Author Topic: There is a shocking lack of BitCoin talk here  (Read 5570 times)

sloof70

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There is a shocking lack of BitCoin talk here
« on: November 26, 2013, 12:38:07 PM »
Search "BitCoin" and I get one result.  I realize that such a volatile asset is not in line with the standard views here, but wouldn't it be worth a little play with some extra cash?  In the past month, BitCoin has gone from $205 to it currently sitting at around $900.  I realize these fluctuation are pure lunacy, but the potential earnings are undeniable.

Is anyone here toying around with these?

secondcor521

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Re: There is a shocking lack of BitCoin talk here
« Reply #1 on: November 26, 2013, 12:52:03 PM »
How many wealthy people made the majority of their income from currency speculation?  I am personally aware of none.

sloof70

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Re: There is a shocking lack of BitCoin talk here
« Reply #2 on: November 26, 2013, 12:54:06 PM »
How many wealthy people made the majority of their income from currency speculation?  I am personally aware of none.

There are some great anecdotes.

http://www.theguardian.com/technology/2013/oct/29/bitcoin-forgotten-currency-norway-oslo-home

Khao

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Re: There is a shocking lack of BitCoin talk here
« Reply #3 on: November 26, 2013, 12:56:30 PM »
I threw a couple hundred dollars of extra money towards both Bitcoins and Litecoins because I think it has great potential but I'm fully aware that what I'm doing with that money is gambling and not investing. I like seeing how it evolves, what crazy ideas people come up with and how the people are really going nuts over it! So far, my money in bitcoin and litecoin is worth a little less than 10x what I started with.

dantownehall

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Re: There is a shocking lack of BitCoin talk here
« Reply #4 on: November 26, 2013, 01:22:00 PM »
There is a shocking lack of relevance to MMM in this post.

KingCoin

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Re: There is a shocking lack of BitCoin talk here
« Reply #5 on: November 26, 2013, 01:25:30 PM »
There's been buckets of electronic ink spilled regarding the merits and drawbacks of bitcoin as both the currency of the future and it's value as in investment. Very intelligent people have come down on both sides. A simple google search will turn up days worth of reading material from people who have thought about the problem far more deeply than anyone on this board.

At the end of the day, it's like gold. It's an unproductive asset that can be viewed as an alternative to sovereign backed currency.  It's worth whatever the market says it is and the price volatility should be evidence enough that any notion of a "correct" valuation is sort of ridiculous. But unlike gold, it doesn't have a 5000yr track record as an alternative currency.

I suppose if you want to punt around in it with a 1-3% of your portfolio, there's probably little harm in it. It may act as an interesting diversifier, though the history of bitcoin is too short to make any definitive pronouncements. Just don't drink the cool-aid and think you're doing anything more than gambling.

Honest Abe

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Re: There is a shocking lack of BitCoin talk here
« Reply #6 on: November 26, 2013, 01:28:12 PM »
Speculating and investing aren't the same things... If one had money they wanted to play with in BTC that's their business, but there really isn't much to talk about with BTC. People either think it's the most awesome thing ever or think it's absolutely batshit crazy.

Imo if you want an "alternative currency" then buy gold or silver.

sloof70

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Re: There is a shocking lack of BitCoin talk here
« Reply #7 on: November 26, 2013, 01:30:51 PM »
There is a shocking lack of relevance to MMM in this post.
How so?  This is a forum of people that want to achieve financial independence as quickly as possible.  An asset that's gone up 6500% in a year can help with that.  I wouldn't stake my future on it, but it can certainly be part of a diverse portfolio.

KingCoin

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Re: There is a shocking lack of BitCoin talk here
« Reply #8 on: November 26, 2013, 01:40:02 PM »
How so?  This is a forum of people that want to achieve financial independence as quickly as possible.  An asset that's gone up 6500% in a year can help with that.  I wouldn't stake my future on it, but it can certainly be part of a diverse portfolio.

So can beanie babies and baseball cards. It's very difficult to find other asset classes that have experienced dramatic run-ups like this without subsequent spectacular crashes. I'm not knocking bitcoin, but as others have offered, it's a gamble, not an investment.

Do your research. Maybe you can come up with a reasoned thesis that bitcoin is likely to be either 5x or 0 in two years. In that case, it might be a nice bet. If you find a compelling case about valuation probabilities one way or the other, please share.

sloof70

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Re: There is a shocking lack of BitCoin talk here
« Reply #9 on: November 26, 2013, 01:44:21 PM »
Do your research. Maybe you can come up with a reasoned thesis that bitcoin is likely to be either 5x or 0 in two years. In that case, it might be a nice bet. If you find a compelling case about valuation probabilities one way or the other, please share.
The general consensus is "who the hell knows."  I was mostly curious about the run-up this year, and nobody's talking about their gambles.  I was curious about Mustachians, like Khao, that took a little chance and did well.  Obviously I don't think this is a great idea.  I did describe it as "volatile" and "lunacy".

beltim

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Re: There is a shocking lack of BitCoin talk here
« Reply #10 on: November 26, 2013, 02:00:39 PM »
How many wealthy people made the majority of their income from currency speculation?  I am personally aware of none.

You didn't look very hard, did you?  http://en.wikipedia.org/wiki/George_Soros

That said, I have no interest in currency speculation myself.

arebelspy

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Re: There is a shocking lack of BitCoin talk here
« Reply #11 on: November 26, 2013, 02:07:17 PM »
MODERATOR NOTE
Ongoing BitCoin discussion here:
http://www.mrmoneymustache.com/forum/welcome-to-the-forum/bitcoin-an-interesting-case-of-a-classic-bubble/

I see no reason for the duplicate thread, or how this one is different or adding value.

Locking thread to keep discussion in one place.  If you would like to discuss BitCoin, please go to the thread linked above.
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