What can you buy with bitcoin?

[DrHenley]

How about a $10 pizza for $76? (and it take several hours to get your pizza)

A Wall Street Journal reporter goes shopping with Bitcoin. Quite an eye opener!

 

[Gazrok]

Yeah, at this point, it seems that the way it works isn't really great until all participating merchants can do it directly vs. a middle man, and do so with fully up to date rates.

It's not as practical as it could be in the future. (especially given the delay to process, and the fact that many processors only update once per week, when there is a huge daily fluctuation).

Right now, it only seems practical as a currency investment. If you had bought ONE bitcoin last Jan, at $802, it would now (today), be worth $14,750. Yep, that isn't a typo. can you think of any other investment that will give you that kind of return in a year?

 

[Gazrok]

Interesting stats....

This is for the past month.

Bitcoin, down 3.52% for the month, but up 1538.60% for the year
Bitcoin Cash, up 82.07% for the month, up 448.00% for the year
Ethereum, up 175.43% for the month, up 11,618.07% for the year
Litecoin, up 68.48% for the month, up 5,824.59% for the year

So, while the $76 pizza may not be a great idea, keeping this as an investment for a year? Pretty incredible returns. Just cash in half of it maybe after a year, as a hedge, and keep half in to grow even more... Even if you lost it all after that, you'd still be thousands percent in the black from your original investment.

For perspective, let's say you took $20 and invested it in Ethereum last Jan. That would now be worth $2,323.

 

[Gazrok]

Dove in today, and got $20 of 3 of the main crypto currencies. Will see how they do, just as a little litmus test....

 

[Gazrok]

Funny story, asked a friend about this....his wife said, "Oh, years ago, I was paid a little bit in bitcoin for a job I did online, just a little, towards the end....not sure how to access it though"

I'm like, "When was this?"

She says, "2010"

I'm like, "Seriously? You better find out how to access that!!!"

She says, "Why?"

I reply, "Well, if it was only $100, in 2010, it'd only be worth about $75 MILLION right now!!!"

So, if I go away for a while.....lol....

 

[Gazrok]

Wow, tried to buy Ripple today (another crypto currency that looks ready to boom), and it's nearly impossible. Exchanges don't have it to trade, and others don't have the capacity yet for new member accounts. I figure if I can get in, over the next few days, will be on the new ground floor for this one.

(My friend contacted a recovery service, to see what she can do to claim the bitcoins she was paid in, just a wait and see on that...)

 

[Brent S]

Wow, tried to buy Ripple today (another crypto currency that looks ready to boom), and it's nearly impossible. Exchanges don't have it to trade, and others don't have the capacity yet for new member accounts. I figure if I can get in, over the next few days, will be on the new ground floor for this one.

(My friend contacted a recovery service, to see what she can do to claim the bitcoins she was paid in, just a wait and see on that...)

That would be exciting to see what she has and if it can be accessed. My son bought some too but much too late to cash in on the astronomical gains. I do remember hearing about it early on and thinking what kind of moron would invest in it. Oh well, I’m still working for a living....

 

[Gazrok]

I actually wanted to way back then, but was just too over my head as to how (back then). Now, it's easy. Or...kind of.

I finally bought Ripple today, and that isn't easy yet. But, it's one of the ones on my list to watch this year (based on my research). I had to first buy bitcoin, then go through two intermediaries, just to convert that Bitcoin to Ripple (and with some high fees). But, I just wanted an initial amount to just sit there. Most exchanges simply didn't have it to trade (though they would happily accept it FOR something else, lol).

SK basically reversed their whole banning stance (which I expected), so it should start going back up now. I tried to buy low (should have waited one day, but who could predict, I knew it'd be soon, so to be off by one day....not too shabby, hehe).

 

[Gazrok]

I really think this is all poised to go really big this year. I don't know why, just a gut feeling. Every bone in my body is telling me to do it before Feb. It's weird, to be honest. (of course, now that I've put it in print, it'll all be naught...lol).

 

[DrPrepper1]

Do you know how to cash out once you want to? How does that work? It is still a mystery to me. The lady that might have millions, if she wanted it, do you think someone would actually cash out the millions?

 

[Squirtgunsquirter]

I believe you sell your coin on the exchange, then the exchange deposits the fiat into a bank account of your choosing, like transferring funds from one account to another.

 

[Gazrok]

The above is correct. When you create an account at an exchange, you also need banking information, first to buy the currencies, then to have a destination for the monies when you sell as well. Just like converting dollars to crypto, you convert crypto to dollars in your bank account (minus a fee to the exchange of course).

 

[Gazrok]

To give an example, many analysts predict that Ripple will be used by some big banks and credit card companies. They already have a partnership with AMEX. The Ripple tech allows international bank transactions, that take days the normal way, to happen in seconds. The analysts conclude that if it also gets partnered with VISA and/or MC, the value could be around 100 or 500 by end of the year. Now, 1 Ripple is about $1.60.

