What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finished?

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alexanderadams
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What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finished?

Post by alexanderadams » Fri Mar 30, 2018 7:44 pm

Hey Guys!

Just finished up a great week! Hope everyone else had the same!

As a newbie I'm still learning the investment game... However all week I've been wondering about the recent Bitcoin bust and I'm curious to know what some of the guys who are a little seasoned have to say about this...

Is it just apart of the cycle? do you think bitcoin will rise again, or fall for good? I've been hearing talk about Bitcoin being a Pyramid Scheme... I dont quite understand that analogy however if someone does please provide some enlightenment...

An investor told me this week "The current financial system is based on economic growth and production. Bitcoin is base on speculation."

Wonder how some of you guys feel about that and if there is any faith in the cryptocurrency for the future?

golfCaddy
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by golfCaddy » Fri Mar 30, 2018 8:09 pm

With the future trajectory of quantum computing, Bitcoin is going to zero in the long run. In the medium term, crypto-currencies may have a limited future, but there's a lot of competition to Bitcoin. There are almost 1600 crypto-currencies and new ones are created every month. There's a large risk that Bitcoin will be displaced by other crypto-currencies. In the short run, asking whether Bitcoin is going up or down is like asking what color to bet on roulette.

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 8:33 pm

golfCaddy wrote:
Fri Mar 30, 2018 8:09 pm
With the future trajectory of quantum computing, Bitcoin is going to zero in the long run. In the medium term, crypto-currencies may have a limited future, but there's a lot of competition to Bitcoin. There are almost 1600 crypto-currencies and new ones are created every month. There's a large risk that Bitcoin will be displaced by other crypto-currencies. In the short run, asking whether Bitcoin is going up or down is like asking what color to bet on roulette.
Yea I've seen how many different coins have been created within the past year its been insane! I'm curious to know have you invested in any cryptocurrencies or have you had this level on insight all along? haha! I ask because I understand for the most part history doesnt repeat itself it rhymes and if you recognized a pattern with the current state of bitcoin to one of the past, or if your ideology for the medium - long term future of bitcoin / crypto based primarily on your knowledge & understanding of quantum computing?

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by Noobvestor » Fri Mar 30, 2018 8:49 pm

It's a lot like asking if Beanie Babies or baseball cards or gold will do well in the future - no one knows. If you don't have a strong understanding of something, don't invest in it. This goes double for small, volatile and relatively new asset classes, like cryptocurrencies. And it goes triple for asset classes that no one seems to be able to provide math-backed valuation criteria for (no coupon payments, dividend streams, etc...).
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe

wootwoot
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by wootwoot » Fri Mar 30, 2018 9:15 pm

If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by advice789 » Fri Mar 30, 2018 9:32 pm

This chat feels like two questions are asked. First, is there demand for cryptocurrencies? There is demand for an asset class/ payment process that is anonymous. My sense is the demand will continue as privacy continues to be valued. The second question is valuation? Agree with the other posts. Cryptocurrencies lack an economic model to demonstrate value. This feels like speculation and many have made fortunes or lost a bunch speculating. Separate from Cryptocurrencies, Blockchain, the technology underlying bitcoin, is a technology with high potential as a game changer. Recently, did a search on YouTube and located many tutorials of Blockchain’s potential and economic benefit.

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 9:32 pm

Noobvestor wrote:
Fri Mar 30, 2018 8:49 pm
It's a lot like asking if Beanie Babies or baseball cards or gold will do well in the future - no one knows. If you don't have a strong understanding of something, don't invest in it. This goes double for small, volatile and relatively new asset classes, like cryptocurrencies. And it goes triple for asset classes that no one seems to be able to provide math-backed valuation criteria for (no coupon payments, dividend streams, etc...).
Sound Advice in regards to investing in what you understand. There has been alot of hype behind crypto esp. bitcoin in the past year. I don't really understand it much but I've picked up some books and purchased some online courses to get a better understanding. I do believe in terms of practicality in order for anything to succeed it needs mass adoption and bitcoin still raises concerns in regards to its use to the masses which I think is a huge hinderance to its growth and implementation.

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 9:34 pm

wootwoot wrote:
Fri Mar 30, 2018 9:15 pm
If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.
Hey! Curious as to the overall boom/bust cycles in the past 8 years. has crypto on average been bullish over the long term?

I dont think crypto is 0, Just trying to get a better understanding of the market...

Thanks!

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 9:37 pm

advice789 wrote:
Fri Mar 30, 2018 9:32 pm
This chat feels like two questions are asked. First, is there demand for cryptocurrencies? There is demand for an asset class/ payment process that is anonymous. My sense is the demand will continue as privacy continues to be valued. The second question is valuation? Agree with the other posts. Cryptocurrencies lack an economic model to demonstrate value. This feels like speculation and many have made fortunes or lost a bunch speculating. Separate from Cryptocurrencies, Blockchain, the technology underlying bitcoin, is a technology with high potential as a game changer. Recently, did a search on YouTube and located many tutorials of Blockchain’s potential and economic benefit.
Ahh Interesting. I've been learning more and more about the blockchain and its ability to potentially eliminate intermediaries between transactions.

I recently read something in regards to privacy being the new luxury, so that may go to further your claim in terms of demand... Interested to see how this all plays out.

MotoTrojan
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by MotoTrojan » Fri Mar 30, 2018 9:39 pm

alexanderadams wrote:
Fri Mar 30, 2018 9:34 pm
wootwoot wrote:
Fri Mar 30, 2018 9:15 pm
If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.
Hey! Curious as to the overall boom/bust cycles in the past 8 years. has crypto on average been bullish over the long term?

I dont think crypto is 0, Just trying to get a better understanding of the market...

Thanks!
Look at a long term chart. Other than that, nobody knows. I wouldn’t touch it with more than a few $100 play money.

