Crypto Bitcoin is not a stock

Here is a very easy to understand video on what is bitcoin. What I like to point out is that bitcoin is not a stock it is not something you “get into” to make money and it is not associated with the sharemarket it is a mistake to assume that it is. There are a lot of companies spouting ICOs “initial coin offerings” which sound deceptively like IPOs Initial public offerings Giving the illusion that there will be some kind of company float on a stock market and this is simply incorrect.

Bitcoin is digital cash, something you use, something you can earn and even something that you can mine or build businesses around. But it should never be something that you just invest in!!!! Enjoy the video.:

 

Thank god
I thought it was like a stock, the amount of affiliates trying to get me to to trade it it for bukko annual percentage rates

 

Why Bitcoin will go the way of the tulips

 

Not something you get into to make money?

It seems that's precisely the reason ppl are buying it!

Hmm...I'll happily sit this one out and miss out on the millions

 

And I’m predicting over $20K BTC in the next couple of months. It’s a good Christmas present too and discussion

I’m happy that there is a lot of speculative money poured into it, it makes me smile to see uptrending graphs but there is so much more to it than that

 

Even if it drops massively it will not go away and its getting scarce by the minute. We all know what happen when demand is higher than supply.... boom!! This is what's happening now.

All preconceptions about money will be redefined, cryptos are here to stay whether we like them or understand them.

I am pretty sure very few people understand how google search works and yet we use it every day... this will be the case with enough time

 

Nice video , thanks for that.
The way i understand it, the value of crypto assets would rise and fall in proportion to their use. In Bitcoin's case, the more the average Joe uses it the more it's value should rise. Anything other than that seems to be speculation which i believe is what's happening now with the current growth.

The video does offer a few good points in regards to the good use of Bitcoin like maybe less transaction fees but i'm not sure the average punter would even bother and obviously this is speculation from my side since no one knows if society would embrace a technology or not...

There is already hundreds of proven ,safe and easy ways to make a payment, why use bitcoin?

 

I was so wrong on this. It wasn’t next couple of months, it was next couple of days.

 

If you have $100,000 in the bank you don’t actually have $100,000 in the bank you have an unsecured loan that you have given to a company to invest and lend out at interest. Banks are a huge pyramid scheme and the only reason you can take out $5 to buy a coffee is because pyramids can work well at high volume.

The 2013 cyprus disaster exposed (to me anyway) what banks were about and your money is not actually your money once you’ve given it to them. You are not a customer to the bank you are a creditor.

If you withdraw that hundred thousand dollars and carry around in cash then it’s your money but it’s awkward carrying cash around.

Cash is also inflationary, backed by debt and losing confidence due to over printing

Bitcoin is electronic cash.

It’s your money, no one can say you can’t have it no one can freeze your accounts and no one can take it away. It’s deflationary which means you can go on a holiday pay with bitcoin And end Up with more money at the end of the holiday that you did to start off with.

I personally don’t view it as a stock or an investment I actually like to create a not buy into it.

It’s not the best cryptocurrency but it’s open source and can evolve.

 

You are right. But paying with Bitcoin is a bit naff at the moment as well. The idea is good but the practicalities, fees, security and convenience isnt there yet...

Not saying it can't be done in the future and I'm a big believer in blockchain....but as a currency - it isn't Bitcoin in its current form.

Things change by the hour in this space so who knows?

May the best idea win.

 

If it doesn’t generate cash in some way it is not an investment.

 

No but it generates itself through mining.

 

You are right there Hammer it’s been shocking the last couple of weeks due to an increased interest in BTC.

This could explain it Bitcoin Is an Emerging Systemic Risk - CoinDesk

 

I don’t see it working.

If supply is limited and governments cannot control its price then it won’t be an effective currency in the future. How can you use something so volatile as a useful medium of exchange that will actually be widely adopted for that purpose?

Which means that it is really operating as a store of value like gold; but this it seems to me is utterly ridiculous as it not a tangible asset like land, gold or any of the other traditional stores of value. It is an encrypted electronic ledger.

