Search found 347 matches

by Jonathan
Wed Nov 15, 2017 10:38 am
Forum: Investing - Help with Personal Investments
Topic: Bitcoin: Significance of 12 transactions per second?
Replies: 28
Views: 2807

Re: Bitcoin: Significance of 12 transactions per second?

I think good bitcoin criticism is beneficial. However, you might consider reviewing some of the more established sources of research on it. There's actually an in-depth bitcoin wiki, with over 1,000 pages: https://en.bitcoin.it/wiki/Main_Page . That wiki has its own page on scalability that's over s...
by Jonathan
Sun Aug 20, 2017 12:46 pm
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 238
Views: 29122

Re: What is Bitcoin?

Obligatory Sanat Kumar "Why Gold" essay Jonathan, I've read up on bitcoin in the past, but I really appreciate the way you field questions and gently handle comments. Thanks for the thanks. I know that more people will consider my opinion if I hold myself to a high standard of conduct. This is espe...
by Jonathan
Sun Aug 20, 2017 12:46 am
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 238
Views: 29122

Re: What is Bitcoin?

But based on fundamentals, I would say bitcoin is more predictably scarce. How is this possible when humans can fork off Bitcoin, and more importantly, create new crypto-currencies at will? Good question. They fork off bitcoin to a new cryptocurrency. You can fork off bitcoin and create HomerJCoin,...
by Jonathan
Sat Aug 19, 2017 3:16 pm
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 238
Views: 29122

Re: What is Bitcoin?

There is the issue of scarcity Agreed; that's a huge one. Predictable scarcity. Your comparison of "synthetic" scarcity vs. geological scarcity is intriguing. Is bitcoin more predictably scarce than gold? Based on historical performance, gold is more predictably scarce, I think. But based on fundam...
by Jonathan
Sat Aug 19, 2017 2:10 pm
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 238
Views: 29122

Re: What is Bitcoin?

Records of ownership of bitcoin are kept in its blockchain. Records of ownership of dollars are kept in two forms. One form is reserve balances held by banks in accounts at Federal Reserve banks. The other form is ownership certificates held directly by the owners. In this form ownership can be tra...
by Jonathan
Sat Aug 19, 2017 12:25 pm
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 238
Views: 29122

Re: What is Bitcoin?

So the reason there needs to be a Ledger, an Immutable Ledger, is because not all people will be honest. Yes, exactly, you're really nailing the core concepts. You can also phrase honesty as trust . Previous monetary systems relied on trust. Bitcoin is considered "trustless". It doesn't have to str...
by Jonathan
Sat Aug 19, 2017 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Play money bet gbtc (bitcoin etf)
Replies: 6
Views: 824

Re: Play money bet gbtc (bitcoin etf)

What's really fascinating about GBTC right now (technically an OTC and not an ETF) is the premium between it and bitcoin. For example, 1 share of GBTC is equal to 0.1 bitcoin. But 1 share of GBTC is over $700 right now. That's equivalent to a $7,000 bitcoin! Many believe that investors are unfamilia...
by Jonathan
Sat Aug 19, 2017 10:50 am
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 238
Views: 29122

Re: What is Bitcoin?

Seems like we do a little better on each of these discussions. :sharebeer Regarding pre-mining - it means that developers mine coins for themselves before publicly releasing a cryptocurrency. It's kinda frowned upon. Bitcoin is NOT a pre-mine coin. Anyone could have mined bitcoin at first, but only ...
by Jonathan
Fri Aug 18, 2017 10:09 pm
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 238
Views: 29122

Re: What is Bitcoin?

Nice work on Khan Academy. There is little or no existing concept of an asset categorized as "the money ledger", which is perhaps why bitcoin sees so much friction from traditional investors. Those shiny things are known as Casascius Coins. Years back, a guy minted physical coins from brass/silver/g...
by Jonathan
Fri Aug 18, 2017 9:15 pm
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 238
Views: 29122

Re: What is Bitcoin?