The time to make it big has past in my eyes.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alex_686 » Fri Mar 30, 2018 9:45 pm

A asset's price is its discounted free cash flow. Dividends, interest payments, rents, etc. It is tied to economically productive assets. The theory on this is solid. So investing.

Bitcoin, gold, Benie Babies, collectoable cars, etc. don't have any cash flows. Their value is based on what somebody else will pay for it in the futures, where that person buys it based on what somebody else will buy in the future. Etc. The greater fool theory. This is where the pyramid idea comes into play. In order for the value to go up the next round of investors needs to be bigger than the current. These systems tend to be less stable. It is speculation.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by finite_difference » Fri Mar 30, 2018 9:53 pm

golfCaddy wrote:
Fri Mar 30, 2018 8:09 pm
With the future trajectory of quantum computing, Bitcoin is going to zero in the long run. In the medium term, crypto-currencies may have a limited future, but there's a lot of competition to Bitcoin. There are almost 1600 crypto-currencies and new ones are created every month. There's a large risk that Bitcoin will be displaced by other crypto-currencies. In the short run, asking whether Bitcoin is going up or down is like asking what color to bet on roulette.
Can you elaborate more on what you mean by quantum computing destroying cryptocurrencies?
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 9:55 pm

finite_difference wrote:
Fri Mar 30, 2018 9:53 pm
golfCaddy wrote:
Fri Mar 30, 2018 8:09 pm
With the future trajectory of quantum computing, Bitcoin is going to zero in the long run. In the medium term, crypto-currencies may have a limited future, but there's a lot of competition to Bitcoin. There are almost 1600 crypto-currencies and new ones are created every month. There's a large risk that Bitcoin will be displaced by other crypto-currencies. In the short run, asking whether Bitcoin is going up or down is like asking what color to bet on roulette.
Can you elaborate more on what you mean by quantum computing destroying cryptocurrencies?
Would love to know more on this also...

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 9:57 pm

alex_686 wrote:
Fri Mar 30, 2018 9:45 pm
A asset's price is its discounted free cash flow. Dividends, interest payments, rents, etc. It is tied to economically productive assets. The theory on this is solid. So investing.

Bitcoin, gold, Benie Babies, collectoable cars, etc. don't have any cash flows. Their value is based on what somebody else will pay for it in the futures, where that person buys it based on what somebody else will buy in the future. Etc. The greater fool theory. This is where the pyramid idea comes into play. In order for the value to go up the next round of investors needs to be bigger than the current. These systems tend to be less stable. It is speculation.
Wow... You've just given me alot of clarity on many things...

I really like the way you explained that... very logical! Thank You!

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by Noobvestor » Fri Mar 30, 2018 10:05 pm

alexanderadams wrote:
Fri Mar 30, 2018 9:32 pm
Noobvestor wrote:
Fri Mar 30, 2018 8:49 pm
It's a lot like asking if Beanie Babies or baseball cards or gold will do well in the future - no one knows. If you don't have a strong understanding of something, don't invest in it. This goes double for small, volatile and relatively new asset classes, like cryptocurrencies. And it goes triple for asset classes that no one seems to be able to provide math-backed valuation criteria for (no coupon payments, dividend streams, etc...).
Sound Advice in regards to investing in what you understand. There has been alot of hype behind crypto esp. bitcoin in the past year. I don't really understand it much but I've picked up some books and purchased some online courses to get a better understanding. I do believe in terms of practicality in order for anything to succeed it needs mass adoption and bitcoin still raises concerns in regards to its use to the masses which I think is a huge hinderance to its growth and implementation.
But ... why are you going out of your way to study a tiny new asset class, which represents a fraction of a fraction of a percent of potential global investments/currencies/gambles? Why not study corn futures? Or New York municipal bonds? It seems to me the decision to invest the time in learning this tiny niche is driven by something else, perhaps a desire to 'get rich quick' from trading cryptocurrencies. Also: big red flag that you've "purchased" online courses - any info you need is free, and anyone selling you info is probably profiteering.
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by wootwoot » Fri Mar 30, 2018 10:07 pm

finite_difference wrote:
Fri Mar 30, 2018 9:53 pm
golfCaddy wrote:
Fri Mar 30, 2018 8:09 pm
With the future trajectory of quantum computing, Bitcoin is going to zero in the long run. In the medium term, crypto-currencies may have a limited future, but there's a lot of competition to Bitcoin. There are almost 1600 crypto-currencies and new ones are created every month. There's a large risk that Bitcoin will be displaced by other crypto-currencies. In the short run, asking whether Bitcoin is going up or down is like asking what color to bet on roulette.
Can you elaborate more on what you mean by quantum computing destroying cryptocurrencies?
The answer is that he doesn't know what he's talking about.

TropikThunder
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by TropikThunder » Fri Mar 30, 2018 10:10 pm

wootwoot wrote:
Fri Mar 30, 2018 9:15 pm
If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.
Which is why it will never function as an exchange currency outside very small niche markets (mostly in gray/illegal areas where anonymity is worth the volatility). An exchange currency requires stability. If I get paid in bitcoin on Friday and have no idea how much that paycheck will be worth on Saturday, then it's useless other than for speculation. As with the beanie bay reference, bitcoin has no intrinsic valuation. There's no way it can be a currency and an investment at the same time.
Last edited by TropikThunder on Fri Mar 30, 2018 10:13 pm, edited 1 time in total.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by wootwoot » Fri Mar 30, 2018 10:12 pm

TropikThunder wrote:
Fri Mar 30, 2018 10:10 pm
wootwoot wrote:
Fri Mar 30, 2018 9:15 pm
If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.
Which is why it will never function as an exchange currency outside very small niche markets (mostly in gray/illegal areas where anonymity is worth the volatility). An exchange currency requires stability. If I get paid in bitcoin on Fridays and have no idea how much that paycheck will be worth on Saturday, then it's useless other than for speculation. As with the beanie bay reference, bitcoin has no intrinsic valuation.
Nobody here is claiming it will be an exchange currency now or ever. Anyone thinking Bitcoin is a legitimate currency hasn't done their research.
Last edited by wootwoot on Fri Mar 30, 2018 10:16 pm, edited 3 times in total.

