Is it too soon to talk about Crypto yet?

[MinnesotaEric]

While we continue to wait for legislation to be enacted domestically so our banks and financial institutions can actively participate in crypto, elsewhere at least one central bank is discussing hyperbitcoinization.

https://twitter.com/x/status/1964552578454474830

 

[ConawayFarms]

I used to wonder the same thing about crypto, tbh. For the longest time it just looked like internet gambling, but once I started trading and actually following the space, I got why people are hyped. There’s way more potential, especially with new tech that lets you control your own coins, move money fast, and even trade across different blockchains, stuff you just can’t do with stocks or regular ETFs. I still keep most of my cash in classic investments, but having some in crypto feels like being part of something bigger, especially with instant transfers and self-custody. These days, a lot of traders roll with browser platforms like Banana Pro for quick swaps and portfolio tracking, makes things way less overwhelming when you’re just starting out too.

 

[Snobdds]

So who's being burned by the crypto crash? Be honest.

As time goes on, my belief that Crypto is not an asset is being confirmed. It is a pyramid scheme. There is no money there. It's just a way to get a greater fool to pay more for nothing than you did. Invest in productive endeavors that do not rob people dumber than you and you'll be fine.

 

[Complete Turf Care]

Crash? It's up 39% in the past 6 months.

I do not have anything invested in any crypto, but I wish I had bought some 6 months ago.

 

[MinnesotaEric]

So who's being burned by the crypto crash? Be honest.

As time goes on, my belief that Crypto is not an asset is being confirmed. It is a pyramid scheme. There is no money there. It's just a way to get a greater fool to pay more for nothing than you did. Invest in productive endeavors that do not rob people dumber than you and you'll be fine.

Believe what you will but why Bitcoin and major crypto isn't a pyramid scheme has been discussed at length before. It has long been pointed out that all asset-classes have bull and bear market cycles, but the longterm trend has been up and to the right because it is an economy.

 

[Fuddyduddy1952]

Without making my head explode can anyone explain two things to me:
1) If I buy one bitcoin (over $100K now) I assume it's "purchased" on line. I buy it by transferring money from my bank. I recieve nothing tangible though, correct?
2) Who started bitcoin? We all know for example Henry Ford was the founder of Ford...but who is the founder of bitcoin?

 

[MinnesotaEric]

Without making my head explode can anyone explain two things to me:
1) If I buy one bitcoin (over $100K now) I assume it's "purchased" on line. I buy it by transferring money from my bank. I recieve nothing tangible though, correct?
2) Who started bitcoin? We all know for example Henry Ford was the founder of Ford...but who is the founder of bitcoin?

I suggest either reading or listening to an audiobook on Bitcoin or practical economics. To help, here is a link to a book list.

The Bitcoin Standard is a seminal book to read. I suggest you read the first review that appears on Amazon.

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[drssg]

Without making my head explode can anyone explain two things to me:
1) If I buy one bitcoin (over $100K now) I assume it's "purchased" on line. I buy it by transferring money from my bank. I recieve nothing tangible though, correct?
2) Who started bitcoin? We all know for example Henry Ford was the founder of Ford...but who is the founder of bitcoin?

I'm not an expert, but I'll attempt to answer your questions, without telling you to go read a book.

You don't receive anything tangible for bitcoin in the same sense as cash or gold. You have electronic information that is your connection to your bitcoin assets. I believe that information is typically stored on a tangible electronic device. If you lose that device, your access to your bitcoin is gone.

We don't know who started bitcoin.

 

[MinnesotaEric]

I'm not an expert, but I'll attempt to answer your questions, without telling you to go read a book.

You don't receive anything tangible for bitcoin in the same sense as cash or gold. You have electronic information that is your connection to your bitcoin assets. I believe that information is typically stored on a tangible electronic device. If you lose that device, your access to your bitcoin is gone.

We don't know who started bitcoin.

If your Bitcoin is "stored" on a software or hardware wallet, and the wallet is lost, then the Bitcoin can be recovered if you get a new wallet and enter your "seed phrase" into that new wallet which connects your ownership of the Bitcoin as the recording of your Bitcoin holdings is stored on the blockchain, not actually "on" or "in" your digital wallet.

A huge reason not to digitally store your seed phrase in any kind of digital format (photos of, or text) is to protect ownership from theft, as anybody with access to your unique seed phrase has access to your Bitcoin and any other crypto held in the digital wallet connected to that particular seed phrase.

Understanding stuff like this is why I'm suggesting a book.

 

[drssg]

If your Bitcoin is "stored" on a software or hardware wallet, and the wallet is lost, then the Bitcoin can be recovered if you get a new wallet and enter your "seed phrase" into that new wallet which connects your ownership of the Bitcoin as the recording of your Bitcoin holdings is stored on the blockchain, not actually "on" or "in" your digital wallet.

A huge reason not to digitally store your seed phrase in any kind of digital format (photos of, or text) is to protect ownership from theft, as anybody with access to your unique seed phrase has access to your Bitcoin and any other crypto held in the digital wallet connected to that particular seed phrase.

Understanding stuff like this is why I'm suggesting a book.

Thank you. I was not familiar with the seed phrase, which sounds to me like a new word for a password. That seems like a security flaw to me. Plenty of websites for sensitive data have deemed the userid/password security to be inadequate. They add some form of multi-factor authentication. A person could potentially have a LOT of "money" in Bitcoin, and the only thing protecting it from being stolen is a password?

If it is stolen, there is obviously no fraud department of Bitcoin to investigate it. When it's gone it's gone. And it seems like the password NEEDS to be stored someplace. If it's forgotten, that seems just as bad a getting stolen.

But security isn't my reason for staying out of Bitcoin. There is nothing that is backing any real value. When it goes up, it's because people are buying it, because they think it will go up. It seems like a circular hype machine to me.

If you manage to get rich on it, then good for you. I won't feel left out.