WOF: Bitcoin is booming, what are your thoughts on cryptocurrencies and mining?

William Gayde

Posts: 375   +5
Staff member

Bitcoin, the cryptocurrency everyone is talking about, started from nothing and is now worth close to $6,000 each. There are stories of people investing early and making huge returns. On the other side, there are people who won't touch Bitcoin with a 10 foot pole for fear it's a scam or a bubble. What are your thoughts on the world's most popular cryptocurrency? Did you invest early?

When talking about cryptocurrencies, the controversial topic of mining often comes up. For those that got into it, it has been a relatively easy way to turn their computing power into cash. For many gamers it's a difficult subject as mining has caused the price of graphics cards to skyrocket. Did you ever get into mining or have any strong feelings either way?

Personally, I invested when Bitcoin was selling for $300 and have been putting small amounts in ever since. As far as mining, I was hesitant to go out and spend my life savings on graphics cards, but I was able to make a return on my investment with just a few cards over the course of a few months.

Lead photo by Vladimir Ribakov

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TomSEA

Posts: 3,277   +1,961
I like to think I'm a relatively clever person, but I've never understood the whole Bitcoin/digital coin concept. Granted I haven't done a ton of research on it, but have read a few articles and it still leaves me scratching my head as to what the hell is going on. So I haven't become involved.
 

cliffordcooley

Posts: 12,496   +5,870
I don't have any thoughts and never will on this subject. I don't support concepts that are pretty much a gamble. There are many people that will argue this is not a gamble, but yet that is exactly what this is. I guess I do have one thought after all.
 
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treetops

Posts: 3,050   +776
Currency with something backing it up, I love it. If I understand it right, it's generated by processing power. Not just some spammed out paper.
 
D

davislane1

Will Crypto stay around?

Probably.

As for mining...

Possibly. I'm more interested in trading it once their exchanges get a little faster.
 

Uncle Al

Posts: 7,510   +6,006
If I understand correctly, Cryptocurrency has the same flaw as the American dollar in that it has nothing of value backing it. Since the elimination of the gold and silver standards our American currency has only "the faith and trust of the US Government" as some form of collateral upon which the so called "value" is determined. It's great for the government that can print unlimited supplies of currency but like so many countries in the past, there is a terrible risk that too much currency in circulation could collapse the system as happened throughout Europe after the 2nd world war. Betting on the valuation going up and down seems to be the newest form of "day trading" where fortunes can be won and lost in the blink of an eye. Great for the young and daring but us older folks would be satisfied with a CU or bank that just paid a reasonable interest rate!
 

psycros

Posts: 3,207   +3,405
I have no interest in what amounts to trading air. Its not like those bits have some inherent value like software that does an actual job or provides entertainment. Its not even some kind of data with real-world applications - its literally people trading digital Monopoly money. Sure, if you're smart enough to cash out before the inevitable crash that's fine..but the crash IS coming, and after that cryptocoins will need to be backed by *something*. Of course one could argue that the US dollar has been a fiat currency since we went off the gold standard, but at least you can hold it in your hands (or, if you have enough dollars, swim in money like Scrooge McDuck). A cryptocoin exists only as long as the electrical grid and those blockchains remain intact.
 

namesrejected

Posts: 398   +302
The only thing I can guarantee about Bitcoin is that its value would plummet if I were to invest in it. Just my luck, I know it all too well....

Hmm....

All gamers out there, if you want videocard prices to be what they should then send me $100 and I will start investing in Bitcoin to bring it down.
 

Bilibong

Posts: 14   +6
I was able to mine some bitcoin years ago when it was still at $79 and still possible to with just a GPU, and sold when it was $1,100 before it crashed. I bought some mining contracts with the leftover bitcoin too so I still have a decent amount left and earn a little daily. Bitcoins been pretty good for me.
 
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senketsu

"According to Digiconomist, Bitcoin and Ethereum mining taken together consume more power than countries like Jordan, Iceland, and Syria, with the two (Bitcoin and Ethereum) combined ranking 71st among all countries. This is based on Ethereum mining consuming 4.69 terawatt-hours (TWh) of power and Bitcoin mining consuming 14.54 TWh."
 

p51d007

Posts: 2,522   +1,810
When something is "backed with the good faith and credit of"...I want to run!
WORST mistake the USA ever made, along with passage of the 16th and 17th
amendments, was to take us off the gold standard in 1971. Deficit spending went
through the roof, and continues.
 

