Bitcoin Purchase

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TravelforFun
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Bitcoin Purchase

Post by TravelforFun » Thu Dec 29, 2016 3:13 pm

I used some play money and bought some bitcoin shares today. Any bogleheads mess with highly speculative and wildly volatile products like bitcoin?
Last edited by TravelforFun on Tue Jan 03, 2017 2:36 pm, edited 2 times in total.

2Birds1Stone
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Re: Bitcoin Investment

Post by 2Birds1Stone » Thu Dec 29, 2016 3:23 pm

You waited till a massive runup to purchase crypto currency?

Good luck. :sharebeer

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bligh
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Re: Bitcoin Investment

Post by bligh » Thu Dec 29, 2016 3:25 pm

I invested on the craps table when in Vegas one time. Made a good bit of money and had a ton of fun doing so. :sharebeer As long as it is just play money you don't mind losing, and you are having fun, I see no harm.

Bitcoin reminds me of the tulip mania. I setup coin desk, bought some and sold it for a profit just for fun back in the day. This was back in 2012 I think. Lost some money later too once the mania died down ab it. I even have my own bitcoin wallet sitting around somewhere. I find it really funny and interesting. I see the hype cycle is in full force again.

I expect China/US or other major countries to start shutting down access to bitcoin, regulating it or otherwise "breaking its back" if it ever becomes serious. For now they are content with people to play with it and see where it goes.

renue74
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Re: Bitcoin Investment

Post by renue74 » Thu Dec 29, 2016 3:26 pm

I bought some bitcoins to spend on Amazon through Purse.io. I can get discounts for my Amazon purchases doing that...but I would never dabble in bitcoin as an investment vehicle. You probably are safer throwing real coins over your back in the Trevi Fountain.

orca91
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Re: Bitcoin Investment

Post by orca91 » Thu Dec 29, 2016 3:30 pm

OP, it shows you have been a member since 2012.

Have you missed the many threads on Bitcoin over the last few years? :happy

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Pajamas
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Re: Bitcoin Investment

Post by Pajamas » Thu Dec 29, 2016 3:36 pm

Bitcoin "Investment" you mean.

Currency speculation is speculation not investing. :shock:

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TravelforFun
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Re: Bitcoin Investment

Post by TravelforFun » Thu Dec 29, 2016 3:36 pm

orca91 wrote:OP, it shows you have been a member since 2012.

Have you missed the many threads on Bitcoin over the last few years? :happy
Nope. Read them all. My definition of 'play money' is it can be lost whether in stock market or Vegas.

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Re: Bitcoin Investment

Post by cheese_breath » Thu Dec 29, 2016 3:43 pm

TravelforFun wrote:
orca91 wrote:OP, it shows you have been a member since 2012.

Have you missed the many threads on Bitcoin over the last few years? :happy
Nope. Read them all. My definition of 'play money' is it can be lost whether in stock market or Vegas.
My definition of play money is money that buys me fun such as a trip to Cape May. Losing money in the market or Vegas isn't fun to me.
The surest way to know the future is when it becomes the past.

Tal-
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Re: Bitcoin Investment

Post by Tal- » Thu Dec 29, 2016 3:52 pm

I've made similar "investments" in gold, but not Bitcoin. The two are similar in several ways: both fun to have, high speculative, highly volatile, and variations on "money."

And while I do not feel that gold is a good investment, I think Bitcoin is a silly investment. Twenty years from now, Bitcoin is probably dead. If I'm wrong, Bitcoin is still around, and used as an established means of currency and commerce. But, even if it's still around, why would we expect for the rate of inflation for prices in Bitcoin to outpace those of other currencies - especially given that other, similar (more robust?) forms of cryptocurrency will be introduced, and act as an alternative to, or upgrade from Bitcoin?

For me, Bitcoin isn't mature enough to be "money". Even it it were money, I would expect it to grow at a pace commensurate with standard inflation. And as an investment, it has a high probably of 100% loss with very few believable scenarios out there that make it viable as a long-term investment.

It's wonderful technology, and a fun topic to play with, but is pretty weak as an investment IMO.
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Re: Bitcoin Investment

Post by lazydavid » Thu Dec 29, 2016 3:53 pm

2Birds1Stone wrote:You waited till a massive runup to purchase crypto currency?

