Bitcoin...Anybody here dabble in it?

[Gazrok]

As a post SHTF idea, this one is pretty much a no-go...

But, prior to such an event, there seems to be a LOT of money to be made if done right. Really never before seen returns.

Just wondering if anybody here has played around with it, and if so, any advice.

I'm not looking to get into it with anything more than I can just afford to lose, but I have an interesting feeling that bitcoin is not only here to stay, but eventually poised to become a universal currency with full establishment buy in, etc.

 

[DrHenley]

I acquired a BitCoin wallet and set up a computer to mine BitCoins several years ago. At that time it was possible to profitably mine BitCoins using graphics cards to do the processing.

But before I actually began mining, I read that the Feds were about to crack down and that BitCoin mining may require a money transmitter license, basically a type of banking license. At the time, the general concensus was that you could mine a BitCoin and possibly buy something with it without a license, but you needed a license to sell one that you mined.

That scared me off, so I let it alone for a while. The regulations are still not clear, but not quite as muddy now. But now, BitCoin mining requires specialized hardware in order to have any success, and expenses may be higher than any income derived. In fact, chances are you will spend more on electricity than you will make. Which actually makes BitCoin mining look a lot like a sort of Ponzi scheme.

 

[Brent S]

Too bad you didn’t do it back then Doc. It was an amazing investment. The astronomical rise to 15k pretty much scares me off at this point though. Yes, it may continue to rise, but for me that ship already sailed at these prices. My son bought some months back, but we’re talking small change. I did see that somewhere around 15billion in it was just stolen in Japan. The security issue may hurt it down the road. Getting on the NYSE has really helped the price and legitimacy rise though. Again, sure wish I got it when it was still pennies. There are some really rich people out there from this.

 

[Gazrok]

Yeah, I heard about the theft.

I do know there are ways to do it similar to stocks, where you pay a percentage (one of the methods was only half a percent). That takes the hardware requirement out of it.

So far, I really don't know much about it, so just trying to educate myself to see if I'm going to do it with anything, and if so, then how to best do it.

 

[Brent S]

Yeah, I heard about the theft.

I do know there are ways to do it similar to stocks, where you pay a percentage (one of the methods was only half a percent). That takes the hardware requirement out of it.

So far, I really don't know much about it, so just trying to educate myself to see if I'm going to do it with anything, and if so, then how to best do it.

It may continue to climb, who knows without a crystal ball. The astronomical rise from pennies to 15k though is past tense now though. As they say, that train has already left the station.

 

[tntboy13]

Ive thought about getting in on it, but i never did. Too bad because id be considerably more wealthy. But its just outsidr my comfort zone.

If you have the money to play with, you could possibly look at the other cryptos like litecoin which is the "silver" to bitcoins "gold". Most of them have not seen the same spike because they are not popular.

The only other thing i found was to use gdax and be sure to do market "maker" orders as i believe those are without transaction fee, but check that.

 

[drt4lfe]

looks as though a pretty big bitcoin crash happened.....

 

[Gazrok]

Yep, 20%. Still, I've seen worse in stocks. And if you take it over a period of time, a $200 investment years ago, would be worth hundreds of thousands.

There are other crypto currencies too. I think I'm going to put just a little into each of them, and just let them sit, see how it goes.....

While some methods don't have trans fees, those methods are usually more susceptible to hackers too, so something to consider, especially if just letting it sit (so minimum transactions)....

"Etherum" is up nearly 7% today

Let's examine though, even with the "crash"...

If I had bought ONE bitcoin in Jan of last year, at $802....right now, that same investment would be worth $14, 750. I don't know about you, but that's a DAMN FINE return....that's over 1800 percent! That is insane....

 

[Gazrok]

The astronomical rise from pennies to 15k though is past tense now though. As they say, that train has already left the station.

I'm not so sure, especially with the other crypto currencies. Still, it's worth a minor investment, just to see. (at least to me).