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 10:13 pm

Noobvestor wrote:
Fri Mar 30, 2018 10:05 pm
alexanderadams wrote:
Fri Mar 30, 2018 9:32 pm
Noobvestor wrote:
Fri Mar 30, 2018 8:49 pm
It's a lot like asking if Beanie Babies or baseball cards or gold will do well in the future - no one knows. If you don't have a strong understanding of something, don't invest in it. This goes double for small, volatile and relatively new asset classes, like cryptocurrencies. And it goes triple for asset classes that no one seems to be able to provide math-backed valuation criteria for (no coupon payments, dividend streams, etc...).
Sound Advice in regards to investing in what you understand. There has been alot of hype behind crypto esp. bitcoin in the past year. I don't really understand it much but I've picked up some books and purchased some online courses to get a better understanding. I do believe in terms of practicality in order for anything to succeed it needs mass adoption and bitcoin still raises concerns in regards to its use to the masses which I think is a huge hinderance to its growth and implementation.
But ... why are you going out of your way to study a tiny new asset class, which represents a fraction of a fraction of a percent of potential global investments/currencies/gambles? Why not study corn futures? Or New York municipal bonds? It seems to me the decision to invest the time in learning this tiny niche is driven by something deeper, perhaps a desire to 'get rich quick' from trading cryptocurrencies. Also: big red flag that you've "purchased" online courses - any info you need is free, and anyone selling you info is probably profiteering.
Im not trying to get rich quick at all... although I wouldn't mind, haha. I understand your concerns as thats what the majority of people are looking for in crypto.. I just wanted an easy way to understand it. yes there is alot of information online however the same as with any other topic of discussion... diet / finance etc. there tends to be alot of misleading / incorrect advice on the subject matter to sift through and I would rather just learn from someone who at least has a proven record for success in a specific thing that I can learn from. Without some sort of guidance with the internet of someone pointing you in the right direction you can easily get lost in the amount of information available (glad I've discovered this site)

The things you've mentioned corn futures / NY municipal bonds are new to me.. I've recently made the plunge to investing and I'm very new to the matter. You seem like someone I can learn from.. I really appreciate your input and will be following your posts on this site to learn more from you!

Thanks!

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 10:15 pm

TropikThunder wrote:
Fri Mar 30, 2018 10:10 pm
wootwoot wrote:
Fri Mar 30, 2018 9:15 pm
If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.
Which is why it will never function as an exchange currency outside very small niche markets (mostly in gray/illegal areas where anonymity is worth the volatility). An exchange currency requires stability. If I get paid in bitcoin on Friday and have no idea how much that paycheck will be worth on Saturday, then it's useless other than for speculation. As with the beanie bay reference, bitcoin has no intrinsic valuation. There's no way it can be a currency and an investment at the same time.
Does the dollar have intrinsic value?

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by 3CT_Paddler » Fri Mar 30, 2018 10:16 pm

alexanderadams wrote:
Fri Mar 30, 2018 9:55 pm
finite_difference wrote:
Fri Mar 30, 2018 9:53 pm
golfCaddy wrote:
Fri Mar 30, 2018 8:09 pm
With the future trajectory of quantum computing, Bitcoin is going to zero in the long run. In the medium term, crypto-currencies may have a limited future, but there's a lot of competition to Bitcoin. There are almost 1600 crypto-currencies and new ones are created every month. There's a large risk that Bitcoin will be displaced by other crypto-currencies. In the short run, asking whether Bitcoin is going up or down is like asking what color to bet on roulette.
Can you elaborate more on what you mean by quantum computing destroying cryptocurrencies?
Would love to know more on this also...
I think it has something to do with this... https://www.google.com/amp/s/www.techno ... urity/amp/

Basically an effective quantum computer would break it's security.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by 3CT_Paddler » Fri Mar 30, 2018 10:17 pm

alexanderadams wrote:
Fri Mar 30, 2018 10:15 pm
TropikThunder wrote:
Fri Mar 30, 2018 10:10 pm
wootwoot wrote:
Fri Mar 30, 2018 9:15 pm
If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.
Which is why it will never function as an exchange currency outside very small niche markets (mostly in gray/illegal areas where anonymity is worth the volatility). An exchange currency requires stability. If I get paid in bitcoin on Friday and have no idea how much that paycheck will be worth on Saturday, then it's useless other than for speculation. As with the beanie bay reference, bitcoin has no intrinsic valuation. There's no way it can be a currency and an investment at the same time.
Does the dollar have intrinsic value?
It has an army behind it.