That's a pretty incredible return. Let's say you have just 50 Ripple (so an $80 investment) now....if it goes to 500, you now have $25,000, even if 100, you have $5000, from that $80 investment.... (assuming you sell at that 100 or 500 rate). Where else can you get that kind of return? So, you can start to see the attraction of the crypto market.

Of course, the risk is that it never does this, or goes lower, or the Ripple goes bye bye, etc. It's always a risk, but when it's a risk that doesn't have you missing a car payment, but could net thousands, it's easier to buy into.

 

[Brent S]

A good rule of thumb for investing is don’t ever gamble with money you can’t afford to live without. If you can afford to spare some cash then investing is a good thing. Sometimes it goes well, sometimes not. My guess is some of these crypto currencies will be legitimized eventually. Picking which ones are will be the key to a profitable investment.

 

[Gazrok]

My guess is some of these crypto currencies will be legitimized eventually. Picking which ones are will be the key to a profitable investment.

I agree. That's why I spent time researching prior to jumping in. Even some that go up and down, etc., it's all about what need do they fill? What are they trying to do? And, do they have the team and technology to MEET that need. The ones I invested in, fit those criteria for me, so hoping at least one or more of those take off.

No kidding though, right now, it's a growing pains time for the industry. Governments (especially in heavy use areas, like Asia) are increasingly figuring out how they will deal with this new reality, and every little rumor or blurb tends to send the market in one direction or the other. I think the key will be riding it out, and hoping that at least some of your horses come in ahead of the pack, by end of year or so.

I really do think this whole idea is just in its infancy, as far as use and adoption. Most still have NO idea really what it is, or what it's for. That's why I'm getting in now, before folks start figuring it out....because after that, it'll have more conventional returns. Once it's legitimized, regulated, and in more common usage.

Like you said, the trick is figuring out WHICH of those will be left standing, and which of those standing will shine and skyrocket.

And, to be honest, some are total BS coins. Take DOGE for example...even an admitted joke, yet it's STILL being traded and speculated. I don't get that at all.

 

[pengyou]

It sounds good for short term speculation but in the long term, what you are doing is making cash completely controllable.

 

[DrHenley]

Goldman Sachs is predicting that most, if not all current cryptos will go to zero. (may be future cryptos that can survive long term)
https://www.cnbc.com/2018/02/07/most-cryptocurrencies-will-crash-to-zero-goldman-sachs-says.html

Warren Buffet said "In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,"
"We don't own any, we're not short any, we'll never have a position in them,"
https://www.cnbc.com/2018/01/10/buffett-says-cyrptocurrencies-will-almost-certainly-end-badly.html

 

[Gazrok]

Yet, those same folks are investing in it.

I've actually read those articles, and in both cases, they really seem to be ignoring the underlying technology and business problem solved by crypto in the first place.

Of course, as part of the old money system, it's in their best interest to scare off investors and adopters of the technology, as it will eventually directly compete.

And, even if they are right, I'm not putting more in than I can afford to lose. If you have another investment angle where I can possibly make hundreds or thousands of percent returns, I'm all ears. So, it's worth a small wager.

Recently, there was a huge crash....but this morning, it's creeped back up by double digits...

No doubt though, crypto is going to be a bumpy ride for a while. It's getting noticed, and that notice brings good and bad to the table.

 

[DrHenley]

Even Goldman Sachs acknowledges that there is a future for cryptocurrency, but it will have to evolve into something more stable and mature.

 

[Gazrok]

Even Goldman Sachs acknowledges that there is a future for cryptocurrency, but it will have to evolve into something more stable and mature.

I agree there. But it won't be some newly devised coin, it will be built on the tech of those being developed. So the idea of the main ones going to zero, really shows a complete lack of understanding of the industry. More likely, we'd likely see any "new" coin taking this role only as an amalgamation of one acquiring another, so this wouldn't eliminate an investor's holdings (and would likely grow them tremendously instead).

 

[DrHenley]

Explain why they can't go to zero Gaz. I'd like to know why you say that.

 

[Gazrok]

I'm talking about the main ones, that are actually in use, not going to zero, because they are already serving a business need. We don't get it too much here in the West, but in Asia, and other foreign markets, technologies like Ripple and Ethereum are already being used by banks to make faster, secure transfers. Bitcoin may still be the gold standard, and granddaddy of them all, but it is actually a slow process compared to the blockchain tech of some of the other cryptos.

This business need isn't going to just go to zero, so neither is the associated crypto.

To understand what they do: (Ethereum, for example)....
https://www.ethereum.org/

Oddly enough, I work in an industry (cloud based solutions), that may be made nearly obsolete by crypto adoption, or may just tailor solutions using it, remains to be seen....

 

[Gazrok]

Man, hell of a month for crypto. I think most (including me) probably are down about half of what we put in. Still, I'm in it more for the long haul.

I'm not so sure we've hit all the lows yet. It's creeping back up good since Wed, but I have some set buy points if it tanks again. It ALMOST got to them this time, but not quite....so I'm still trying to gauge it better (but getting much closer in my predictions).