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.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.
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.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![]()
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.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.
nice reference to tulips there!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.
I know he is mad at himselfI 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.
I have a friend who claims that he did mine about 50 bitcoins but lost the wallet for it.
Supposedly, 20% of Bitcoins are lost. Imagine this guy trying to sleep at night. He has 2 password attempts left out of 10 to get 7002 Bitcoin. if those 2 fail, the drive wipes itself I guess.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.I know he is mad at himself
sounds like waiting for the price to go up before you buy...?I bought an extremely partial share of a Bitcoin just to mess around.
If it keeps going nuts I might play for real.