Good luck. :sharebeer
:oops: Headshaker for me too. The price has nearly doubled in the past 60 days, and NOW is the ideal time to buy? Sounds like performance chasing, fun money or not.

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TravelforFun
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Re: Bitcoin Investment

Post by TravelforFun » Thu Dec 29, 2016 3:58 pm

lazydavid wrote:
2Birds1Stone wrote:You waited till a massive runup to purchase crypto currency?

Good luck. :sharebeer
:oops: Headshaker for me too. The price has nearly doubled in the past 60 days, and NOW is the ideal time to buy? Sounds like performance chasing, fun money or not.
Who knows when the massive runup will end?
Last edited by TravelforFun on Thu Dec 29, 2016 4:12 pm, edited 1 time in total.

Jonathan
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Re: Bitcoin Investment

Post by Jonathan » Thu Dec 29, 2016 4:03 pm

Yay! Good to see a Purse.io mention. I'm up to 46 transactions, and I'm still loving it. A new trick I recently learned: one-time coupons on Amazon can be used repeatedly by different Purse buyers. For example, we always purchase dog food on Purse. Last time I went to load up my Purse wishlist with a few bags of dog food, I saw that there was a one-time Amazon coupon special on the dog food. If I purchased it from Amazon, I was entitled to a one-time use of the coupon, on one bag of dog food, I think around $5 off. On Purse, every purchaser of that dog food can use the $5 coupon. Knowing this, I can set my discount percentage higher, because every Purse purchaser can use the coupon.

Bitcoin is no "investment", but it's not tulips either. It's an admittedly risky, very volatile, but still deeply nuanced and fascinating asset. Nobody will take away your Boglehead credentials for speculating with a tiny portion of your portfolio. For me one of the most intriguing facets of the bitcoin community is the intellectual focus on the interplay of money and trust.

miles monroe
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Re: Bitcoin Investment

Post by miles monroe » Thu Dec 29, 2016 4:32 pm

clark howard says bitcoins are not an investment, they are a payment platform.

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Re: Bitcoin Investment

Post by blinx77 » Thu Dec 29, 2016 5:19 pm

I invest in lots of things. A nice laptop, some wine, friendships, a garden, a really good overcoat, a good quality coffee grinder. All of those things seem like more likely to give me a reasonable ROI than Bitcoin.

If you want to purchase Bitcoin, play with Bitcoin, speculate on Bitcoin, donate to the Bitcoin platform, knock yourself out. But "invest"?

Let's put it this way. If you track your net worth, track the Bitcoin at zero. If that conceptually sounds OK to you, then proceed. :D

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arcticpineapplecorp.
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Re: Bitcoin Investment

Post by arcticpineapplecorp. » Thu Dec 29, 2016 8:45 pm

You understand investing is about buying low and selling higher, right? Looks like you bought around $30 under it's all time high. High prices lead to lower returns. Unless you're expecting some momentum effect here? Better times to have bought were 2013 or before or January 2015. Do you think you'll sell if the price drops?

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TravelforFun
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Re: Bitcoin Investment

Post by TravelforFun » Thu Dec 29, 2016 9:27 pm

arcticpineapplecorp. wrote:You understand investing is about buying low and selling higher, right? Looks like you bought around $30 under it's all time high. High prices lead to lower returns. Unless you're expecting some momentum effect here? Better times to have bought were 2013 or before or January 2015. Do you think you'll sell if the price drops?
Market is at all-time high now. Would you stop buying?

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Re: Bitcoin Investment

Post by whodidntante » Thu Dec 29, 2016 10:22 pm

Betting on black wins almost half the time.

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arcticpineapplecorp.
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Re: Bitcoin Investment

