Crypto Sold my house and put it all into bitcoin.

If you had done that a decade ago with your 100k stash you'd easily be in the top 100 of the wealthiest people in the world. If only.

 

I agree if you were able to see the daily/monthly fluctuations in RE prices, the volatility would be more psychologically taxing than you otherwise see.

But residential real estate in the average moderate demand area has a much different risk profile to bitcoin. You cannot compare the 2 in terms or risk. Not even close imo.

We'll have to agree to disagree on this.

 

People can put a gun to a our head and steal anything. Most other assets they shoot you and then steal it anyhow. With bitcoin if they shoot you they get nothing. Bitcoin is the hardest thing in history to steal if stored correctly. If you are truly worried about this you have multiple addresses with small amounts. With multi sig attackers know it isn’t possible for you as you give them access on the spot anyhow.
You need to know who has bitcoin for a start.

 

A few years ago an offspring of a wealthy man was kidnapped and he was asked for ransom.
When he tried playing hardball telling them he won't negotiate with criminals they cut an ear off and sent to him in the mail. I'm sure he would've sent the BTC if that's what he had.
What's stopping people doing it these days is not "bitcoin" but the general technology advances in that make it very hard to do anything annonymously without trace as could be done at the time.

Bitcoin is not as annonymous as people think, it's the dodgy exchanges that make it annonymous. And many of them have disappeared doing runners with the coins.
Crypto is the biggest thing for criminals since the easy credit card fraud in the late 90s.

 

Interesting concept....

No need to shoot anyone dead. Just torture the hell out of them until they will wish they die. Or give the bitcoin private key.
Even the mere idea that you will need to split your coins to 100,000's fractions to keep it safe means a lot about how "safe" it is, but let's go with it.
How exactly do you intend to keep access to all those fractions?

Are you suggesting memorising it?
Write it on a piece of paper?
Many pieces of paper?

At the end of the line - you will always going to have "one ring to rule them all" cause no matter what - the human brain, for most, cannot store so many pieces of non-formed information in an accurate way. And crypto is all about accuracy...

Crypto is going back to hold your own cash under the matters and hope for the best.
The "no regulation" that is the heart of the idea means that you now have to run your own bank & make it safe.
I thought we moved away from that many many years ago.

 

This is an archaic way of storing your crypto and I don't know anybody that chooses this option. The industry has come a long way from then. We have multisig wallets, biometric wallets, custodians, insurance, 2fa, sharding....... and yes you can also store it yourself akin to cash under the mattress.

People always bring up the argument you can strongarm someone to giving up their cryptos. Same argument can be said about cash. Whereas in cryptos case, every illegal procurement of crypto, either through violence or more subtle ways, will be forever recorded and can be tracked for eternity. Same cannot be said about cash.

And what do you mean "no regulation"? As far as I can tell it is fully regulated with all loopholes closed.

 

If you are comfortable with that then yes. Right now as in today and tomorrow would be a great time to throw into some major alt coins like Cardano and Ethereum. They have have dropped a fair bit and are sliding down as we speak. I would dollar cost average my way into the market right now with maybe $5k to $10k at a time as I think it has a bit more to drop. That way your average low will be quite good. For example; if you go into Cardano today at $1.90 just last week it was fluctuating between $1.90 and $2.20 just on this cycle you can make 15% if you time it right. Say it drops lower than $1.90 if you average your way down and it bounces back up to over $2.00 these are still healthy returns. Similarly if you just focus on 2-3 major alt coins you will be more successful than throwing your money into unknown random coins.

 

I would approach @Gen-Y's question differently. To me, just picking a coin and dollar cost averaging in is basically gambling with a pray and hope strategy. Instead I would suggest to anybody to first educate themselves before investing. You wouldn't buy a house without doing DD would you? Same goes for crypto or any other form of asset class. Form a thesis and invest towards it.

Let's take Eth as an example. What is ethereum - smart contract layer 1 blockchain. Do you believe in this tech and does it have/will it have product market fit? If yes then do some DD on eth. How are prices now, historically, potential ceiling? What is eth trying to solve, current issues, future re-rate events? What is current engagement like? What is your entry point and exit points? What are your risk mitigation strategies?

