Bitcoin

Bitcoins value is always going to have to be based off SOMETHING. It has no value on its own. There is no standard to say what a bitcoin or a portion of bitcoin gets you without some sort of valuation method.

Bitcoin is worth X amount of USD, or X amount of pesos etc.

If those currencies didn’t exist, what is the value of bitcoin? The value is one bitcoin. Which means what? What does one bitcoin get you if there is no basis off of it to go by? So, there has to be some sort of underlying valuation method for bitcoin to be adopted as any form of payment. Until then, it’s just an asset that is traded for money, which then used to buy other things. It’s already been mentioned on here that no one is going to do small transactions with bitcoin because of its value. And 99% of transactions are small.

I think if people would stop calling it “the currency of the future” and call it, “the asset of the future” then I would buy into it more. I sell my assets to buy things. I wouldn’t give the grocery store 1 share of Apple stock for payment, I would sell the Apple stock and give them money.

So bitcoin is going to be an asset. And you can sell portions of that asset to pay for things. But its value will always be based on something besides itself.
 
What's any currency based on? The US dollar is considered the world currency because that is what most every country has agreed to. There are efforts to change that as we type. What if everyone decided Bitcoin should be the standard and US dollars were based off it?
 
Burnsie said:
What's any currency based on? The US dollar is considered the world currency because that is what most every country has agreed to. There are efforts to change that as we type. What if everyone decided Bitcoin should be the standard and US dollars were based off it?
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The only way that happens is if something/someone decides that bitcoin has a certain value. Which means it not decentralized.
 
timekiller13 said:
The only way that happens is if something/someone decides that bitcoin has a certain value. Which means it not decentralized.
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Lots of people have already decided bitcoin has value if it didn’t the price would not go up.

Decentralization just means no country has the ability to produce more. No one government has control over the amount of bitcoin. The fed has printed trillions of US dollars deflating its value tremendously
 
timekiller13 said:
Bitcoins value is always going to have to be based off SOMETHING. It has no value on its own. There is no standard to say what a bitcoin or a portion of bitcoin gets you without some sort of valuation method.

Bitcoin is worth X amount of USD, or X amount of pesos etc.

If those currencies didn’t exist, what is the value of bitcoin? The value is one bitcoin. Which means what? What does one bitcoin get you if there is no basis off of it to go by? So, there has to be some sort of underlying valuation method for bitcoin to be adopted as any form of payment. Until then, it’s just an asset that is traded for money, which then used to buy other things. It’s already been mentioned on here that no one is going to do small transactions with bitcoin because of its value. And 99% of transactions are small.

I think if people would stop calling it “the currency of the future” and call it, “the asset of the future” then I would buy into it more. I sell my assets to buy things. I wouldn’t give the grocery store 1 share of Apple stock for payment, I would sell the Apple stock and give them money.

So bitcoin is going to be an asset. And you can sell portions of that asset to pay for things. But its value will always be based on something besides itself.
Click to expand...
Agreed, currency is far fetched. Transaction time and cost are too high. Previously mentioned layer 2 stuff has been around and presents various hard challenges. Whether it’s an asset worth investing in long term, who knows but it seems to be going up in the short term.
timekiller13 said:
The only way that happens is if something/someone decides that bitcoin has a certain value. Which means it not decentralized.
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Asked and unanswered, who decides the USD has a certain value?
 
yeky83 said:
Agreed, currency is far fetched. Transaction time and cost are too high. Previously mentioned layer 2 stuff has been around and presents various hard challenges. Whether it’s an asset worth investing in long term, who knows but it seems to be going up in the short term.

Asked and unanswered, who decides the USD has a certain value?
Click to expand...

Foreign exchange markets.


Sent from my iPhone using Tapatalk
 
timekiller13 said:
The only way that happens is if something/someone decides that bitcoin has a certain value. Which means it not decentralized.
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The something that “decides” bitcoin has a certain value is the decentralized collection of someones that constitute the market of buyers/sellers/holders of bitcoin. Bitcoin valuation works the same as valuation of any currency, commodity, good, or service. When the people who want a particular currency/commodity/good/service trade some amount of another currency/commodity/good/service, an exchange rate gets established. Billions of such trades occurring every day constitute the free market and “decide” how much of one thing is worth how much of another thing. The US government doesn’t decree that a dollar is worth one pint of bottled water or 1/5 of a pound of ground beef or .027 oz of silver; the holders/users of dollars (in the aggregate) decide (via their buying/selling behavior) how much a dollar is worth in relation to other things (and vice versa)…same goes for bitcoin.
 
For people who don’t understand or can’t conceptualize crypto currency and/or cryptography do yourself a favor and listen to the Shawn Ryan podcast episode #215. The guest is Charles Hoskinson (founder of Cardano and co-founder of Etherium) and for the first two hours or so he gives the best breakdown of cryptography and how it is and will be used.

I know this thread is Bitcoin specific and that is what everyone’s focus is on pertaining to this discussion. But I think to gain a better understanding of Bitcoin and how it actually provides a tangible value you have to look at the entire ecosystem of cryptography.

The way I look at Bitcoin and/or other alt-coins is this, does it add value in the context in which it is meant to be utilized? If so, then there is value to it despite it only being a series of ones and zeros.

Currency (no matter what it is) is simply an exchange of value. If you’re dehydrated and dying of thirst in a desert what has more value, a gold coin in your pocket or a canteen of water? In that example (specific context) a canteen of water is literally worth its weight in gold, but that same canteen of water ina different context has literally no value.
 
While people discuss why btc doesn’t have value or don’t understand why, it just keeps ticking off new all time highs.

Follow the M2.


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MountainTracker said:
While people discuss why btc doesn’t have value or don’t understand why, it just keeps ticking off new all time highs.

Follow the M2.


Sent from my iPhone using Tapatalk
Click to expand...

1000% !!! This goes for most equities in general as well.

Sharp increase in M2 recently…. Money printer on…. USD value lowering…. BTC treasuries and ETFs…. Gov’t BTC reserves….

How many signs do you need????


Sent from my iPhone using Tapatalk
 
eddielasvegas said:
View attachment 904732


To infinity and beyond. 🤑:unsure:


Eddie
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My 18yr old son loves watching and learning about markets. My wife and I gave him some money to invest for his HS graduation gift. He opened a Schwab account and bought SPY, VOO, IBIT and FBTC. 3 days ago he put 5k into his account and split it between IBIT and FBTC. He is pretty happy with his investment currently.
 
KsRancher said:
My 18yr old son loves watching and learning about markets. My wife and I gave him some money to invest for his HS graduation gift. He opened a Schwab account and bought SPY, VOO, IBIT and FBTC. 3 days ago he put 5k into his account and split it between IBIT and FBTC. He is pretty happy with his investment currently.
Click to expand...
Now that is money and I love to hear it.

Tell him FIRE. Financial Independence, Retire Early.

Good luck to your son.


Eddie
 
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