Some Wall Street Journal articles on bitcoin: Bitcoin Soars Past $4,000 in Weekend Trading Why Bitcoin Is Surging, Again, Up 130% This Year Why Bitcoin Is Booming Why Bitcoin and Ether Went Wild Bitcoin’s Unlikely Evangelist: Fidelity CEO Abigail Johnson Coinbase on Mission to Take Digital Currency ...
by Jonathan
Fri Aug 18, 2017 5:00 pm
Forum: Personal Consumer Issues
Topic: Draperies or Honey Comb Shades/Blinds?
Replies: 31
Views: 2711

Re: Draperies or Honey Comb Shades/Blinds?

Honeycomb shades are inherently more complex than drapes. Several of ours have failed, both in and out of warranty, simply from a year or two of raising them in the morning, and lowering them at night. They are extremely difficult to clean.
by Jonathan
Fri Aug 18, 2017 3:10 pm
Forum: Investing - Theory, News & General
Topic: Q&A WITH JACK BOGLE - Got a Question for Jack?
Replies: 53
Views: 13280

Re: Q&A WITH JACK BOGLE - Got a Question for Jack?

Mr. Bogle: What is your opinion on bitcoin?

*
by Jonathan
Fri Aug 18, 2017 2:08 pm
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 238
Views: 29122

Re: What is Bitcoin?

A collective belief that it has value. The same as gold, the same as the US dollar, etc. That's fair, and accurate. But the collective belief in gold's value has perpetuated for millennia. We know it's not a fad. Does gold have properties or attributes that make it valuable, beyond just collective ...
by Jonathan
Fri Aug 18, 2017 12:48 pm
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 238
Views: 29122

Re: What is Bitcoin?

Nice post. High-quality bitcoin posters, unite! :sharebeer As investors, we want to answer this one too: Why does bitcoin have value? To approach that one, try this technique: Why does gold have value? Gold has been valuable for thousands of years. All gold is currently worth around $7 trillion . Go...
by Jonathan
Thu Aug 17, 2017 10:07 am
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

I don't know what to tell you guys about insider trading and currency markets. I believe that Australian situation had also to do with stealing information from a bank? You're trying to present a far-end edge case as an example of a standard, and it's not convincing. This looks like Escalation of co...
by Jonathan
Wed Aug 16, 2017 11:24 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

Hey I know, let's get the definition from a dictionary! That solves all these debates. :) the illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information . Whoops, it appears you are being intellectually dishonest. :( That definition re...
by Jonathan
Wed Aug 16, 2017 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

mnaspbh wrote:
Wed Aug 16, 2017 5:53 pm
chargebacks are entirely possible and have happened before.

The fees are a fixed rate, not percentage based
Fixed rate fees? Chargebacks? Are you talking about bitcoin?
by Jonathan
Wed Aug 16, 2017 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

Merchants may prefer it over credit cards because there are no fees or chargebacks. Remember, the transaction time for bitcoin may be slow compared to credit cards, but the settlement time for credit cards is around 1 month (the time after which you cannot do chargebacks). Look at some of the larger...
by Jonathan
Wed Aug 16, 2017 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

I think the reason is that bitcoin is not a currency. I think you're correct. But be mindful of this trap we see the financial media lay out: 1. Bitcoin is a crypto currency , which is a kind of currency. 2. Bitcoin can't be a useful currency, and here's why... 3. Therefore, bitcoin is stupid. It's...
by Jonathan
Wed Aug 16, 2017 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

Two Aussies were convicted of insider trading in the currency markets: http://www.financemagnates.com/forex/analysis/australian-insider-trading-duo-gets-jail-time-after-trading-margin-fx/ Hmmmm, I don't know if that's a great example of "insider trading" per se: Hill had abused his position as a Co...
by Jonathan
Wed Aug 16, 2017 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