TropikThunder
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by TropikThunder » Fri Mar 30, 2018 10:17 pm

wootwoot wrote:
Fri Mar 30, 2018 10:12 pm
TropikThunder wrote:
Fri Mar 30, 2018 10:10 pm
wootwoot wrote:
Fri Mar 30, 2018 9:15 pm
If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.
Which is why it will never function as an exchange currency outside very small niche markets (mostly in gray/illegal areas where anonymity is worth the volatility). An exchange currency requires stability. If I get paid in bitcoin on Fridays and have no idea how much that paycheck will be worth on Saturday, then it's useless other than for speculation. As with the beanie bay reference, bitcoin has no intrinsic valuation.
Nobody claimed it will be a currency now or ever. Anyone thinking Bitcoin is a legitimate currency hasn't done their research.
Including Jack Dorsey apparently. :P

youngpleb
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by youngpleb » Fri Mar 30, 2018 10:18 pm

finite_difference wrote:
Fri Mar 30, 2018 9:53 pm
golfCaddy wrote:
Fri Mar 30, 2018 8:09 pm
With the future trajectory of quantum computing, Bitcoin is going to zero in the long run. In the medium term, crypto-currencies may have a limited future, but there's a lot of competition to Bitcoin. There are almost 1600 crypto-currencies and new ones are created every month. There's a large risk that Bitcoin will be displaced by other crypto-currencies. In the short run, asking whether Bitcoin is going up or down is like asking what color to bet on roulette.
Can you elaborate more on what you mean by quantum computing destroying cryptocurrencies?
I'm not him, but I've always thought that crypto is based around private/public keys, so if quantum computing comes along, encryption basically goes out the window. No digital signatures = the ability to steal or forge cryptos, I believe. QC is probably still a looooooooonggggg ways off though.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by wootwoot » Fri Mar 30, 2018 10:18 pm

TropikThunder wrote:
Fri Mar 30, 2018 10:17 pm
wootwoot wrote:
Fri Mar 30, 2018 10:12 pm
TropikThunder wrote:
Fri Mar 30, 2018 10:10 pm
wootwoot wrote:
Fri Mar 30, 2018 9:15 pm
If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.
Which is why it will never function as an exchange currency outside very small niche markets (mostly in gray/illegal areas where anonymity is worth the volatility). An exchange currency requires stability. If I get paid in bitcoin on Fridays and have no idea how much that paycheck will be worth on Saturday, then it's useless other than for speculation. As with the beanie bay reference, bitcoin has no intrinsic valuation.
Nobody claimed it will be a currency now or ever. Anyone thinking Bitcoin is a legitimate currency hasn't done their research.
Including Jack Dorsey apparently. :P
Jack who?

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 10:23 pm

3CT_Paddler wrote:
Fri Mar 30, 2018 10:16 pm
alexanderadams wrote:
Fri Mar 30, 2018 9:55 pm
finite_difference wrote:
Fri Mar 30, 2018 9:53 pm
golfCaddy wrote:
Fri Mar 30, 2018 8:09 pm
With the future trajectory of quantum computing, Bitcoin is going to zero in the long run. In the medium term, crypto-currencies may have a limited future, but there's a lot of competition to Bitcoin. There are almost 1600 crypto-currencies and new ones are created every month. There's a large risk that Bitcoin will be displaced by other crypto-currencies. In the short run, asking whether Bitcoin is going up or down is like asking what color to bet on roulette.
Can you elaborate more on what you mean by quantum computing destroying cryptocurrencies?
Would love to know more on this also...
I think it has something to do with this... https://www.google.com/amp/s/www.techno ... urity/amp/

Basically an effective quantum computer would break it's security.
Yea that makes total sense. I haven't watched the video yet but quantum computing pretty much has the ability to "crack" complex binary code in seconds as opposed to our modern computing capability which would pretty much take millions of years to do so.. makes sense..

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 10:24 pm

3CT_Paddler wrote:
Fri Mar 30, 2018 10:17 pm
alexanderadams wrote:
Fri Mar 30, 2018 10:15 pm
TropikThunder wrote:
Fri Mar 30, 2018 10:10 pm
wootwoot wrote:
Fri Mar 30, 2018 9:15 pm
If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.
Which is why it will never function as an exchange currency outside very small niche markets (mostly in gray/illegal areas where anonymity is worth the volatility). An exchange currency requires stability. If I get paid in bitcoin on Friday and have no idea how much that paycheck will be worth on Saturday, then it's useless other than for speculation. As with the beanie bay reference, bitcoin has no intrinsic valuation. There's no way it can be a currency and an investment at the same time.
Does the dollar have intrinsic value?
It has an army behind it.
If that is the case... whats to stop crypto from achieving the same over time?

Topic Author
alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 10:26 pm

youngpleb wrote:
Fri Mar 30, 2018 10:18 pm
finite_difference wrote:
Fri Mar 30, 2018 9:53 pm
golfCaddy wrote:
Fri Mar 30, 2018 8:09 pm
With the future trajectory of quantum computing, Bitcoin is going to zero in the long run. In the medium term, crypto-currencies may have a limited future, but there's a lot of competition to Bitcoin. There are almost 1600 crypto-currencies and new ones are created every month. There's a large risk that Bitcoin will be displaced by other crypto-currencies. In the short run, asking whether Bitcoin is going up or down is like asking what color to bet on roulette.
Can you elaborate more on what you mean by quantum computing destroying cryptocurrencies?
I'm not him, but I've always thought that crypto is based around private/public keys, so if quantum computing comes along, encryption basically goes out the window. No digital signatures = the ability to steal or forge cryptos, I believe. QC is probably still a looooooooonggggg ways off though.
I agree with what you...
QC theoretically would kill encryption.
Like you said I do think we are still long ways from that.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by golfCaddy » Fri Mar 30, 2018 10:30 pm

alexanderadams wrote:
Fri Mar 30, 2018 9:55 pm
finite_difference wrote:
Fri Mar 30, 2018 9:53 pm
golfCaddy wrote:
Fri Mar 30, 2018 8:09 pm
With the future trajectory of quantum computing, Bitcoin is going to zero in the long run. In the medium term, crypto-currencies may have a limited future, but there's a lot of competition to Bitcoin. There are almost 1600 crypto-currencies and new ones are created every month. There's a large risk that Bitcoin will be displaced by other crypto-currencies. In the short run, asking whether Bitcoin is going up or down is like asking what color to bet on roulette.
Can you elaborate more on what you mean by quantum computing destroying cryptocurrencies?
Would love to know more on this also...
Cryptocurrencies only work because public key cryptography works. Public key cryptography only works because certain types of mathematical problems are thought to be impossible to solve, such as factoring very large prime numbers. Quantum computers will be able to solve those mathematical problems, so public key cryptography will become breakable and then crypto-currencies won't work anymore.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by Noobvestor » Fri Mar 30, 2018 10:32 pm

