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Who had a "Gut Feeling" about Bitcoin?

Discussion in 'Topical Discussions (In Depth)' started by Fatboy, May 22, 2017.



  1. Fatboy

    Fatboy Gold Member Gold Chaser Site Supporter

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    http://www.cnbc.com/2017/05/22/bitcoin-price-hits-fresh-record-high-above-2100.html


    If you bought $100 of bitcoin 7 years ago, you'd be sitting on $72.9 million now
    • The price of bitcoin hit a fresh record high on Monday nearing $2,200.
    • Monday also marks the seventh anniversary of Bitcoin Pizza Day, which is widely considered to be the first transaction using the cryptocurrency.
    • If you bought $100 worth of bitcoin on May 22, 2010, you'd be sitting on around $72.9 million today.
    Arjun Kharpal | @ArjunKharpal
    6 Hours AgoCNBC.com


    [​IMG]
    Here's what's driving Bitcoin to record highs: Trader Friday, 19 May 2017 | 5:18 PM ET | 03:00

    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.

    More important than the episode being widely recognized as the first transaction using the cryptocurrency is what it tells us about the bitcoin rally that saw it break through the $2,100 mark on Monday.

    Bitcoin was trading as high as $2,185.89 in the early hours of Monday morning, hitting a fresh record high, after first powering through the $2,000 barrier over the weekend, according to CoinDesk data.


    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
    A number of factors have been driving the rally:

    • Recently passed legislation in Japan that allows retailers to start accepting bitcoin as a legal currency has boosted trading in yen, which now accounts for over 40 percent of all bitcoin trade
    • Political uncertainty globally has driven demand for bitcoin as a safe haven asset
    • A debate within the bitcoin community about the future of the underlying technology behind bitcoin known as the blockchain has been taking place. There was fear at one point this could lead to the creation of two separate cryptocurrencies but those worries have largely subsided with an alternative, more palatable option now being put forward.
    For an in-depth look at the factors driving bitcoin, click here.

    Bitcoin has rallied over 117 percent year to-date.year to-date.
     
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  2. Goldhedge

    Goldhedge Modal Operator/Moderator Site Mgr Site Supporter

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    Yet another belief system...
     
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  3. solarion

    solarion Gold Member Gold Chaser

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  4. jimswift

    jimswift Seeker

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    So who on this forum is sitting on $73million FRNs and not saying anything?

    I know at least a couple people around here saying back when Bitcoin was starting that they were all aboard.
     
  5. solarion

    solarion Gold Member Gold Chaser

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    I mined bitcoin with CPUs when it was still profitable if that tells you anything.

    Sadly I tragically lost them all at sea when I mistook my PC as a boat anchor...but what can you do...
     
    Last edited: May 22, 2017
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  6. Mujahideen

    Mujahideen Black Member Midas Member

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    Same could be said about penny stocks.

    If you're in bitcoin to make money, you're in it for the wrong reasons.

    "Investing" in bitcoin makes about as much sense as investing in USD.
     
  7. southfork

    southfork Mother Lode Found Mother Lode

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    Dont trust them , just like paper gold and silver, can be wiped out with a click of a computer button
     
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  8. solarion

    solarion Gold Member Gold Chaser

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    ...except bitcoin isn't a derivative.
     
  9. SilverCity

    SilverCity Gold Member Gold Chaser

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    yet...

    SC
     
  10. the_shootist

    the_shootist I self identify as a black '69 Camaro Midas Member Site Supporter ++

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    It's worse, the value was created somewhere in hyper space and remains there until either you cash it in or it disappears
     
  11. solarion

    solarion Gold Member Gold Chaser

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    banksters are gonna bankster. If people wouldn't stupidly buy bankster fairy dust products rather than the underlying assets...
    The value was created through scarcity, electricity consumption, and the massive investment in equipment required to mine them. That cost is a sunk cost and is not redeemable, therefore there is no counterparty risk. ...and the value remains in your bitcoin wallet until you exchange said bitcoin for goods and/or services...whether that's shopping at amazon, walmart, omaha steaks, provident, or what have you. Yeah, it's a scary thought when you measure "value" in terms of fiat dog vomit, but we should be striving to measure value in something that doesn't melt like Linda's heart when he sees his boyfriend John McCain.

    If free market economics scares you that badly, then by all means avoid playing.
     
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  12. andial

    andial Sir Midas Member Site Supporter ++

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    Nice little rally.
     