Post by arcticpineapplecorp. » Fri Dec 30, 2016 1:14 pm

TravelforFun wrote:
arcticpineapplecorp. wrote:You understand investing is about buying low and selling higher, right? Looks like you bought around $30 under it's all time high. High prices lead to lower returns. Unless you're expecting some momentum effect here? Better times to have bought were 2013 or before or January 2015. Do you think you'll sell if the price drops?
Market is at all-time high now. Would you stop buying?
I wouldn't buy bitcoin at all because it's a speculation, not an investment (as has been said already) and I don't like to speculate. That being said, I'm not sure why you felt the need to buy bitcoins now when you can see the price is basically as high as it's ever been. What made you think "now is the time to buy"? Was it a feeling of being "left out"? That's performance chasing (as has been said already). No one is saying, "Wow, bitcoin is so much cheaper now than it was before, should I buy?" So what made you decide to buy now rather than before? And what would make you decide to buy again? When do you sell? This is the speculative nature of this bitcoin. There's no fundamentals, no earnings, it doesn't "produce" anything. There's only a "promise" to be a finite amount of bitcoins available and people who are buying it either to sell to another for a higher price (if they can) or to transact business in some way (usually illegal activities or activities in which a person does not want a paper trail) because most people/companies will gladly accept cash or credit that leaves a paper trail.

And I'm starting to think more about the concept of "play money" when people use that term. If you have play money, then I assume you're retired and have more than enough to live on the rest of your life, pay expensive out of pocket nursing care expenses and leave a vast fortune to charity and/or family. Is that the case? If not, then how is there "play money"? If you're not financially independent right now, then isn't every dollar needed to work towards financial independence? Play money than is really just money you're gambling with. And you know how gambling usually ends.
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

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Re: Bitcoin Investment

Post by Valuethinker » Sat Dec 31, 2016 10:15 am

TravelforFun wrote:I used some play money and bought some bitcoin shares today. Any bogleheads mess with highly speculative and wildly volatile products like bitcoin?
My understanding of bitcoin is that 80%+ of the trades these day used Chinese based exchanges. I haven't checked that "fact" though.

Chinese investors are using them to bypass Chinese exchange controls (the Renimbi is going to devalue for sure, and the government has blocked companies and individuals from anticipating that by buying dollars first)-- the Chinese are scrambling to buy anything that is not 1). overvalued property 2). overvalued stocks.

When the Chinese government decides to stop this (and it will, as a devaluation causes serious political issues with the new US Administration) look out.

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Re: Bitcoin Investment

Post by nisiprius » Sat Dec 31, 2016 11:55 am

Nothing about bitcoin makes much sense to me, and it has suffered from day one from a disconnect between what people say its characteristics are and what they seem to be. You get into endless cycles in which e.g. enthusiasts say it's anonymous, and it turns out that it isn't anonymous, and then the enthusiasts say "oh, anybody knowledgeable knows that it is really only pseudoanonymous." Enthusiasts say the algorithm prevents double-spending, you point out incidents of double-spending, and enthusiasts say "Oh, that was only while there was there were temporarily two versions of the code at the same time and that's now been fixed." Enthusiasts say it can't be stolen, you point out incidents where people lost serious money in bitcoin thefts, and the enthusiasts say "Oh, that's because anybody knowledgeable knows not to use bitcoin exchanges."

And so many things connected with bitcoin seems to be disreputable... like Butterfly Labs (people had to wait long times for their gear, so long that by the time they received the products it was no longer profitable to use them... and it transpired that while they were waiting, Butterfly Labs had been "testing" their gear by mining bitcoin with it, which Butterfly Labs kept for itself).

The question I would like to ask is: how many people who are speculating in bitcoin do so because they believe that, nudge-nudge-wink-wink, it is a safe and legal way to participate in the growth and profits made of the illegal underground economy? If so, I would point out that an essential element in most con games is making the victim believe they have been invited to participate in swindling somebody else. This among other things "explains" how it is possible to make outsized gains, and also prevents the victim from going to the cops when they realize what's happened.

Oh, by the way--as evidence that bitcoin is mainstream, enthusiasts often point to the Winklevoss twins' bitcoin ETF. In the words of Tyler Winklevoss in 2013, "The trust brings bitcoin to Main Street and mainstream investors to bitcoin." There is a constant stream of news about it, always suggesting that the regulatory approval is imminent... look, it even has a ticker symbol, COIN... and yet...

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TravelforFun
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Re: Bitcoin Investment

Post by TravelforFun » Tue Jan 03, 2017 9:43 pm

arcticpineapplecorp. wrote:
TravelforFun wrote:
arcticpineapplecorp. wrote:You understand investing is about buying low and selling higher, right? Looks like you bought around $30 under it's all time high. High prices lead to lower returns. Unless you're expecting some momentum effect here? Better times to have bought were 2013 or before or January 2015. Do you think you'll sell if the price drops?
Market is at all-time high now. Would you stop buying?
When do you sell?
I did today.

https://dl.dropboxusercontent.com/u/386 ... itcoin.jpg

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StevieG72
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Re: Bitcoin Purchase

Post by StevieG72 » Tue Jan 03, 2017 10:06 pm

Bitcoin is still a thing?