alexanderadams wrote:
Fri Mar 30, 2018 10:13 pm

Im not trying to get rich quick at all... although I wouldn't mind, haha. I understand your concerns as thats what the majority of people are looking for in crypto.. I just wanted an easy way to understand it. yes there is alot of information online however the same as with any other topic of discussion... diet / finance etc.
Except cryptos are very fashionable - it's like being interested in losing weight, but only studying one fad diet in-depth. If you're interested in investing, start at the beginning (stock/bond index funds). Don't jump off the deep end into a niche market with a dubious track record. The reality is that crypto markets are subject to manipulation, and are still very new - no one knows where they're going (if anywhere).
alexanderadams wrote:
Fri Mar 30, 2018 10:13 pm
there tends to be alot of misleading / incorrect advice on the subject matter to sift through and I would rather just learn from someone who at least has a proven record for success in a specific thing that I can learn from.
I've made something like 2,000%+ returns in bitcoin. Does that make me an expert? No. It's just a little money I put in when it cost less. If I were truly an expert, would I use it to make tons of money in bitcoin, or sell courses? I'm thinking the former. Beware of self-described experts, particularly when they have a vested financial interest in selling you something. If you know where the gold is, why teach others to mine it?
alexanderadams wrote:
Fri Mar 30, 2018 10:13 pm
The things you've mentioned corn futures / NY municipal bonds are new to me.. I've recently made the plunge to investing and I'm very new to the matter.
I was just giving you examples of other niche asset classes and sub-classes. The point is that I'm concerned about your exclusive interest in cryptocurrencies, which might cost you everything, versus general investing, which could help you build and grow a nest egg. Instead of trying to narrow in on just crypto, take a big-picture look at the investing landscape - check out the whole forest, not just one tree.
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by Watty » Fri Mar 30, 2018 10:43 pm

alex_686 wrote:
Fri Mar 30, 2018 9:45 pm
Bitcoin, gold, Benie Babies, collectoable cars, etc. don't have any cash flows.
Three of the four have some intrinsic value.

heyyou
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by heyyou » Fri Mar 30, 2018 10:55 pm

Having done okay with index funds of securities vetted by the New York Stock Exchange, I have no interest in much more risky investments regardless of their recent history of large gains. I've already paid for my education about the proportions of risk and reward.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by TropikThunder » Fri Mar 30, 2018 10:59 pm

wootwoot wrote:
Fri Mar 30, 2018 10:18 pm
TropikThunder wrote:
Fri Mar 30, 2018 10:17 pm
wootwoot wrote:
Fri Mar 30, 2018 10:12 pm
TropikThunder wrote:
Fri Mar 30, 2018 10:10 pm
wootwoot wrote:
Fri Mar 30, 2018 9:15 pm
If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.
Which is why it will never function as an exchange currency outside very small niche markets (mostly in gray/illegal areas where anonymity is worth the volatility). An exchange currency requires stability. If I get paid in bitcoin on Fridays and have no idea how much that paycheck will be worth on Saturday, then it's useless other than for speculation. As with the beanie bay reference, bitcoin has no intrinsic valuation.
Nobody claimed it will be a currency now or ever. Anyone thinking Bitcoin is a legitimate currency hasn't done their research.
Including Jack Dorsey apparently. :P
Jack who?
Jack Dorsey is CEO of Twitter:
Twitter and Square CEO Jack Dorsey predicts bitcoin will be the single currency of the internet in the near future, according to The Times of London. "The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin," Dorsey said in a report published Wednesday. It would happen "probably over ten years, but it could go faster."
https://www.cnbc.com/2018/03/21/jack-do ... years.html

Safe to say I disagree with him.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by 3CT_Paddler » Fri Mar 30, 2018 11:10 pm

alexanderadams wrote:
Fri Mar 30, 2018 10:24 pm
3CT_Paddler wrote:
Fri Mar 30, 2018 10:17 pm
alexanderadams wrote:
Fri Mar 30, 2018 10:15 pm
TropikThunder wrote:
Fri Mar 30, 2018 10:10 pm
wootwoot wrote:
Fri Mar 30, 2018 9:15 pm
If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.
Which is why it will never function as an exchange currency outside very small niche markets (mostly in gray/illegal areas where anonymity is worth the volatility). An exchange currency requires stability. If I get paid in bitcoin on Friday and have no idea how much that paycheck will be worth on Saturday, then it's useless other than for speculation. As with the beanie bay reference, bitcoin has no intrinsic valuation. There's no way it can be a currency and an investment at the same time.
Does the dollar have intrinsic value?
It has an army behind it.
If that is the case... whats to stop crypto from achieving the same over time?
What is to stop a private currency from gaining an army (and political establishment) on par with the US?

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 11:14 pm

TropikThunder wrote:
Fri Mar 30, 2018 10:59 pm
wootwoot wrote:
Fri Mar 30, 2018 10:18 pm
TropikThunder wrote:
Fri Mar 30, 2018 10:17 pm
wootwoot wrote:
Fri Mar 30, 2018 10:12 pm
TropikThunder wrote:
Fri Mar 30, 2018 10:10 pm


Which is why it will never function as an exchange currency outside very small niche markets (mostly in gray/illegal areas where anonymity is worth the volatility). An exchange currency requires stability. If I get paid in bitcoin on Fridays and have no idea how much that paycheck will be worth on Saturday, then it's useless other than for speculation. As with the beanie bay reference, bitcoin has no intrinsic valuation.
Nobody claimed it will be a currency now or ever. Anyone thinking Bitcoin is a legitimate currency hasn't done their research.
Including Jack Dorsey apparently. :P
Jack who?
Jack Dorsey is CEO of Twitter:
Twitter and Square CEO Jack Dorsey predicts bitcoin will be the single currency of the internet in the near future, according to The Times of London. "The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin," Dorsey said in a report published Wednesday. It would happen "probably over ten years, but it could go faster."
https://www.cnbc.com/2018/03/21/jack-do ... years.html

Safe to say I disagree with him.
lol...

