Cryptocurrencies

[Tennessee Blue Mike]

Can you actually buy stuff with it? Read up on it and non the wiser. Seems an utter bubble to me.

Bubble popping? 200 billion lost this past week. Ouch!

 

[roydo]

thanks mate.

the new version of Frank is much more sober x

I like being back

thanks @mods

*cough*

 

[Kev The Rat]

Out of danger now.

Its how business operates, the big players squeeze the smaller players out and get their coins at a cheaper price.

Ordinary people (like me) just need to sit tight and not panic sell.

 

[SerenityNigh]

Bubble popping? 200 billion lost this past week. Ouch!

On the contrary, $200B made this week. Every transaction requires two willing parties. Can you tell which one is the sucker?

 

[Goat]

Out of danger now.

Its how business operates, the big players squeeze the smaller players out and get their coins at a cheaper price.

Ordinary people (like me) just need to sit tight and not panic sell.

Out of danger? Please Kev, please tell me you got out when I warned you, I called its peak to perfection, the only people still in are in BIG BIG trouble.

What price did you buy at Kev?

 

[roydo]

Out of danger now.

Its how business operates, the big players squeeze the smaller players out and get their coins at a cheaper price.

Ordinary people (like me) just need to sit tight and not panic sell.

But its actually worthless, in the real world. Maybe I am wrong, but an investment asset has to have an intrinsic use. Be it real currency, propert, gold, shares, whatever. This seems to me as sustainable as the South Sea Tulip bubble.

 

[Kev The Rat]

Out of danger? Please Kev, please tell me you got out when I warned you, I called its peak to perfection, the only people still in are in BIG BIG trouble.

What price did you buy at Kev?

A lot less than it is now, and i'm staying where I am. I have other sources of income as well. You'd need to see 1k gbp a coin to bring me to break even.

 

[Kev The Rat]

But its actually worthless, in the real world. Maybe I am wrong, but an investment asset has to have an intrinsic use. Be it real currency, propert, gold, shares, whatever. This seems to me as sustainable as the South Sea Tulip bubble.

I understand what you mean, however it retains its value as a store of value, plus you can move it from person to person very quickly indeed, much quicker than any bank.

 

[Goat]

A lot less than it is now, and i'm staying where I am. I have other sources of income as well. You'd need to see 1k gbp a coin to bring me to break even.

Ive got some shares in Google if your interested Kev, cash only tho, none of those worthless coins youve got.

 

[roydo]

I understand what you mean, however it retains its value as a store of value, plus you can move it from person to person very quickly indeed, much quicker than any bank.

Its a fad mate, If you have made a few bob, I would bail. It will all end in tears.

 

[Woolly Blue]

But its actually worthless, in the real world. Maybe I am wrong, but an investment asset has to have an intrinsic use. Be it real currency, propert, gold, shares, whatever. This seems to me as sustainable as the South Sea Tulip bubble.

I don't think cryptocurrency is worthless mate.

As a method of buying and selling stuff, it will likely be used in the mainstream in our lifetimes. Gold and currency don't really have much in the way of intrinsic value associated with them, they're just a means to measure wealth, something which the likes of BitCoin could quite easily become.

The issue at the moment is measuring that worth. Currently, it's price is moving on speculation, and it's moving so rapidly that it kind of defeats the object of using it as a currency. If it's moving up quickly, then you wouldn't use it to buy something because you could buy so much more in a week or two, so you'd buy things in "normal" currency. If it's moving down quickly, then the opposite applies, because no-one would want to accept it in payment because it'd be worth less in a week or two.

Once it stabilises, it can be used as it was first intended. There are various, probably inaccurate guesses made about the cost of mining Bitcoins, so, as long as it's price stablilses at a value far enough above the cost of production to turn a profit, then it'll be fine.

But, at the moment, it's just being driven by people jumping on, and off, a bandwagon. The city has perked up and shown an interest, and they're easily able to make money on both rising and falling prices, so it's likely to take some time to find some sort of equilibrium.

Hopefully, in the meantime, Kev will lose a whole lot of paper profits ... purely so we can laugh at him !

 

[roydo]

I don't think cryptocurrency is worthless mate.

As a method of buying and selling stuff, it will likely be used in the mainstream in our lifetimes. Gold and currency don't really have much in the way of intrinsic value associated with them, they're just a means to measure wealth, something which the likes of BitCoin could quite easily become.

The issue at the moment is measuring that worth. Currently, it's price is moving on speculation, and it's moving so rapidly that it kind of defeats the object of using it as a currency. If it's moving up quickly, then you wouldn't use it to buy something because you could buy so much more ina week or two, so you'd buy things in "normal" currency. If it's moving down quickly, then the opposite applies, because no-one would want to accept it in payment because it'd be worth less in a week or two.

Once it stabilises, it can be used as it was first intended. There are various, probably inaccurate guesses made about the cost of mining Bitcoins, so, as long as it's price stablilses at a value far enough above the cost of production to turn a profit, then it'll be fine.

But, at the moment, it's just being driven by people jumping on, and off, a bandwagon. The city has perked up and shown an interest, and they're easily able to make money on both rising and falling prices, so it's likely to take some time to find some sort of equilibrium.

Hopefully, in the meantime, Kev will lose a whole lot of paper profits ... purely so we can laugh at him !

But what is it? Its, as far as I can tell, a fabricated online currency under pinned by no bank, no country, just some random on line thing. If I buy a gold bar, and lob it in a safe, the price will move around, but I still have a tangible asset.

Or maybe I am so now jaded and of the grid, that I am looking a bit Flinstones esq.

 

[SerenityNigh]

But its actually worthless, in the real world. Maybe I am wrong, but an investment asset has to have an intrinsic use. Be it real currency, propert, gold, shares, whatever. This seems to me as sustainable as the South Sea Tulip bubble.

*Edit
^^ What Wooly said, but less smart

 

[Woolly Blue]

But what is it? Its, as far as I can tell, a fabricated online currency under pinned by no bank, no country, just some random on line thing. If I buy a gold bar, and lob it in a safe, the price will move around, but I still have a tangible asset.

Or maybe I am so now jaded and of the grid, that I am looking a bit Flinstones esq.

Gold's value isn't underpinned by anything much though. The only thing underpinning it's value is that it's shiny and, to our eyes, looks nice.

It's not like stuff like oil, copper, coal and the like. Gold's used in industry, but it's not valued on that, so, if you have an ingot or a nice krugerrand knocking about, it's value is based on what someone else think's it's worth. Bitcoins aren't massively different in that respect.

*Edit
^^ What Wooly said, but less smart

Two l's ffs.

 

[SerenityNigh]

But what is it? Its, as far as I can tell, a fabricated online currency under pinned by no bank, no country, just some random on line thing. If I buy a gold bar, and lob it in a safe, the price will move around, but I still have a tangible asset.

Or maybe I am so now jaded and of the grid, that I am looking a bit Flinstones esq.

Banks and currencies trade on operating profit/GDP, less debt and leverage, with the value of transactional ease. Bitcoin has similar parameters, and like currencies is more or less useful in different areas. You can probably do a lot of business with USD in most of the UK, but nobody is honoring Zimbabwe dollars (ZWL) any longer, and for good reason.

Still, you're nuts if you're the one buying BTC right now.