I thought it had faded away.

Too speculative for me.

Was it Bogle, Buffett or both that said don't buy anything you don't understand?

I don't understand Bitcoin. The whole "mining" thing is where I get lost.
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arcticpineapplecorp.
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Re: Bitcoin Investment

Post by arcticpineapplecorp. » Tue Jan 03, 2017 10:24 pm

TravelforFun wrote:
arcticpineapplecorp. wrote:
TravelforFun wrote:
arcticpineapplecorp. wrote:You understand investing is about buying low and selling higher, right? Looks like you bought around $30 under it's all time high. High prices lead to lower returns. Unless you're expecting some momentum effect here? Better times to have bought were 2013 or before or January 2015. Do you think you'll sell if the price drops?
Market is at all-time high now. Would you stop buying?
When do you sell?
I did today.

https://dl.dropboxusercontent.com/u/386 ... itcoin.jpg
Thanks for the follow up. At least you didn't lose money (it looks like you purchased $24,249.45 worth of bitcoins but sold for $27,490.45 just 5 days later if I'm reading your dropbox content correctly. That's a 13.36% rate of return over just 5 days. Pretty good, but I hope you don't try it again. Everyone's luck runs out eventually. Don't forget to report that gain (short term of course) on your tax return next year.

I'm interested in what led you to sell 5 days later? Can you share what your decision process was? That might be helpful for other fellow speculators. Thanks.

p.s. if $24,249.45 is your idea of "play money" you must be doing just fine.
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

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TravelforFun
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Re: Bitcoin Investment

Post by TravelforFun » Tue Jan 03, 2017 10:45 pm

arcticpineapplecorp. wrote:
TravelforFun wrote:
arcticpineapplecorp. wrote:
TravelforFun wrote:
arcticpineapplecorp. wrote:You understand investing is about buying low and selling higher, right? Looks like you bought around $30 under it's all time high. High prices lead to lower returns. Unless you're expecting some momentum effect here? Better times to have bought were 2013 or before or January 2015. Do you think you'll sell if the price drops?
Market is at all-time high now. Would you stop buying?
When do you sell?
I did today.

https://dl.dropboxusercontent.com/u/386 ... itcoin.jpg
Thanks for the follow up. At least you didn't lose money (it looks like you purchased $24,249.45 worth of bitcoins but sold for $27,490.45 just 5 days later if I'm reading your dropbox content correctly. That's a 13.36% rate of return over just 5 days. Pretty good, but I hope you don't try it again. Everyone's luck runs out eventually. Don't forget to report that gain (short term of course) on your tax return next year.

I'm interested in what led you to sell 5 days later? Can you share what your decision process was? That might be helpful for other fellow speculators. Thanks.

p.s. if $24,249.45 is your idea of "play money" you must be doing just fine.
I'm semi-retired and have enough to last me and wife the rest of our lives. I'm a boglehead because most of my investment is in index and bond mutual funds but I set aside about 1-2% of my asset to play around. I'd buy and sell individual stocks from time to time with this play money and have no concerns about losing it.The reason I sold my bitcoin stock so quickly is because there was a huge jump from last Friday to today (Tuesday) and I just decided to collect the profit.

If I feel like posting about something I buy, I'd would post about it when I sell, win or lose.

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Re: Bitcoin Purchase

Post by lazydavid » Wed Jan 04, 2017 11:20 am

StevieG72 wrote:I don't understand Bitcoin. The whole "mining" thing is where I get lost.
That part is actually relatively easy. The system is based on a sequence of incredibly-difficult one-way math problems, that can only be solved by guessing. When you have a correct guess, your reward is the creation of a small cache of bitcoin (currently 25). The process of mining confirms the integrity of previous transactions, hence the reason this activity is incentivized.