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Fri Mar 30, 2018 11:21 pm

Noobvestor wrote:
Fri Mar 30, 2018 10:32 pm
alexanderadams wrote:
Fri Mar 30, 2018 10:13 pm

Im not trying to get rich quick at all... although I wouldn't mind, haha. I understand your concerns as thats what the majority of people are looking for in crypto.. I just wanted an easy way to understand it. yes there is alot of information online however the same as with any other topic of discussion... diet / finance etc.
Except cryptos are very fashionable - it's like being interested in losing weight, but only studying one fad diet in-depth. If you're interested in investing, start at the beginning (stock/bond index funds). Don't jump off the deep end into a niche market with a dubious track record. The reality is that crypto markets are subject to manipulation, and are still very new - no one knows where they're going (if anywhere).
alexanderadams wrote:
Fri Mar 30, 2018 10:13 pm
there tends to be alot of misleading / incorrect advice on the subject matter to sift through and I would rather just learn from someone who at least has a proven record for success in a specific thing that I can learn from.
I've made something like 2,000%+ returns in bitcoin. Does that make me an expert? No. It's just a little money I put in when it cost less. If I were truly an expert, would I use it to make tons of money in bitcoin, or sell courses? I'm thinking the former. Beware of self-described experts, particularly when they have a vested financial interest in selling you something. If you know where the gold is, why teach others to mine it?
alexanderadams wrote:
Fri Mar 30, 2018 10:13 pm
The things you've mentioned corn futures / NY municipal bonds are new to me.. I've recently made the plunge to investing and I'm very new to the matter.
I was just giving you examples of other niche asset classes and sub-classes. The point is that I'm concerned about your exclusive interest in cryptocurrencies, which might cost you everything, versus general investing, which could help you build and grow a nest egg. Instead of trying to narrow in on just crypto, take a big-picture look at the investing landscape - check out the whole forest, not just one tree.
I see what you mean... I should have probably elaborated a bit more. So yes while I am interested in crypto or rather curious about it I am studying alot of the fundamentals foundations I have made my first point asking for advice and direction... I was just curious as a newbie I'm hearing this bitcoin craze so I decided to look into it as well...

Completely agree with the 2,000% return im pretty sure alot of individuals just got lucky and are now running with the idea that they are an expert because they bought low sold high.

I'm interested to know how you started out investing? and if in my shoes where would you specifically start out given todays economic climate..

Thank You for all the wisdom btw I HIGHLY appreciate it!

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camillus
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by camillus » Sat Mar 31, 2018 12:39 am

alexanderadams wrote:
Fri Mar 30, 2018 11:21 pm
I'm interested to know how you started out investing? and if in my shoes where would you specifically start out given todays economic climate..
Roth IRA with a target date fund

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HomerJ
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by HomerJ » Sat Mar 31, 2018 12:46 am

alexanderadams wrote:
Fri Mar 30, 2018 11:21 pm
I'm interested to know how you started out investing? and if in my shoes where would you specifically start out given todays economic climate..
Read the wiki here, and the recommended book list.

Completely ignore bitcoin until you understand these basics:

Live below your means
Invest early and often
Never bear too much or too little risk
Diversify
Never try to time the market
Use index funds when possible
Keep costs low
Minimize taxes
Invest with simplicity (stock and bond index funds)
Stay the course

The absolute worst thing for someone new to investing is to spend ANY time at all reading about bitcoin.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alpine_boglehead » Sat Mar 31, 2018 3:32 am

alexanderadams wrote:
Fri Mar 30, 2018 11:21 pm
I'm interested to know how you started out investing?
I can only second HomerJ's statement by providing the link to the wiki for getting started:

https://www.bogleheads.org/wiki/Getting_started
alexanderadams wrote:
Fri Mar 30, 2018 11:21 pm
and if in my shoes where would you specifically start out given todays economic climate.
Earlier economic climates were no more comforting than today's. A good example is the start of 2009, which was a very good time to invest, but the climate was not like you'd want to invest in it.
Investing is always fraught with uncertainty. As is life.

We're all in the same shoes, we can only choose the size and color we find suitable for us.

From my point of view, Bitcoin is a technical experiment which was hyped by the media to the point of becoming a massive Ponzi scheme. It's interesting from a lot of perspectives, but serious investing is not one of them. Forget it and educate yourself as much as possible (again, see the link above). Keep reading and discussing with the Bogleheads :)

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by jminv » Sat Mar 31, 2018 3:35 am

Crypto currencies have no earnings which are what bring stocks value.strike one against cryptos.

Crypto currencies can be made conjured from thin air whenever speculation on another drives the price up high enough to encourage new entry. Although a single crypto currency might be supply constrained, in aggregate there is limitless supply of crypto currency. Hence, the value of crypto currency should trend toward zero. Strike two.

Transaction fees for using crypto as currency are too high to make it worthwhile for this purpose. Strike three.

Crypto has high volatility which makes it unsuitable for used as a currency. No one wants to buy things with a currency whose value changes so much by the day/hour. Strike four.

Crypto’s nature lends it to money laundering and tax evasion this will invite regulatory response (and has) strike five.

The decentralized nature of the ledger that’s considered a plus isn’t when it comes to stolen crypto - nothing you can really do once your crypto has been stolen. Strike six.

