That's me. I plead total, complete, absolute ignorance about bitcoin and crypto currency. I know and understand zilch about either one of them, mainly because it's new to me and I've seen no reason to get involved. But maybe I'm just being behind the times and am afraid to learn and try anything new.
Can anyone explain what those are, how they work, how to put money in and get it out, how to avoid getting scammed, and whether it is worth it in the first place?
Bitcoin and crypto ignorance
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Gaybutton
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Re: Bitcoin and crypto ignorance
My approach is to wait for a while to make sure it's safe. I've settled on a period of 300 years.
In the meantime, I can invest in gold, which has been a store of value for thousands of years.
Rocket can tell you more about actually speculating in crypto.
You are asking when it's near an all time high. Buying high tends to increase risk.
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Gaybutton
- Posts: 24325
- Joined: Sat Jul 31, 2010 11:21 am
- Location: Thailand
- Has thanked: 3 times
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Re: Bitcoin and crypto ignorance
I have a feeling for me it will most likely continue to be not buying at all. I'm not in the habit of investing in something I don't even begin to understand.
I'll be interested in what Rocket has to say about it.
Re: Bitcoin and crypto ignorance
To keep it simple. Bitcoin is a digital currency only available on the internet. It can be sent from one party to another with no middleman. Think banks. It is not controlled by governments, banks, etc and it’s considered decentralized.
To speculate on it, or as it’s becoming more mainstream, to invest in it,you can purchase it on an exchange. A popular one is Coinbase based on the USA.After you buy it on an exchange, you can transfer it to what’s called a hard wallet. A device that stores your bitcoin with use of a seed phrase, basically a long password.
It’s not simple to do this, and mistakes can be costly. Fortunately now they have ETFs that you can buy, which are proxy’s for bitcoin. The well reputed Fidelity has one, symbol Fbtc. Also Robin Hood allows buying and the list is growing quickly.
Right now, institutional adoption is occurring, making bitcoin much more legitimate as an investment. Since 2010 it’s been mostly retail buyers. Early buyers being rewarded as the price has gone from about 4100 to the current price of $118,000.
The key is getting in early. It was $15,000 only a couple years ago during its cyclical bear market. There are only 21 million as a total supply. Making it an inflationary hedge. In theory as the supply becomes more scarce the price could hit much higher levels. Michael Sayler is predicting 13 million dollars in 20 years. He is ceo of micro strategy corporation and has been using his company funds to buy bitcoin.
Golds market cap is about 20 trillion dollars. Bitcoins is about 4 trillion. Young people seem to prefer cryptocurrency over gold. So as boomers die off, maybe bitcoins market cap will replace golds. Gold is inflationary as it can be discovered and increase the supply. Bitcoin is limited and can be sent anywhere in the world in seconds. Unlike gold which is difficult to take across borders.
I’m sorry, I’m not really explaining bitcoin very well. Invest answers is a great tuber who explains about bitcoin and tesla everyday on his iTunes channel. Worth a look.
To speculate on it, or as it’s becoming more mainstream, to invest in it,you can purchase it on an exchange. A popular one is Coinbase based on the USA.After you buy it on an exchange, you can transfer it to what’s called a hard wallet. A device that stores your bitcoin with use of a seed phrase, basically a long password.
It’s not simple to do this, and mistakes can be costly. Fortunately now they have ETFs that you can buy, which are proxy’s for bitcoin. The well reputed Fidelity has one, symbol Fbtc. Also Robin Hood allows buying and the list is growing quickly.
Right now, institutional adoption is occurring, making bitcoin much more legitimate as an investment. Since 2010 it’s been mostly retail buyers. Early buyers being rewarded as the price has gone from about 4100 to the current price of $118,000.
The key is getting in early. It was $15,000 only a couple years ago during its cyclical bear market. There are only 21 million as a total supply. Making it an inflationary hedge. In theory as the supply becomes more scarce the price could hit much higher levels. Michael Sayler is predicting 13 million dollars in 20 years. He is ceo of micro strategy corporation and has been using his company funds to buy bitcoin.
Golds market cap is about 20 trillion dollars. Bitcoins is about 4 trillion. Young people seem to prefer cryptocurrency over gold. So as boomers die off, maybe bitcoins market cap will replace golds. Gold is inflationary as it can be discovered and increase the supply. Bitcoin is limited and can be sent anywhere in the world in seconds. Unlike gold which is difficult to take across borders.
I’m sorry, I’m not really explaining bitcoin very well. Invest answers is a great tuber who explains about bitcoin and tesla everyday on his iTunes channel. Worth a look.
Re: Bitcoin and crypto ignorance
Good to hear from someone who actually follows & speculates in crypto. 
As for the gold supply, they can mine more, but since exploration budgets are way below peak levels, I don't envisage a big increase in supply any time soon.
That's a reasonable argument. However, Bitcoin is supposedly limited, but what stops people creating more crypto currencies ? Doge coin etc ?
