Bitcoin - someone explain it to me

[Peter 2,017]

5 hours ago, Tryline said:

So what’s happens to all the cash that ppl buy the bitcoin with?!? 

🤔🤔

It goes into the bank accounts of the people that sold the bitcoin. 

[Mike Honcho 239]

takes at least 4 hours to get it back.

 

 

As an aside, Mr Gox anyone?

[Mike Honcho 239]

Now Coinbase insider trading. 

[Rimmer 456]

Talking to a couple of ForEx traders over here, they left the market a week ago as they couldn't make any more money off it. It has peaked and is about to crash. 

These are the same guys that got out of Banks just before the bubble burst. 

Also, another tip .... cars. If you are looking to buy a car, just hang on for a moment. The market is so overheated with poor performing finance that the manufacturers have had to drop their trousers on price to keep the volume up. Vehicle repossession has increased, so there will soon be a flood of re-marketed, low mileage, maintained cars on the market.

[monkie 427]

15 hours ago, Mike Honcho said:

Now Coinbase insider trading. 

Insider trading is nothing new... When I worked for a massive investment bank on the trading floor it was flagrant! 

[FatPom 3,094]

10 hours ago, Rimmer said:

Talking to a couple of ForEx traders over here, they left the market a week ago as they couldn't make any more money off it. It has peaked and is about to crash. 

These are the same guys that got out of Banks just before the bubble burst. 

Also, another tip .... cars. If you are looking to buy a car, just hang on for a moment. The market is so overheated with poor performing finance that the manufacturers have had to drop their trousers on price to keep the volume up. Vehicle repossession has increased, so there will soon be a flood of re-marketed, low mileage, maintained cars on the market.

You're not the first person I've heard lately saying similar. Good news for me! 

[Rimmer 456]

Bitcoin starting to tank .... 

[Peter 2,017]

Down $5000 today. 

[Mike Honcho 239]

16 hours ago, monkie said:

Insider trading is nothing new... When I worked for a massive investment bank on the trading floor it was flagrant! 

To the blatant extent that Coinbase did though is. Opened a new market early. Only open for two minutes. Hit every single buy order but had sells disabled. Drive the price from 5K to 9K. Then activated sells but locked everyone out. Took all the cash in both directions. Then to top it all off erased all trading history of that run from their site. 

 

Pure theft. 

[monkie 427]

10 hours ago, Mike Honcho said:

To the blatant extent that Coinbase did though is. Opened a new market early. Only open for two minutes. Hit every single buy order but had sells disabled. Drive the price from 5K to 9K. Then activated sells but locked everyone out. Took all the cash in both directions. Then to top it all off erased all trading history of that run from their site. 

 

Pure theft. 

Not defending it at all but when you've been sitting on a trading floor with the prop dealer telling the sales guys what he needs to move in what direction then you become slightly more cynical about the world's markets

[AA7 1,205]

Get onto Ripple

[Riddos 105]

Ethereum cracks the USD$1000 mark, go you good thing. 

[Pete 306]

Yowsers, which crypto currency to invest in? BTC has the history, the hype and the market cap, but, as I (don't really) understand it, ripple is like some kind of inter-bank crypto currency, or at least is accepted by many banks as such, yet etherium is a kind of high(er) tech crypto more suited to working within the current IT/App framework (I am hoping someone will point out my mistakes here and give a better answer) 

But in any case, all three seem to be worth investing in but ripple seems to have increased relative to BTC more than etherium and Def more than litecoin or bitcoin cash.

[monkie 427]

Which exchanges are trading Ripple?

[Cottoneyes 980]

Notice no one seems to be trying to flog off their Ferrari's on here to keep out of the poor house.  Did you all sell in time?

[monkie 427]

3 hours ago, Cottoneyes said:

Notice no one seems to be trying to flog off their Ferrari's on here to keep out of the poor house.  Did you all sell in time?

Missed the top of the peak by about an hour so pretty chuffed. Left half the profit in there to see what happens (currently just losing value fast) and the other half paid for Christmas...

I consider myself purely flukey and can claim no more credit for the timing than I could for a win on the pokies.

[Aidan 167]

On 18/01/2018 at 3:54 PM, Cottoneyes said:

Notice no one seems to be trying to flog off their Ferrari's on here to keep out of the poor house.  Did you all sell in time?

The thing is the ‘crash’ only took the price back to where it was 6 weeks ago. If you brought in prior to that you’re still well ahead.

[Peter 2,017]

On 22/12/2017 at 8:54 PM, Rimmer said:

Bitcoin starting to tank .... 

Yep. All those millionaires are now worth a bit less. 

[Peter 2,017]

[Mike Honcho 239]

Too the moon!!! Oh wait

[Pete 306]

On 12/22/2017 at 9:26 PM, Peter said:

Down $5000 today. 

Noticed it's come back pretty fast in the last couple of days - AUD $13,000+ and looks like it's on the rise.

Might be a good time to drop some coin on bitcoin - but then again might be a good time to stay right away from it - it depends on one thing - Do you feel lucky? 

[ComfortablyNumb 472]

Talking with a bloke last night who is into Bitcoin, is extremely intelligent (but not smart), and an expert in computer cryptology. The rest of his life is a complete f*ckup as it has been for decades (broke, mental & physical health rubbish, on the dole, can't hold a job, conspiracy theorist, ranter, does not listen, hates capitalism but hates being broke, hates people who made money through the normal channels blah blah blah).

Anyway, he reckons Bitcoin will hit $0.5-$1M in value in the next 5-10yrs.  He bought in at $100.  I said you should have sold them when they hit $26K and realised a 2600% profit.  He sold a few a while back to get urgent medical stuff done, but is hanging onto the rest till they hit the $ half-mil!

My limited knowledge of Bitcoin says it is not a currency at all at present, but a speculative item.  Currencies go up and down in value according to demand (i.e. the exchange rate).  When there is a big demand for Aussie goods from OS, those goods are bought in $A so the demand for $A goes up and hence its value relative to other currencies goes up.

With Bitcoin, it seems to me they are more like rare Spanish Coins from a sunken medieval galleon - they are somewhat 'rare' compared to other currencies, plus there is massive speculation, hence they are worth a lot.  They mostly get used to pay for illegal stuff, but increasingly there are some legal transactions.  Their main 'benefit' as I understand it is that when you pay for things in Bitcoin, no middle-man (bank fees etc.) takes a cut, and they are safer to use online from a hacking/fraud perspective.

But if they become 'the future' of currency, why would they hit $1M? - because they will no longer be rare.  If all other currencies disappear, there will be squillions of Bitcoin in circulation, so surely supply & demand will mean their value drops massively to some more reasonable equilibrium value?

Seems to me he is making the age-old investor mistake of trying to pick the top of the market.

 

Edited February 27 by ComfortablyNumb

[Peter 2,017]

Far from an expert but the cost involved in make a transaction is creating the value.

Quote

• People are currently paying $28 on average to make transactions using the digital currency, according to data by BitInfoCharts.

So it's not like you can go out to mcdonalds and buy a happy meal and pay with bitcoin. 

Therefore unless the transaction fee is free like using a credit card, I agree with you.  I can't see it getting to 1 mill dollars.

I'd love you to ask him the reasons it will hit 1 mill?

[Pete 306]

One of the great bitcoin protagonists - 

The "website" was silk road

The name is "The dread pirate Roberts"

and even though he didn't actually kill anyone he did execute 7 paid hits that he believed were carried out.

Although technically his sentence (life with no chance of parole) is more serious than Charles Manson (life with chance of parole)

Interesting story but, must watch the movie! 

[Peter 2,017]

Manson never killed anyone did he?