Don’t invest in crypto. My wife mentioned it awhile back and it led me to steer even further away from it, realize the drawbacks, and continue investing in companies with real earnings and growth that have rewarded me well.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by telecaster » Sat Mar 31, 2018 6:08 am

alexanderadams wrote:
Fri Mar 30, 2018 10:26 pm
youngpleb wrote:
Fri Mar 30, 2018 10:18 pm
finite_difference wrote:
Fri Mar 30, 2018 9:53 pm
golfCaddy wrote:
Fri Mar 30, 2018 8:09 pm
With the future trajectory of quantum computing, Bitcoin is going to zero in the long run. In the medium term, crypto-currencies may have a limited future, but there's a lot of competition to Bitcoin. There are almost 1600 crypto-currencies and new ones are created every month. There's a large risk that Bitcoin will be displaced by other crypto-currencies. In the short run, asking whether Bitcoin is going up or down is like asking what color to bet on roulette.
Can you elaborate more on what you mean by quantum computing destroying cryptocurrencies?
I'm not him, but I've always thought that crypto is based around private/public keys, so if quantum computing comes along, encryption basically goes out the window. No digital signatures = the ability to steal or forge cryptos, I believe. QC is probably still a looooooooonggggg ways off though.
I agree with what you...
QC theoretically would kill encryption.
Like you said I do think we are still long ways from that.
It's a lot closer than you would think. I'd put it in the single digit years. There are already working publicly accessible 16 q-bit quantum computers.

This just means we switch to different "quantum proof" encryption algorithms though and start the game over.

bberris
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by bberris » Sat Mar 31, 2018 6:52 am

"How many legs does a dog have if you call his tail a leg? Four. Saying that a tail is a leg doesn't make it a leg."

Abraham Lincoln

When you use the word, "CryptoCurrency", you have already come to a false conclusion. All of the crypto currencies fail at all three requirements of money: means of exchange, store of value, and unit of account.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by Shallowpockets » Sat Mar 31, 2018 8:59 am

Bitcoin and others are not an investment, they are a trade. There are various posts on BH about how this can go for you if you delve into it. Several are about buying and a rise of 30-50% and they were held and then they dropped way down. It is a trade. Greed got in the way there. These people were up quite a bit and wanted more and got burned.
Then there is a post about 100,000 trades a year in crypto currencies where money is made through some sort of personal algorithm. Very complex.
It is not an investment. Some like to put only a part of their money into it. That which they feel they can lose. Well, usually that is a relatively small amount. How much are you going to make using 1-2k? Maybe you double your money? Big deal. If you look it as a percent it looks large, but really 50% on that small amount is hardly worth the effort/risk. If you think $500 is a good gain in your overall wealth, then you are probably not very wealthy right now and so the loss of your principle would hurt you.
Better I should trade a stock like the FANG which requires more money but have fluctuations easily to provide a $500 profit in one day or week. Or trade on these stocks in earning season and sell options at a price that reaps me $500. All this with upfront clarity unlike crypto.
At least sticks are real. Crypto, well that word is attached also to zoolology. There you have your bigfoot and Loch Ness monsters.
With the trade of the cryptos I would be out sooner rather than later.
Crypto is the new modern gold rush. They even use the term, mining.

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Sat Mar 31, 2018 1:56 pm

Shallowpockets wrote:
Sat Mar 31, 2018 8:59 am
Bitcoin and others are not an investment, they are a trade. There are various posts on BH about how this can go for you if you delve into it. Several are about buying and a rise of 30-50% and they were held and then they dropped way down. It is a trade. Greed got in the way there. These people were up quite a bit and wanted more and got burned.
Then there is a post about 100,000 trades a year in crypto currencies where money is made through some sort of personal algorithm. Very complex.
It is not an investment. Some like to put only a part of their money into it. That which they feel they can lose. Well, usually that is a relatively small amount. How much are you going to make using 1-2k? Maybe you double your money? Big deal. If you look it as a percent it looks large, but really 50% on that small amount is hardly worth the effort/risk. If you think $500 is a good gain in your overall wealth, then you are probably not very wealthy right now and so the loss of your principle would hurt you.
Better I should trade a stock like the FANG which requires more money but have fluctuations easily to provide a $500 profit in one day or week. Or trade on these stocks in earning season and sell options at a price that reaps me $500. All this with upfront clarity unlike crypto.
At least sticks are real. Crypto, well that word is attached also to zoolology. There you have your bigfoot and Loch Ness monsters.
With the trade of the cryptos I would be out sooner rather than later.
Crypto is the new modern gold rush. They even use the term, mining.
Really clear with where you stand... I agree with alot of your opinions... Pretty much what I get from you is that Bitcoin is highly volatile and has more downside than upside also the fact that it is "unreal" it proves hold alot of opportunity for the misinformed to end up burned as opposed to getting solid consistent returns like other options you mentioned such as the FANG...

I appreciate your input, I am a newbie investor and all the information provided will surely help prevent me from making mistakes along my journey...

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alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Sat Mar 31, 2018 1:58 pm

bberris wrote:
Sat Mar 31, 2018 6:52 am
"How many legs does a dog have if you call his tail a leg? Four. Saying that a tail is a leg doesn't make it a leg."

Abraham Lincoln

When you use the word, "CryptoCurrency", you have already come to a false conclusion. All of the crypto currencies fail at all three requirements of money: means of exchange, store of value, and unit of account.
I'm curious what do you mean by means of exchange, store of value, and unit of account.. Sorry I am a newbie, I though people were already using bitcoin and other coins for transactions already... Or am I misunderstanding the concepts you presents as the reason crypto fails...

