Bitcoin, or Bitcon

[Grumpy John]

I just saw an article on ACA about Bitcoin. At the moment 1 Bitcoin costs you just under A$2300. Who gets my hard earned ozzie dollars if I buy a bitcoin, and what protection do I get to stop it crashing?

[Cal]

The guys at work are talking about them at the moment, figures they mentioned (and elsewhere on tv etc.) current value is around $11,000. If the market crashes you loose, just like the stock market.
It's all virtual too, no actual coins involved. There are bitcoin "coins" around but face value is not of that of the virtual bitcoins. The whole thing is Snake oil to me. Like any gambling, spend what you can afford to loose.


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[Grumpy John]

Bitcoin is a Ponzi scheme, and it will collapse like one | TheHill

[DavidG]

Anyone remember Poseidon shares.

[Chris Parks]

I just saw an article on ACA about Bitcoin. At the moment 1 Bitcoin costs you just under A$2300. Who gets my hard earned ozzie dollars if I buy a bitcoin, and what protection do I get to stop it crashing?

Life is a gamble, do you feel like gambling? If you buy shares to fund your retirement it is a gamble and those that have lost money (including me many years ago) ask the same questions. Bitcoin is driven by speculation exactly the same sentiment as is driving the share market at the present time and long may it continue says he hopefully. I reckon Mr Bond and his mates had then same guarantees as Bitcoin does, where is my money that went down the slot back then?

[Chris Parks]

Anyone remember Poseidon shares.

Oh yes, I remember waking up one morning and listening to the radio and everyone was buying them or trying to and reportedly the Queen lost a motza on them. Share clubs sprang up everywhere but I cannot recall ever getting any money back from my participation in them.

[Sawdust Maker]

today's tulips

[rrich]

Was it P. T. Barnum that said, "There is a sucker born every minute?"

If you had bought Bitcoins way back when, then my advice would be to SELL NOW. My advice also would be to not buy now. IMHO What you're buying is a computer algorithm. Then someone has declared a value on the algorithm. So in the words of PTB, you're buying smoke and mirrors. And, a Ponzi scheme of sorts? Probably?

So all of you time travellers out there, go back and buy a few thousand Bitcoin, sell them today and retire tomorrow.

[cava]

The guys at work are talking about them at the moment, figures they mentioned (and elsewhere on tv etc.) current value is around $11,000.

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Correction, the price today is circa $23,000A

https://www.cryptocompare.com/coins/btc/overview/AUD

[cava]

Bitcoin is a Ponzi scheme, and it will collapse like one | TheHill

If Bitcoin is a ponzi scheme, then by definition, so is Medicare, Social Security etal which rely on new participants to fund old and established benefits. Just saying...

[tonzeyd]

No protection what so ever, much like shares except extremely volatile. Similarly to Cal the advice I was given before getting into shares is whatever you invest be prepared to lose it. If you can't afford to lose it don't invest.

Investing is one of those things like the lottery, there are many more people who lose everything than those that actually win. So as tempting as it is to hear all the people who have cashed in their bitcoin I'm sure there are many others who have lost everything. The stories i have heard of those that have scored big is the typical "yep bought something forgot about it realised i had it then cashed in"

[Yanis]

First of all Bitcoin is not a ponzi scheme. Just because it shares an at-a-glance similarity in some superficial respects does not make it a ponzi scheme.

However Bitcoin is unlike a currency or shares in one significant and important detail. Both of the latter have intrinsic value that can be objectively calculated but Bitcoin does not. Yes, it is linked to the ability to generate the crypt that defines the coin but that more defines its limits rather than some inherent value.

A currency is valued against the country (or countries in the case of the Euro) economy, A stock or share is valued against the companies fundamentals which can be defined. There is no such fundamental value that can be attributed to Bitcoin. As such the Bitcoin is whatever people say it is.

In terms of who gets the money you pay for Bitcoin, it is the person selling that particular coin or portion of coin. the difference in what they paid for it and what you are paying goes into their pocket (or comes out if you are paying less than they paid). If the coin is sold by the person who mined it then the whole value of the sale is profit by the seller. Of course the cost of the computer and power used to generate the coin needs to be factored into it.

The premise of course is that the harder it is to generate Bitcoin the more valuable they become. But this is more perceived than actual intrinsic value.

My personal view is that the bubble will burst and there will be a lot of very disappointed people. My advice to people who ask me is that you should not spend any money on Bitcoin that you would not be upset to see disappear.

[matt_s]

My advice to people who ask me is that you should not spend any money on Bitcoin that you would not be upset to see disappear.

I have no skin in this game, I'm simply curious; are just another armchair Internet punter, or do you hold some financial qualifications?

[Grumpy John]

Just in case I gave the impression in my OP that I was contemplating purchasing Bitcion, no way would I touch it, not even with someone elses money.

[cava]

Bitcoin aside, which may or may not survive, the technology behind it is I am lead to believe impressive.

Whether we like it or not 'blockchain' technology is here to stay and part of the future.

Banks, Governments and businesses are looking to implement it with their own digital currencies. Its part of the touted cashless society that has been pushed on the global community for the last decade or so and I think that the next 12-24 months will be very interesting, especially with cryptocurrencies. We shall see...