Good article by Rory Gillen on Bitcoin

Discussion in 'The great financial debates' started by Brendan Burgess, Aug 22, 2017.

  1. TheBigShort

    TheBigShort Frequent Poster

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    I have bought some bitcoin, small amount, to try understand it more so than anything.
    It reminds me of when I first heard about FB. I thought it was a fad, won't last.
    Then all these other social media platforms followed, and Twitter in particular etc.
    There is a lot I don't understand about it, but the digital age is upon us, paper and coin currencies will be affected the same way as the print media is affected by the internet (unless nuclear war starts then who knows what will happen). Paper and coin will be still be around for a while yet but no-one will use them.
     
  2. SBarrett

    SBarrett Frequent Poster

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    Ok, you bought a 1 bed apt for €500,000 during the Celtic Tiger and the value went down to €200,000 and stayed there. You would make your money back through rental income over a period of time. It may be a long period of time but you will make your money back. Same applies to dividend income and interest.

    If you bought €500,000 worth of Bitcoin/ gold and it fell to €200,000 and stayed there, that's it, you have a €300,000 loss.

    Steven
    www.bluewaterfp.ie
     
  3. TheBigShort

    TheBigShort Frequent Poster

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    You would have to analyze why the value collapsed so much? Too many 1 bed apts with no-one to rent it too?

    If bitcoin or gold price collapses in similar fashion there will be a reason for it, perhaps not enough people willing to trade with it?

    It's the same thing.

    I understand the point you are making, but the point about bitcoin is no-one knows at this stage is it overvalued or undervalued. I could take a guess, but that would be pure speculation. The important factor, in my opinion is, the blockchain technology. While I hear about the apparent flaws of bitcoin, I never hear a negative thing about blockchain technology. Instead, blockchain technology to me, would appear to be on the cusp of becoming mainstream.
    When it does, all products and services that adopt to this technology will steal a march on competitors that haven't adopted the technology.
    Bitcoin has stolen the march on its competitors, so far. In turn, providing value.
     
  4. roker

    roker Frequent Poster

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    I know nothing about this, how do you buy bitcoins? And is there an exchange rate for purchasing from different currencies?
     
  5. joe sod

    joe sod Frequent Poster

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    Is there not a big contradiction at the heart of bitcoin. People seem to have a religous zeal for it like others do for gold and proclaim that it will replace fiat currencies. However they want to invest in it because they believe its value will rise in relation to all fiat currencies. With regular currencies you can gauge its value with regard to other currencies using interest rates and purchasing power parity. There is a stabilising effect therefore if one countries goods are getting too expensive in relation to other countries currencies, over time the expensive countrys currency will fall back in value to restore purchasing power parity. Over time all currencies should gradually inflate and lose value, therefore people should not wish to hold large amount of currency as cash but in productive assets. However with bitcoin with its massive increase in value in relation to everything else how can it be used as a medium of exchange, nobody wants to buy anything with it, they just want to buy bitcoin and hold onto it until it starts falling again, then a mad scramble to spend it.
     
  6. landlord

    landlord Frequent Poster

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    Rocker. There are are many different exchanges, Coinbase is the largest US exchange. PM me if you want more details. I am a Bitcoin believer!!
     
  7. Leo

    Leo Moderator

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    Just be careful of the wallet you chose, so that some developer doesn't accidentally wipe out your holdings. You also need to be careful transferring. So if you know nothing, you need to spend some time educating yourself to the potential risks/ rewards before jumping in.