Topic Author
alexanderadams
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by alexanderadams » Sat Mar 31, 2018 1:59 pm

telecaster wrote:
Sat Mar 31, 2018 6:08 am
alexanderadams wrote:
Fri Mar 30, 2018 10:26 pm
youngpleb wrote:
Fri Mar 30, 2018 10:18 pm
finite_difference wrote:
Fri Mar 30, 2018 9:53 pm
golfCaddy wrote:
Fri Mar 30, 2018 8:09 pm
With the future trajectory of quantum computing, Bitcoin is going to zero in the long run. In the medium term, crypto-currencies may have a limited future, but there's a lot of competition to Bitcoin. There are almost 1600 crypto-currencies and new ones are created every month. There's a large risk that Bitcoin will be displaced by other crypto-currencies. In the short run, asking whether Bitcoin is going up or down is like asking what color to bet on roulette.
Can you elaborate more on what you mean by quantum computing destroying cryptocurrencies?
I'm not him, but I've always thought that crypto is based around private/public keys, so if quantum computing comes along, encryption basically goes out the window. No digital signatures = the ability to steal or forge cryptos, I believe. QC is probably still a looooooooonggggg ways off though.
I agree with what you...
QC theoretically would kill encryption.
Like you said I do think we are still long ways from that.
It's a lot closer than you would think. I'd put it in the single digit years. There are already working publicly accessible 16 q-bit quantum computers.

This just means we switch to different "quantum proof" encryption algorithms though and start the game over.
Wow thats insane, I can only what the world will be like once quantum computing becomes mass adopted... Interesting.

bberris
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by bberris » Sat Mar 31, 2018 5:02 pm

alexanderadams wrote:
Sat Mar 31, 2018 1:58 pm
bberris wrote:
Sat Mar 31, 2018 6:52 am
"How many legs does a dog have if you call his tail a leg? Four. Saying that a tail is a leg doesn't make it a leg."

Abraham Lincoln

When you use the word, "CryptoCurrency", you have already come to a false conclusion. All of the crypto currencies fail at all three requirements of money: means of exchange, store of value, and unit of account.
I'm curious what do you mean by means of exchange, store of value, and unit of account.. Sorry I am a newbie, I though people were already using bitcoin and other coins for transactions already... Or am I misunderstanding the concepts you presents as the reason crypto fails...
There are no real, legitimate, bitcoin transactions. The cost is too high and it is too volatile to be used. There are a few illicit and novelty transactions that are a tiny fraction of trading. Anyone accepting bitcoin immediately exchanges it.

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by unclescrooge » Sat Mar 31, 2018 6:02 pm

3CT_Paddler wrote:
Fri Mar 30, 2018 10:17 pm
alexanderadams wrote:
Fri Mar 30, 2018 10:15 pm
TropikThunder wrote:
Fri Mar 30, 2018 10:10 pm
wootwoot wrote:
Fri Mar 30, 2018 9:15 pm
If you think crypto is 0 then you haven't been paying attention. For the past 8 years crypto has been going through the same boom/bust cycles.
Which is why it will never function as an exchange currency outside very small niche markets (mostly in gray/illegal areas where anonymity is worth the volatility). An exchange currency requires stability. If I get paid in bitcoin on Friday and have no idea how much that paycheck will be worth on Saturday, then it's useless other than for speculation. As with the beanie bay reference, bitcoin has no intrinsic valuation. There's no way it can be a currency and an investment at the same time.
Does the dollar have intrinsic value?
It has an army behind it.
It's backed by the u.s. government's ability to tax you.

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Noobvestor
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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by Noobvestor » Sat Mar 31, 2018 11:37 pm

alexanderadams wrote:
Fri Mar 30, 2018 11:21 pm

I see what you mean... I should have probably elaborated a bit more. So yes while I am interested in crypto or rather curious about it I am studying alot of the fundamentals foundations I have made my first point asking for advice and direction... I was just curious as a newbie I'm hearing this bitcoin craze so I decided to look into it as well...

Completely agree with the 2,000% return im pretty sure alot of individuals just got lucky and are now running with the idea that they are an expert because they bought low sold high.

I'm interested to know how you started out investing? and if in my shoes where would you specifically start out given todays economic climate..

Thank You for all the wisdom btw I HIGHLY appreciate it!
I would suggest the Bogleheads Guide or other things from this site's recommended reading section. Cryptos are attractive because they went up a lot really fast, but real investments don't do that. I started investing by buying some actively managed mutual funds when I was young and didn't really know what I was doing, then found this forum, read some books, and dropped those in favor of low-cost index funds - I'm very glad I did. The very very very small amount of money I put in crypto was just for fun and I lucked out because the speculative bubble kept growing.

https://www.bogleheads.org/wiki/Books:_ ... nd_reviews
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe

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Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Post by Whakamole » Sat Mar 31, 2018 11:47 pm

alexanderadams wrote:
Fri Mar 30, 2018 9:37 pm
advice789 wrote:
Fri Mar 30, 2018 9:32 pm
This chat feels like two questions are asked. First, is there demand for cryptocurrencies? There is demand for an asset class/ payment process that is anonymous. My sense is the demand will continue as privacy continues to be valued. The second question is valuation? Agree with the other posts. Cryptocurrencies lack an economic model to demonstrate value. This feels like speculation and many have made fortunes or lost a bunch speculating. Separate from Cryptocurrencies, Blockchain, the technology underlying bitcoin, is a technology with high potential as a game changer. Recently, did a search on YouTube and located many tutorials of Blockchain’s potential and economic benefit.
Ahh Interesting. I've been learning more and more about the blockchain and its ability to potentially eliminate intermediaries between transactions.
Don't confuse blockchain with Bitcoin. Blockchain is a technology, Bitcoin (and other cryptocurrencies) are specific implementations of blockchain. Buying Bitcoin because you think blockchain will be huge is like having bought Pets.com stock because you thought the Internet was going to be big.

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