Any one do Crypto currencies?

[mushroom 13,946]

51 minutes ago, THE STIFFMEISTER said:

Sent it to a pizza parlour in New York to prove that it all worked ? 

 

Nah mate, this was years ago when the price was about $5 a coin. So I'm guessing it was a local joint in his country lol

[chartpolski 27,352]

28 minutes ago, THE STIFFMEISTER said:

Here you’ll like this rich . 

couple of years ago I was away for a while with work and there was some turbo nerd there at the place holding court over the impressionable younger lads , pumping them up with all the best mines and trades to be doing , he would knock work at 2ish and spend until 8 or 9 “analysing trends “ or “speaking online “ on a desk with two screens hooked into it . 

I laughed my f***ing head off when he went to buy his bag of monsters and crisps and his aqua card got knocked back.

i have no doubt at the top end of things , that there people making decent margins off a substantial investment . But for the common or garden bit coin aficionado , I reckon they would be better off clearing gardens or stripping apart cable for copper as a side hustle 

Smoke and mirrors 

I still know extremely little about crypto currency.

Didnt bitcoin start as a computer game where super nerds had to solve problems to enable them to “mine” imaginary currency that had no actual physical worth or form ? 
Then people stared trading this invisible currency and some companies started accepting them as payment.

What I REALLY don’t understand is where all this “normal” currency is coming from when a bitcoin that was worth a dollar is now worth millions ?   
Surely there is a more or less finite amount of money in the world ? I understand “fiscal easing”, banks printing money, but that can only go so far before causing rampant inflation !

So, when some one buys ,say, $10,000 of bitcoin, and it appreciates into $ 10,000,000, where does all that extra money come from ?

Is it just a great Ponzi Scheme, a bit like the “South Sea Bubble” of the 1700’s that bankrupted Scotland ?

Cheers.

[mushroom 13,946]

That tenner would now be worth around 200K

[Lenmcharristar 10,234]

Its best to buy physical gold with it and keep it hidden

[mushroom 13,946]

1 minute ago, chartpolski said:

I still know extremely little about crypto currency.

Didnt bitcoin start as a computer game where super nerds had to solve problems to enable them to “mine” imaginary currency that had no actual physical worth or form ? 
Then people stared trading this invisible currency and some companies started accepting them as payment.

What I REALLY don’t understand is where all this “normal” currency is coming from when a bitcoin that was worth a dollar is now worth millions ?   
Surely there is a more or less finite amount of money in the world ? I understand “fiscal easing”, banks printing money, but that can only go so far before causing rampant inflation !

So, when some one buys ,say, $10,000 of bitcoin, and it appreciates into $ 10,000,000, where does all that extra money come from ?

Is it just a great Ponzi Scheme, a bit like the “South Sea Bubble” of the 1700’s that bankrupted Scotland ?

Cheers.

Not exactly, you have to solve a mathematical equation/algorithm to realise the answer (a coin) and then it enters the public domain and is recognised and is then added to the Blockchain. As more coins are made, the more difficult it is to reach the answer (a coin) and the more processing power is needed to solve it. The number of coins for each answer reduces as the years go on. I think initially it was something like 40 coins per solving the puzzle/equation. Now it's nearer 3 with halving (every 4 years or so).

The value is no different to the dollar in that it is only based on public acceptance and value. Same as any currency. Take the Kuwaiti Dinar, why is it's value so high in comparison to say the pound, Euro or Dollar? Perception, trust and availability. Same with Gold. More gold, lower price but when it's rare the price shoots up like a junkie.

[mushroom 13,946]

But yes it is a kind of puzzle I guess. You get rewarded (in coins) for solving it (showing the work).

[chartpolski 27,352]

7 minutes ago, mushroom said:

Not exactly, you have to solve a mathematical equation/algorithm to realise the answer (a coin) and then it enters the public domain and is recognised and is then added to the Blockchain. As more coins are made, the more difficult it is to reach the answer (a coin) and the more processing power is needed to solve it. The number of coins for each answer reduces as the years go on. I think initially it was something like 40 coins per solving the puzzle/equation. Now it's nearer 3 with halving (every 4 years or so).

The value is no different to the dollar in that it is only based on public acceptance and value. Same as any currency. Take the Kuwaiti Dinar, why is it's value so high in comparison to say the pound, Euro or Dollar? Perception, trust and availability. Same with Gold. More gold, lower price but when it's rare the price shoots up like a junkie.

How do you cash them in ? 
Do you need a buyer on the open market or is there a bitcoin bank ? 
What if everyone tried to cash them in at the same time ?

Would the bitcoin market crash, just like banks can’t give everyone their deposits at the same time as they don’t physically have the cash at hand.

if these cryptocurrency are making such astronomical gains and they were to be cashed in where would the money come from ?

Cheers.

[mushroom 13,946]

3 minutes ago, chartpolski said:

How do you cash them in ? 
Do you need a buyer on the open market or is there a bitcoin bank ? 
What if everyone tried to cash them in at the same time ?

Would the bitcoin market crash, just like banks can’t give everyone their deposits at the same time as they don’t physically have the cash at hand.

if these cryptocurrency are making such astronomical gains and they were to be cashed in where would the money come from ?

Cheers.

Same as any exchange mate. You sell them or hold them.

[mushroom 13,946]

Everyone cashing in at the same time would be like a run on the bank. The value of their stocks would plummet

[chartpolski 27,352]

9 minutes ago, mushroom said:

Everyone cashing in at the same time would be like a run on the bank. The value of their stocks would plummet

A bit too late for me to get into them.

Ill just have to make do with my small portfolio of shares, my property, a bit of precious metals and stones and some good old cash under the mattress and hope the capitalist system doesn’t explode too soon ! LOL !

Cheers.

 

[mushroom 13,946]

8 minutes ago, chartpolski said:

A bit too late for me to get into them.

Ill just have to make do with my small portfolio of shares, my property, a bit of precious metals and stones and some good old cash under the mattress and hope the capitalist system doesn’t explode too soon ! LOL !

Cheers.

 

It works the same mate. It's all based on perceived value rather than against something (gold standard). And it's not too late

Something to remember, even though crypto isn't regulated like normal FIAT, some exchanges will act altruistically and will put holds on transactions to limit the impact of a "run"