Now suppose 1 in 4 people had $40 in their Bitcoin "sock drawer" and they owned all Bitcoins. The capitalization of Bitcoin would be 7% or so higher than it is now. This is accurate. But the perspective becomes mind-boggling when you consider bitcoin as something besides "sock drawer" holdings. Wha...
by Jonathan
Wed Aug 16, 2017 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

I found this interesting on the potential to manipulate BC price https://hackernoon.com/meet-spoofy-how-a-single-entity-dominates-the-price-of-bitcoin-39c711d28eb4 This article (and the fabled existence of "spoofy"), is now an inside joke among bitcoiners. Here's the CSO of Bitfinex (the exchange d...
by Jonathan
Wed Aug 16, 2017 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

It's not about how a person feels about what he does, but what a neutral 3rd party observer decides. The dictionary disagrees with you: https://i.imgur.com/Jd5ube7.png https://i.imgur.com/Wi6gQOs.png https://i.imgur.com/9BL2R5p.png BTW, most other dictionaries are in agreement. Same with investment...
by Jonathan
Wed Aug 16, 2017 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

My simple mind just can't comprehend this . . . Keep in mind that the 88,000% is from day one, when bitcoin was extremely difficult to acquire, and far too esoteric to be known to the common investor. A 2-year chart is better for our purposes. After all, we've been jibber-jabbering about bitcoin on...
by Jonathan
Wed Aug 16, 2017 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Cancer at 38. Going from high income to no income. Need help generating income from $5m portfolio
Replies: 45
Views: 9769

Re: Cancer at 38. Going from high income to no income. Need help generating income from $5m portfolio

The concierge model is stretching into oncology (google concierge oncology). I understand that it looks sketchy, and it's certainly controversial, but it's something to think about now in certain parts of the country.
by Jonathan
Wed Aug 16, 2017 12:16 pm
Forum: Investing - Help with Personal Investments
Topic: bitcoin makes you rich
Replies: 49
Views: 3926

Re: bitcoin makes you rich

every "winner" from bitcoin means an equal and opposite "loser"-- someone who sold at a cheaper price. This is a societal zero sum game You have some good arguments, but are you sure bitcoin is zero sum? We know bitcoin has more than zero utility right now, and it may have the potential for much mo...
by Jonathan
Wed Aug 16, 2017 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Cancer at 38. Going from high income to no income. Need help generating income from $5m portfolio
Replies: 45
Views: 9769

Re: Cancer at 38. Going from high income to no income. Need help generating income from $5m portfolio

My advice is to thoroughly research the medical facilities that specialize in treating this type of cancer. If you have to move across the country to be closer to one of the best ones, fine. And to research the exact doctors and care providers who will be taking care of your husband, to ensure that ...
by Jonathan
Wed Aug 16, 2017 10:49 am
Forum: Investing - Help with Personal Investments
Topic: bitcoin makes you rich
Replies: 49
Views: 3926

Re: bitcoin makes you rich

I have heard If you have invested $1000 for Bitcoin in2007, you have 54 million now ????. You couldn't invest in bitcoin in 2007; the first bitcoin block (the genesis block) was mined in January 2009 . Here it is on the blockchain: https://blockexplorer.com/block/000000000019d6689c085ae165831e934ff...
by Jonathan
Wed Aug 16, 2017 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

The gambling analogies here aren't great. Here's an example of how the formal definition of investing plays out: PERSON A : Puts $100 on red on the roulette wheel, believing that he's "lucky" and thus is more likely to win than lose. PERSON B : Puts $100 in index funds, believing that he will make a...
by Jonathan
Tue Aug 15, 2017 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

Bitcoin has only the one source of return. Your point is reasonable, but here's some backstory you might not know about: Two weeks ago, bitcoin forked off to Bitcoin Cash. Those who held bitcoin before the fork now have tokens on both blockchains. So, for every bitcoin token they owned, they also g...
by Jonathan
Tue Aug 15, 2017 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