If people actually approach crypto like all their other investments it wouldn't be so controversial or pollarising. Do a little bit of DD and you will see that blockchain tech and tokens are actually solving real world problems and delivering cutting edge solutions.

 

But still - it's still makes most Crypto holders very stressed and one of the most common topics in the crypto world: "How to I store it safely".

Hence why people tend not to keep millions or even $x,000 cash.

And how's that work for people who has been scammed?
As far as I can see when someone comes up to any crypto forum and say "someone took my bitcions... Can I get it back". The answer is always: "dream on".
Yeah - you can see to exactly where your money went to, but that doesn't help you a bit - it's a public key string. It can be a throw away wallet in some s***hole, used for short time to take the coins and convert into "real money" in some doggy exchange.

Interesting....
No regulation is the heart of crypto.
If you refer to the software and the "proof of work" as regulation - then we have too different ways define regulation.
Most people who's putting their money in crypto - has no control over it. The power sits in the hands of anonymous people no one voted to control it, nor have the tools to replace or punish them.
Bitcoin has it's majority of mine power in China. So most of this "unregulated" coin network is in a country that is one of the most regulated countries. Only not the regulation most people in the world want.

 

Like with all things new, there will always be a learning curve. It takes time to educate newbie players, whether it is in crypto or any other asset class. In terms of technology and solutions, we are already there. Just a matter of guiding newbies to those solutions. And that will happen organically as those solutions are slowly becoming the norm to store crypto.

You are correct, if you stored your coins yourself then in most instances you won't be able to get it back if hacked or accidentally sending to a wrong address. But again, those instances are becoming fewer and fewer with all these new innovations and solutions. Most likely, a mature crypto industry would have fully insured custodians being resposible for most people's tokens with the option to take non-custodianship of your tokens if you choose to.
People have to remember that this is a fledgling industry that still has to build out its infrastructure. For those that position themselves in early, extreme profits can be made.

 

So..... Banks?
And when you need to transfer the money, you need to fill up forms, pay fee (on top of the crypto fee) and pay insurance (aka account fees).
Am I missing something? It sounds awfully like what we have now. With a difference - I have some level of control over the currency I use (I vote for the government and stuff), while in crypto - I'm in a huge pool of 8 billion people I have nothing in common with.

 

Cryptonians are the ones arguining security and annonymity. Until there's a hint of acceptance from te mainstream, then they yell "I told you crypto is real" lol.

I'd argue that if earnings are not illegal, you're better off in the Cayman Islands.


As for "tracked for eternity" then where did the Bitconnect, USI Tech , Quadriga, NiceHash, Sheep, Pincoin etc fund go? There's a few billions on that list.

ETH appears to be the best crypto system atm, though the scammers are quickly moving to eth an I reckon something better will likely come up soon.

For those into podcasts
Exit Scam

 

Maybe, but there are a lot of 'major alt coins' that were once in the top 10 and now aren't. Cardano feels like one of those projects whose market cap is priced well above any real world traction.

 

Potentially ignorant post here:

Seems the FBI have shown their hand, so what are the implications if a government can trace crypto if it REALLY wants to?

US recovers Bitcoin ransom paid to hackers who launched cyberattack on critical fuel pipeline

 

This is nothing new. Every bitcoin transaction is recorded on an immutable blockchain anybody can track.

 

Ok, thank you. If I may ask, then why would the hackers choose to use it for the ransom?

 

Because there are ways to work around it. They can track the addresses but not who owns them or where they are located. These guys were either amateurs or it was some kind of stunt.

 

Pretty sure I've seen that movie.

 

Why are people so worried about what there crypto is worth in fiat currency if crypto is the new currency?

 

I was refering to J. Paul Getty III's son in the 70s.
And it happened all through out the 70s and 80s.
There was a known local instance as well.

KIDNAPPERS FREE GETTY, 17, IN ITALY (Published 1973)