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Re: Bitcoin Purchase

Post by Jonathan » Wed Jan 04, 2017 1:44 pm

lazydavid wrote:
StevieG72 wrote:I don't understand Bitcoin. The whole "mining" thing is where I get lost.
That part is actually relatively easy. The system is based on a sequence of incredibly-difficult one-way math problems, that can only be solved by guessing. When you have a correct guess, your reward is the creation of a small cache of bitcoin (currently 25). The process of mining confirms the integrity of previous transactions, hence the reason this activity is incentivized.
Good explanation. Another one I like to use: bitcoin mining is kinda like figuring out a Sudoku puzzle. Difficult to complete, but once it's done correctly, it's very easy and fast to verify.

Another point: it used to be that a single person could use a single computer to complete the math problem, and he would get the entire reward. Back in the day, there was some debate about whether it was even ethical to use newer more powerful chips to do the computing. Per the bitcoin protocol, the math problems became increasing more difficult, and now people use their computers to participate in large distributed mining pools. When the pool correctly guesses, everyone in the pool gets paid, according to the percentage of the computing power that they contributed.

The collective computing power of all of the computers mining bitcoin is now so large that it's by far the most powerful in the world.

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Re: Bitcoin Investment

Post by MikeG62 » Thu Jan 05, 2017 8:32 am

TravelforFun wrote:
lazydavid wrote:
2Birds1Stone wrote:You waited till a massive runup to purchase crypto currency?

Good luck. :sharebeer
:oops: Headshaker for me too. The price has nearly doubled in the past 60 days, and NOW is the ideal time to buy? Sounds like performance chasing, fun money or not.
Who knows when the massive runup will end?
Down 20% this morning.

10 minutes later it is now it's down 12%.

How anyone could consider this an investment is beyond me. It's speculating - pure and simple.
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Re: Bitcoin Purchase

Post by Jonathan » Thu Jan 05, 2017 1:01 pm

I get the differentiation between investing and speculating, and I think it's an acceptable facet of Bogleheads culture, but it also gives rise to the notion that anything besides indexing is "not investing". If you look up investing in a variety of dictionaries, it's obvious that such a distinction does not exist. The Bogleheads mantra has merged the definitions of speculating and "guessing", and bucketed any non-indexing into that category. This isn't an absurd concept, but applying it militantly is intellectually dishonest.

The COIN ETF has not yet been approved, and the SEC just kicked the can down the road a few extra months. If you want to buy a bitcoin stock, you can purchase GBTC.

McGilicutty
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Re: Bitcoin Purchase

Post by McGilicutty » Thu Jan 05, 2017 1:12 pm

Oof. Coindesk shows Bitcoin down 15% right now to $965. What is the P/E of Bitcoin anyway?

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Re: Bitcoin Purchase

Post by Jonathan » Thu Jan 05, 2017 1:25 pm

Past 7 days: bitcoin up 2%
Past 30 days: bitcoin up 27%
Past 6 months: bitcoin up 59%
Past 2 years: bitcoin up 399%

Conclusion: bitcoin is down.

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Re: Bitcoin Purchase

Post by monsterid » Thu Jan 05, 2017 1:30 pm

McGilicutty wrote:Oof. Coindesk shows Bitcoin down 15% right now to $965. What is the P/E of Bitcoin anyway?
P/E lol..

Bitcoin is up because of tighter Chinese capital controls being put in place recently. Chinese nationals trying to get into foreign currency are buying bitcoin with Yuan and then moving it on to hard currency (EUR, USD).

Realize when trading FX that most cross rates are driven by speculation although some of the price movement is "real flow" (i.e. companies and individuals, governments trading FX for real world uses). How much of the bitcoin price action is driven by real flow vs speculation? Real flow is usually less volatile and will exists even in poor markets and give you downside support.

This is a casino not an investment...

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Re: Bitcoin Purchase

Post by LibertyLover » Thu Jan 05, 2017 3:47 pm

I have a few friends who did extremely well by buying Bitcoin near the beginning. One family I know paid for the house off the money they made off Bitcoin.

The time to invest was when it had value. Putting money in when it was at single or double digits/Bitcoin was a lower risk higher reward proposition. Chances are much higher it drops to under $500/Bitcoin than doubling to $2000 (especially sense today's drop).

