Cryptocurrency- yea or nay?

Discussion in 'Off-topic Discussions' started by Hognutz, Dec 17, 2017.

  1. Hognutz

    Hognutz Well-Known Member

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    Very interesting and quite confusing to the average person. Do we have any experts here, actual or imagined? What are your views? Is this the future, and if so do you see it completely taking over? When? How? Why?
    And if not?
    For those already invested, how confident are you in it's security/encryption given recent reports?
     
  2. JoeKing

    JoeKing Well-Known Member

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    I don't like it. I invested in it early but got out because it is so unstable. That bubble will burst.
     
  3. Hognutz

    Hognutz Well-Known Member

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    From what I hear the 256 bit encryption is not a problem if those with powerful enough computers wish to target it. Although there are those defenders who say it can be kept secure in the right wallets. I dunno....
     
  4. tabascocat

    tabascocat Well-Known Member

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    I want no part of it.
     
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  5. JoeKing

    JoeKing Well-Known Member

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  6. iceberg

    iceberg Well-Known Member

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    if you can build it, they can break it. but not sure that would be the answer (ie, not using it) as most actual $$$ changes hands electronically anyway. i pay a couple of thousand a month in bills for car, house, electric, insurance and so on and *never* see any physical money. we're no longer gold based really as far as i know or we'd have to limit the money we print and i don't see our gov ever doing that.

    the question is control of it and who can counterfeit a bitcoin (and maybe sell chuck e cheeses coins as such!) or digital currency and / or make their own. i honestly don't know enough about it to give much details because i avoid it. but sooner or later something like this will take over as we simply don't use a lot of physical money anyway. these days you pay for things by waving your phone or watch around a pad and viola - done.

    control over it is the key and i don't see us really there yet.
     
  7. Hognutz

    Hognutz Well-Known Member

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    I suppose my biggest red flags personally are that it's pretty much money laundering and the lack of security.
     
  8. Yosemite Sam

    Yosemite Sam Well-Known Member

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    Quantum Computers are going to shake the world. All your bitcoins are/will belong to us! Bitcoin must die, long live the new bitcoin which you have ZERO of!

    At some point a new quantum reliable encryption will be born, but nobody will be able to afford a quantum computer for a while. So, it will be the haves vs the have-nots just like it is today. The new bitcoin will be using a quantum computer which you don't own.

    Bitcoin has the ability to make you a ton of money right now, but it has the risk for you to lose every penny you invest into it in a flat second.

    If you are going to invest in bitcoin, do it with mad money. (no more than say 10% of your money and only if you are not relying on it for your future) Not your savings and every time you make money, pull some of it out and put it into your savings.
     
  9. Hognutz

    Hognutz Well-Known Member

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    My concern is exposing ALL assets to forfeiture under a money laundering charge. Am I wrong?
     
  10. Yosemite Sam

    Yosemite Sam Well-Known Member

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    Well, they couldn't do that outright without just cause. Though if they suspected you of something they could.

    Actually, if you were caught with some type of illegal drug and they found you owned cryptocurrency. Theoretically, they could confiscate it saying you were using it to funnel drug funds and / or launder monies. In truth, they could probably use almost any crime to confiscate it.

    They need to know you have it first though! heh Like most of these guys hiding funds off shore, you could do the same with your cryptocurrency.
     
  11. JoeKing

    JoeKing Well-Known Member

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    I invested $3K and earned 10% annually for 7 years. Do the math... what was my profit at the end of 7 years?
     
  12. Yosemite Sam

    Yosemite Sam Well-Known Member

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    Depends on inflation over the period of time! :)
     
  13. JoeKing

    JoeKing Well-Known Member

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    Last edited: Dec 20, 2017
  14. Yosemite Sam

    Yosemite Sam Well-Known Member

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    It most certainly does. If you earn 10%, but inflation was 4% the first year your true profits were 6%, not 10%. You did say profit, not dollars. Profit are calculated after any affects of assets and liabilities. Inflation has a direct affect on both and therefore your profits too!
     
  15. JoeKing

    JoeKing Well-Known Member

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    That's not how those numbers plug into the equation to factor total earnings and I've already given you an addition clue with the link I inserted. The "RULE OF 72" is this...

    • If you invest money at a 10 percent return, you will double your money every 7.2 years. (72/10 = 7.2)
    • If you invest at a 9 percent return, you will double your money every 8 years. (72/9 = 8)
    • If you invest at an 8 percent return, you will double your money every 9 years. (72/8 = 9)
    • If you invest at a 7 percent return, you will double your money every 10.2 years. (72/7 = 10.2)
    (Note: The Rule of 72 assumes that you reinvest your dividends and capital gains. This rule works because of the wonders of compound interest)

    Using this rule, a $3K investment with a ROI at an annual 10% will net $3K at the end of 7.2 years. (double your money)

    I've been doing this for decades and it works.
     
  16. JoeKing

    JoeKing Well-Known Member

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  17. Hognutz

    Hognutz Well-Known Member

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    Seems to me it would be hard to launder all those millions no matter how you tried. Where do you hide the withdrawals?
     
  18. Yosemite Sam

    Yosemite Sam Well-Known Member

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    If cryptocurrency becomes a defacto currency, they already exists on your hard drive. No need to withdraw anything.
     
  19. Yosemite Sam

    Yosemite Sam Well-Known Member

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    Ahh yes, the rule of 72. I know this well and Einstein defined compounding interest as the 8th wonder of the world.

    What I was referring to is buying power. (or true profit) For instance, look at this:

    A man has $100,000 dollars that he invests and earns 4% on. So at the end of the year, he has $104,000. Lets say inflation was 4.5% over that year. While he earned $4,000 actual dollars, he actually lost $500 in buying power because the $104,000 he now has, only has the buying power of $99,500 of the previous year. Hence a net loss in buying power.

    So while his numeric dollar amount was more than the previous year, he actually lost profit because lets face it. It's buying power that actually counts. Not the numeric value in dollars.

    In 1966, you could buy a brand new 1966 Ford Mustang for $2,300 (my mothers first car, and the price paid for it) Yet, today. $2,300 isn't even a down payment for a 2018 Ford Mustang. In 1966, $2,300 had a hell of a lot more buying power than it does today. Inflation is the killer of profit margins when investing. You must always outperform inflation to actually make a profit.

    Though, I actually never put a down payment on a car anymore. Having that money liquid is far more valuable than the interest I pay on it over the course of the loan.
     
  20. JoeKing

    JoeKing Well-Known Member

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    First of all, never buy a brand new car. The depreciation the first year is a killer.
    Second, if you live in an area where you'll always need a car... lease a new car every two or three years, never buy.
    Third, the 1966 Ford Mustang is a sweet ride. I wish I had a mint one right now.
    Four, totally agree with you. Inflation is the killer of profit margins when investing.
    Five, just because I feel the need to yap... debt is financial cancer.
     
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