat is out there for individual PCs also - so actually everyone should be aware.

 

[AnnaS]

the Washington Post today had a good article on people that are buying bitcoins

www.washingtonpost.com

Great article!! The more I read about it, the more I understand. (but would not ever think of buying into it). Thank you!

 

[ace2000]

Great article!! The more I read about it, the more I understand. (but would not ever think of buying into it). Thank you!

I agree, and enjoyed that article too. Reading that article made me wonder if there are some on this thread who have also invested their retirement savings in this scheme? No doubt that there are some who have made a killing up to this point.

 

[TUGBrian]

bitcoin in freefall today...yikes

 

[VacationForever]

I agree, and enjoyed that article too. Reading that article made me wonder if there are some on this thread who have also invested their retirement savings in this scheme? No doubt that there are some who have made a killing up to this point.

It depends on whether it is buy low and sell high or vice versa.

 

[md8287]

While lowest low would be 0, today is looking pretty low under $7k.

 

[VacationForever]

While lowest low would be 0, today is looking pretty low under $7k.

Did you come out alright? I think you said that you thought 15K was the lowest point when it went further down to 11.5K.

 

[md8287]

Did you come out alright? I think you said that you thought 15K was the lowest point when it went further down to 11.5K.

Good thing it’s just gambling money. The house is winning but I didn’t bet the house.

 

[md8287]

The nice thing about BitCoin and all the alternate coins is you can buy just a small piece of them. You don’t have to buy 1 BitCoin but can buy $100 of Bitcoin, or $10, or whatever

 

[MULTIZ321]

bitcoin in freefall today...yikes

Stock market too.

Wow!

Richard

 

[LisaH]

What about buying GBTC instead of a particular cryptocurrency? This is something CNBC mentioned nemerous times and it seems to mimic cryptocurrency’s performance (or lack of lately)

 

[VacationForever]

What about buying GBTC instead of a particular cryptocurrency? This is something CNBC mentioned nemerous times and it seems to mimic cryptocurrency’s performance (or lack of lately)

https://www.investors.com/etfs-and-...nt-trust-an-etf-but-its-not-heres-what-it-is/

Wild Wild West.

 

[VacationForever]

Stock market too.

Wow!

Richard

Pretty ugly...

 

[md8287]

Timeshares might be the best investment! LOL

 

["Roger"]

It has now fallen below $6,000.

I do understand it usefulness (and for that reason do not think it will disappear), but it also bothers me how it is useful for drug dealers, money launderers, etc.

As far as where it end up, don't look to me for any sage advice. I thought it was crazy when the value went over $200.

 

[WalnutBaron]

A little update on Bitcoin: when the OP originally announced her intention to buy a small amount of Bitcoin on November 10, 2017, the market price opened at $7173. About a month later, the market peaked at an astounding $19,475 on December 17. Since then, the decline has ranged from slow to rapid, and closed yesterday at $6786. That is one brutal ride, and illustrates the extreme risks of investing in an instrument which most of us know very little about, including yours truly.

 

[am1]

I am all for it and others to free fall. I do think there is space for a few to survive in some form.

 

[WinniWoman]

A little update on Bitcoin: when the OP originally announced her intention to buy a small amount of Bitcoin on November 10, 2017, the market price opened at $7173. About a month later, the market peaked at an astounding $19,475 on December 17. Since then, the decline has ranged from slow to rapid, and closed yesterday at $6786. That is one brutal ride, and illustrates the extreme risks of investing in an instrument which most of us know very little about, including yours truly.

And I never did purchase it!

 

[VacationForever]

And I never did purchase it!

If you did, you KNOW that you would have sold at $19,475. It is all our fault for talking you out of it.

 

[WinniWoman]

If you did, you KNOW that you would have sold at $19,475. It is all our fault for talking you out of it.

LOL! I never was good at gambling! Ha! Ha!

 

[WinniWoman]

If you did, you KNOW that you would have sold at $19,475. It is all our fault for talking you out of it.

LOL! I never was good at gambling! Ha! Ha!

 

[kukenan]

A little update on Bitcoin: when the OP originally announced her intention to buy a small amount of Bitcoin on November 10, 2017, the market price opened at $7173. About a month later, the market peaked at an astounding $19,475 on December 17. Since then, the decline has ranged from slow to rapid, and closed yesterday at $6786. That is one brutal ride, and illustrates the extreme risks of investing in an instrument which most of us know very little about, including yours truly.

If history repeats itself, Bitcoin is on sale right now, the extreme risk was buying ATH at $19,475, bubble popped and seems to bottom around $6k. Good news lately can bring a new bull run (bubble, not healthy) or a steady grow. In any case I think it'll be more than $6k by EOY, maybe by the end of summer.

 

[Tia]

Unless someone can understand this concept of creating "money" out of nothing, ..........

I've been reading the book ''The Creature from Jekyll Island'' , given to me as a gift and not halfway through yet. It seems this is what the Fed has done in the USA with the dollar.