Why should I invest into cryptocurrencies?

[Deleted User]

I have a few questions:
1a. A Bitcoin Wallet is needed, right?
1b. Which Bitcoin Wallet (physical?) Is recommended?
2. What is a reliable website to invest through?

From reading everywhere, I've come to the conclusion that investing in Bitcoin is better than in USD/GBP/EUR (I considered USD and GBP, but EUR? Not a chance.).

I really want to begin using Bitcoin as I should have done so years ago.

 

[tabzer]

1a. Yes. Software or Hardware. Definitely recommend Hardware. If you don't want to be the one who is holding your bitcoin, you can leave them on an exchange. It's up to you to determine which is riskier/safer. Bitcoin's history has had a long history of exchanges going under, or making exit scams, taking people's bitcoin with it. These days, more reputable names are entering the market.

1b. Ledger or Trezor. Ledger has horrible track record of leaking customer data (with customers getting death-threats) , but their hardware/software is good. If you order from them, try using throwaway details, (e-mail too) pay with cryptocurrency, and maybe rent a PO box.

2. IDK if it's the best for UK residents, but Coinbase is good.

https://www.reddit.com/r/CryptoCurrency/
https://www.reddit.com/r/Bitcoin/
https://www.reddit.com/r/ledger/
https://www.reddit.com/r/TREZOR/
https://bitcointalk.org/

You should really do your own research and not rely on the message of any single person. Even though I strongly dislike reddit, these are good places to start, and gather information.

 

[Deleted User]

1a. Yes. Software or Hardware. Definitely recommend Hardware. If you don't want to be the one who is holding your bitcoin, you can leave them on an exchange. It's up to you to determine which is riskier/safer. Bitcoin's history has had a long history of exchanges going under, or making exit scams, taking people's bitcoin with it. These days, more reputable names are entering the market.

1b. Ledger or Trezor. Ledger has horrible track record of leaking customer data (with customers getting death-threats) , but their hardware/software is good. If you order from them, try using throwaway details, (e-mail too) pay with cryptocurrency, and maybe rent a PO box.

2. IDK if it's the best for UK residents, but Coinbase is good.

https://www.reddit.com/r/CryptoCurrency/
https://www.reddit.com/r/Bitcoin/
https://www.reddit.com/r/ledger/
https://www.reddit.com/r/TREZOR/
https://bitcointalk.org/

You should really do your own research and not rely on the message of any single person. Even though I strongly dislike reddit, these are good places to start, and gather information.

Thank you.

Bitcoin to me is still relatively new and the reason I asked was because I don't even know where to search for this kind of info.

 

[notimp]

Follow up to the Cory Doctorow posting linked in here:

China orders Alibaba's Jack Ma to overhaul Ant fintech business
China's central bank has asked Ant Group, the world's biggest fintech firm, to shake up its lending and consumer finance practices and comply with regulatory requirements.

src: https://www.dw.com/en/china-orders-alibabas-jack-ma-to-overhaul-ant-fintech-business/a-56070639

 

[Deleted User]

It all goes back to why any Currency is valuable; the fact that both parties trading agree there is value in said Currency.

Historically, we as a species have used shells, underwater stone statues, precious metals and paper as Currency, so the value of each in and of itself have changed through the years except for precious metals, leading to the fact not every representation of Currency has to be valuable per se.

Cryptocurrency relies on the fact that there are financial entities willing to accept it for trade and back that up with normal Currency. It's as simple as that as to why it has value.

The gambling aspect is as simple as that the amount of normal Currency said entities are willing to back it for is volatile; all Currencies are volatile to an extent, but our standard Currencies are backed by trust between nations. A simple example is the United States' Dollar; the country is the World's largest debtor but all of the countries acting as her creditor believe in her economic potential and thus the value of her Currency is based on that belief.

We've long past the Gold Standard era, meaning that there is more money available than the worth of all the Gold a country has, so money practically has no value. It is now purely an economic construct, but one that is balanced by trust between countries for a future time when books will be balanced.

When you understand that, then Cryptocurrency really isn't any different from a theoretical standpoint.

The biggest difference comes back to its much more volatile value and what a gamble it is to invest in.
So I don't recommend it unless you have more than passing knowledge of it and better-than-average luck.