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  13. Area51

    Area51 Silver Miner Seeker

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    Can one of the cryptocurrency enthusiasts please explain what bitcoin is backed by and how it's different than any other worthless fiat currency?
     
  14. Mujahideen

    Mujahideen Black Member Midas Member

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    It's a fiat currency. The market dictates its value.

    What it has going for it is that no government has authority over it and low transaction fees; other than that it's just an other currency.
     
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  15. solarion

    solarion Gold Member Gold Chaser

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    Just a flash in the pan dude! ...bitcoin will crash and burn any second!

    Man, I wish I had a satoshi for every time I've read about how bitcoin would be worth-less soon. lol

    fiat
    [fee-aht, -at; fahy-uh t, -at]
    See more synonyms on Thesaurus.com
    noun
    1.an authoritative decree, sanction, or order:
    a royal fiat.

    Synonyms: authorization, directive, ruling, mandate, diktat, ukase.
    2.a fixed form of words containing the word fiat, by which a person inauthority gives sanction, or authorization.
    3.an arbitrary decree or pronouncement, especially by a person or groupof persons having absolute authority to enforce it:
    The king ruled by fiat.
    http://www.dictionary.com/browse/fiat
     
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  16. Silver Art

    Silver Art Silver Art Bar collector Platinum Bling

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    .......or maybe a satoshi for everytime that I hear or read that bitcoin is dead and it cannot come back.
     
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  17. Son of Gloin

    Son of Gloin Gold Member Gold Chaser Site Supporter ++

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    The only gut feeling I've ever had about bitcoin is that it's nothing and has even less value than beanie babies. It's even more worthless than Zimbabwe money, no matter how much people are willing to pay for it. It's a Tulip bubble, a dotcom restaurant napkin stock. Anyway, that's what my gut says.
     
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  18. Area51

    Area51 Silver Miner Seeker

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    Are you describing bitcoin or the USD?

    Apologists for the US dollar say the exact same thing.
     
  19. solarion

    solarion Gold Member Gold Chaser

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    Interesting...as I understand a 100 trillion Zimbabwe note is worth approximately $.40 and a bitcoin is worth $2206...so by extension that's 5515 $100trillion Zimbabwe notes.
     
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  20. Area51

    Area51 Silver Miner Seeker

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    At least a Zimbabwe dollar can be used for toilet paper. You can't even wipe your ass with a bitcoin.

    I still can't understand how people can be duped into falling for these kinds of ridiculous schemes.
     
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  21. the_shootist

    the_shootist I self identify as a black '69 Camaro Midas Member Site Supporter ++

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    I wouldn't quite say that. Solarian makes some good points as to why BTC has been a great investment for those who got into it early. It has quite a bit of value in that regard. Where I agree 100% is that value of BTC is only as good and will only last as long as the faith that people have in it. You can't touch faith
     
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  22. Mujahideen

    Mujahideen Black Member Midas Member

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    As long as people are using bitcoin, it will always have value.

    I wouldn't put my life savings into it. But if I had an online business or I was selling something that people wanted to keep secret for whatever reason bitcoin would make sense.
     
  23. the_shootist

    the_shootist I self identify as a black '69 Camaro Midas Member Site Supporter ++

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    There are many uses for BTC, a get rich quick plan isn't one of them
     
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  24. solarion

    solarion Gold Member Gold Chaser

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    Perhaps if you'd actually study the concept you may just find out that many of the the people using bitcoin haven't been "duped" as you put it, but simply like the concept and have voluntarily made different choices than you have.

    ...but then that's a whole bunch of reading I suppose. Guess it's easier to just declare them dummies and move on eh? lol

    Then again we've already discussed your aversion to respecting other's freedom of choice.

    Still shocks me to no end that here in this space there are any number of peeps appropriately whining and bitching about the federal reserve banksters and their blatant criminal enterprise, yet when a clear cut alternative to the shit dollar comes along there's a mountain of excuses provided to not even give it the time of day. lol

    Still think most arguments against here on GIM2 can be summed up as..."wah! it'll hurt my gold stack!" lol Sucks when you advocate freedom...and then people choose to do things with that freedom that you dislike.
     
    Last edited: May 22, 2017
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  25. Area51

    Area51 Silver Miner Seeker

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    What happened to your proclamation about having me on ignore? Apparently your words are about as hollow as the fiat "currency" you're shilling for.

    As for "voluntary choices" Darwin had a great theory on that.
     
  26. SilverCity

    SilverCity Gold Member Gold Chaser

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    Guy On The Street Index says....SELL ALL NOW




    (remember when we used to say this about tech stocks and silvah?)

