Is it too late for the average joe Software Engineer to invest in Bitcoin?
Bitcoin adjacent companies like Nvidia are riding the craze and would be less susceptible to a tulip mania style crash if that's your concern
Bitcoin Surpasses $4,000, Reaches Another Milestone
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Re: Bitcoin Surpasses $4,000, Reaches Another Milestone
#32Re: Bitcoin Surpasses $4,000, Reaches Another Milestone
#33What's Bitcoin use case besides speculation? Buying $10 worth of namecheap domain and pay $5 on fees no thanks!
Bypassing financial regulations, extortion, llicit substance trade and many other forms of small-time illegal activities. If you strip speculative value and all the technical gloss, what's left is essentially Liberty Reserve 2.0. https://en.m.wikipedia.org/wiki/Liberty_Reserve P.S. Fees has actually got lower since the worst back in May, but there is no telling it won't happen again. Paying for anon hosting is not a…
Volume-wise, the biggest use case is speculation and store of wealth (just like gold in the physical world). By number of transactions it is gambling (eg poker), another one you forgot to list.
Re: Bitcoin Surpasses $4,000, Reaches Another Milestone
#34What's Bitcoin use case besides speculation? Buying $10 worth of namecheap domain and pay $5 on fees no thanks!
kys
Re: Bitcoin Surpasses $4,000, Reaches Another Milestone
#35Earlier quoted context omitted.
There is an interesting discussion between Hal Finney and Satoshi in 2009 about the possible value of bitcoin. This is back when it was just a random software project, and had zero value: http://diswww.mit.edu/bloom-picayune/crypto/142207 As an amusing thought experiment, imagine that Bitcoin is successful and becomes the dominant payment system in use throughout the world. Then the total value of the currency should…
And why, exactly, total value of currency should equal total amount of wealth? What exactly is the contradiction, arbitrage or other mechanism that sets total value of currency to total amount of wealth?
The original assumption was just world cash supply (M0), include all m3 supply and you in for a surprise.
Who creates money is the best answer to your questions.
Re: Bitcoin Surpasses $4,000, Reaches Another Milestone
#36Is it too late for the average joe Software Engineer to invest in Bitcoin?
Not, but you have to be prepared for not touching your investment for 5 years because of the high volatility (which means the price could go down to $1000 for a year temporarily, than back up to $10000).
Here's a logarithmic graph of the price over the last few years, the slow price drop from $1000 to $200 was painful for most investors:
https://bitcoincharts.com/charts/bitstampUSD#tgSzm1g10zm2g25...
Re: Bitcoin Surpasses $4,000, Reaches Another Milestone
#37Earlier quoted context omitted.
There is an interesting discussion between Hal Finney and Satoshi in 2009 about the possible value of bitcoin. This is back when it was just a random software project, and had zero value: http://diswww.mit.edu/bloom-picayune/crypto/142207 As an amusing thought experiment, imagine that Bitcoin is successful and becomes the dominant payment system in use throughout the world. Then the total value of the currency should…
And why, exactly, total value of currency should equal total amount of wealth? What exactly is the contradiction, arbitrage or other mechanism that sets total value of currency to total amount of wealth?
It's not, actually - the total value of all physical $USD (M0) is only about $3.8T, vs. the figure of $100-300T given for total wealth (which seems low to me, BTW).
The actual truth is even weirder: if Bitcoin takes over as the world currency, its value in $USD will be infinite, but the question will be meaningless, as the dollar will be worthless. Currencies tend to be winner-take-all within a society; if one takes over, its rivals lose all value, as their only value is in being a medium of exchange and store of value.
This is perhaps a contributory factor to the Bitcoin's volatility: if you actually believe it's going to succeed, unambiguously, the rational thing to do is to move all your wealth to Bitcoin. And similarly, if you believe it's going to fail, the currency by definition is worthless.
Re: Bitcoin Surpasses $4,000, Reaches Another Milestone
#38Re: Bitcoin Surpasses $4,000, Reaches Another Milestone
#39Can you get an IRA portfolio based on cryptocurrency? It would be nice to be able to invest in btc with the same kind of tax benefits you get with a traditional stock based IRA.
Re: Bitcoin Surpasses $4,000, Reaches Another Milestone
#40Can you get an IRA portfolio based on cryptocurrency? It would be nice to be able to invest in btc with the same kind of tax benefits you get with a traditional stock based IRA.
Not yet. Winklevoss twins ETF got denied after four years.
https://www.nytimes.com/2017/03/10/business/dealbook/winkelv...