Sold of My Entire Bullion Collection In Order To Purchase BitCoins

Discussion in 'Bullion Investing' started by Tyler, Apr 1, 2013.

  1. HawkeEye

    HawkeEye 1881-O VAMmer Supporter

    You are showing your age. No one under thirty even knows who DEC is.

    These are all interesting quotes and definitely document some big misses, but none deal with the underlying financial structure. It seems that there is more consensus that block chain has a life as a platform, and I think most major banks are actually looking at that piece of the puzzle. But Bitcoin seems to be somewhat flawed and I think it is likely the regulators have it in their sights. There is too much opportunity for fraud and abuse not to look in more detail. For sure the guy on TV plugging it as a sure fire $150,000 price point has a vested interest in seeing it go that high.
    midas1 likes this.
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  3. -jeffB

    -jeffB Greshams LEO Supporter

    Gosh, ya think? :rolleyes:

    Thing is, I would have zero confidence betting that it won't reach that level. I can't call tops worth a darn.
  4. Lesbian Cow

    Lesbian Cow Member

    Here is another physical bitcoin collectible I picked a while back (Kialara, Silver, #55 of 250:

    In order to access the private key you would destroy the piece.

    I understand the OP was an April Fools joke but has anyone done the maths for the OP? OP was April 1, 2013. BTC was approximately 100 usd / btc (

    Let's say the OP just dipped his toes into btc and sold one ounce of gold and put the proceeds in bitcoin. Spot gold was 1,380 USD per ounce, so spot for spot OP would have 1380/100 = 13.8 btc. Current value is 13.8 btc x 9000 usd = 124,000 USD. Now there was no guarantee that would work out, and there was definitely big risk he would lose his 1380 usd, and he could have panic sold 3 weeks later on the crash to 50. But if it was an amount he could afford to lose and he just tucked it away, oh my.

    I do agree that there are many shills around crypto trying pump and dump schemes but they are no longer around bitcoin as it is too big of a market for small time fraudsters to manipulate. These fraudsters make up new coins and have ICOs (initial coin offerings) They are preying on new people who missed out on bitcoin and want to get rich quick. Bitconnect was the most recent big one. It is sad to see. I find it both shocking and sad that people lose money to obvious con-artists like this one, but I am not a greedy person and don't feel like i need to be rich to be happy:

    I did not invest in bitcoin back in 2013 to get rich, i just thought it was an investment that would complement the rest of my portfolio well. I studied, read, and learned about crypto for 6 months before being comfortable enough to put in t a real amount of money.

    HawkeEye, when you say " But Bitcoin seems to be somewhat flawed " i am curious what you see as the flaws. I have been pretty heavily involved for 5 years now and I am not seeing the flaws but perhaps I should.

    As far as the regulators, in most major countries bitcoin is regulated. Here in the US the exchanges are regulated. They are monitored by FINCEN, practice AML/KYC, and have to register as an MSB in every state they have customers (mine filed a 1099k with the IRS for me). Bitcoin gains/losses are reported on your Schudule D according to the IRS. Long term/short term gains are taxed as same rates as stock or commodities trading.

    I sold some for the fist time in late December 2017 as it had just become too much of my overall portfolio - my accountant had no problem sorting my return.
    Last edited: May 1, 2018
  5. HawkeEye

    HawkeEye 1881-O VAMmer Supporter

    In my mind, as simple as it is, everything has value based on something. Even a fiat currency has the backing of the taxing power or sustainability of a country like the US and the holders agree on the value based on this premise. Unlike gold or silver where intrinsic value is created by scarcity, in fiat currencies intrinsic value is created by the sustainability of the issuing country.

    At this stage it would seem the all cryptocurrencies have value based on agreement of holders but there is no underlying entity to create sustainability. There is no taxing power or identified entity with staying power as backing, just technology.

    I am glad you made money on it, but think you should also be happy with your timing. A key elements with any currency are stability and public acceptance and maybe that will come, but for that to happen it has to be a lot more understandable to the average person and confidence has to be much higher. I don't see either of those in the short term.

    But just the view from here and I am glad it worked out for you.
  6. HawkeEye

    HawkeEye 1881-O VAMmer Supporter

    Well like most of us we are not very good at calling tops or bottoms. They don't ring a bell at either point.
  7. baseball21

    baseball21 Well-Known Member

    Intrinsic value is a fallacy, things have value because people say they do. The same thing that gives money it's value is what gives metal it's value, because people want it. Money obviously has a backing of a military that metal doesn't among other things but in it's simplest forum its the same.
  8. HawkeEye

    HawkeEye 1881-O VAMmer Supporter

    Well different perspectives and different ways of analyzing issues is what makes investments something other than one size fits all. Good luck.
    Santinidollar likes this.
  9. Larry Salemme

    Larry Salemme Active Member

  10. Lesbian Cow

    Lesbian Cow Member

    Last edited: May 3, 2018
  11. HawkeEye

    HawkeEye 1881-O VAMmer Supporter

    Interesting article, but I am a little iffy on the "man-buns"
    Michael K and Lesbian Cow like this.
  12. Santinidollar

    Santinidollar Supporter! Supporter

    Never heard it put that way, but I’d find it hard to argue against.:cool:
  13. Larry Salemme

    Larry Salemme Active Member

  14. Newcoinboy2018

    Newcoinboy2018 Active Member

    Oh, I believe in cryptocurrency, for sure! Why not just have a few mining machines earning coins for you each month? You can continue to be a numismatic individual :)
  15. Santinidollar

    Santinidollar Supporter! Supporter

    $8,518 Saturday evening
  16. -jeffB

    -jeffB Greshams LEO Supporter

    ...because you'd be spending more in electricity than you were earning in coin, never mind the cost of the equipment?
  17. Newcoinboy2018

    Newcoinboy2018 Active Member

    Hmmm...It can be that way depending on how you build the mining machines. I’ve got 3 earning a peercoin a month with very little power being used. Usb hubs for the mining erupters, and a raspberrypi running the mining software client with the usb hubs. They just keep running :)
  18. HawkeEye

    HawkeEye 1881-O VAMmer Supporter

    You can always drop an extension cord over at the closest Starbucks and suck their power dry. Then it is really free.
  19. TheFinn

    TheFinn Well-Known Member

    Bitcoin uses as much energy to mine new coins each month as the nation of New Zealand uses. How is that economically feasible? Blockchain will not be the future. Probably more likely Hashgraph.
    midas1 likes this.
  20. Newcoinboy2018

    Newcoinboy2018 Active Member

    I’m not mining btc because of its power and time consumption. Definitely not worth it. I simply believe in peercoin because it’s realistic with power.
  21. Santinidollar

    Santinidollar Supporter! Supporter

    Noticed that today has been declared World Bitcoin Pizza Day by, of course, the bitcoin promoters. It’s the deal where somebody paid 10,000 bitcoins for two pizzas eight years ago.

    Judging by the articles, I suppose the writers are trying to sell the idea that the event from 8 years ago makes bitcoin a good investment today.

    Which, thought out logically, it doesn’t do at all.
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