Interesting... I did not realize that the amount of bitcoins that will ever be created is fixed (at least until the next fork :P) That's a valid point. After all, you could download the bitcoin source code, and fork it as much as you want. Many altcoins were created just like that! For example, Eth...
by Jonathan
Tue Aug 15, 2017 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

Bitcoin is probably not best described as either an asset, or an investment, or a currency. Rather, bitcoin is money. This compels us to think carefully about exactly what money is. In this context, money is a ledger. The $20 bill in your wallet, your bank account balance, your Vanguard statement - ...
by Jonathan
Tue Aug 15, 2017 2:25 pm
Forum: Investing - Help with Personal Investments
Topic: BITCOIN: Any experience sending USD from Coinbase to BofA?
Replies: 4
Views: 624

Re: BITCOIN: Any experience sending USD from Coinbase to BofA?

Not for BofA, but I have for Wells Fargo. It went smoothly, multiple times. Coinbase is heavily-regulated, backed by very mainstream investors (including the New York Stock Exchange), and FDIC insured to $250,000. For next time: the Boglehead strategy in this case is to sell on Coinbase's GDAX excha...
by Jonathan
Tue Aug 15, 2017 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

Isn't inflation reasonably well-correlated with the increase in money supply? See: https://en.wikipedia.org/wiki/Monetary_inflation So the counter-argument goes like this: fiat currency is inherently inflationary, whereas bitcoin is not. Money supply increases, gold supply increases. Inflation incre...
by Jonathan
Tue Aug 15, 2017 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

You can create your own cryptocurrency in 5 minutes. Thousands of other cryptocurrencies have been created, and none have yet beaten bitcoin in market cap. Bitcoin runs on the largest computer network in the history of mankind. This doesn't mean that they can't/won't surpass bitcoin in value, it jus...
by Jonathan
Tue Aug 15, 2017 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

If you think bitcoin is "tulips", good news: you can short bitcoin. Shorting means when bitcoin goes down, your investment goes up. Shorting is widely available, but bogleheads may be most interested in shorting on GDAX, Coinbase's exchange. Coinbase is a regulated, FDIC insured, mainstream exchange...
by Jonathan
Mon Aug 14, 2017 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

When I look up "investing", the definition is pretty consistent: putting money out in the hopes of getting more money. Nevertheless, I'm open to different views on that definition. Yes, the bitcoin charts are a bit striking. I generally accompany them with some "could drop to zero tomorrow" type of ...
by Jonathan
Mon Aug 14, 2017 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

gambling - a game of chance where the expected return is <= 1. Bitcoin falls into this category. Here's the bitcoin chart since 2011. Over 88,000% return. The charts are all strongly in the green for similar 2-year returns, 1-year, 6-month, 30-day, 7-day, and 1-day. We can't say that bitcoin won't ...
by Jonathan
Mon Aug 14, 2017 3:49 pm
Forum: Personal Consumer Issues
Topic: Public vs Private Elementary
Replies: 57
Views: 3710

Re: Public vs Private Elementary

INTELLECTUAL diversity is what I'm referring to. I don't think political views should have any impact on teaching or understanding intellectual diversity. You don't need to have diehard alt-creationists in the classroom to study and analyze their point of view, and the tools to fairly critique and ...
by Jonathan
Mon Aug 14, 2017 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

BTW, bitcoin does fit fairly into Boglehead ideology, like this: CORRECT: Purchasing bitcoin is not in alignment with my investment portfolio strategy, so I don't do it. CORRECT: I don't understand bitcoin, so I don't purchase it. CORRECT: Bitcoin may be a black swan event. By definition, we can't t...
by Jonathan
Mon Aug 14, 2017 1:22 pm
Forum: Personal Consumer Issues
Topic: What home task(s) are worth learning to do yourself?
Replies: 46
Views: 5240

Re: What home task(s) are worth learning to do yourself?

