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To Bit Or Not To Bit

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Wade Hampton III

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  • Location: Pontiac, SC

To Bit Or Not To Bit

PostTue Aug 11, 2015 6:19 pm

Jim Rickards on Bitcoin.....

Think Bitcoin is safe? Guess again! Exec arrested for massive theft!

Bitcoin aficionados love to tell the world about how the blockchain
ledger and military-grade encryption make Bitcoin a safer store of
value than traditional safe-haven assets such as gold and silver.
The technology may be new, but some things, including human nature,
never change. Bitcoins have to be stored and exchanged in some system,
and if the proprietor of that system is a crook, then your Bitcoins
may go missing just like any other asset class in the wrong hands.
Follow link to see how one system operator allegedly stole $390
million in Bitcoins. He’s now under arrest. ... coins.html

In From The Rain
bitcoin-burglar.jpg (29.25 KiB) Viewed 1230 times
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C.E. Whiteoak

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Re: To Bit Or Not To Bit

PostWed Aug 12, 2015 5:47 pm

Bitcoins are money that doesn't really exist, but then so is a hundred-dollar bill. :lol: :lol:
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Wade Hampton III

  • Posts: 1061
  • Joined: Fri Oct 18, 2013 10:40 pm
  • Location: Pontiac, SC

Re: To Bit Or Not To Bit

PostSun Mar 05, 2017 4:27 pm

Mark Nestman wrote...

It’s hard to compare the value of the world’s classic store of value – gold
– with a digital currency that has no tangible existence. But last Thursday
marked a watershed moment because for the first time ever, one unit of Bitcoin
exceeded the value of an ounce of gold. Bitcoin closed the day at $1,268. By
comparison, gold ended trading at $1,233/ounce. Bitcoin’s attraction is obvious.
In an era where governments are imposing negative interest rates and other measures
of “financial repression” against savers, Bitcoin offers a store of value that
governments have no means to manipulate. What’s more, since Bitcoin transactions
occur “peer-to-peer” rather than through a financial institution, governments have
no convenient way to monitor those transactions. Governments also don’t have the
power to confiscate Bitcoins as they can bank or securities deposits.

Between The Cracks
bitcoin-1.JPG (58.11 KiB) Viewed 392 times

Should you invest in Bitcoin? It’s certainly not a risk-free proposition. Bitcoin’s
value rose from zero to peak at nearly $1,000/unit at the end of 2013. But then
it lost more than 75% of its value in the next year. It has fully recovered since
then, although the price remains volatile. Other risks to Bitcoin include theft
(as in the infamous Mount Gox heist). Not to mention government crackdowns (as in
the recent actions of the Chinese government to prevent wealthy citizens from using
Bitcoin to evade the country’s foreign exchange controls). But I think the largest
risk is the possibility that improved digital currencies will emerge. Bitcoin already
has numerous competitors in this market: Ethereum (heavily backed by software giant
Microsoft), Ripple (backed by Google), Sexcoin (designed as a private way to pay for
online porn), and many others. Still, Bitcoin is definitely worth considering if
you’re tired of savings accounts that generate close to zero interest rates, or
even negative rates in some cases. As always, when purchasing an asset with volatile
values, the safest strategy is to “dollar-cost average” your purchases. Buy a little
Bitcoin every week or every month. That way, you’ll automatically buy more when prices
are low; less when prices are high.

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