Bitcoin

[Tim Link]

A lot of what I've been reading suggests that Bitcoin's intrinsic value is in its general utility as a currency, and its non-centralization that prevents it from being printed at will by a government, causing inflation. But what happens when people just keep creating new crypto-currencies? These new ones have the same utility and non-centralization as Bitcoin, and perhaps some newer, better features. So people may want to trade their Bitcoins for these new currencies, or buy the new ones instead of Bitcoin. Essentially, they're flooding the market with available cryptocurrencies, which seems highly analogous to governments printing more money. In this case there's no central control over printing more money! Anybody can do it.
Some of these currencies will be worth more than others. Why? It'll be sentiment, and perhaps perceived features and benefits of one over the other. Bitcoin seems to be the most valuable right now. What makes it better than the others? Just that it's been around longer?

From my perspective US currency has solid backing. The government can demand taxes that have to be paid in US dollars. If the government required payment of taxes in Bitcoin or some other cryptocurrency, we'd all be scrambling to secure some of it, and then it'd have real backing. Bitcoin needs something specific and ubiquitous and vital that can only be bought with it. Maybe it already has that and I just don't understand exactly what it is.

 

[andromedaaudio]

Really, because I see basically a decade gap of being trapped in lack of profit. Maybe it is just a perspective based on how many decades you have been alive.

The issue is there are gold puffers left and right telling you it will be the answer to all your investing woes and is completely resistant to changes in market yada yada yada. The liquidity of something that can take a decade slump when markets are basically only going up is not something I would be interested in. Real estate is more liquid than that.

Now if you bought gold when you got your first job I am sure you did very well, but that is, I believe, longer than my entire life. So you can be very appreciative of it but realistically no one wants to be faced with putting off retirement for a decade to not take a loss, yet every weirdo attached to some weird political non-following is raging on about their gold affiliate code. And worse yet common people preach the virtues of it all day long, which is merely secondary information from affiliate peddlers or maybe a coin collector.

I fully agree .
But which investor can time the market like Buffet , compound investing like he does is the way to go
He rode the whole way up with apple and and got rid off of half his stock in the second quarter at the top of the market .
He probably get its in again when the market is 30 -50 % lower.
41 % of his portfolio was apple iirc
Timing is everything but thats the same for gold ( miners ) and Bitcoin .

Being right doesn t mean you make money.
Most investors get out at the bottom and in at the top

 

[Folsom]

I fully agree .
But which investor can time the market like Buffet , compound investing like he does is the way to go
He rode the whole way up with apple and and got rid off of half his stock in the second quarter at the top of the market .
He probably get its in again when the market is 30 -50 % lower.
41 % of his portfolio was apple iirc
Timing is everything but thats the same for gold ( miners ) and Bitcoin .

Being right doesn t mean you make money.
Most investors get out at the bottom and in at the top

Him selling Apple was simple IMO. Fed claims September rate cuts. He is taking what like a decade worth of profit? To me it sure looks like take profit times as September and December can mark massive down turns.