Anyone know much about Bitcoin?

Discussion in 'Finance, Investments, and Careers' started by BillsCarnage, Mar 5, 2013.

  1. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    LFIN down over 30% today back at 46.20 and GBTC down over 20% for the 2nd straight day, 3rd straight day down.

    Is the futures stuff hurting Bitcoin or is this related to the hacking stuff being discussed?

    This sort of volatility is precisely why I didn't buy either.
     
  2. AsUpRoDiGy

    AsUpRoDiGy Magnanimous

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    Reports of insider trading, hacking, high transaction fees, long delays in buying/selling, etc.. are some of the reasons that are causing a mass exodus. BTC now down to a little below 14K...as well as other cryptos being hammered as a result. XRP is up, but pretty much every other crypto is down big. All the shorts are killing it right now.
     
  3. Dback Jon

    Dback Jon Killer Snail Contributor

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    Anybody want to trade some bitcoin for some nice Tulip Bulbs?
     
  4. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    Yeah the speed at which this stuff goes up or down is terrifying if you can't get in and out quickly. That's what made GBTC interesting to me in the first place it is sort of an ETF so in theory it should be easier to get out. But it's absolutely crazy how fast it moves up or down.

    Last Friday I sat and watched it for about 10 minutes and it went up and down 10% in that 10 minutes so a 20% swing in a matter of 10 minutes entirely on just momentum no news of course.

    I guess we'll see, it's gone from well over 3000 to 1560 in a matter of days, if it keeps dropping I may consider putting 1000 dollars in there but I'm very leery it's just an insanely volatile stock
     
  5. elindholm

    elindholm rehabilitated

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    Maybe someone can help me with this. I know that bitcoins are "mined" by computers solving really complex problems. But who composes the problems, and how is the accuracy of the solution verified? Also, when one is solved, is there an announcement, or does the new currency unit just appear in someone's ledger? Is only one problem being worked on at a time? If one team of computers is near the solution to a problem but another team gets there first, is the first team left with nothing?
     
  6. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    This thing is so volatile it's stunning. It's now UP to 2000 up 12% on the day.Low for the day 1150, high about 2000, so if you had bought it at 1150 today you could have made about 80% profit in 4 hours.
     
  7. AsUpRoDiGy

    AsUpRoDiGy Magnanimous

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    I was watching that too. This is a flippers dream...short it when it peaks, and sell when it bottoms. Buy when it bottoms, and sell when it peaks. Rinse and repeat. Insanely volatile, but easy to make money on it if you time it right.
     
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  8. elindholm

    elindholm rehabilitated

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    Isn't that pretty much what everyone's trying to do? It's a lottery.
     
  9. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    One of the bigwigs at Berkshire Hathaway referred to it as just gambling and he's right.

    You're just randomly picking a low, buying it and then guessing when to sell and hoping you're close to right.

    I don't think I'd buy it unless it got below 500 and to get that low is a total collapse, it's essentially 2000 now, so then you're still taking a huge gamble it might come back(again).
     
  10. elindholm

    elindholm rehabilitated

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    Right. It's basically like any other commodity futures market, from what I understand. The price moves defy logic, so the only way to beat the game is to guess right.
     
  11. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    I'm talking about GBTC specifically which is not a future but sort of an ETF. It is supposed to track the price of Bitcoin but it doesn't actually track it close enough. SO you're not only trying to guess which way Bitcoin is going, you're trying to guess if GBTC will follow or not.

    With most ETF's or stocks there's at least some logic to your guess, the sector is doing well, the company is doing well, they might get bought out etc. It's still a guess but at least there's some logic to why it goes up or down. Bitcoin has no such logic behind it and these other stocks that track it don't either.

    It's totally driven by momentum and guessing. If you hit it right awesome, lots of money for doing nothing, but pretty scary to try it.
     
  12. gmabel830

    gmabel830 It's football season!!

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    Ripple (XRP) has gone up from $0.25 to $3.50 in the last month. I finally bought some yesterday - should really have bought when I made the above post though!!
     
  13. DutchmanAZ

    DutchmanAZ Registered

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    How do you buy and sell this stuff?
     
  14. Shaggy

    Shaggy Site Owner Administrator Staff Member

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    You promoted it and didn't buy it then? Ouch!
     
  15. gmabel830

    gmabel830 It's football season!!

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    Yeah, pretty much. lol. I looked into it and would have had to go figure out a new exchange to trade on and wallet to store on -- was on my to-do list before I crashed and did nothing over holiday vacation. :)
     

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