Possible drawback on using Crypto currencies?

[Kprawn]

Ok...

Explain this to me, if I am missing the point here or not.

If I have $100 back in 2009 and I kept it in a bank, I would have received interest.  {insert someone with the knowledge of the average interest rate for small deposits since then} Do the calculation for us, with accumulated interest.

Then I invested the same $100 in 2009 in Bitcoins. What would my returns be in today's valuation?

What would have been the better investment? {Would surely be "Bitcoins"... but with how much compared with accrued interest, month on month}

Let's see, who can work this out, best.

[Relnarien]

If I'm not mistaken, Bitcoin was valued for as low as $0.01 back when it was starting. It may have been valued even less, but let's peg it at 1 cent for the sake of this discussion. $100 would then have gotten you 10k coins. For the sake of simplicity, let's peg the price of Bitcoin today at an even $500. 10k Bitcoins would then easily net you a cool 5 mil. I don't know what interest rate your bank offers, but I'm pretty sure you won't be getting back 5 million even if you left your hundred bucks untouched for 5 whole years.

[1986]

You've completely lost me here. 

[Kprawn]

This is just the point I wanted to make here. More people should see the benefit of investing early in Crypto currency.

Example 1: $100 deposited into a bank in 2009, with a fixed interest rate of 8% month on month, would look like this:

 1 : 108.29
 2 : 117.28
 3 : 127.02
 4 : 137.56
 5 : 148.98
 6 : 161.35

Total money in the bank after year 6 = $161.35

Got that from using, http://www.math.com/students/calculators/source/compound.htm {If the calculations is flawed, do not blame me, I was lazy.}

Compare that to Relnarien's investment result, it's clear, we can take $100 and invest it for 6 years in all existing crypto currencies, and hope only 1 of them, grow
as fast as "Bitcoins" and be a Millionaire.   {Simplified reasoning}

The initial investment, would have been  $30 000 {If you invested in 300 different currencies now}

[b!z]

[b!z]

I LOL'd so hard at this, I could not retain myself from laughing. Thinking of bitcoin is hightailing right under golds ass.

What's amazing is how much bitcoin has grown in such a short amount of time.

There was some chart which compared bitcoin vs gold vs litecoin vs lots of other investments, and it showed bitcoin was the best performing out of them all.

Can't find it right now though

[Kprawn]

Old charts?

Bitcoins value not near that value now..

Or was it at it's peak?

Sorry if it's a stupid question 

[beetcoin]

what's the drawback of cryptos again? i don't really understand the point of this thread.

[kerafym]

In 2009, no one can predict crypto can get this big.

If the trend continue for a few more years, it could be as big as the dotcom bubble.

[lynn_402]

what's the drawback of cryptos again? i don't really understand the point of this thread.

The fact that it's risky. If it does not get as big as we think it could be, the possibility is real that we'll lost money on them.
Of course, the risk is well worth it.

[bitsmichel]

n 2009, no one can predict crypto can get this big.

If the trend continue for a few more years, it could be as big as the dotcom bubble.

then we would be the new wealthy elite, gentleman 

[beetcoin]

what's the drawback of cryptos again? i don't really understand the point of this thread.

The fact that it's risky. If it does not get as big as we think it could be, the possibility is real that we'll lost money on them.
Of course, the risk is well worth it.

if people are investing in bitcoin thinking it's a surefire thing, then i think they deserve to lose their money. it's already obvious to most people that btc is risky and volatile.

[lynn_402]

what's the drawback of cryptos again? i don't really understand the point of this thread.

The fact that it's risky. If it does not get as big as we think it could be, the possibility is real that we'll lost money on them.
Of course, the risk is well worth it.

if people are investing in bitcoin thinking it's a surefire thing, then i think they deserve to lose their money. it's already obvious to most people that btc is risky and volatile.

Yeah, those who assume they'll get 200% profits in a few weeks are the ones who end up panic selling at the inevitable crash that follows the hype that led them here in the first place. The only ones who should invest in Bitcoins are those who truly believe in the reasons for which Bitcoin could be a powerful force in the world in the future, and because of that don't mind the short-term volatility.

[efreeti]

All transactions become public information, that is the drawback of bitcoin.

[lynn_402]

All transactions become public information, that is the drawback of bitcoin.

That's one of Bitcoin's force, imo. It's because of that public ledger that you can be sure that the coins you received are impossible to counterfeit. And when anonymity is important, there are ways to achieve that with Bitcoin.

[Minnlo]

If I'm not mistaken, Bitcoin was valued for as low as $0.01 back when it was starting.

Just for your information, the very first price for bitcoin was $1 = 1,309.03 BTC on Oct 5, 2009 and theymos thought it was overpriced.
https://bitcointalk.org/index.php?topic=104287.msg1143955#msg1143955
https://en.bitcoin.it/wiki/History#2009

[SirChiko]

If I'm not mistaken, Bitcoin was valued for as low as $0.01 back when it was starting.

Just for your information, the very first price for bitcoin was $1 = 1,309.03 BTC on Oct 5, 2009 and theymos thought it was overpriced.
https://bitcointalk.org/index.php?topic=104287.msg1143955#msg1143955
https://en.bitcoin.it/wiki/History#2009

imagine his reaction after we did hit 100$.
Also ontopic...ofc you would make alot more with but but banks are "trusted" be people.

[Faince1985]

Then I invested the same $100 in 2009 in Bitcoins. What would my returns be in today's valuation?

What would have been the better investment? {Would surely be "Bitcoins"... but with how much compared with accrued interest, month on month}

Bitcoins were valued at 2 cents at some point of time when it just began, If you invested at that time you would have something like 5000 BTC which is about 2,500,000$ "not calculating it at BC peak value". I doubt it would be close to that between now and 2020 for example though it might be more than bank IMO.

[Kprawn]

Well "Believe me" IF I did know about this, back then, and I figured out early enough, about the potential of Crypto Currency, I would have been into this, with everything I had.

If I look at the trend of the other currencies now, and their performance over time, it compares no where near to what Bitcoins did.

But I might eat my words, and kick my own butt in future.

One big decision, at one of the big boys {eBay....} to accept one of the other crypto currencies as a payment method, might change the situation quickly.

Interesting world we live in, for sure.   

[SirChiko]

Well "Believe me" IF I did know about this, back then, and I figured out early enough, about the potential of Crypto Currency, I would have been into this, with everything I had.

If I look at the trend of the other currencies now, and their performance over time, it compares no where near to what Bitcoins did.

But I might eat my words, and kick my own butt in future.

One big decision, at one of the big boys {eBay....} to accept one of the other crypto currencies as a payment method, might change the situation quickly.

Interesting world we live in, for sure.   

If they would adopt other altcoin then it could make them more vulnerable against attacks then kind of more secured BTC network i guess.