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Re: Bitcoin Purchase

Post by Flymore » Thu Jan 05, 2017 4:14 pm

The cover of IBD 12/26 had a good article on Bitcoin, you may want to check it out.
The technology underlying bitcoin is Blockchain, this will replace much of the transaction based technology in use today.
Far faster and more transparent than what is used today, Wal-Mart is using it to trace some food items.
Also heard, blockchain could replace the need of a title company for real estate transactions.
Someone I know is looking at it for Mastercard.
A better bet may have been technology companies like IBM or Microsoft, although some tech companies stand to loose (i think).
Some laws are preventing the deployment of block chain right now for some transaction processing, it's going to take time to adopt.

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Re: Bitcoin Purchase

Post by LadyGeek » Thu Jan 05, 2017 10:22 pm

This thread is now in the Investing - Theory, News & General forum (bitcoin).
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Re: Bitcoin Purchase

Post by oldzey » Fri Jan 06, 2017 12:20 am

Investing in Bitcoin? What could possibly go wrong? :P
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Re: Bitcoin Purchase

Post by McGilicutty » Fri Jan 06, 2017 7:10 am

Yowza. Bitcoin down another 12% today to $880. I know, I know, long-term 'investors' in this ponzi scheme are still up.

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Re: Bitcoin Purchase

Post by Valuethinker » Fri Jan 06, 2017 7:56 am

McGilicutty wrote:Yowza. Bitcoin down another 12% today to $880. I know, I know, long-term 'investors' in this ponzi scheme are still up.
I don't think it can fairly be described as a "Ponzi Scheme" in its full sense.

Everybody knows what is going on with Bitcoin. The issue is whether it has any intrinsic value?

This is more like an 18th or 19th century Merchant Bank, in the days before government deposit insurance & regulation etc. Whether a bill is worth something depends on whether you thought the underlying entity would make good on the bill. As long as you did believe that, and the market believed that, the bills had value. Periodically banks collapsed, and the bills were valueless.

Given it is China that is hosting most of the trades and driving the market, it's a pretty murky thing to get involved with.

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Re: Bitcoin Purchase

Post by boglephreak » Fri Jan 06, 2017 4:08 pm

my friend makes a living off buying and selling bitcoin. he has to deal with a lot of shady people, has been contacted multiple times by police related to fraud/theft issues associated with the money used to buy the bitcoins, and is currently facing increased scrutiny and regulation in California. ignoring all that, he makes enough to live in san francisco.

i dont dabble myself. its just speculation and once the regulators get a hold on it, it will lose its main purpose (avoiding the government).

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Re: Bitcoin Purchase

Post by McGilicutty » Sat Jan 07, 2017 4:11 am

Bitcoin down another 8% today to $820.

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Re: Bitcoin Purchase

Post by LarryAllen » Mon May 01, 2017 8:18 pm

Bitcoin appears to be at $1,404 today. Might be fun to throw a few bucks into it. Although I don't gamble in Vegas so not sure why I want to gamble on this!? In all seriousness how does Bitcoin compare with Vegas gambling?

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Re: Bitcoin Investment

Post by TheTimeLord » Mon May 01, 2017 8:33 pm

Tal- wrote:I've made similar "investments" in gold, but not Bitcoin. The two are similar in several ways: both fun to have, high speculative, highly volatile, and variations on "money."

.
Did you invest in physical gold? I have a friend who has numastic gold coins and I have to admit it is a kick to hold something that small and realize it might be worth a couple thousand bucks. Maybe not a good investment but definitely fun.
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TheTimeLord
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Re: Bitcoin Purchase

Post by TheTimeLord » Mon May 01, 2017 8:37 pm

Valuethinker wrote:
McGilicutty wrote:Yowza. Bitcoin down another 12% today to $880. I know, I know, long-term 'investors' in this ponzi scheme are still up.
I don't think it can fairly be described as a "Ponzi Scheme" in its full sense.

Everybody knows what is going on with Bitcoin. The issue is whether it has any intrinsic value?

This is more like an 18th or 19th century Merchant Bank, in the days before government deposit insurance & regulation etc. Whether a bill is worth something depends on whether you thought the underlying entity would make good on the bill. As long as you did believe that, and the market believed that, the bills had value. Periodically banks collapsed, and the bills were valueless.

