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Oompa Loompa

Bitcoin - someone explain it to me

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52 minutes ago, Oompa Loompa said:

Someone explain it to me. 

 

I just sold out at 4,800 as I thought it had peaked - but it's still climbing - got to over $5,500 this evening - Darn?! Doesn't explain bitcoin, but, like Kenny says, you gotta know when to hold'em know when to fold'em. :(

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To give you an idea of the volatility of the market - bitcoin went just shy of $6,000 yesterday but dropped to $5,070 overnight and is now siting up around $5,500.  I had a buy order in at 5,000 so I missed the dip by seventy bucks - Doh!!!

This is much more fun than sports bet!!  lol

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On 8/16/2017 at 6:52 PM, Niseko said:

My tip: BTC heading down to USD $3,000 in next 2 weeks, before bouncing back to $4,500.

 

Kind of -  it hovered down around USD 3800 (~5000AUD) for a while but now on the move - around 4400 (5600AUD ) and climbing. Must be a big demand on wannacry ransom payments :) 

I think I will put in a sell order just shy of 6,000 AUD and hope to catch it with a buy order when it comes down the other side.  Who knows? $500 dollar day trader today, tomorrow the Wolf of Wall Street....!

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On 9/3/2017 at 0:36 AM, Mike Honcho said:

having $5000 worth of bitcoin is not the same as having $5000. Selling them isn't as simple as it sounds. 

I converted my bitcoin* into cash on a market trade within 10 or 15 seconds. The transaction verified withing the hour and I transferred the AUD result into my bank account via direct debit within 48 hours.  Easier than a share transaction.  I made the princely sum of $250 profit on my modest $460 investment over a period of only 2 or 3 months.  That equates to something like a 200% annual return - try and get that from a term deposit!! LOL

 

*bitcoin - technically not exactly bitcoin as the exchange held it for me in an account as opposed to setting up my own bitcoin wallet which I have still yet to do (for no other reason than to learn how).  Even so, I think the exchange accepts direct transfers of bitcoin so I would think it would still be a fairly straightforward process. 

Edited by Pete

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So, everybody is happy to have a bet or share a bitcoin tip, but no one cares to explain what the frack it's all about! 

 

Typical Australians. You probably all work on the futures exchange and make billon dollar 'investments' based on a gut feeling. ...

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18 minutes ago, XCOM! said:

It's a digital asset - more analogous to commodity trading than currency trading.

Ah. An imaginary friend. Like having a personal relationship with Jesus, or riding a unicorn 🦄  to work. 

  • Haha 1

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9 hours ago, Andrew #1 said:

Ah. An imaginary friend. Like having a personal relationship with Jesus, or riding a unicorn 🦄  to work. 

Or voting for an honest politician.

 

Oh, sorry, that was another thread. :)

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11 hours ago, Andrew #1 said:

Ah. An imaginary friend. Like having a personal relationship with Jesus, or riding a unicorn 🦄  to work. 

It's 'intrinsic' value is based on the Bitcoin network and blockchain processing. As more applications are found and implemented for the technology and require increased decentralized transaction processing ('mining') then the intrinsic value of bitcoin will increase, so it's not all mindless gambling - although there is a hefty slice of that in the market.

Edited by XCOM!

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13 hours ago, Andrew #1 said:

So, everybody is happy to have a bet or share a bitcoin tip, but no one cares to explain what the frack it's all about! 

 

 

 

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To put it (probably badly) another way, there are 2 basic components to the price (vs. value) of bitcoin.

- The underlying intrinsic value created by the Bitcoin network-protocol and mining.
- The speculative market value based on traditional trading - i.e. greed.

Bitcoin's blockchain technology uses distributed processing, for which people need to invest in computers, power, network, time, etc etc, and are paid for doing that work in... bitcoin.

When processing bitcoin transactions was the only application for the Bitcoin network, then the value of bitcoin was obviously highly speculative and volatile. But as the technology is becoming more widely accepted and more applications are being implemented for it, the intrinsic value of bitcoin is increasing and becoming more stable. If the technology becomes more established and harder to replace, then the intrinsic value of bitcoin will become harder to dismiss, but the market value will likely not be what it is now.

It's probably not unlike any new discovery-technology where speculative investors stampede into the market to make a killing, and then many lose their shirts as the reality sets in on what it is and how it can be used.

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Got this in a newsletter today, RS might be able to calendarise the anniversary and remind us all

 

A random fact...

The first ever transaction in Bitcoin was made on 22 May 2010.

Laszlo Hanyecz bought 2 pizzas for 10,000 Bitcoin (~$31 AUD).

Today those 10,000 Bitcoin would be worth $47.8m AUD.

That day is now known as "Bitcoin Pizza Day".

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With apologies to  Darryl Kerrigan  "How's the volatility?" :) 

24mdl08.jpg

Note that this is not over 10 years, 5 years or even 1 year - this is the movement over 6 months! Note the scale, no funny business here - half the height means half the price! There's some money to be made on them thar hills...!

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You gotta love these type of PR Interviews.

John, are you fantastic or awesome?

Good question Jade, I like to think that I’m awesome, but I’m ok if people think I’m just fantastic.

Seriously, it doesn't take a genius to know that the price of bitcoins is gambling, and any super-fund stupid enough to invest in them should be sued by its members.

BitCoin was a way to establish and secure market-share for the block-chain technology, but obviously there will come a 'emperor has no clothes' day for the currency.

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22 hours ago, XCOM! said:

You gotta love these type of PR Interviews.

John, are you fantastic or awesome?

Good question Jade, I like to think that I’m awesome, but I’m ok if people think I’m just fantastic.

Seriously, it doesn't take a genius to know that the price of bitcoins is gambling, and any super-fund stupid enough to invest in them should be sued by its members.

BitCoin was a way to establish and secure market-share for the block-chain technology, but obviously there will come a 'emperor has no clothes' day for the currency.

Yup.  So the story is, get in early, sell at the peak, and enjoy.  My BIL reckons he has a small fortune in bitcoin, but he's not selling. It will end in tears for him.

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trouble with investing is setting a realistic profit goal and sticking to it. Take profits regularly and reinvest if you believe the trend will continue. A profit isn't a profit until you cash out. Bitcoin is a good example. My cousin was banging on about some bitcoin farming conglomerate he was a part of and did I want in. Did some looking into it and it is a pyramid scam. Not only a pyramid but you buy in with bitcoin value. He got in a few weeks before the peak so not only is he going to get stung with the scam but if he does not, the three bit coins he might end up with if he makes the next tier will be worth about 1.5 of his initial purchase. The scam is called Ultim8 Bitcoin if you get bored and want a laugh. 

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