Newfie wrote:While I await Carinkes response I will demonstrate my ignorance by attempting a partial answer.
...
Because they are rare their quantity is controlled. My understanding is that super computers or mesh computing is being used to solve for more bitcoin solutions. The energy being expended to “mine” bitcoins is somewhat more than what Belgium uses.
Essentially you own a bit coin solution, you get a certification of the solution, which is unique, can not be replicated.
So a bit coin is a lot like gold, it is a rare item, limited quantity, can not be replicated or transmuted.
It is a rejection of fiat currencies the same way gold bugs hoard physical gold. Or junk silver. I think of it this way, a bit coin is real in the intellectual world the way hold is real in the physical world. It is a repudiation of fiat which is based on TRUST. So gold bugs and bit coin adherents are saying they have more faith in good or the bit coin SYSTEM than they do in dollars. Then there are the folks who buy toilet paper and ammo.
vtsnowedin wrote:Dose anyone have a handle on how many people are investing in Bitcoin out of any given population? Is it a toy for Geeks or something everybody should consider?
As an older conservative I think not, but the majority might have other ideas.
Newfie wrote:Here is an old question of mine.
Lets say you have a spare $100,000 laying around. You do not want to keep it in cash, you want it to be useful in a collapse situation. So it needs to be portable and of sufficient intrinsic worth that it will not loose value AND it needs to be divisible into small units, so that you can buy a loaf if bread with it.
Real estate is a great investment, not portable or divisible. Gold is portable but hard to wack off $5 worth. I have no clue about bitcoin divisibility, I suspect you sell it, convert it to cash.
I find this a difficult question. The only thing I can think of that works would be either junk silver or ammo. 22LR would work reasonably well but is heavy. And for me traveling internationally it is often illegal.
Other thoughts appreciated.
Newfie wrote:Plant,
Thats the thing, as ephemeral as it is bit coin has some intrinsic value, it is a rare item that can be uniquely identified.
Compare to gold
Gold is rare but can be mined, ditto bit coin - except there seems to be a faster diminishing rate of return. It keeps getting harder and harder to find solutions to the algorithm.
Hood can not he uniquely identified, it can be assayed to assure purity. But coins are absolutely unique and identifiable.
Money, dollars or Euros or pounds are not rare, they can be and are created from thin air.
Money can be counterfeited but that has gotten harder. But is not just printing more money government sanctioned counterfeiting?
Bottom line: bitcoin has more valuable traits than MODERN fiat currency.
vtsnowedin wrote:$100,000 laying around? Nice problem to have.
How about what it would take for you to survive with no additional income for a year?
High end earners have often leveraged out their expenses with high rents and high car payments etc. and paying minimums on those pesky credit card balances.
Cut off their income and in sixty days they are out of the apartment and their car has been repossessed. Hope Mom and Dad will still let you in.
The best defense is to own outright a modest house you can live in for just the utility bills and the property taxes knowing it takes a couple of years for back taxes to result in eviction. A good solid bank balance would not hurt a bit in such a situation but you have to take action to carry on once it is exhausted.
Outcast_Searcher wrote:Newfie wrote:Plant,
Thats the thing, as ephemeral as it is bit coin has some intrinsic value, it is a rare item that can be uniquely identified.
Compare to gold
Gold is rare but can be mined, ditto bit coin - except there seems to be a faster diminishing rate of return. It keeps getting harder and harder to find solutions to the algorithm.
Hood can not he uniquely identified, it can be assayed to assure purity. But coins are absolutely unique and identifiable.
Money, dollars or Euros or pounds are not rare, they can be and are created from thin air.
Money can be counterfeited but that has gotten harder. But is not just printing more money government sanctioned counterfeiting?
Bottom line: bitcoin has more valuable traits than MODERN fiat currency.
An asset's value re investment needs to be considered in terms of the RISKS. So you're going to just ignore all the risks with Bitcoin / crypto?
mmasters wrote:Newfie wrote:Here is an old question of mine.
Lets say you have a spare $100,000 laying around. You do not want to keep it in cash, you want it to be useful in a collapse situation. So it needs to be portable and of sufficient intrinsic worth that it will not loose value AND it needs to be divisible into small units, so that you can buy a loaf if bread with it.
Real estate is a great investment, not portable or divisible. Gold is portable but hard to wack off $5 worth. I have no clue about bitcoin divisibility, I suspect you sell it, convert it to cash.
I find this a difficult question. The only thing I can think of that works would be either junk silver or ammo. 22LR would work reasonably well but is heavy. And for me traveling internationally it is often illegal.
Other thoughts appreciated.
Silver is the way to go, has more potential than gold (IMO) and you don't need that much...
https://www.apmex.com/product/196110/20 ... box-sealed
And if you only have a few thou lying around you want to protect/invest...
https://www.apmex.com/product/196106/20 ... onster-box
Newfie wrote:Not at all, I don't have bit coin because of those risks. But there are also risks with money. You cant ignore those either. I see no risk free path. Best to diversify to spread your assets so that it is not all in one risk category.
Good point. Far too few people, especially relatively young people, seem to understand the value of not being in lots of debt -- especially debt that can CRUSH you in short order if something goes wrong.
Newfie wrote:Good point. Far too few people, especially relatively young people, seem to understand the value of not being in lots of debt -- especially debt that can CRUSH you in short order if something goes wrong.
It may be more prevalent among the young but not limited to them. Many of my coworkers bringing down 6 figure salaries were very deeply into debt and not saving or even pulling down their retirement savings. I did not live their life style, did not drive their cars, did not have their house, etc. But now I’ve got my retirement.
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