Given it is China that is hosting most of the trades and driving the market, it's a pretty murky thing to get involved with.
Not a bitcoin fan but don't think it is a Ponzi scheme and understand the attraction of the currency.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]

zuma
Posts: 474
Joined: Thu Dec 29, 2016 12:15 pm

Re: Bitcoin Purchase

Post by zuma » Tue May 02, 2017 3:11 pm

Flymore wrote:The cover of IBD 12/26 had a good article on Bitcoin, you may want to check it out.
The technology underlying bitcoin is Blockchain, this will replace much of the transaction based technology in use today.
On that topic, A Brief History of Blockchain by Vinay Gupta is a good place to start.

harvestbook
Posts: 727
Joined: Sat Mar 18, 2017 7:12 pm

Re: Bitcoin Investment

Post by harvestbook » Tue May 02, 2017 4:38 pm

arcticpineapplecorp. wrote:You understand investing is about buying low and selling higher, right? Looks like you bought around $30 under it's all time high.

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And yet many Bogleheads consistently keep advising to buy stocks even when they're at alltime highs. I don't think this is a sound argument. there are plenty of OTHER sound arguments against Bitcoin, but I don't think this one is apt.

I kicked the tires on Bitcoin but ultimately it was too complex for me to understand. Then again, I have a ton of baseball cards I'd love to sell for a tenth of what I paid for them!
I'm not smart enough to know, and I can't afford to guess.

ianferrel
Posts: 192
Joined: Thu May 29, 2008 5:27 pm

Re: Bitcoin Purchase

Post by ianferrel » Tue May 02, 2017 5:12 pm

I bought a few bitcoins when they were under $4, sold several of them within a few percent of the historical high (I had forgotten about them until bitcoin was in the news for going up to $1000 each), and the rest got stolen when an exchange I had them on (got hacked/was a fraud/who knows). Can't say it was anything other than complete dumb luck. I didn't buy them as an investment. I bought them because it seemed like a fun thing to blow $20 on and play with for a few hours (which it was).

It is my best performing investment, percentage wise, narrowly beating out some Magic cards I bought a few decades ago (which were also purchased for fun, not as an investment). Sadly, the principal amount was very small in both cases.

I'm not sure what lesson to take from this experience, except that the world is a capricious place. Or maybe I should go all in on the next shiny thing that catches my attention.

csmith1211
Posts: 11
Joined: Fri Mar 31, 2017 2:59 pm

Re: Bitcoin Purchase

Post by csmith1211 » Tue May 09, 2017 10:09 am

TravelforFun wrote:I used some play money and bought some bitcoin shares today. Any bogleheads mess with highly speculative and wildly volatile products like bitcoin?
Bitcoin has nearly doubled in value just in the last few months. It's worth a few thousand or less in play $ IMO.

avalpert
Posts: 6313
Joined: Sat Mar 22, 2008 4:58 pm

Re: Bitcoin Purchase

Post by avalpert » Tue May 09, 2017 10:39 am

csmith1211 wrote:
TravelforFun wrote:I used some play money and bought some bitcoin shares today. Any bogleheads mess with highly speculative and wildly volatile products like bitcoin?
Bitcoin has nearly doubled in value just in the last few months. It's worth a few thousand or less in play $ IMO.
The very definition of performance chasing - and in a purely speculative asset at that.

avalpert
Posts: 6313
Joined: Sat Mar 22, 2008 4:58 pm

Re: Bitcoin Purchase

Post by avalpert » Tue May 09, 2017 10:40 am

LarryAllen wrote:Bitcoin appears to be at $1,404 today. Might be fun to throw a few bucks into it. Although I don't gamble in Vegas so not sure why I want to gamble on this!? In all seriousness how does Bitcoin compare with Vegas gambling?
Similar expected outcome less of the rush and none of the free drinks

Gufomel
Posts: 335
Joined: Sat Feb 14, 2015 9:52 pm

Re: Bitcoin Purchase

Post by Gufomel » Tue May 09, 2017 10:49 am

Can you buy a fraction of a bitcoin? My definition of play money is approximately $5 :)

The thought of paying $1,713.47 (apparently the current price) to buy a bitcoin is laughable to me.

What are the typical transaction costs? Just wondering how the bitcoin exchanges work in general.

flyingbison
Posts: 1363
Joined: Wed Mar 12, 2014 8:52 am

Re: Bitcoin Purchase

Post by flyingbison » Tue May 09, 2017 10:51 am

Gufomel wrote:Can you buy a fraction of a bitcoin? My definition of play money is approximately $5 :)
Yes, you can.

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