As for the gold supply, they can mine more, but since exploration budgets are way below peak levels, I don't envisage a big increase in supply any time soon.
Re: Bitcoin and crypto ignorance
Nothing stops people from creating more supply of cryptocurrencies. Which is why I agree with the term “shitcoins” for most of them. Many celebrities offer their own “coin”. Who would risk their money on a coin like that?
Trumps coin dropped quickly after it came out. So many scam coins out there.which hurts the reputation of Bitcoin. However, they are not the same. Black Rock and highly respected institutions are not buying dodgy coins. They are buying bitcoin,etherium, solana,probably in that order.
Maybe I’d buy dogecoin, only because you might be able to trade it in for a Tesla vehicle. But bitcoin has been my best investment over the last 45 years since I’ve been buying mostly stocks and precious metals. One thing I’ve learned over the years; take a position and stick with it. Don’t listen to anything negative about it or you might sell it. Usually a mistake. Especially when you are scared! That is the time to buy. As of now, anytime was a best time to buy bitcoin, as it’s at its all time highs. Trying to time things can be extremely difficult. I’ve panicked and sold, only to buy back in at a higher price. Having “diamond hands” has worked.
No one knows the future, bitcoin could go to zero. There’s all kinds of fud,fear,uncertainty,doubt, which makes people afraid of it. I have friends who are like that. My one friend who agreed bitcoin was a fantastic idea has passed away. He was a true believer in it.
One thing that legitimized bitcoin for me was you could trade it for gold, back about 7 years ago. Now you can buy houses with it. It’s not going away. And you can bet many legislators in government own it. Trump is fully behind it. Can only help.
I agree that the easy gold has been found, so supply can’t grow that much. I think both are good to own, not one exclusive to the other. Both are used to fight inflation, which is very real. The dollar and other currencies have lost value this year. As it gets worse, many will look for vehicles to preserve their currency. Bitcoin is becoming more legitimate everyday.
Trumps coin dropped quickly after it came out. So many scam coins out there.which hurts the reputation of Bitcoin. However, they are not the same. Black Rock and highly respected institutions are not buying dodgy coins. They are buying bitcoin,etherium, solana,probably in that order.
Maybe I’d buy dogecoin, only because you might be able to trade it in for a Tesla vehicle. But bitcoin has been my best investment over the last 45 years since I’ve been buying mostly stocks and precious metals. One thing I’ve learned over the years; take a position and stick with it. Don’t listen to anything negative about it or you might sell it. Usually a mistake. Especially when you are scared! That is the time to buy. As of now, anytime was a best time to buy bitcoin, as it’s at its all time highs. Trying to time things can be extremely difficult. I’ve panicked and sold, only to buy back in at a higher price. Having “diamond hands” has worked.
No one knows the future, bitcoin could go to zero. There’s all kinds of fud,fear,uncertainty,doubt, which makes people afraid of it. I have friends who are like that. My one friend who agreed bitcoin was a fantastic idea has passed away. He was a true believer in it.
One thing that legitimized bitcoin for me was you could trade it for gold, back about 7 years ago. Now you can buy houses with it. It’s not going away. And you can bet many legislators in government own it. Trump is fully behind it. Can only help.
I agree that the easy gold has been found, so supply can’t grow that much. I think both are good to own, not one exclusive to the other. Both are used to fight inflation, which is very real. The dollar and other currencies have lost value this year. As it gets worse, many will look for vehicles to preserve their currency. Bitcoin is becoming more legitimate everyday.
Re: Bitcoin and crypto ignorance
That advice goes for many investments.
I invested quite a lot in shares on the 4th of April, when UK stock prices were sliding, including in companies with no US exposure. This has worked well.
I should have spent more on the next trading day, but was too scared ! STILL learning.
That's important to understand.
Many things can go to zero.
For example, currencies, property & shares in companies etc. The odds just vary according to the asset and the country.
I'd have thought that the odds of crypto going to zero are quite significant, but not whilst certain important people are supportive. As you mentioned.
Re: Bitcoin and crypto ignorance
True,many things can go to zero. I’d be shocked if bitcoin did, as there’s just too much support for it. And it’s gaining more everyday. Individual stocks often go to zero, often with plenty of warning though.
The fear of losing money keeps many from investing. I think that’s such a large mistake. With devaluing of currency, doing nothing means you’re losing.
The fear of losing money keeps many from investing. I think that’s such a large mistake. With devaluing of currency, doing nothing means you’re losing.
Re: Bitcoin and crypto ignorance
Considering all investment classes, I agree 100%.
For example, it's remarkable how reluctant some people are to invest in stock markets, despite them frequently offering good long term prospects.
They prefer certain, slow failure in bank accounts.
For example, I have one friend who built up a business and sold his share of it for over £20m. He was prepared to quit his job and take the risk of building a business, but is very reluctant to invest any of that fortune in stock markets.
In fact the bank persuaded him to put a small proportion in some funds & he totally refused to add more when the price went down, as markets sometimes do.