bkp_duke
Well-Known Member
I've made a #$@& ton on the first BTC bubble, and even I think TSLA is a better investment.
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Bitcoin, Cryptocurrency and Blockchain Discussion Thread
- Thread starter Crowded Mind
- Start date
I've made a #$@& ton on the first BTC bubble, and even I think TSLA is a better investment.
Krugerrand
Meow
I agree that owning both is best. They're a hedge against each other in case of a security breach on one of them.
insaneoctane
Well-Known Member
I have been very cautious about investing in BTC since it seemed so speculative. With my TSLA investment, I can name 10 things that TESLA is doing to increase their value. What is Bitcoin "doing" to increase their value? Crypto currency seems like non-tangible digital mumbo-jumbo to me.
Having said that, recently learning that BTC is capped at 21M bitcoins total changed my perspective a little. Because that now offers a tangible demand proposition. Just like real estate. RE in fully developed areas (limited supply) tends to outperform RE in new, open areas. Many, many, many people and companies are NOT yet invested in BTC and very well may want to be soon. With a limited supply, that means that the price might go up. Way up.
So, now I'm willing to invest a little in BTC. But, nowhere near the same investment I have in Tesla. NO. WAY. NEAR. More like a splash of color to say I did it. While the investment could easily 10x or 100x, it would NOT surprise me if it dropped to pennies either. So I will invest money I'm willing to completely lose.
Having said that, recently learning that BTC is capped at 21M bitcoins total changed my perspective a little. Because that now offers a tangible demand proposition. Just like real estate. RE in fully developed areas (limited supply) tends to outperform RE in new, open areas. Many, many, many people and companies are NOT yet invested in BTC and very well may want to be soon. With a limited supply, that means that the price might go up. Way up.
So, now I'm willing to invest a little in BTC. But, nowhere near the same investment I have in Tesla. NO. WAY. NEAR. More like a splash of color to say I did it. While the investment could easily 10x or 100x, it would NOT surprise me if it dropped to pennies either. So I will invest money I'm willing to completely lose.
mekberg
Member
FBI is warning things could get really bad next week: Armed protests being planned at all 50 state capitols, FBI bulletin says
Open conflict would be really bad for the USD and pretty much all other assets.
If *sugar* indeed hits the fan I’m tempted to tap my HELOC and buy more Bitcoin as a hedge against a potential dysfunctional government.
Anyone have any thoughts on this or am I over reacting?
Open conflict would be really bad for the USD and pretty much all other assets.
If *sugar* indeed hits the fan I’m tempted to tap my HELOC and buy more Bitcoin as a hedge against a potential dysfunctional government.
Anyone have any thoughts on this or am I over reacting?
Xepa777
Member
Bitcoin creating actual value? Listen to Jack Dorsey (CEO Square / Twitter) on Bitcoin enables global payment infrastructure (starting at 17:20 mark). -
Xepa777
Member
Edit: actually starting around the 16 minute mark in that YT video, but it gets pretty spicy at the 20 min mark
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bkp_duke
Well-Known Member
Problem is there is NOTHING special about bitcoin for a global payment structure. In fact, if that is it's real measure of value, there are other coins that are far more efficient in terms of network speed and efficiency.
mekberg
Member
I personally think the whole video is worth watching. I've never seen any of Lex's videos but now I will definitely watch more.
How many times have you used Bitcoin? In my experience it gets more tangible and less mumbojumbo when you use it more. Like driving a Tesla did for my Tesla investment.
Bitcoin has the biggest network effect, most sites and most humans willing to accept it. How many times have you used Bitcoin? How many times something else? I think I am ~100 times Bitcoin and ~10Ethereum, the rest ~0 in real world(excluding speculation) uses.
bkp_duke
Well-Known Member
Literally, at one point "back in the day" I mined over 1000 BTC and 3000 ETH. I was as DEEP down this rabbit hole as you could go. The current mountain-top house I own . . . purchased through BTC proceeds.
Having said that, I still 100% acknowledge that BTC is completely speculative, and has zero value as currency (due to huge fluctuations in "value").
I run datacenters, and at one time literally had every spare watt of power available allocated to mining rigs.
How can it have zero value as a currency if I have used it as a currency and it brought value to me? Clearly it had some value to me and the millions who have been using Bitcoin. I think your fundamental understanding of currencies is incomplete, no matter if you understand the cryptology, the mining industry etc. For a quick primer see this article: A Brief History of Money
As more and more people are using Bitcoin, it’s value as a currency has been increasing. Some people have been speculating about it’s future value, which might have brought forward in time it’s future value as a currency.
Fwiw, I abandoned my investment in Bitcoin as a currency around the time Gavin left the project. It seemed pretty clear to me that Bitcoin no longer was antifragile and that the spirit in the community was going down. I could still see a lot of value for Bitcoin as a store of value, but that was not what I was investing into. Since then my main investment has been into Ethereum. I am a bit skeptical of ether as being the medium of exchange, maybe it will only be used as gas to power contracts and tokens that might be used as currencies. But even since I abandoned Bitcoin I have been using Bitcoin as the currency many times, it still is the best currency for many types of transactions.
bkp_duke
Well-Known Member
Currencies, by design and definition, MUST be stable in their value.
30% up and down in a week for BTC? You will NEVER sell that to anyone but speculators. If you don't understand that . . . save up to buy a car in BTC, and then what do you do when you wait a few days and you are 30% short on the purchase price.
EDIT - Also, I got out of BTC when my business partner lost his physical BTC wallet. Literally, he's tore his house upside down 3 times looking for that thumb drive . . . which had in current value over 10 million USD worth of BTC.
That's just too much risk right there. Not to be able to every recover something digital like that? Pass.
30% up and down in a week for BTC? You will NEVER sell that to anyone but speculators. If you don't understand that . . . save up to buy a car in BTC, and then what do you do when you wait a few days and you are 30% short on the purchase price.
EDIT - Also, I got out of BTC when my business partner lost his physical BTC wallet. Literally, he's tore his house upside down 3 times looking for that thumb drive . . . which had in current value over 10 million USD worth of BTC.
That's just too much risk right there. Not to be able to every recover something digital like that? Pass.
JRP3
Hyperactive Member
Saw this in the investor thread but it's more appropriate here
A German programmer has 2 chances to guess his IronKey password or he'll lose $280m in Bitcoin - Stockhead
A German programmer has 2 chances to guess his IronKey password or he'll lose $280m in Bitcoin - Stockhead
bkp_duke
Well-Known Member
Some of the old IronKey's were a tad buggy, and could be hacked. Even including a hardware hack (removing the chip and putting it on another system to read). IronKey's are not invincible.
With that much cash at stake, I would offer a legit, white-hat hacker with a track record of BTC recovery (they are out there), something like 25% to recover those. I would not risk it on 2 guesses of a password.
With that much cash at stake, I would offer a legit, white-hat hacker with a track record of BTC recovery (they are out there), something like 25% to recover those. I would not risk it on 2 guesses of a password.
mekberg
Member
Highly recommend a BIP39 mnemonic seeded hierarchical deterministic wallet.
What is a Mnemonic Phrase and BIP39? (2020 Update)
Which could be backed up as such: Billfodl: The Only Scientifically Tested Recovery Seed Backup
This was a cute argument in 2012. But it didn’t stop Bitcoin from growing in usage as a currency from 2012-2020 so clearly the argument failed to predict the future. Also what does stable even mean, losing 99% in 100years like the dollar? Is that stable? Or gaining 9Mx in 12 years. Which is more stable to you?
bkp_duke
Well-Known Member
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