But even with the recent climb, no is talking about Bitcoin. How much higher must Bitcoin climb before it gets some respect? $2,000? $3,000? $10,000?
I remember when internet stocks got no respect. Prices will settle once it gets respect. I don't look at bitcoin as currency. More like commodity. What's the difference between the price of Bitcoin vs price of Amazon or Tesla stock? Imagination.Thats why it gets no respect other than speculators: too much volatility in price movement. Well that plus 7 transaction/sec speed, 10 minute transaction confirmation times and anonymous wallets.
Monday marks the seven-year anniversary of Bitcoin Pizza Day – the moment a programmer named Laszlo Hanyecz spent 10,000 bitcoin on two Papa John's pizzas. . .
On May 22, 2010, Hanyecz asked a fellow enthusiast on a bitcoin forum to accept 10,000 bitcoin for two Papa John's Pizzas. At the time, Hanyecz believed that the coins he had "mined" on his computer were worth around 0.003 cents each.
Bitcoin mining involves solving a complex mathematical solution with the miner being rewarded in bitcoin. This is how Hanyecz got his initial coins.
The cryptocurrency has many doubters as it continues to be associated with criminal activity, but it has still seen a stunning rally. Here are two facts, on Bitcoin Pizza Day, however, that highlight this:
- While being worth $30 at the time, Hanyecz pizzas would now cost $21.8 million at current bitcoin prices
- If you bought $100 of bitcoin at the 0.003 cent price on May 22, 2010, you'd now be sitting on around $72.9 million
The problem with all cryptos is there is no viable use case for them. The only possible exception is for cross border transfers but the private sector will produce a compelling solution to that problem before bitcoin or any of the other cryptos have a chance to dominate that market.I remember when internet stocks got no respect. Prices will settle once it gets respect. I don't look at bitcoin as currency. More like commodity. What's the difference between the price of Bitcoin vs price of Amazon or Tesla stock? Imagination.
The line between criminal/legal is sometimes gray. Bitcoin seems to have taken off when Japan acknowledged and recognized Bitcoin as legal method of payment. And South Korea will probably join Japan soon recognizing Bitcoin as legal method of payment.The problem with all cryptos is there is no viable use case for them. The only possible exception is for cross border transfers but the private sector will produce a compelling solution to that problem before bitcoin or any of the other cryptos have a chance to dominate that market.
As of right now, cryptos are useless for any purpose other than illegal transactions and that is a pretty small and limited market. And that's aside from the fact that most legit criminals prefer cash anyway.
Fiat currencies are worth something because of the govt monopoly on their creation and distribution. That and the fact that as a result you have entire economies were there is demand for the currency for transactions. You don't have that with cryptos and never will since the moment they pose a threat to the established currency, they will be forced underground.
Gift cards? You can buy all the silver, gold, and platinum you want with Bitcoin. That's good enough for me.Bitcoin still seems need more legitimate marketplaces to spend their currency. Sure, the drug dealers and cryptolocker scammers love it, but that's not enough to get real mainstream acceptance.
And yeah... I know that you can buy all kinds of different gift cards with it. That's not the point.
Not to mention, as I've stated in the past, you can convert it to $$. That makes it real enough. Currency? Fiat? Commodity? I don't care, it's paid for my 1080GTX and is making me money.Gift cards? You can buy all the silver, gold, and platinum you want with Bitcoin. That's good enough for me.
Bitcoin is "legal" in most places. It's always been legal in the US. That's not the issue. The issue is what existing problem does it solve? And the answer is, aside from remittances, none. And even the remittance advantage is stifled due to the difficulty of translating bitcoin to local currency.The line between criminal/legal is sometimes gray. Bitcoin seems to have taken off when Japan acknowledged and recognized Bitcoin as legal method of payment. And South Korea will probably join Japan soon recognizing Bitcoin as legal method of payment.
Bitcoin is "legal" in most places. It's always been legal in the US. That's not the issue. The issue is what existing problem does it solve? And the answer is, aside from remittances, none. And even the remittance advantage is stifled due to the difficulty of translating bitcoin to local currency.
Every time it rallies, I picture a bunch of ransomware victims.
That's exactly right. But do you see the problem with that from a speculator's point of view?Some people get hung up on the "currency" part of "cryptocurrency", but what makes up a cryptocurrency is a decentralized, cryptographic ledger. If anything, governments and central banks are going to implement the technology themselves in due time, not start picking up pitchforks to drive the tech underground. Financial technology (FinTech) is a thing, and it's likely here to stay.
That's exactly right. But do you see the problem with that from a speculator's point of view?
What banks and govts will do is co-opt block chain technology for their own purposes leaving cryptos with, again, no useful function.
It's a trivial matter to fork any crypto system and make it your own. That's how the block chain will be used in the future, not via the intermediaries of crypto currencies.
I shouldn't have used the term 'speculators' since that's not really what I had in mind. But I couldn't think of another term. I guess 'investor' is closer to what I meant.Any speculator should know nothing lasts forever. If your point is to temper speculation, your point is well made, but it's not one that isn't already taken into account by most speculators. Yes, it's a risk, but you can't say with certainty when that will happen.
Speculation is risky, that's a given.
What I've responded to is your statement that there are no legitimate or useful reasons for cryptocurrencies to exist. If you are agreeing that cryptocurrencies may transform the existing financial system, you are conceding your argument.
All technology gets transformed, it's not a static thing you can preserve or limit. This is already evident in Bitcoin being improved upon by Ethereum. Something else will supplant Ethereum or render it worthless, but that's not a hard prediction to make. It's the what and when that matters.
I really need to get on Etherium while I still can. I told myself that about Bitcoin and now it's too late. At least as far as mining goes. You pretty much need to be a semiconductor manufacturer or have close ties with one to mine Bitcoin now. The Asics you buy online are outdated by the time they ship to you. You need to be able to make them yourself and put them in service right away.
Yeah I'd have to read up more on the specifics, but I'd probably setup a dedicated rig and put it in my rack and go at it. Though might be best to start small just to see how much I make then grow from there. From what I gather you don't need the full bandwidth of PCI-e 16x that you'd normally use for a VGA, so you can use all the slots even the 1X, just need a special cable. So like you can have like 6+ cards on one system. Need a huge PSU for that mind you but think it's just the 12v rail you need for VGAs so it makes it a bit easier.