So the way I see it is that people are speculatively investing in an electronic ledger because they believe it will be a currency; but it can’t ever operate as a legitimate currency IMO. What happens when people figure that out?

We laugh now at the tulip bubble; I think this is equally ridiculous.

I think the idea of a digital currency has merit; I think there will be one in the future, but I don’t think it will be Bitcoin; it will be one that has worked out how to keep a stable exchange rate and one that avoids speculative investment in 1s and 0s

My take anyway

And pf course, since I came to this conclusion bitcoin has more than quadrupled... still

 

The fact that governments have NO control is precisely what interests people
We are so programmed and conditioned to asking permission and being controlled. This is freedom.

 

I couldn't care less about it's latest price point and what it's worth and why it's worth that and when to get it and when to get out. That's not the level I'm playing at with this game.

 

Yes, that is why people are attracted to it; however, the fact that they are not involved means that there is no price stability and the currency fluctuates wildly, meaning it is not a useful medium of exchange like the U.S. or Australian dollar.

Bitcoin is not operating as intended. Surely that is a red flag.

If someone can create a stable digital currency that doesn't fluctuate like Bitcoin then digital currency will take off; at the moment I just see tulips.

 

tulips LOL
let's hope it's not tulips since we have never in the history of the world ever had decentralised money so I choose to see a new path that is not linked to anything historical.

The frenzy is crazy so I can see your point on the tulips - I don't care about the latest price.

You are correct in saying the price does not reflect it's trading volume so maybe a correction is in order on that view point.
The other thing to consider is that, since it is a new thing never before seen in history, no one has any idea how to value it and we cannot value it by any historical method, it's not a stock and has no company fundamentals. it is following confidence and speculation.

I agree it may evolve into something completely different, if I had to speculate I would say interchangeable currencies for different purposes. Bitcoin is awful for the purchase of a coffee or small things but great for large items like real estate. Dash is great for smaller purchases.

This is going to happen very fast. Not 20 years like past technologies - probably 2 years.

we are already starting to see the emergence of cryptocurrency wallets that allow a quick interchange of one to the other within the wallet itself. My speculation is that this process will become quicker and more automated. We are at the very very beginning of this technology.

 

... and I just found out there is a product that was released a few days ago that can accelerate bitcoin blockchain transactions. I told you this technology was fast.

 

Hey my old friend @Xenia I really do think you are awesome, and there's a good chance you may be a true visionary, so as I'm sure you feel too all this banter is just fun debate on what is a fascinating new thingy

I take your point about the fractional reserve banking system creating a lot of loot out of thin air but not so sure about comparing the risk of money in the bank in Australia to Cyprus

The mega success story of crypto so far is peppered with volatility and really only founded on one main 'coin' , I just want to say I do think @Beelzebub has introduced some basic clear thinking and common sense.

Essentially a new way to store money in an electronic ledger that pays no income, and represents your 'cash' deposit that you put in now has an implicit value priced in to it beyond anything else known to man including gold, platinum, etc and become the fastest growing market in history. That's either due to some kind of wildly important insight in to the future I can't see right now or a disaster waiting to happen.

To me there are 3 asset classes worth accumulating and always have been - cash, property and shares. Apart from fancy things like gold and paintings, or maybe even oddities such as tulips and ostrich eggs...... lets face it the worlds wealth is held in cash, property, and shares.

Now thinking about crypto in common sense terms....

Which asset class is it closest to by nature? ................Cash!!

That is of course except it's damn difficult to spend and doesn't earn any interest. It might increase it's own holding number a tad with self generation, that is not the same as income or cash in the bank but by nature, just the closest thing that we can relate it to in my mind.

Cash rate of return: circa 3% depending on exactly where you park it (and that's generous)

Bitcoin rate of return: 3,773,758.93% if you purchased on 1 Jan 2011 (30 cents a coin!)

Is this situation rational?