 

[Gazrok]

So, as of today, put $80 (including fees) in ($20 each, into 4 different currencies):

Bitcoin, Bitcoin Cash, Ethereum, and Litecoin

Will see how these do, and report back in a month.

 

[Gazrok]

Which actually makes BitCoin mining look a lot like a sort of Ponzi scheme.

You're referring to actually mining it, I'm talking about treating it as a currency investment only.

 

[Gazrok]

Again, sure wish I got it when it was still pennies. There are some really rich people out there from this.

There are still quite a few "penny" currencies, that could do really well.

I've been researching the HELL out of the whole industry, different currencies, etc. Here's what I like right now, not just price, but the business need they are looking to solve, the dev team, etc.

GAME (GameCoin) currently at about $4.50 each. This one looks to become the premiere "in game" method for buying video games, things within video games, etc. Already pretty big in Asia, this one is one I see with a lot of usage potential (and thus, price increases).
XLM (Stellar) currently at about 50 cents each.
XRP (Ripple) currently at about $1.50 each. This one has some HUGE potential.
RDD (Reddcoin) currently at about a penny.
ADA (Cardano) currently at about 66 cents each.
SC (Siacoin) currently at about 5 cents each.
MIOTA (IOTA) currently at about $3.
TRX (Tron) currently at about 8 cents each.
XVG (Verge) currently at about 11 cents each.
DENT (Dent) currently at about 5 cents each.

Just like getting in with Bitcoin back in the day, getting in at the early times of some of these may just be the best decision of 2018...or lose you a few bucks. For me, worth a small gamble to get $10 or $20 of each and just sit on it, see how they do.

 

[Max Nix]

The whole crypto-currency thing seems a bit unstable to me; witness the recent value fluctuations. And as Gazork mentioned above, when TSHTF, the internet connections to make it work will probably be gone. My financial prepping consists of rolls of 90% silver coins which should retain some purchasing power should credit cards and paper currency become useless. I purposely bought old-style coins no longer in production and circulation, like Mercury dimes and Standing Liberty quarters so that they'd be easily recognizable as pre-debasement coins. I also keep a small stash of paper cash just in case the credit cards are out but people still take folding money.

 

[Brent S]

The whole crypto-currency thing seems a bit unstable to me; witness the recent value fluctuations. And as Gazork mentioned above, when TSHTF, the internet connections to make it work will probably be gone. My financial prepping consists of rolls of 90% silver coins which should retain some purchasing power should credit cards and paper currency become useless. I purposely bought old-style coins no longer in production and circulation, like Mercury dimes and Standing Liberty quarters so that they'd be easily recognizable as pre-debasement coins. I also keep a small stash of paper cash just in case the credit cards are out but people still take folding money.

I believe it was doc that pointed out something I hadn’t thought of before. Even with a true shtf scenario, people will likely still take money for a while. I Consider this to be foolish, but it’s likely a ‘reflex’ ‘action that most people are just familiar with. Use it to your advantage if ever in the situation. I believe having some assets like gold jewelry, silver, and even cash could be good for barter, but I’m still a bigger believer that a couple firearms, ammo and a water filter will get you further in the long run.

 

[DrHenley]

There are scenarios where cash would be worthless. Hyperinflation being the main one. But The U.S. Dollar is fiat currency as it is with nothing backing it. The only thing it has going for it now that it won't in a total SHTF scenario is that the government has to accept it for payment of taxes. The market, and the market alone dictates the worth of a dollar.

 

[Proud Prepper]

There are scenarios where cash would be worthless. Hyperinflation being the main one. But The U.S. Dollar is fiat currency as it is with nothing backing it. The only thing it has going for it now that it won't in a total SHTF scenario is that the government has to accept it for payment of taxes. The market, and the market alone dictates the worth of a dollar.

Cash will also retain value for paying off any mortgage or loan. Keep your devalued cash for making payments on your loans.