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Original poster

Please tell me about Bitcoin... the Good, the Bad and the Ugly.

100 replies

shadypines · 18/01/2021 08:27

What is it? Is it a scam? BIL has got involved so I'm a bit concerned as he has a history of being rubbish with money. Thanks

OP posts:
WizardOfAus · 28/02/2021 11:39

Thanks for the terrific advice @Cailleachian. It’s much appreciated.

Viviennemary · 28/02/2021 12:48

It's a pyramid Ponzi scam. Far more losers than winners.

Cailleachian · 01/03/2021 18:28

@Viviennemary

It's a pyramid Ponzi scam. Far more losers than winners.
Why do you think more people have bought in the 13 days that it has been above its current £34.7k exchange rate than in the rest of its 10+ year history?
fromdownwest · 04/03/2021 12:42

@Cailleachian

Recently started buying portions of bit coin on coinbase.
I am currently using the coinbase wallet

Could you kinldy let me know your thoughts on Ledger or Trezor?
Any advantages one has over the other?

Cailleachian · 04/03/2021 23:35

I have both a Ledger and a Trezor, this is just my impressions.

While I think both are sufficiently secure, the Trezor is marginally more secure because it has

  • tamper resistant packaging
  • runs open source software
  • has not had a data leak of customer details (no funds at risk, but still not good for a company specialising in security).

However I still prefer the ledger because

  • it feels more solid and substantial
  • it has a clearer screen
  • it is less fiddly to use
  • I find it easier to use Ledger Live than Trezor's interface

So on balance, if you want to optimise for security - go for Trezor, if you want to optimise for user experience, go for Ledger, but both are secure and have a good enough user interface for both to be good choices.

fromdownwest · 10/03/2021 15:46

@Cailleachian - What a learning curve the last 2 weeks have been!

I have since then invested in

XRP
ETH
and BTC

I opted for the exodus / Trezor 1 combination
I have the ease of access of data with exodus app - whilst the cold storage of the key

Thanks for your input, very much appreciated.

crystalize · 17/03/2021 14:20

@Cailleachian and others following on from this thread - my sons invested in it and I would like to learn more about it. When you say transfer to a wallet - is that for long term? He wants to invest long term, say at least 10 years or so. What amount is significant to get a wallet?

Are there any recommended sites/blogs that are simple to explain? Thanks

fromdownwest · 17/03/2021 15:22

'Coin Bureau' is a great resource
Also
'Every Bit Helps'

both on youtube

The latter is better for a beginner

You have wallets which take the bitcoin off the platform, however, it is still essentially held on someones server.

A cold wallett such as Trezor - means that your Bitcoin is held on a USB style stick. So basically you 'physically' hold it.

If the USB fails, or you lose it, as long as you have you 24 word password you can move it to a new wallet.

crystalize · 17/03/2021 15:44

@fromdownwest thanks for that I'll have a read up. I see so the Trezor wallet is stored offline... 24 word password! Guess that would have to be stored somewhere as well! Im finding it all fascinating.

fromdownwest · 17/03/2021 16:19

It is a whole new world!!
It takes some time to get around the basics, but, it is more than managable.

Correct - The Trezor would have to be stored securley.

The one danger - lose the 24 words - lose your money!

fromdownwest · 17/03/2021 16:20

The Trezor wallet is a physical version of your bitcoin, so called cold storage.

crystalize · 17/03/2021 18:30

I get it a bit more now after reading. Im opening a Coinbase account for starters. Will prob do a 10 year plan like my son. Do you think do a monthly pay in rather than lump sums?

Cailleachian · 18/03/2021 11:30

@crystalize

I get it a bit more now after reading. Im opening a Coinbase account for starters. Will prob do a 10 year plan like my son. Do you think do a monthly pay in rather than lump sums?
Monthly payments are much better than lump sums for starting out. Much lower risk.

There are other common low-risk strategies, but this is the most straightforward and the easiest to do, coinbase will let you "set and forget" (so long as you dont mind paying the higher fees) and you dont need to keep checking the exchange rate.

crystalize · 18/03/2021 12:04

@Cailleachian When you say Coinbase will let you set and forget, do you mean monthly payments? Is it ok to leave it on there for a long time or should you transfer to Ledger/trezor. Or is this when there is a certain amount for safekeeping? Ta

fromdownwest · 18/03/2021 12:46

@crystalize - As the coin is so volatile in price - I feel more comforatable drop feeding in my money.

I buy at 9am every monday - regardless of the price. Trying to time the 'right' time is stressful and in my opinion a fruitless task.

I personally after purchase transfer to my Trezor. I have no concerns about the stability of Coinbase, but I personally prefer my money is with me.

Unlike UK bank accounts, as yet there is no provider failure protection on crypto.

You may well be fine to have it with coinbase, its a personal choice

fromdownwest · 18/03/2021 12:46

*drip

Cailleachian · 18/03/2021 14:29

[quote crystalize]@Cailleachian When you say Coinbase will let you set and forget, do you mean monthly payments? Is it ok to leave it on there for a long time or should you transfer to Ledger/trezor. Or is this when there is a certain amount for safekeeping? Ta[/quote]
You can set up a recurring buy from coinbase so it just regularly comes out of your bank account monththly/weekly.

And yes, you should send it to cold storage (ie trezor/ledger) every so often. Coinbase is reasonably trustworthy, so its fine to have some money in there, but cold storage is much safer.

I'd tend to think of coinbase like a current account. You might have a fair bit of money in it from time to time, but you wouldnt keep serious savings in it.

Cailleachian · 18/03/2021 14:32

Incidentally a recurring buy on coinbase has higher fees than to set up a direct debit and then do the transaction manually on coinbase pro.

If you have time to learn, a good memory and cost effectiveness is a priority, do coinbase pro manually.
If you just want it to tick along in the background without every really having to do much, set up a recurring buy.

crystalize · 18/03/2021 16:46

Thanks I will do it manually and take a look at Coinbase pro.

ListeningQuietly · 18/03/2021 17:38

Bitcoin is an environmental catastrophe
and only worth what you can sell it for to acquire useable goods
(such as food or clothes)

Cailleachian · 19/03/2021 08:59

@ListeningQuietly

Bitcoin is an environmental catastrophe and only worth what you can sell it for to acquire useable goods (such as food or clothes)
How on earth can you call it an environmental catastrophe - its driving investment in renewable energy. (75%+ of bitcoin mining is powered by renewables, making it the greenest large scale industry on earth).

And as for it only being useful for aquiring usable goods, thats basically what money is, (although obviously it can also be used to buy services as well as goods).

ListeningQuietly · 19/03/2021 12:23

75%+ of bitcoin mining is powered by renewables, making it the greenest large scale industry on earth
Link please

because the Economist and the FT both point out that using
1/200 of all the world's electricity
on speculation
MUCH of it Coal fired in China
is morally wrong
and insane

fromdownwest · 19/03/2021 12:34

Trying to pick apart a currency as Morally Wrong and Insane is in theory questioning the whole ethcics of currency and the whole fiscal system.

A BTC is no more morally bankrupt than a US dollar.

It will take time for the currency and exchanges to be accepted.

ListeningQuietly · 19/03/2021 12:39

Fromdownwest
Your links are from 2019
The computing power needed to mine a single bitcoin has increased exponentially since then.

the FT and the Economist in 2021 have both decried the carbon footprint of an incredibly inefficient "currency"