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Post by Delta9 on Jan 13, 2021 17:13:21 GMT
He'd have lost 5% over the last few days after gaining 80% in the last month or 294% in the last year If he or someone else had bought a Bitcoin last year, and sold it today at 294% profit, where did that extra cash he now has in his pocket, come from? (Rhetorical question because I’ve answered it before). It is in the interests of anyone already holding Bitcoin, to strongly promote it to other people, just like any other pyramid scheme. Over the last year most of the extra value would have come from large institutions such as Microstrategy allocating a percentage of their funds to Bitcoin as a hedge against rapidly inflating fiat currency, therefore pushing the price up as supply can't keep up with demand.
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Post by Delta9 on Jan 13, 2021 17:20:03 GMT
Isn't that the same for everything that can be traded? In these cases there is "value added". There is no value added with Bitcoin and its perceived value is suspiciously similar to that of tulip bulbs during the mania, an item traded for far greater amounts than its potential benefit- growing a pretty flower- would suggest was logical. What is the added value of Sterling or Dollars? I'd argue that bitcoin was much more useful and valuable than fiat currency as it can't be diluted or devalued on a whim like sterling can. It requires no trust in a central agency.
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Post by Telemachus on Jan 13, 2021 17:27:25 GMT
In these cases there is "value added". There is no value added with Bitcoin and its perceived value is suspiciously similar to that of tulip bulbs during the mania, an item traded for far greater amounts than its potential benefit- growing a pretty flower- would suggest was logical. What is the added value of Sterling or Dollars? I'd argue that bitcoin was much more useful and valuable than fiat currency as it can't be diluted or devalued on a whim like sterling can. It requires no trust in a central agency. Obviously there is no added value of sterling or dollars sitting in your wallet. In fact as you say, the value slowly decreases. But the point is that you invest that Sterling or dollars eg in the stock market - you effectively lend it to businesses who use it to make money, and they give you a share of those profits. So the value of the money doesn’t increase, it’s that you end up with more of it. So really you are not comparing like with like. You should not be comparing Bitcoin with actual currencies, you should be comparing it to other investments.
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Post by Delta9 on Jan 13, 2021 17:30:50 GMT
What is the added value of Sterling or Dollars? I'd argue that bitcoin was much more useful and valuable than fiat currency as it can't be diluted or devalued on a whim like sterling can. It requires no trust in a central agency. Obviously there is no added value of sterling or dollars sitting in your wallet. In fact as you say, the value slowly decreases. But the point is that you invest that Sterling or dollars eg in the stock market - you effectively lend it to businesses who use it to make money, and they give you a share of those profits. So the value of the money doesn’t increase, it’s that you end up with more of it. So really you are not comparing like with like. You should not be comparing Bitcoin with actual currencies, you should be comparing it to other investments. But it acts as a currency just as much as an investment.. I could invest my Bitcoin in stocks just like I could invest my sterling. There are multiple avenues for investing cryptcurrency these days. Notice how they are called cryptocurrencies not cryptoinvestments..
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Post by bodger on Jan 13, 2021 17:42:42 GMT
Obviously there is no added value of sterling or dollars sitting in your wallet. In fact as you say, the value slowly decreases. But the point is that you invest that Sterling or dollars eg in the stock market - you effectively lend it to businesses who use it to make money, and they give you a share of those profits. So the value of the money doesn’t increase, it’s that you end up with more of it. So really you are not comparing like with like. You should not be comparing Bitcoin with actual currencies, you should be comparing it to other investments. But it acts as a currency just as much as an investment.. I could invest my Bitcoin in stocks just like I could invest my sterling. There are multiple avenues for investing cryptcurrency these days. Notice how they are called cryptocurrencies not cryptoinvestments.. are stocks regularly priced in bitcoin as well as £ and $ ?
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Post by Delta9 on Jan 13, 2021 17:53:02 GMT
But it acts as a currency just as much as an investment.. I could invest my Bitcoin in stocks just like I could invest my sterling. There are multiple avenues for investing cryptcurrency these days. Notice how they are called cryptocurrencies not cryptoinvestments.. are stocks regularly priced in bitcoin as well as £ and $ ? There are brokerages that price in Bitcoin, yes. You can also lend your bitcoin securely utilising smart contracts to earn about 6-10% per annum. I think you can get aboyt 12% per annum on Etherium. Look into decentralised finance (DeFi)
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Post by duncan on Feb 4, 2021 19:52:41 GMT
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Deleted
Deleted Member
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Bitcoin
Feb 4, 2021 20:36:03 GMT
via mobile
Post by Deleted on Feb 4, 2021 20:36:03 GMT
Not seen them before but suspect Tesla shares might be going up and up and up and down.
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