Bitcoin

[Viviennemary]

I have never actually bought any Bitcoin and never will.But it fascinates me how anything that doesnt really exist is worth tens of thousands of pounds. I see its crashing again. I thought it would have crashed to nothing by now but no is still going. Its a mystery.

And this is in relationships why??

Oops sorry. It was meant to be in chat. I'll get it taken off if I can.

Well, technically no fiat currency “exists”, in the sense that it has no intrinsic value and it’s value only derives from those who use it as a medium of exchange agreeing on its value. Crypto is just data which, like fiat, is designed to work as a medium of exchange and tradable asset.

A £5 note isn’t worth £5 in itself, it’s a promissory note to pay £5.
And, crypto is (currently) not manipulated and controlled by banks but by ordinary people, which makes it a democratic currency

Thats what I don't get. People claim money is controlled by governments and banks. Which they don't like. But isnt crypto currency controlled by a handful of mega mega wealthy individuals who manipulate the price. I expect some lucky smaller investors have made money. I thought it would have gone to the wall long before now.

I have put a little money in crypto but more for fun, I havent put in anything substantial but it definitely looks like crypto is here to stay, there's been a big court case in America this week about the potential inventor of Crypto which may be linked to why the price has fallen in recent days. Some people who got in at the right time have made megabucks and done well out of it, I think it's harder for the average person to win from it now but crypto is crazy, one day you could be quids in, and the next day the price has fallen dramatically. I am sure more posters will have some really good info on what it's all about as it can be difficult to grasp, there's so much hype around crypto but not everyone is aware of what is actually is and it's purpose.

@Pippin2028

I have put a little money in crypto but more for fun, I havent put in anything substantial but it definitely looks like crypto is here to stay, there's been a big court case in America this week about the potential inventor of Crypto which may be linked to why the price has fallen in recent days. Some people who got in at the right time have made megabucks and done well out of it, I think it's harder for the average person to win from it now but crypto is crazy, one day you could be quids in, and the next day the price has fallen dramatically. I am sure more posters will have some really good info on what it's all about as it can be difficult to grasp, there's so much hype around crypto but not everyone is aware of what is actually is and it's purpose.

I'm also 'playing' for fun. I put in £40 a month or so ago and thats now fluctuating between £60 and £70 this week, though im aware next week i could lose it all. Id never put n more than i was happy to lose and i confess i don't understand a lot of it, but it is fascinating to play about with.

My DP put 4k in about 6 months ago. I gave him hell about it at the time but he's now got 13k sitting in his account and has already withdrawn 3k. It's a source of anxiety for him though, I can tell. It's so volatile and I think he stresses that he'll wake up one morning and it'll be worthless.

It’s not crashing, it’s just volatile.

Even though it’s currently c48k down from the recent all time high of 66k, it’s still c.2.5 x what it was this time last year (under 20) and has increased from the ytd low from c.30k in July.

Fascinating really.

My husband is now obsessed with crypto and all the various currencies. He invests in lots of coins, does a lot of research and monitors it constantly.

I invested a small amount (less than £2k) last year, but have doubled my money so far.

One thing to know is that for most coins, this is a long term investment. The market can crash, stay low for a month or more and then shoot up again. It's strange to log onto my account and see that it can be up or down a few hundred pounds each day for no real reason that I know of. It just happens. I just leave it all in there and it does eventually go up again.

The more people that become fascinated and buy in makes a market for it.

The question is whether you will one day be able to use it for regular payments, or will Governments just create their own, and which cryptos will survive and which won't.

I've had colleagues say they are sat on hundreds of thousands. I think if that were me, I'd have drawn it out to check! Even if I did then put it all back in again

If I was sat on hundreds of thousands I would already be no longer a colleague 😆😅

So can you just draw it out and turn it into real currency?
It's very mysterious!

Yes you can sell your investment in Bitcoin for “real” money, it’s like any other investment and no minimum term, just a volatile and unconventional/risky vehicle.

So you just buy some bitcoin, leave it to do it's thing, and that's it?
Can you move it around, sort of play the market?

As far as I can see

Cyber coins are bits of code but there's only so many of them, you can't print more. Let's say I create a coin like this and they are coded 1 to 100.

I sell them each for £1 and make 100.

A few people lose them because their digital wallets login passwords have been lost? So now, say , there's 98.

People think " oh only 98, I want one, will you sell me yours?" ... "Yes but I want £3 because someone else asked me on Tuesday and he might come back"...."OK, £3"

So, the more people that want your country, the higher the price. If lots cash out, the price will fall.

Ultimately though, these are my questions......

1. Until you can buy things or cash out so you can buy things you only own a piece of code. Until then it's value is simply in more people wanting it than did before?

2 if they became real currencies and usable, why wouldn't Governments create their own to control and tax - they can't print more of yours, for sure, that ship has sailed. They could create their own though. Another new set of codes?

3 it's a democratic currency due to its international coverage but, as we know, Governments use currencies to influence their own individual economies. With the Euro comes it's own problems, as we know.

1. So is it all speculation investment which will rely on a world we cannot even see yet happening, and

5 won't climate change happen first snd the most important investment be food water shelter?

Genuine questions because as you can see I know nothing about crypto......but did see the dot com bubble burst

Not country, code

Sounds like you don't really understand how it works, OP.

@StrongSunglasses

If I was sat on hundreds of thousands I would already be no longer a colleague 😆😅

Hun? Do you think people retire on a few hundred thousand we (DH and I) have more than a few million sitting in there and both still working.

Would you genuinely retire with £500k in the bank...?

Well unless you are under about 40 and have a Ferrari habit, you really don't need to work if you have 'more than a few million sitting there'.

If you are older with £500k, you're definitely in a position to make work less of a focus in your life.

I'm curious about Bitcoin and am in a position where I could put a bit aside for fun. But I have no idea how to buy it, sell it when I want to or keep it safe from all the scammers there are and I CBA learning, so it's probably not for me.

Cryptocurrency is an environmental disaster, if that's something that bothers you.

@BarbaraofSeville from personal view Bitcoin has passed the time when you could make a lot of money from putting in little.

Unless you put in 1/2 mil or more - and keep it in there for a looooong time - it's not worth it that much really.

Etherium has done really well but again for those who got in early.

Also be wary of tax, as when people say 'I've put in £10k now it's worth £20k' - remember you haven't made £10k. You get taxed sh** loads.

Well unless you are under about 40 and have a Ferrari habit, you really don't need to work if you have 'more than a few million sitting there'.

@BarbaraofSeville we spend about £150k annually and we don't have kids yet (35 and 40 yo). I still limit myself in things I buy.. We could live for another 50 years so yes I think we should still be working even with a few millions in the bank. I feel like I can't even justify going to 4 days a week even though I'd love to.

No Ferraris here, one second hand bmw.