 

[notimp]

Historically, we as a species have used shells, underwater stone statues, precious metals and paper as Currency, so the value of each in and of itself have changed through the years except for precious metals, leading to the fact not every representation of Currency has to be valuable per se.

Cryptocurrency relies on the fact that there are financial entities willing to accept it for trade and back that up with normal Currency. It's as simple as that as to why it has value.

Shells and underwater statues are backed by consumer demand ('scarce resource'), precious metal is backed by countries holding reserves of those (buying them out of the market for price stability - f.e.) and them being scarce, paper as a currency is backed by a country giving guaranties, that that paper can be spent for the value on the paper, and accepting it for tax payment purposes (legal tender).

Crypto currencies are none of the above. But they are easily tradeable (at least in large amounts, if you let a transaction take three days until its verified). They are scarce for as long as major players dont get into a room and get a consesus to fork the currency. They arent stable. They arent in demand (for anything other than financial speculation - yet). They arent backed by governments.

The entire scene is "hopefulls" in "talent pools", being acquired by entities that 'want something modern' and dont have better talent aquisition structures (Thats the everyone is talking about it, because its hip part).

And a marketing play banking on 'more morons will find it attractive soon' - hence, new players in the transaction space, bet on more people wanting to use that form of 'value transaction' in the future, partly because they make it more accessible.

So the 'financial entities' accepting trade values into more conventional currencies, are people wanting programming and management talent with not that much knowledge and no scruples, marketing entities, and dumb people stuck in a snowball system (individual miners, used as PR assets). Also larger foreign actors trying to flee state taxation (not in the EU or the US; as there are cheaper methods), as well as even less legitimate interests.

The entirety of the bitcoin story culminated into 'oh, now Paypal supports it' now we legitimate!

 

[Deleted User]

Crypto currencies are none of the above. But they are easily tradeable (at least in large amounts, if you let a transaction take three days until its verified).

This is a misnomer and paradoxical; for it to be tradeable there has to be a financial entity willing to back it into normal Currency.
That said, I do agree that it should not be a recommended way to make money.

 

[notimp]

This is a misnomer and paradoxical; for it to be tradeable there has to be a financial entity willing to back it into normal Currency.
That said, I do agree that it should not be a recommended way to make money.

There are, but the financial entities are early bird speculators, financial investors at larger scale financial entities, but also just within their speculation departments. And people running those schemes, for the talent pool, that gets attracted to it. As well as people wanting to make money in the transaction process (paypal f.e.).

Now thats my storytelling, and part of the question that remains is, "isnt that always the case - when something new is created - to some extent", and when is the jumpoff point, to it becoming more than that. (Speculation.)

And the answer I've made up in my mind is, that - if you want those currencies to be vehicles to attract talent, you need those oscillating price curves - because those people are interested in potential. And if you want for it to become the new digital gold. you cant have those, and the entire thing gets boring AF. And there is no reason to believe that those currencies will be statebacked anytime soon (national banks spin up their own initiatives, or partner with facebook coin in the US (facebook coin isnt 'crypto'). And there is no reason to believe that any of this will produce compound growth.

Also the issues are manyfold. With POW you have transaction speed and energy consumption issues.
With POS you bake in even more pyramid scheme, than with POW (no 'generational' reward for becoming better, just invest large early and stick to it).
For it to become a legal currency in use, you dont need the decentralized part (use central servers - higher transaction speed).

So wtf.

On the 'people want it' side, national entities usually want to see the transaction record (possible if public), but that could as well happen serverside, and therefore be 'more privacy providing' to most users (depends, privacy from whom..). And digital payment solutions can be created without much crypto decentralization at all. (See Jack Ma.)

 

[notimp]

Huh - the crazy tech yes city guy, just taught me something I didn't know.


There are asic resistant crypto currencies. Thats at least interesting, because it solves a structural issue. (In terms of keeping stakes distributed.)

Doesnt mean anything on its own, but I didnt know that.

edit: Also, in a strange way, doesnt that mean, that mining never should get bigger than gaming? I'd love to get Nvidias opinion on that matter..
edit2: Also, while still in crazy territory, how would that pan out in a world where energy costs trend towards zero?

 

[notimp]

Bank of Canada (central bank) led panel on Monetary Policy for Decentralized Currencies:


Can be seen as PR for a national banks perspective, but I like the framework, and find the presentation convincing.