CaptainTom

Posts: 414   +220
I like to think I'm a relatively clever person, but I've never understood the whole Bitcoin/digital coin concept. Granted I haven't done a ton of research on it, but have read a few articles and it still leaves me scratching my head as to what the hell is going on. So I haven't become involved.
Start with the Bitcoin documentary on Netflix, and then do some actual reading on Wikipedia. I don't personally think Bitcoin is all that complicated...
 

Mister_K

Posts: 1,973   +630
I don't have any thoughts and never will on this subject. I don't support concepts that are pretty much a gamble. There are many people that will argue this is not a gamble, but yet that is exactly what this is. I guess I do have one thought after all.
every stock market is a gamble. Granted that Crypto market is not tangible per se and very volatile.
 

Mister_K

Posts: 1,973   +630
Will Crypto stay around?

Probably.

As for mining...

Possibly. I'm more interested in trading it once their exchanges get a little faster.
Will Crypto stay around?

Probably.

As for mining...

Possibly. I'm more interested in trading it once their exchanges get a little faster.
Mining is important factor of the whole crypto world/blockchains. However, with ASICs and server farms in future as they are more efficient and have better thoroughput than your average gaming rig. Transactions have to be checked and processed, hence why, we have, mining.
 

Mister_K

Posts: 1,973   +630
The only thing I can guarantee about Bitcoin is that its value would plummet if I were to invest in it. Just my luck, I know it all too well....

Hmm....

All gamers out there, if you want videocard prices to be what they should then send me $100 and I will start investing in Bitcoin to bring it down.
Thank me in 2 years.

Buy after this whole current bubble crashes. It will as the prices will correct and drop $1000 to $2000 within next 2 months. At which point it makes a good entry for you to buy BTC. Setup account on Coinbase, GDAX or equivalent and invest $100 to $500.

The market will grow again next Bitcoin fork or any other big news that may come out. So now that you bought $500 of BTC, let say it goes from $4500 per coin to $6000/$7000 you can take that BTC with your profits and exchange it for an alt coin, for instance WTC (Walton). WTC has great implications within the produce/manufacturing markets due to its implementations with RFID/Blockchain. When BTC rises alt drops which means you can buy alts with "discounts". Eventually people will start buying alts with BTC again and as BTC drops, alts rise. As long as you get in before the rise, you can gain a lot of alts with a bargain and sell for profit at or just before their peak.

My example.

I have spent £400 GBP in last month. I bought BTC at £4050 per coin, then at £4450 sold and traded for WTC which was at £4.20. Then WTC rose to £5.50 (not its peak) and sold back into BTC. I made very nice profit. Now that alts are going back down again I am investing £800 into alts.

When WTC was £0.55 per coin, I bought 6363 coins/tokens and sold at £5.80 which got me £36905 - £3500 initial investment. I bought WTC again at £5.10 which netted me 6550 coins/tokens (200 more) and I am now sitting until it rises to 20-80 GBP per coin (by end of 2018) which will net me aprox £131000 ;)

lambo is coming. Can't wait. Lamborghini accepts Bitcoin. DONT MISS THE BOAT!
 

Mister_K

Posts: 1,973   +630
I don't have any thoughts and never will on this subject. I don't support concepts that are pretty much a gamble. There are many people that will argue this is not a gamble, but yet that is exactly what this is. I guess I do have one thought after all.
It is a gamble, every "stock" trading is a gamble. Buying games before release is a gamble. This is what Crypto market is and the ICOS a gamble on tech that has not been yet proven to work.

Chainlink, WTC, VTC, OmiseGO, Ethereum, Litecoin, Bitcoin, GRID+, ARK, STRATIS etc are all a gamble that can pay of your mortage.

Why put my money in savings when I know this will grow and net me bigger returns per year? I can break even or net some or ideally make HUGE returns, which so far I have made.

I have made solid £30,000 profit in space of 3 months, lost around £5000 with LINK as the price went from 0.45 per coin to 0.16, however I hope it recups as I have HUGE investment in there.

Initially when I started trading I panic sold when everything dropped.

