Crypto currencies: is that hype real?

Discussion in 'General Off-Topic Chat' started by depaul, May 24, 2017.

  1. depaul
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    depaul GBAtemp Fan

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    Hi GBATempers. I ask here because I know devs and gamers in general are smart people.

    Has anyone tried to invest in crypto currencies market yet? I mean Bitcoin, Ethereum, Ripple... etc. Some coins claim they can generate x10 profit !!

    Is all this true? If so how come so many people aren't aware of this? Has anyone invested and got real money from this business?

    Thanks!
     
  2. sarkwalvein

    sarkwalvein Professional asshole at GBATemp

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    I think everybody is aware, but like any market it is not "10x" guaranteed profit.
    It is somewhat volatile, so it can result in big profit or big loses.
    No big profit (possibility) comes without big risk in gambling games.
    And that is what I would liken this to, well, you can do some research to reduce risk, but it is still gambling.
    I have a friend that loves playing investing in cryptocurrencies, stocks, and some other things.
    But really, what I've seen from him is that he enjoys doing it, and normally ends up with more loses than profit, some times more profits than loses, but nothing huge anyway.
    The point is, he has a gambling problem for sure.
     
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  3. FAST6191

    FAST6191 Techromancer

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    You are about 5 years late on this one (here is part of a conversation from 2012, detailing stuff that happened in talks in 2011, http://gbatemp.net/threads/29c3-hacker-conference-in-a-little-under-a-week.339564/#post-4489262 ), though I suppose there is still room to grow. I will go with pure investment here as mining is a very hard game at this point.

    There are plenty of people that invested and got real more conventional money, how to then declare it for tax purposes gets tricky depending upon where you are as in many places nobody is quite sure what kind of financial instrument they are, or indeed if they are even legal in some countries.

    Charts
    https://bitcoincharts.com/charts/bitstampUSD#tgSzm1g10zm2g25
    Had you invested in 2012 in the sub $100 range you could sell off today for north of $2200 on that exchange*. That was long ago though so had you invested in the 2014-2015 slump at somewhere under $400 you would still be able to sell for $2200 today and make a tidy profit. Had you bought in during the first 2013 high and you would have halved your money until later that year, at which point you could have sold off for some for some 4 times more. Had you bought in at the late 2013 high you would have only been able sell at a profit earlier this year. Though at the same time had you bought in during the low of early 2015 you could have made money (and the return would have been greater than most other types of investments) selling at any point from then on really. Right now there appears to be some massive growth happening (more than doubled since January) which is probably what brought it to your attention, I am not sure what is causing this one though.

    *there are many exchanges out there which will sell you things and cash you out, some will even offer to store your bitcoins for you (probably before getting hacked and losing it all -- a choice phrase I once heard is there are two types of bitcoin exchange; those which have been hacked and those that don't yet know they have been hacked). Technically they can all offer different prices, and you can certainly take advantage of disparities in pricing, but most of the time they are all pretty similar, or if they are dissimilar then by the time you factor in commissions and volumes they will do in any one go/period then yeah.

    There is nothing terribly special about bitcoin though and anybody can make their own. How many places take them in, and in turn how valuable they are in general, varies dramatically. Likewise the options to do some of the more interesting financial transactions with them are far more limited than conventional stocks (there are places that allow you to short bitcoin, do hedging transactions and automated selling/buying but they are not the norm).

    The current hotness is probably distributed ledgers aka smart contracts, they function in a broadly similar way and can be used as currency but are aimed more at facilitating services rather than just currency exchange, one video
     
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  4. Tom Bombadildo

    Tom Bombadildo Honk!

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    I forgot
    As FAST mentioned, you're basically 5 years too late. Also, never take anything that "guarantees profits!" at face value unless it's something legitimate like, y'know, an actual job :P

    Bitcoins, and cryptocurrencies in general, are like any other investment opportunity; it has it's ups and downs. Bitcoins are a little more volatile though, and can be affected by anything from government bankruptcy (like Greece) or Chinese regulations (since a majority of BTC transactions are processed in China nowadays), and you can end up losing hundreds of dollars or gaining a few hundred depending on the state of things.

