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Author Topic: Bitcoin Fever  (Read 495 times)
mmkey
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June 21, 2011, 02:48:26 AM
 #1

First off I'd just like to say that I love everything about Bitcoin, from what little technical aspects I understand to the outright challenge to traditional currency. However, the ease at which some people invest in bitcoins is a little disturbing. The reason I’m posted this is because I know a couple people who actually bought thousands of dollars worth of hardware just to mine bitcoins. Neither has a lot of money and both are investing a significant portion of their savings. If bitcoins were to tank, they’d be in some trouble.

Now I understand why people are doing this. It’s the same reason they’re investing in gold. With all this media coverage on inflation, people are scared they’ll lose even more of their money. But we should think about what exactly we’re investing in. While gold has been valued highly for thousands of years, Bitcoin is only two years old and has only been valuable for a few months. I’m not suggesting that gold is the ultimate currency, as some do (in fact I believe it is in a bubble), but if gold and Bitcoin were to crash, the gold investors would lose much less than the Bitcoin investors.

Because Bitcoin is so new, it’s hard to say if it will be successful, but there are a few obvious barriers. First, it cannot be compromised. If there is a way to counterfeit bitcoins, they would be worthless. I understand that the countermeasures are very good, but we’ll find out if Bitcoin is truly uncrackable. Second, enough people must accept bitcoins as they would dollars. They must be able to use bitcoins comfortably for the exchange of goods and services. Bitcoin can’t simply be an investment vehicle because then it would only be an intermediary to the dollar, and that would defeat its purpose to be free of government intervention. Finally, if Bitcoin actually does become a popular currency, major players in finance and government may try to kill it. Again, we’ll see if Bitcoin can survive. While I hope that Bitcoin is successful, be careful when you invest. At this point it’s highly speculative.

TL;DR: Don’t invest in Bitcoin unless the loss of your investment would not significantly change your quality of life.

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CurbsideProphet
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June 21, 2011, 02:52:22 AM
 #2

Gold is also tangible and has real-world uses (albeit not as much as silver). 

There will always be people who are looking for the quick and easy way out.  Hence the reason they continually get duped and remain poor.  It's the reason why so many lottery winners end up broke after a few years.  It doesn't matter how much money you have if you haven't learned to be financially responsible.

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m0w3r
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June 21, 2011, 03:56:47 AM
 #3

Now you tell me not to put all my money in bitcoins...
pekkakana
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August 20, 2011, 05:59:15 PM
 #4

Bitcoins are really great in my opinion.
rokh
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August 20, 2011, 08:56:39 PM
 #5

You do realise that if bitcoin does tank, your friends can sell their hardware? They won't lose a huge amount of their investment, they could get at least 70% back.

Facts about you:
1)You are on the internet right now.
2)You are in the bitcoin right now.
3)You are reading my signature.
5)You haven't noticed #4.
6)You just checked.
7)You're smiling/giggling stupidly right now.
If you liked it, 1Jhy9tYTh8gx6hzNo56377NGZ9HgKfEjsE
Maged
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August 20, 2011, 11:32:48 PM
 #6

You do realise that if bitcoin does tank, your friends can sell their hardware? They won't lose a huge amount of their investment, they could get at least 70% back.
If Bitcoin tanks, the hardware market will be flooded.

generalfault
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August 21, 2011, 01:19:11 AM
 #7

Even with the market "flooded" I doubt the higher end video cards will go for less than 50%.

Most likly it will not happen all at once. So the market will get a slow trickle of cards.

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bdvger
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August 21, 2011, 02:21:11 AM
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I always remembered the quote...  Grin
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coinfor.info
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August 21, 2011, 03:50:31 AM
 #9

I find that Bitcoins are going to be a long time scale. I love them also and hope the best.
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