Advice:

Invest, sell when you cover your investments but still have enough left over to be in the game. This way you are gambling with money you never had as you covered your original investment with profits.
 

Mister_K

Posts: 1,973   +630
I have no interest in what amounts to trading air. Its not like those bits have some inherent value like software that does an actual job or provides entertainment. Its not even some kind of data with real-world applications - its literally people trading digital Monopoly money. Sure, if you're smart enough to cash out before the inevitable crash that's fine..but the crash IS coming, and after that cryptocoins will need to be backed by *something*. Of course one could argue that the US dollar has been a fiat currency since we went off the gold standard, but at least you can hold it in your hands (or, if you have enough dollars, swim in money like Scrooge McDuck). A cryptocoin exists only as long as the electrical grid and those blockchains remain intact.
yes of course the crash is coming, everytime it rises so quick it goes down. Crash means = free discount because newbs made errors and exited the market. Then its the time to buy until it rises again./

Will this happen over and over forever? Probably not.

BTC/ETH/LTC etc might equalize eventually and the changes wont be so drastic. So get on this rollercoaster before it corrects. This is .com era 2.0 Be clever and make money.

and yes if electrical grid crashes no more blockchain, however when that happens, we have bigger problems than Crypto ;)
 

Beerfloat

Posts: 59   +99
Just like with any other metric of value, cryptocurrencies rely on the confidence of investors and users.

It doesn't really make all that much of a difference whether that confidence is backed by the promises of nations (like with regular currencies), corporations (I.e. bonds and stocks), or perhaps scarcity and myth (precious metals, gems, art and the like). As long as there is confidence, these rarefied bits can function as expressions of value.

Similar to the way pyramid schemes operate, some early adopters have made strong profits. And the potential for easy growth remains as we're not anywhere near pervasive adoption. We are still in the gold rush phase of cryptocurrencies. This will end sooner or later.

Personally, I have zero interest in the techno-anarchist doomsday prepper mentality that is driving the cryptocurrency story line. I am very concerned about the pseudonymity that has created new opportunities for extortion, contraband trafficking, money laundering and other unsavory enterprises. I am completely disgusted with the cavalier waste of energy that is so central to this concept.

I believe that properly regulated assets offer a much superior way of preserving value. Investing is getting easier, less expensive, and more transparent all the time. Electronically traded funds (ETFs) have slashed the cost of owning (and trading) high quality diversified company shares, bonds, real estate and other assets that reliably accumulate value over time (ignore the month to month stock market, over time it grows - always), may additionally pay dividends, and are protected by FDIC insurance, SEC, CFTC and similar well established authorities everywhere else.

Get rich quick? I don't believe in that, and neither should you. Steady she goes.
 

Legionnaire

Posts: 27   +42
I like to think I'm a relatively clever person, but I've never understood the whole Bitcoin/digital coin concept. Granted I haven't done a ton of research on it, but have read a few articles and it still leaves me scratching my head as to what the hell is going on. So I haven't become involved.
There is a lot of fake news and twisted stories out there--particularly from 'official' agencies. Stories of people losing their money because their bitcoins were on their PC and their PC broke are all fake. It can happen but you would have to be very very stupid. It's like saying you will leave your wallet on the bus because you will take the same bus tomorrow and expecting it to still be there.

The only true dangers lie with exchanges being hacked and raiding people's accounts. More often than not they will reimburse you up to a certain amount (usually $100,000?). But don't worry, banks get hacked too!

The main advantage is a huge reduction in fees, and easily sending money around the world. Again, news stories will say "it makes money untraceable" but that's all bull. Actually it's very traceable, making it much safer. Another advantage is that it becomes a world currency. Buy your Chicken McNuggets at the airport, then fly to another country buy a coffee. No exchange costs.

There are more advantages, but these are just a few.
 

NicktheWVAHick

Posts: 193   +188
Let me get this straight....I can use US currency (that has no backing) to purchase cryptocurrency (that has no backing) in the stock market (that has no backing) ..... what could possibly go wrong?
 

BigMack70

Posts: 39   +34
About 4.5 years ago I had to sell my 20 bitcoins I had mined for rent money when I was between jobs (BTC were about $100/each at the time). Makes me sad to think about what could have been :(