OV9

Bitcoin is no different to money though is it. It can be used over and over again. It’s generally accepted and used for exchange of goods and services.
At least Crypto have a limited quantity unlike Fiat money which is where their perceived value lies.

My worry is that institutional investors get up to their knees in the stuff and then when it tanks the tax payer has to bail them out again.

Mito Man wrote: Wed Mar 24, 2021 11:32 pm Bitcoin is no different to money though is it. It can be used over and over again. It’s generally accepted and used for exchange of goods and services.
At least Crypto have a limited quantity unlike Fiat money which is where their perceived value lies.

Well which is it - like "money" or like gold?

It doesn't really fit either, it is traded like a commodity (like gold), but has no actual value (like physical money).

It's just a ponzi scheme based on paying people to waste electricity. They could have based it on killing kittens for the same end.

Rich B wrote: Thu Mar 25, 2021 7:07 am

Mito Man wrote: Wed Mar 24, 2021 11:32 pm Bitcoin is no different to money though is it. It can be used over and over again. It’s generally accepted and used for exchange of goods and services.
At least Crypto have a limited quantity unlike Fiat money which is where their perceived value lies.

Well which is it - like "money" or like gold?

It doesn't really fit either, it is traded like a commodity (like gold), but has no actual value (like physical money).

It's just a ponzi scheme based on paying people to waste electricity. They could have based it on killing kittens for the same end.

The main difference to money is it's totally volatile. Take away the volatility by regulating it and you've lost the USP; the high street banks may as well issue their own crypto if it's to be used as fiat currency.

The visibility of the transaction history with Bitcoin would concern me too. If they've been used as payment for something illegal at any point in their past then they could potentially be confiscated (from the innocent current owner) on the basis that they're proceeds of crime. This could occur in any jurisdiction, not limited to under UK law.

It's a massive bubble, like tulips and boo.com. Like Boo some of the knowledge gained is likely to go on to be useful but in and of itself, Bitcoin and any other crypto is looking for a purpose.

Indeed - why would you buy something with Bitcoin if you're not sure what it's actually worth that day/hour/minute? And if you have to refer to normal currency to work out that value - just use that.

Crypto is a perfect example of 'just because you can, doesn't mean you should'.

The worst of it is that a decentralised currency that’s not tied to any national bank is a good idea. Crypto is only really good for speculation now though.

I fully expect my comments to be 'proved' wrong many times by people making big sums of money from selling a few bitcoins while the bubble is growing. Can't predict when the emperor's lack of new clothes will be noticed. Who wants to be looking for the last chair when the music stops?

Jobbo wrote: Thu Mar 25, 2021 10:10 am I fully expect my comments to be 'proved' wrong many times by people making big sums of money from selling a few bitcoins while the bubble is growing. Can't predict when the emperor's lack of new clothes will be noticed. Who wants to be looking for the last chair when the music stops?

And it will stop.

I’m not going to pretend to understand the details of exactly how it works, but seeing as it’s based on some very clever maths, is there not a risk that as soon as some even-more-clever maths comes along the whole thing is suddenly blown wide open and worthless ?

I bought £100 of Ethereum 3 years ago. Watched it climb quite a bit, then crash. Kind of forgot about it until recently then I checked my wallet and saw that it was now worth £380. Cashed it in and spent the money on the 928.

A 928 for £380? Bargain!

duncs500 wrote: Wed Mar 24, 2021 1:29 pm I've thought about it, but it just seems too volatile to be a sensible investment. If you're not worried about losing your stake then why not? But it is essentially a complete gamble.

I bought some ethereum just for fun ages ago and didn't check for a long time so I'm happy to see that's gone up, but I'm just going up let it ride out of curiosity.

Pretty much this. I found out with Revolut you can set up a weekly buy so I've started putting £10/week in out of curiosity. My £140 investment (gamble) is today worth a whopping £186 (it was £200 yesterday). I had some from a few years back where I put £500 in, it went up to £1000 then crashed down again. When it got back up to £1000 again I took out the original £500. The remaining £500 is now worth about £1400.

Simon wrote: Thu Mar 25, 2021 1:54 pm A 928 for £380? Bargain!

I should have said "on bits for the 928"!

Bitcoin down 10% today

They must have seen this thread !

Foz wrote: Thu Mar 25, 2021 3:27 pm Bitcoin down 10% today

Not really useable as a currency then.

- Oh great, I'm going to buy a new car tomorrow for 100 bitcoins...

Next day,

- sorry sir, it's 110 bitcoins today. It might be 70 or 150 next week who knows. Actually, we can't manage that sort of risk, so we're not going to accept Bitcoin.

Rich B wrote: Thu Mar 25, 2021 3:42 pm

Foz wrote: Thu Mar 25, 2021 3:27 pm Bitcoin down 10% today

Not really useable as a currency then.

- Oh great, I'm going to buy a new car tomorrow for 100 bitcoins...

Next day,

- sorry sir, it's 110 bitcoins today. It might be 70 or 150 next week who knows. Actually, we can't manage that sort of risk, so we're not going to accept Bitcoin.

Unless it’s a Tesla

Foz wrote: Thu Mar 25, 2021 4:07 pm

Rich B wrote: Thu Mar 25, 2021 3:42 pm

Foz wrote: Thu Mar 25, 2021 3:27 pm Bitcoin down 10% today

Not really useable as a currency then.

- Oh great, I'm going to buy a new car tomorrow for 100 bitcoins...

Next day,

- sorry sir, it's 110 bitcoins today. It might be 70 or 150 next week who knows. Actually, we can't manage that sort of risk, so we're not going to accept Bitcoin.

Unless it’s a Tesla

Yep, but Musk is a gambler - happy and capable of taking on massive risk, but would the average punter be happy dropping x amount of Bitcoin on a big purchase, when they they could get it for 10% less (or it be worth 10% less after they bought it) the next day?

Or would you be happy to buy a cup of coffee at the number in your head that was right last week, only to find you'd just spent £25 on it?

Wouldn’t work like that though as it’s pegged to your local currency so the car would remain at whatever price you’ve agreed in £ here and then when it’s time to pay you can pay in Bitcoin at the equivalent of its current value in £ if you want.