    If you really want to get into cryptocurrencies, my advice would be to wait for BTC to drop again (since it's at an all time high at ~$2300 right now) and then just toss $50 or so into a BTC wallet and check the value every now and again. I do some "IT Consulting" work for a BTC right now that pays me in BTC, what I usually end up doing is selling a majority of it and leaving $50 worth and see if it grows. Right now that $50 from last month is worth a whole $80 now
     
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  5. depaul
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    depaul GBAtemp Fan

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    Thanks. Yes actually I never took crypto coins too seriously until lately, with the rise of the famous bitcoins.

    So if I understand even if someone gains a few dollars, converting back BTC to real money is a bit tricky, and might be lost totally if the coin is untrustworthy.
     
  6. duffmmann

    duffmmann GBAtemp Psycho!

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    At this point if you buy a bitcoin, you shouldn't expect 10x return on it, probably not even 2x return on it even if you hold onto it for a few years. That goldrush is over. It can gain money for you, sure, but at this point its really no different than buying some typical stock.
     
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  7. gnmmarechal

    gnmmarechal Kirigiri > Naoto

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    I've invested in it quite a few times in the past, a couple years ago, especially. Not that much into Bitcoin, though. I was mostly using other cryptocurrencies like Monero, and Cryptonight-based coins.

    Aaaand, I like Dogecoin.



    I also used to gamble with cryptocurrencies quite a bit. Made some profit right there, but that was pure luck.

    I still own some amount of various cryptocurrencies, I never sold it all.

    I haven't been messing with what I own in the past few months, though.


    EDIT: Wait what, the price for BTC is at 2k USD? uh. Last time I checked, when I bought a bit, it was around 300. Nice. I guess.
     
    Last edited by gnmmarechal, May 24, 2017
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  8. TheDarkGreninja

    TheDarkGreninja How could you hate that face?

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    Damn I just got :ninja:. Just sold the rest of mine last week. Got a sweet 10k back from my original investment.
     
    Last edited by TheDarkGreninja, May 24, 2017
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  9. gnmmarechal

    gnmmarechal Kirigiri > Naoto

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    I guess I'll hold onto what I have right now for a while longer, why the hell not.
     
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  10. Tom Bombadildo

    Tom Bombadildo Honk!

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    I forgot
    Not necessarily. As long as you're using a trustworthy site, selling BTC for "actual" currency is pretty simple. I use Coinbase when I sell my BTC, they pay a little less than the current price but I get a bank transfer from them after a day.

    Must've been years since you last checked, cuz BTC has been $500+ for like 3-4 years now. :P
     
  11. gnmmarechal

    gnmmarechal Kirigiri > Naoto

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    Really? O.o well I said a few months cuz I don't remember how long it was, I forgot to ever check the prices after that. kek

    Sent from my cave of despair where I stalk Seriel
     
    Last edited by gnmmarechal, May 24, 2017
  12. gnmmarechal

    gnmmarechal Kirigiri > Naoto

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    Well, checked my wallet, turns out I have a lot more than I had last time I checked it lmao

    I had 20 eur or so of BTC left, turns out I randomly have over 100USD of BTC now. Noice. It's like free money!
     
    Last edited by gnmmarechal, May 24, 2017
  13. Tom Bombadildo

    Tom Bombadildo Honk!

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    I forgot
    Well yeah, that's what happens when BTC value goes up, your coins are worth more lol :P
     
  14. gnmmarechal

    gnmmarechal Kirigiri > Naoto

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    Well, I'd forgotten about it due to how much it was xD

    Seems I also have a bunch more Doge than I thought. Yay
     
  15. Dionicio3

    Dionicio3 Some Cool Skiddo

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    Yeah:

    1 BTC = 2415.97 US Dollar
     
  16. depaul
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    depaul GBAtemp Fan

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    Ok it's better not to buy now, since the prices rose dramatically and certainly are going to drop later. Maybe I'll buy some coins then. You know, jobs nowadays aren't secure anymore :(
     
  17. Felek666

    Felek666 Demonically Uncontrollable

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    It keeps increasing so far. I wonder when it will crash...
     
  18. FAST6191

    FAST6191 Techromancer

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    The key is to try to guess how much later. Long term is one thing but if you reckon you have another two weeks before a fall, or maybe a crash, then you can easily turn it all around in that time and get yourself a small sum, maybe not multiple times but far higher percentages than a year in a savings account (5% in a year if you are lucky?) or some kind of basic stock market play (can't be bothered to do all the big ones but the FTSE 100 is up about 17% on this time last year, and again that is a year with it invested).