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My bitcoin has been going nutssssssss! Up 70% in the last month and almost 1000% this year! Gimme the loot baby!    Edit: when bitcoin was first developed I started mining it and had al

The first rule of crossfit/Crypto: always talk about crossfit/crypto

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Bitcoin was 1k a year ago and people are saying it's crashing...

 

If you don't understand why Bitcoin has value, ask yourself why gold does?

 

It's shiny? Plenty of other shiny metals around that aren't worth shit.

 

The answer is mostly scarcity along some other factors like resistance of oxidization. Gold served an important economic purpose in the past but it hasn't been able to keep up with the needs of modern society for a long time and that's why we're forced to put our faith in central banks to provide stable and efficient currencies. 

 

Blockchain technology is now providing an alternative, with significant advantages. 

 

Bitcoin isn't just scarce, it's fixed. Everyone knows exactly how much there is and will ever be. It's also far easier to transfer, store and divide than gold. In addition, it's secure, uncensorable, and highly anonymous.

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4 hours ago, Titans_Win_Again said:

If you don't understand why Bitcoin has value, ask yourself why gold does?

 

It's shiny? Plenty of other shiny metals around that aren't worth shit.

Gold has been considered valuable for thousands of years. Bitcoin is still just a fad at this point. 

 

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Blockchain technology is now providing an alternative, with significant advantages. 

 

Bitcoin isn't just scarce, it's fixed. Everyone knows exactly how much there is and will ever be. It's also far easier to transfer, store and divide than gold. In addition, it's secure, uncensorable, and highly anonymous.

And yet, new crypto currencies spring up on an hourly basis out of digital nothingness. That defies any argument for scarcity when it comes to cryptocurrencies. 

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7 hours ago, Titans_Win_Again said:

Bitcoin isn't just scarce, it's fixed. Everyone knows exactly how much there is and will ever be. It's also far easier to transfer, store and divide than gold. In addition, it's secure, uncensorable, and highly anonymous.

You're a fool if you think Bitcoin will have the staying power of gold going forward

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Bitcoin is still in the early stages of adoption that's why the price is so volatile, it's highly speculative.

 

That's also what makes it a good investment.

 

If/when Bitcoin becomes widely accepted as a currency/store of value the price will be astronomically higher than it is today.

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6 minutes ago, Titans_Win_Again said:

Bitcoin is still in the early stages of adoption that's why the price is so volatile, it's highly speculative.

 

That's also what makes it a good gamble. (it's a terrible "investment")

 

If/when Bitcoin becomes widely accepted as a currency/store of value the price will be astronomically higher than it is today.

Bitcoin won't, another more efficient and less expensive cryptocurrency will

Edited by wiscotitansfan
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4 hours ago, Starkiller said:

And yet, new crypto currencies spring up on an hourly basis out of digital nothingness. That defies any argument for scarcity when it comes to cryptocurrencies. 

No it doesn't. That's like saying printing Monopoly money causes inflation to the $. 

 

I'm guessing you got that argument from Paul Krugman's piece? I've read his opinions on BTC as well and they were highly dismissive and didn't indicate to me that he had done much research.

 

He also doubted the internet...


"By 2005 or so, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s."

-P Krugman

 

Also there's a massive misconception that all cryptocurrencies are intended to be currencies. That's not the case despite the misleading name.

 

Take Ethereum for example, it's being designed as an operating platform similar to Windows or Mac. The tokens can be exchanged for computing power on the network. 

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15 minutes ago, wiscotitansfan said:

Bitcoin won't, another more efficient and less expensive cryptocurrency will

This is possible and I used to have the same opinion but with the lightning networks upgrades and Bitcoin's name recognition advantage it is the most likely to be adopted imo.

 

 

Also, all high risk investments are "gambles".

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16 minutes ago, Titans_Win_Again said:

Also, all high risk investments are "gambles".

That's the point, it's high risk... supdawg and whoever is in favor of these are acting like tripling your money (even making money for that matter) is set in stone.

 

Actually investing money, even in stocks if you just diversify, is not remotely close to a gamble. It's riskier than putting your money in a savings account but not by much.

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14 minutes ago, Titans_Win_Again said:

Yes, it's high risk, that doesn't mean it can't be a good investment. Potential returns this big don't come without risk.

You and I simply just have massively different meanings of "good investment". Just because something can make you money, and potentially lots of it, I don't consider that a good investment necessarily.

 

To each their own but I would wager (no pun intended), that reputable financial analysts and advisors would put cryptocurrency in a category much closer to taking your money to a casino than putting it into wall street, especially since there is no real research to be made on bitcoin besides just widely speculating consumer confidence.

 

And before you say that putting your money into a single company isn't any different... No, it's really not but smart (or dumb even) investors don't put all their investment money into one stock to watch it grow.

Edited by wiscotitansfan
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51 minutes ago, wiscotitansfan said:

You and I simply just have massively different meanings of "good investment". Just because something can make you money, and potentially lots of it, I don't consider that a good investment necessarily.

What each person considers acceptable risk is relative but there are also definitively good and bad risks based on the potential reward.

 

Poker, for example, is a basically just repeatedly running a risk/reward calculation over and over in one's head and those whose predictions are most accurate are the long term winners. There are frequent instances in poker where there is a definitive, mathematically calculated, best action to take, that involves wagering money on a hand with a low probability to win at showdown because the reward for the few times you do win is large enough to give you a positive expected return.

 

Obviously the variables relating to Bitcoin or any other real world investment aren't as clear but the point is just that being high risk doesn't preclude something from being a definitively "good" investment.

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22 minutes ago, Titans_Win_Again said:

Obviously the variables relating to Bitcoin or any other real world investment aren't as clear but the point is just that being high risk doesn't preclude something from being a definitively "good" investment.

As I said, to each their own, but to me nothing makes bitcoin a sound investment and much more along the lines of a get rich quick gamble. There is minimal real analysis to be had besides the volume of interest. Def not anything close to your poker comparison with real stats and studies and much closer to roulette.

 

Convince me otherwise. I'm not going to put money into a single currency so don't waste too much of your time but the only thing bitcoin has is a name-brand but also as I said, people have no problem being fickle when it comes to their money and if confidence is lost for too long and something else emerges there is a 0% chance bitcoin will ever be relevant again.

 

 

Why is bitcoin here to stay, even if the general public starts knowing other currencies by name?

Edited by wiscotitansfan
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