EVERY HOMEOWNER SHOULD KNOW: 1. Gas shutoff. 2. Water shutoff. 3. Electricity shutoff. Be wary of the mindset by which you learn something fairly, and thus save the cost of outsourcing that job fairly. Really you want to know a little of everything, so that an unscrupulous contractor can't hustle yo...
by Jonathan
Mon Aug 14, 2017 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

When you post and interact on a bulletin board built around an investing ideology, it's not bullying when other posters repeat the foundation of the ideology. Sure, if they repeat an ideology as just that - an ideology. If they repeat that the definition of investing is as they say it, without poin...
by Jonathan
Mon Aug 14, 2017 12:48 pm
Forum: Personal Consumer Issues
Topic: Public vs Private Elementary
Replies: 57
Views: 3710

Re: Public vs Private Elementary

Try to avoid the "public vs. private" mentality. There are great and terrible schools in each camp. What do you want for your children? What are their talents, that a great school could cultivate? Intellectual? Athletic? Social? Artistic? When people say that a school is "good", they're usually (wh...
by Jonathan
Mon Aug 14, 2017 12:31 pm
Forum: Personal Consumer Issues
Topic: Public vs Private Elementary
Replies: 57
Views: 3710

Re: Public vs Private Elementary

Try to avoid the "public vs. private" mentality. There are great and terrible schools in each camp. What do you want for your children? What are their talents, that a great school could cultivate? Intellectual? Athletic? Social? Artistic? When people say that a school is "good", they're usually (whe...
by Jonathan
Mon Aug 14, 2017 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Bitcoin
Replies: 131
Views: 10222

Re: Bitcoin

I personally think investing is gambling. Agreed. And gambling is investing. We often see the following position in this forum: only Boglehead-style investing counts as real investing, whereas everything else is simply "speculating". I've wrongly perpetuated this falsehood myself, but I know now th...
by Jonathan
Fri Jun 09, 2017 11:49 am
Forum: Personal Consumer Issues
Topic: Does anyone read the Wall Street Journal?
Replies: 58
Views: 7008

Re: Does anyone read the Wall Street Journal?

The best antidote is to read widely. This is good advice. To be fair, NYT is still great for topics like recipes and travel articles, just like The New Yorker is still great for book reviews. For raw leaks, I like Twitter or reddit. I used to be troubled by the pseudonymity on reddit, but it's ofte...
by Jonathan
Fri Jun 09, 2017 12:49 am
Forum: Personal Consumer Issues
Topic: Does anyone read the Wall Street Journal?
Replies: 58
Views: 7008

Re: Does anyone read the Wall Street Journal?

For decent large US newspapers, WSJ is all that's left. While no media outlet is free from bias, they've retained their credibility by keeping a dry voice through the recent media storms. It used to pair nicely with the New York Times, but the latter's demise is one of the great media losses of our ...
by Jonathan
Tue Jun 06, 2017 11:34 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin: The worst investment in 2014
Replies: 84
Views: 12840

Re: Bitcoin: The worst investment in 2014

Another example, from Fox Business in the last 6 months. A little hokey, and they're playing up the "turning socialism against itself" angle, but this is reasonable evidence from a mainstream source. https://www.youtube.com/watch?v=55KyJl8faNY We've previously discussed purse.io for getting discount...
by Jonathan
Tue Jun 06, 2017 6:03 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin: The worst investment in 2014
Replies: 84
Views: 12840

Re: Bitcoin: The worst investment in 2014

GuitarXM - I was confused by your response, but then saw that we both posted at exactly 52 minutes after the hour. You might be more satisfied with some of the links I've posted.
by Jonathan
Tue Jun 06, 2017 5:52 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin: The worst investment in 2014
Replies: 84
Views: 12840

Re: Bitcoin: The worst investment in 2014

Also look at the LocalBitcoins volume chart for Venezuela And search reddit for the query venezuela , restricting your search to the bitcoin subreddit, and sort by newest, like this: https://www.reddit.com/r/Bitcoin/search?q=venezuela&sort=new&restrict_sr=on And here's a post from an 8-year-old redd...