    SC
     
  27. solarion

    solarion Gold Member Gold Chaser

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    lol You really don't read these posts do you?
    Presumably you mean this so called proclamation?
    I have to admit it's an attractive option. The last one I actually went so far as to place on ignore was an intentionally obtuse...intellectually dishonest bozo that nearly everyone had on ignore. Right up until she was banned. lol
     
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  28. Silver Art

    Silver Art Silver Art Bar collector Platinum Bling

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    In this case, I am describing bitcoin considering the numerous times that it has plunged in value because of [fill in the blank] with following news stories saying that it was dead and that this was the end of bitcoin only to see bitcoin rise further than where it was.
     
  29. Son of Gloin

    Son of Gloin Gold Member Gold Chaser Site Supporter ++

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    This thread is about gut feelings concerning bitcoin. My gut feeling is that bit coin is nothing. If people choose to speculate on nothing, that's their concern. Maybe yours, also. I don't care, myself, if they bid that nothing up to a million nothing FRN's. To me, it's still nothing.
     
  30. Son of Gloin

    Son of Gloin Gold Member Gold Chaser Site Supporter ++

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    And, holy crap! Has bitcoin been bid up to $2200???
     
  31. solarion

    solarion Gold Member Gold Chaser

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    2211 FRNs/BTC at the moment. It looked like it'd breach 2300, but then "crashed" to almost 2200 before bouncing.
    Imagine, one of those worthless bitkorns buys 129 ounces of silver at spot.
     
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  32. Mujahideen

    Mujahideen Black Member Midas Member

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    My fear is that people will "invest" in this run up and get burned.
     
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  33. solarion

    solarion Gold Member Gold Chaser

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    There surely will be some lemmings that do just that. I recall a thread here about a terminal guy that mortgaged his house to stack moar bitcoin. I think it was around $17xx at that time. Seemed really silly then, but now he'd have a healthy theoretical profit on that deal.
     
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  34. Area51

    Area51 Silver Miner Seeker

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    That pretty much sums it up.

    Anything that's backed by nothing - - like bitcoin and the US dollar - - is intrinsically worthless.

    I'd expect that fact to be common knowledge on a site like this, but some of these delusional and misguided comments are the kind of nonsensical rubbish you'd see on yahoo finance pages.
     
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  35. solarion

    solarion Gold Member Gold Chaser

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    Wow already an authority on bitcoin eh?

    Must be from all that extensive knowledge you've obtained over the past few hours. lol
     
  36. Joe King

    Joe King Gold Member Gold Chaser

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    Except US dollars are an inflationary currency while btc is a deflationary currency. Huge difference.


    No, but you could print out the key and use that I suppose. Or conversely, one could just order a boxcar full of TP


    If people want to buy nothing for a million dollars and you happen to have boat loads of nothing, why would you not accept their money for the nothing they seek? You don't like makin' money?


    Yea doggy! As I posted elsewhere, had one purchased a mere 10 btc they'd have an average gain of $340/day for the past month or so. Amazing, ain't it?
    ...and that's nothing. Once btc is completely mined out, it'll go exponential.


    Yet you use dollars all day long.
     
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  37. Area51

    Area51 Silver Miner Seeker

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    It's common knowledge - - for most people, at least - - that any monetary instrument backed by nothing has an intrinsic value of ZERO.

    That's about as basic as it gets, my friend.

    But if you're struggling to grasp the concept, perhaps your local community college offers introductory courses in economics you could attend to gain some understanding of it.
     
  38. solarion

    solarion Gold Member Gold Chaser

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    [​IMG]

    ...take this garbage currency for instance...yeah it's backed by nothing. Freaking garbage was probably spit out by a broken star or some such...

    [​IMG]
     
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  39. Area51

    Area51 Silver Miner Seeker

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    Depends what the composition is - - sorry, if that's beyond your vocabulary I can try to
    refrain from anything more than monosyllabic words.

    So what is the coin made of? If it's good then yes it has the intrinsic value of 1oz of gold. But if it's a not gold then it has an intrinsic value approaching that of a bitcoin - - in other words, ZERO.
     
  40. solarion

    solarion Gold Member Gold Chaser

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    but...but...you said it had to be backed by something?!?

    That gold coin isn't backed by anything?!? ...clearly it must have an in-trin-sic(whew had to sound that one out...) value of zero, yet a quick check online shows 1933 double eagles have sold for up to $7.5m!!!

    How can this be...oh wise one???
     

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