I was quoting prices is dollars for convenience, because this is a large forum where most readers do not use bitcoin as their accounting unit.
Wealth is the same, regardless whether it is measured in bitcoins or dollars, because (in any point of time), bitcoin is a fixed multiple of dollar.
I do advocate using dollar as your accounting unit, since its value (purchasing power) is relatively constant, whereas Bitcoin's purchasing power increases tenfold every year. It is just handy.
But I also encourage to carefully consider that every one of your bitcoins is increasingly likely to reach $1 million in value quite soon. It should be treated as an inheritance, not to be wasted away. Every bitcoin you give away must give you more value than an extra $ one million would have given you in a few years of time. This is accomplished by selling only so little that the remaining amount is worth more (more dollars, houses, or gold) than the whole stash was in the previous stage.
How you allocate the non-bitcoin part of your portfolio is up to you. I do not advocate holding dollars as any % of it, unless you do arbitrage or something. The value converted from bitcoin should be used to buy silver, gold, castles with apple gardens, businesses, etc.
If you are a world dominator, then it makes sense to acquire as many bitcoins as possible and not care about the above. But who wants in that kind of game anyway... The "non-bitcoin portion of my portfolio" is my ability to earn a living via means that would still exist if Bitcoin goes to zero. As far as savings goes, I'm only interested in forms that are transportable frictionlessly across international borders. Whatever form I keep my savings in, it should be capable of travelling with me no matter where I choose to live. |
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In other word, if BTC cannot be used as a real currency Should I take a picture of me eating a meal cooked exclusively from ingredients produced by local farmers who accept Bitcoin? You know what I mean. I mean it is used widely so we don't need to say 'sell' it anymore. In terms of your own spending it can be as widely used, or as rarely used, as you decide. |
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In other word, if BTC cannot be used as a real currency Should I take a picture of me eating a meal cooked exclusively from ingredients produced by local farmers who accept Bitcoin? |
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For most people, holding 100% of the initial amount is not a wise choice. It is good to diversify by selling into strength to account for the possibility of a black swan event in Bitcoin technology. This way you steadily accumulate also non-BTC assets, and can learn how to handle wealth. You sleep better and don't see dips in price as an opportunity to panic, but rather an opportunity to buy back if you really feel like so. The selling plan must be based on percentages, which means that no matter how high bitcoin goes, you still have more value in your remaining BTC.
If you have BTC1,000 and you absolutely want to have the same number when it hits $million, then it is best to just bury the paper wallet into ground and wake up when you are a billionaire. Trading only makes you lose the most of it over time with no gain. But it is not healthy for anyone to suddenly become a billionaire.
If instead, you flex your Excel muscle and devise a plan to sell BTC900 in decreasing increments at exponentially rising price points, you will already be rich and well-established when bitcoin hits $1 million, and totally content with the idea that your remaining stash is still worth a cool $100M. For me, Bitcoin is not an investment - it's immigration. Instead of being a fiat native who dabbles in Bitcoin, I'm now a Bitcoin native who only deals with fiat reluctantly, when it's unavoidable. At the present time I pay for more than 50% of my monthly expenses with BTC and that percentage is trending up. |
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it usually makes sense Bitcoin isn't usual. All it takes is one mistake when it moves against you and you've permanently ended up with half the BTC you could have owned if you'd have just held. |
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What sucks is that I bought back in above the point at which I sold before the crash - oh, well... at least I got in.
When will people learn from the great investing sage Zhou Tonged? |
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Will it ever be possible to buy 2 bitcoins with an ounce of gold again?  |
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Both btcd and Bits of Proof are capable of swapping out block storage databases.
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There is no difference between spending BTC on Subway and spending fiat on Subway.
Either way you are forgoing the potential increase in value of the bitcoins, either those that you already have or that you could have bought with the fiat instead of a sandwich.
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Funny... never got the ones i paid for.
You should talk to Mihai or Elizabeth about that. I'm just passing along the message. |
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Bumping this because its one of my favourite threads and I think we are due a milestone crossed off.
Not quite yet. I go by the daily weighted price on Mt Gox, so assuming that we stay this high by the end of the day (UTC) then I'll cross off $794.33. |
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Ooh, interesting.
It should work with the .bin file - it will pass through binascii.hexlify() as it doesn't match what is expected, and be accepted by the various methods. Now if you try with that transaction, it won't work because it's spent already; but it decodes properly with the one I tested (try with garbage and you get "decode error", try with this one and you get "rejected").
Great. Next time I encounter this situation where I have the .bin file but the network hasn't seen it yet I'll try it. |
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However if Coinbase allows you to download the binary, and that it works on https://blockchain.info/pushtx then yes, it will work. For your usage doing that step should be enough actually. Blockchain.info won't accept Coinbase's binary format for some reason. That's why I was interested in your tool. |
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Can this tool parse either the binary or the JSON format that Coinbase uses?
I've had more than one occasion where I've been withdrawing BTC that I bought and the transaction takes a long time to hit the network even after their system has created it (as evidenced by the transaction showing up in their system and giving me the option to download it in binary or JSON formats.).
So far I've never found a tool that could read their format and broadcast the transaction manually for me.
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Remember there are seven billion people in the world, and only 12 million bitcoins.
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I never expected Bitcoin's really good at doing that. |
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