Also - for global coordination of monetary policy - see:
https://gbatemp.net/threads/what-is-monetary-policy.580717/

 

[Deleted member 668561]

I have a few questions:
1a. A Bitcoin Wallet is needed, right?
1b. Which Bitcoin Wallet (physical?) Is recommended?
2. What is a reliable website to invest through?

From reading everywhere, I've come to the conclusion that investing in Bitcoin is better than in USD/GBP/EUR (I considered USD and GBP, but EUR? Not a chance.).

I really want to begin using Bitcoin as I should have done so years ago.

Yes I recommend using an offline wallet, I recommend downloading bisq


I use a bitcoin atm, depending on where you live you might actually have a few, atms are better if you don't want a "papertrail"

 

[notimp]

Should give you some additional insight:
https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3

Thats promotion for money laundering 'into USD' then i guess. So everything is still fine from the US points of view. *sarcasm*

Well, despite a private company minting a USD equivalent at the moment.. At least they are saying they are...

edit: Hacker news comments thread:
https://news.ycombinator.com/item?id=25788409

 

[Jayro]

Invest in crypto > Sit on it for some years > ???? > Profit.

 

[JoeBloggs777]

Invest in crypto > Sit on it for some years > ???? > Profit.

as long as you don't forget your password

https://www.nytimes.com/2021/01/12/technology/bitcoin-passwords-wallets-fortunes.html?smid=tw-share

 

[smf]

Invest in crypto > Sit on it for some years > ???? > Profit.

step 1, invent time machine and go back to when bitcoin were <1$

 

[delikana]

Speaking about cryptocurrency and investments in it, you need to take into account that this market is just beginning to develop. Despite the fact that bitcoin is already worth fabulous money, this is not its limit. Many large organizations are still only looking at investing in cryptocurrency.
I am interested in cryptocurrency too. For me, this is a way to save my money. This is especially true during a pandemic. I found a large list of cryptocurrency exchangers and buy ripple. I am currently researching a satoshi purchase poll.

 

[notimp]

Speaking about cryptocurrency and investments in it, you need to take into account that this market is just beginning to develop. Despite the fact that bitcoin is already worth fabulous money, this is not its limit. Many large organizations are still only looking at investing in cryptocurrency.
I am interested in cryptocurrency too. For me, this is a way to save my money. This is especially true during a pandemic. On BestChange I found a large list of cryptocurrency exchangers and buy ripple. I am currently researching a satoshi purchase poll.

You working for RT (Russia Today) also, by any chance?
https://bitnewstoday.com/news/sbi-h...ks-partner-how-will-ripple-benefit-from-this/

Second question - are you especially interested in the Malaysia - Bangladesh work exchange program, and especially the tax avoidance part of it?
https://www.coindesk.com/ripple-malaysia-bangladesh-remitance

Third question: Do you like dealing with companies, that are in legal trouble with the US?

The partners do not seem deterred by Ripple’s legal troubles in the U.S. The company is being sued by the U.S. Securities and Exchange Commission over the claim it violated federal securities laws by selling the XRP (+1.25%) cryptocurrency to retail consumers.

https://www.coindesk.com/ripple-malaysia-bangladesh-remitance

Fourth question, do you like foreign currency acquisition schemes, that sell people bits on computers and the hope, that they will rise in value quickly?+

Fifth question: What makes ripple a crypto currency?
https://old.reddit.com/r/CryptoCurr...ple_is_a_pos_noncrypto_all_newbies_should_be/
https://www.quora.com/Why-is-Ripple-centralized

 

[Deleted User]

What's your guys opinion on Revolut and CashApp to invest in Bitcoin?

 

[tabzer]

I'll mark it for later. Now KIN is worth 0.000037

Currently KIN is sitting at 0.0001179, which, at this point, makes my the only other investment advice I've ever made (besides telling people to get into bitcoin when it was $25) fucking awesome. I imagine it will drop for a minute, and then go back up but who knows. I honestly don't know if you should buy now or not. It's a sleeper. I love giving people good advice that they ignore, even though I work so hard to make sure I don't give bunk advice.

I actually like KIN, because unlike Bitcoin (which I love), it has migrated blockchains 3 times--which shows that it is chasing scalability in a way other cryptos do not.

 

[Luke94]

To please Elon Musk and Bill Gates?