I trade in currencies on the forex market. So investment and currency are the same thing...well almost. Like in any trading there are always two commodities involved. For example one trades US dollars for Apple stock. Then one trades Apple stock for US dollars. The actual investment is on the relative difference in value between the two commodities: US dollars and Apple stock. In the forex market, both are currencies.
Not an investment. Not a currency.
Answer is C. Scam. or D. if you like. Ponzi Scheme.
If you look at it from the standpoint that everything has a value based upon what value you are able to get for that item of value.
As long as someone will accept your ‘stash’ for something you value more than the value of the ‘stash’, then you are fine.
But, having a ‘stash’ of bitcoins is not going to be worth much when, not if, the internet gets disrupted for whatever reason, be it war, terrorism, or just plain stupid hackers having a good time.
I prefer something physical, like cash, gold or silver, jewels or anything that can be traded in the street, hand to hand...................
Pyramid scheme.
Its a really cool idea - that governments have no input into what is considered currency, but simply an on-line community does. It has somewhat similar characteristics to gold and silver in terms of store of value, but I think its popularity is that it is not physical - its immediately transferable anywhere. I knew people in Argentina who used it regularly when that destructive socialist witch Kirchner was in power. It worked great for them.
Having said that, I still like holding real gold in my hands....
Personally, I see it as a huge house of cards. If hackers can get into otherwise very secure computers at the highest level government agencies, why would anyone expect they could not break into and steal from this system?
My personal thoughts are that “crooks” will break into the system, not in one big theft. but rather steal smaller but still very rewarding amounts on an ongoing basis so they are not noticed.... and probably already are!
I still can’t figger out what bitcoin is, or isn’t.
I wish I had bought it early. But having missed that, I’m not that attracted to it. I do not believe hyperinflation is a risk, and if it is, I have enough gold at 2% of my assets that it would multiply into a decent enough cushion if something horrible happens in 15 years or so regarding the unsustainable US debt load.
I keep my bitcoins in the same drawer as my tulip bulbs.
It’s an investment until it scales, after which time it becomes a currency.
The “value” of our currency is based on the full faith and credit of the United States (I know, it should be based on gold, silver, copper, lead or other hard assets).
Upon what is bitcoin value based? Can you buy it with paper on full faith and credit?
I have an acquaintance who insists he has investments in gold to weather the storm when the forthcoming economic apocalypse he’s always predicting finally comes. Always some scenario where the North Koreans or China or Iran will nuke the USA and we’ll all be blasted back to the Bronze Age.
I told him “You have paper gold. A piece of paper you bought that claims there’s someone holding gold for you somewhere. It’s not the same as big ass hunk of gold in your pocket. If American society ever devolves into scavengers ravaging the radioactive wastelands wearing hockey gear lined with rabbit fur and firing crossbow bolts at one another murdering their fellow man for the last slice of baloney, what good is a piece of paper tucked away in your breastplate that says some guy in the Cayman Islands owes you $5000 worth of gold? And even if it was a big hunk of gold in your hand, and I remind you it’s not, what value do you think actual gold will have in this social catastrophe you predict? Someone’s Pharoah’s going to want it to construct a pagan funeral mask for a beloved princess and he’s going to trade you 100 camels and a reed barge for it?”
He got very angry with me and went back to listening to Glenn Beck. Very sad to say he’s one of the more intelligent people I know.
So yeah, about your digital bitcoins. Who’s face is engraved on it?
Use the US Dollar.
Buy, put in cold storage (Ledger or Trezor), and HODL!!
Forgot to mention this, but Trump has or will have at least three very pro bitcoin people in the administration. They are Mick Mulvaney, Peter Theil, and I can’t think of the other(s).
I do a little trading, nothing too intensive. I usually have several open orders waiting for my target price to be met at any one time. I probably make as much through trading as I do through mining. The great thing about trading cryptocurrency v. other commodities; Forex, stocks, and etc. is there are no fees for "market makers" on a number of exchanges, and only a small fee for moving funds out of an exchange of about 1%.
Ping
As a vendor, bitcoin is nearly ideal. Virtually no fees, no reversals, easy (at least for now) conversion into any other currency. For purchasers, the advantage is lower cost, but without the protections associated with credit cards (a bitcoin that is gone is gone for good). For holding wealth, it’s up in the air. You can take bitcoin off-grid, and hold paper copies, allowing for a wide range of security/redundancy options. However, since the value of bitcoin is derived from its value as an internet-based payment framework, its ability to hold value is questionable (there is no “fiat” to protect you against a better system supplanting the existing one, meaning the underlying value of bitcoin could plummet if both purchasers and vendors flocked to a rival system).
Ultimately, I view bitcoin as a competitor to credit cards, paypal (etc.) primarily. And, as such, it rates quite high. But as a rival to the dollar, it has a long, long way to go, since so many of the instruments necessary for a “real” currency just don’t exist yet. My personal stash of bitcoin is for buying products at a discount. If I were to sell things over the internet, I would prefer bitcoin over any alternative, and would offer a price discount to reflect that.
The bitchain technology, on the other hand, has essentially proven itself, and is here to stay. Everything from titles to derivatives, to personal data, will ultimately be stored on bitchain-based networks. I don’t see anything coming along to rival that, at least in the medium-term.
First of all, I’ve read several times and yet I still have no clue how it even works.
Supposedly U.S. currency is based upon gold, correct?
So what thing of value is bitcoin based upon?
Someone here please break it down to 5th grader level for me.