Sold of My Entire Bullion Collection In Order To Purchase BitCoins

Bitcoin up over $1100 to over $19,000.
Who exactly is buying this garbage at these prices?

 

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That’s really not true though. It is used a lot overseas. It’s not a pump and dump. Again these same arguments were made years ago, how many years does something have to work before it’s okay?

 

This is bizarre. You can buy any dollar amount of Bitcoin you want. The price of a whole Bitcoin is irrelevant – you're not required to buy whole units. I just put a desired amount of money into Bitcoin on Coinbase last year – I didn't care about buying whole Bitcoins.

What matters is whether it's a good investment at a given point in time, not whether an investor can afford to buy whole units. It's a digital currency, and easily divisible. It's so strange that someone would think buying whole units mattered.

Electronic currencies are obviously the future. That's been obvious for a few years at this point, so it's strange to see people acting like it's some crazy thing they've never heard of. It's almost 2021. I don't know that Bitcoin specifically is going to be widely used in the future – I think it will be other, improved currencies like Ampleforth or Polkadot. But Bitcoin is brilliant and seems to retain its status as the father of electronic currencies, and might end up being an important reserve currency. Solving the double-spending problem the way they did was brilliant. The next step will be supporting many thousands of transactions per second, and possibly designing a gold price based currency.

 

Assuming it's available as the supply is not unlimited

Not exactly but that's part of it. Expected return is a huge part of it. If you buy $100 dollar worth of bitcoin it needs to go to about 40k to have $200 dollars. That's a massive needed gain just to even double your money, meanwhile there are plenty of stocks out there (especially this year) where your return would have been much greater

If you can only buy a tiny fraction of a share there's much better places you could be investing

 

If the supply were unlimited, its value would be zero. That's the whole point!

So you're saying that... in order to double your money in Bitcoin, you have to wait until its price goes up one HUNDRED percent, whereas to double your money in a stock, you merely have to pick one that's going to go up by a factor of two. Well, that clears everything up.

 

I'm saying not to swing over ones head with their investments. There is a point where you don't have enough money to make it worth it. Will bitcoin double to 40k I don't know, will numerous 5-15 dollar stocks more than double especially as the world returns to normal without question they will.

 

I'm struggling to understand your perspective. You can buy any amount of Bitcoin, unless we're talking about billions of dollars worth, and we're unlikely to be talking about billion dollar transactions here.

You think that Bitcoin can't double because it's worth X right now, where X ≈ $20,000? What's the significance of that number? It seems like you're getting hung up on the current price, first thinking that the price somehow prevents people from being able to buy it, which is incorrect, and second, thinking that its price means it can't increase as much as stocks, which is an arbitrary sort of belief.

The guy who started this thread made a ton of money if he held his Bitcoin. He made far more than he would've with stocks, at least stock indexes. I've made quite a bit more with Bitcoin than from my conventional investments. There's nothing special about the current price, $19,000 or whatever. What matters are the long-term outlook, all the factors that will influence it, etc. A priori, there's nothing about any particular number or price that would tell us anything about its future performance – it seems like you're hung up on the current price because it feels large to you. But that's arbitrary. No one knows what high or low is with respect to Bitcoin, and there will never be a stock split equivalent for it, so the price can easily climb far beyond its current level.

 

That it has to go up 20k dollars to double.

It's very simple, the more expensive something is the more it has to go up to double your money. So while you're waiting for bitcoin to go from 20k to 40k countless stocks that dropped down into the teens or lower have gone up 4x or more. One major casino dropped down to 4 dollars earlier this year it's now at 70 something.

I don't really want to keep explaining this over and over anymore

 

And I'm sure the rest of us don't really want to keep explaining over and over how percentages work.

Say you've got $1000 to put into stocks. You could buy 8 shares of Apple at about $125/share, or 33 shares of AT&T at about $30/share.

Now, there are lots of good reasons to pick one or the other (or neither, or both). But "AAPL would have to go up $125/share to double your money, T would only have to go up $30/share" is not one of them.

Your argument is exactly as sensible as saying "I want to hold some cash, but I think the dollar is going to lose 50% of its value in the next ten years. I don't want $100 bills, because they'll each lose $50 in value! I'll get $1 bills instead, because they'll only lose 50 cents. Better yet, I'll get it all in pennies, because they'll only lose half a cent in value!"

 

And that, in a nutshell, is why I'm not buying into Bitcoin. It could go up to $1,000,000, or it could go down to $400. And I have absolutely no basis for deciding which is more likely.

I'm still not sure my decision is rational. I mean, I could put a few hundred bucks into it. If it went to zero, I wouldn't really be hurting, and if it went to $1000000, I'd have a five-figure windfall. But I don't like putting money into things that I can't even pretend to understand.

 

Sure thing. I already gave a specific example comparing apple to T is an absurdity in the first place. Like I said though I'm done explaining something so simple if you guys can't figure it out.

 

Don'T sell it all

 

Great job Tyler. I started laughing almost immediately and then the closer LMAO!!!!!

 

He was last seen here in July 2016. Always check the date of a post before you respond.

 

So the point is that real rich people money is now going into bitcoin. See Paul Tudor Jones "The Letter". See Michael Saylor putting the treasury cash of MicroStrategy into bitcoin. Of course these guys are talking their own book, but given the rampant money printing ... not everyone trusts the long-term value of the dollar, or the pound, or the euro. Gold is a good alternative to currency in an inflationary environment, but some believe bitcoin will give a better return over the long run.

I am not promoting bitcoin, I'm just giving a rationale for owning some. Maybe as part of a diversified portfolio. Bill Gross has said 1% is not unreasonable, and he has a certain reputation as a prudent investor.

Please don't hit me, I'm just saying...

 

Also, this is an excellent example of an asymetric investment. Limited downside, and nearly unlimited upside. I would go for it, even if only for a small investment.

 

Well, maybe the downside is not so limited. If bitcoin went to zero, you would lose all your money.

So I would not bet the farm on it, but I might bet one or two cows. I might lose a cow or two, but I might win ten. That is what I meant by asymetric.

 

But isn't that true of most investments? I mean, a random stock can't do any worse than fall to zero, but it could go up by any arbitrary amount.

For that matter, look at lottery tickets. At worst, you lose all the money you paid for the ticket. At best, you're an instant millionaire. Still doesn't make lottery tickets a good investment.