Bitcoin... how is it gaining so fast? (1 Viewer)

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Can anyone explain to me how Bitcoin is able to gain $6000 in just 24 hours? How is this a viable currency? It was $40,000 for a bit... I don't understand how it is gaining so fast with relatively little purpose at the moment.
 

Brennan77

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Can anyone explain to me how Bitcoin is able to gain $6000 in just 24 hours? How is this a viable currency? It was $40,000 for a bit... I don't understand how it is gaining so fast with relatively little purpose at the moment.
It's a theoretical hold of value with a clearly defined and limited supply. The recent jumps in value are due to institutional investments.
 

rob22278

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Supply and demand. There’s not a lot of it and bigger institutions are starting to accept it (cryptocurrency) as more mainstream.
 

UncleTrvlingJim

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Obvious answer is it's speculation. Drivers for it's value going up is uncertainty in the US, potential inflation, things like that.

It's a market I don't understand very well, so I stay away from it. I think we'll see a fair number of swings as people figure out how to appropriately price it.
 
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A guy I used to work with at a customer was a huge advocate for bitcoin about 8 years ago. I seen him working at a gas station a few weeks ago. I guess he sold it all before it took off :oops:
 

UncleTrvlingJim

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A guy I used to work with at a customer was a huge advocate for bitcoin about 8 years ago. I seen him working at a gas station a few weeks ago. I guess he sold it all before it took off :oops:
I remember when the first paper came out and there was information on how to mine it yourself, and I went through the trouble of figuring out how to mine it, but then never actually did any of the mining b/c I didn't really understand why anyone would ever use it. :rolleyes:

I have a friend who claims that he did mine about 50 bitcoins but lost the wallet for it.
 

brandon8283

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I bought an extremely partial share of a Bitcoin just to mess around.

If it keeps going nuts I might play for real.
 

RKNSaint

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Speculation and FOMO. Not for the feint of heart but if you don't mind the opportunity that comes along with extreme volatility it's a great thing.
 

Arathrael

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Obvious answer is it's speculation. Drivers for it's value going up is uncertainty in the US, potential inflation, things like that.

It's a market I don't understand very well, so I stay away from it. I think we'll see a fair number of swings as people figure out how to appropriately price it.
Yes, it's speculation. Most of the money being put into bitcoin isn't being put in it to do anything with it, it's just going in on the grounds that people will keep putting money in so it's a good investment. In terms of intrinsic value deriving from its real and potential functionality, the problem bitcoin has there is that every functional purpose it has can be done more efficiently or effectively by alternative cryptocurrencies, or that the added features using a cryptocurrency offers aren't necessarily worth the overhead to alternative or conventional approaches in the first place.

So it's largely a perception of value, and the problem with that is that if the primary reason people are putting money in is in expectation of other people putting money in it later, that can collapse if and when the momentum shifts to taking money out rather than putting it in and the perception of value then starts to swing (as it has previously). But that doesn't necessarily mean it will, or that it can't reach a point of relative stability. As long as enough people hold the notion that bitcoin has value, then it will continue to have value. As the first and overwhelmingly largest, it has a lot of built in momentum boosting that perception of value. That can surge and ebb with coverage and investments. But having said that, in the long term, I think it's going to wind up closer to tulips than, say, gold.

So beyond a small amount of cryptocurrencies I've already got, I also stay away from it. There's certainly opportunity for making money, but I'd say it's closer to gambling than anything else. So maybe 'winning' money would be more accurate.
 

UncleTrvlingJim

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Yes, it's speculation. Most of the money being put into bitcoin isn't being put in it to do anything with it, it's just going in on the grounds that people will keep putting money in so it's a good investment. In terms of intrinsic value deriving from its real and potential functionality, the problem bitcoin has there is that every functional purpose it has can be done more efficiently or effectively by alternative cryptocurrencies, or that the added features using a cryptocurrency offers aren't necessarily worth the overhead to alternative or conventional approaches in the first place.

So it's largely a perception of value, and the problem with that is that if the primary reason people are putting money in is in expectation of other people putting money in it later, that can collapse if and when the momentum shifts to taking money out rather than putting it in and the perception of value then starts to swing (as it has previously). But that doesn't necessarily mean it will, or that it can't reach a point of relative stability. As long as enough people hold the notion that bitcoin has value, then it will continue to have value. As the first and overwhelmingly largest, it has a lot of built in momentum boosting that perception of value. That can surge and ebb with coverage and investments. But having said that, in the long term, I think it's going to wind up closer to tulips than, say, gold.

So beyond a small amount of cryptocurrencies I've already got, I also stay away from it. There's certainly opportunity for making money, but I'd say it's closer to gambling than anything else. So maybe 'winning' money would be more accurate.
nice reference to tulips there!
 

rsmith2783

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I remember when the first paper came out and there was information on how to mine it yourself, and I went through the trouble of figuring out how to mine it, but then never actually did any of the mining b/c I didn't really understand why anyone would ever use it. :rolleyes:

I have a friend who claims that he did mine about 50 bitcoins but lost the wallet for it.
I know he is mad at himself
 

mc4saints

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UncleTrvlingJim

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I know he is mad at himself
Yeah. although he realizes if he had kept it, he would have sold out when it hit like $500, so it's not like he was likely to have $2 million now anyway.
 

Dre

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I bought an extremely partial share of a Bitcoin just to mess around.

If it keeps going nuts I might play for real.
sounds like waiting for the price to go up before you buy...?

I own 1 btc and a small
Amount of some alts. I don’t know enough about any of this to have ever invested but a few years ago I put some in (before it plummeted). My friend was quite convincing. I’ve basically doubled the value of my portfolio after being down 40% for 2 years. I feel like it could crash to zero or go to $500,000 in 5 years.
 
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MSUSousaphone

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I have several banking apps and they all seem to have begun letting people invest in cryptocurrency. I'm guessing that mainstream influx is really having an impact.
 

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