Posted on 01/03/2021 3:48:21 PM PST by Presbyterian Reporter
In relatively heavy trading on Saturday and today, Bitcoin prices soared higher.
Friday closing price = 29,432
Saturday closing price = 32,615
Sunday current price = 33,411
Bitcoin reached a high of 34,800 today.
A cryptocurrency may become worthless overnight when governments switch over to a cryptocurrency instead of issuing fiat currency, and that cryptocurrency is controlled by banks. When they do that they will most likely outlaw all private cryptocurrencies currently in use. As they would probably not tolerate competition. Even if they didn't outlaw it, the likelihood of people and businesses accepting them would most likely dry up completely.
What I am saying is that investing in them is a very risky proposition now. If I had them I would certainly start divesting while they are still worth so much. When countries go to cryptocurrencies it will be too late to unload them. At least that is my belief. I admit I could be wrong, but I think what I am saying makes sense. At least to me. 8>)
I also had no clue about Bitcoin. I was interested to learn, so I read a few short books. While I will never understand the base technology, I now understand the value (I don’t understand how a computer operates, but I use one everyday). I believe it makes sense to own both precious metals and Bitcoin. They each have their unique value and can provide protection against dollar devaluation. Gold is tangible, but is difficult to transmit for transactions. Bitcoin can be easily sent and received, but is not tangible.
Have just learned about compound.finance, related to btc somehow. Still reading
Feels very much like playing options
Well put, thanks.
IMO, the US Dollar is going to fair value, which is slightly above 0. I am preparing for this by acquiring gold, silver & some crypto including Bitcoin.
and you are not broke till you are forced to liquidate..
That's what stops me too. I've watched YouTubes on the concept, but that isn't enough for me.
Gold and silver are still good. I periodically sell some bitcoin and buy metals. I like to cover all possibilities.
2 weeks ago when bitcoin was 18,000 i bought a bunch of BLOK ETF shares....
Almost.
Those digital currencies will not have some of the traits of bitcoin—which make it valuable. It won’t have the network and it will be run by governments that have already devalued their fiat currency.
It won’t even be a fair fight.
But it doesn’t usually fall to the previous low.
It will fall at some point, but it will probably fall from $50 to $30. I doubt we see the teens again.
I thought that way too for a long time. But I finally broke down last summer and bought some Bitcoin and Ethereum. I have not been sorry. But I am also not naieve. I DO expect a correction at some point. However, it is a tiny part of my overall portfolio.
I also have physical gold and some gold ETFs. However these have been lackluster compared to the cryptocurrency.
I think cryptocurrencies are here to stay and ever more people are taking them seriously.
Who would be concerned. We just got a new stimulus package to save the economy....
Is there currently any IRS reporting obligation on a sale?
Your proposition is incorrect.
People are going to move away from Federal Currencies. Central Banks are eventually go the way of the dodo. Maybe not in our lifetimes, but it will happen.
Cryptos are much more efficient than fiat and traditional banking.
It’s nothing like playing options.
Options are a derivative. Bitcoins are an encrypted ledger.
And more importantly, institutions are buying in now. That is what is driving the price discovery.
“Those digital currencies will not have some of the traits of bitcoin—”
At one time nearly all the bitcoin trading was by insiders driving up the price.
...as it only exists in cyberspace.
If the interweb goes down, so do the banks, the stockmarket, the CBT, Amazon, Texaco, and everyone else.
Life, as we know it, depends upon 'cyberspace' today. Shut it down thru some kill-switch, EMP, or hack, and millions will die.
So, it's not only cryptocurreny that exists in cyberspace. Many other systems we depend upon do to. Just sayin'...
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