NFR Bitcoin Accepted Here?

Snakes

Active Member
#32
I was gonna get in the bitcoin game, but realized I didn't have a cryptocurrency wallet. And I hate wallet shopping. I've already repaired my regular wallet like three times.
 
#33
I take bitcoin in my restaurant, mostly as a gimmick. The risk is only present as a retailer if you leave it in bitcoin, I convert it to US dollars at the end of every day's transactions so my risk is essentially one days transactions of bitcoin. We get some special marketing opportunities because of it and it's a conversation piece.
Who knows where it's going to end up but it's no game. I happened to hear on the radio tonight, purely by coincidence, that bitcoin's market cap was something north of $165,000,000,000 with projections that it will soon be the worlds largest corporation. If I had to guess, every central bank in the world would like to kill it but they can't, so I suspect they will simply try to gain control of it somehow.
Interesting times.....


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nb_ken

Active Member
#34
I take bitcoin in my restaurant, mostly as a gimmick. The risk is only present as a retailer if you leave it in bitcoin, I convert it to US dollars at the end of every day's transactions so my risk is essentially one days transactions of bitcoin. We get some special marketing opportunities because of it and it's a conversation piece.
That is as succinct and honest answer as anything I've ever read about the viability of bitcoin as an alternative to government-issued currency.

As long as a merchant can 'cash' out immediately, the risk and overhead of accepting bitcoin is paid for in marketing opportunities and secured by the US dollar.

But if he tried to use bitcoin for working capital to run his business - pay bills, pay employees, secure loans, etc. - the risks would be enormous. Foolish, even.

Blockchain is on its way to becoming a standard data exchange protocol, and with that perhaps a parallel, wholly electronic currency might emerge outside the global banking system. But that is not nor will be bitcoin. Bitcoin is a pure, speculative investment instrument. Nothing more.
 

nb_ken

Active Member
#42
$1000 investment on 12/3/16 is worth $11,000 today.
Any theories on why?

As an investor, I'm a fuddy duddy. When I invest it's because I think a company has a good product or has good management or is positioned well in a promising market. Bitcoin seems like gold on steroids. The price goes up because people think the price will go up. Not sales, not profits - just price.

What am I missing? There's gotta be something I'm not seeing.
 

freestoneangler

Not to be confused with Freestone
#43
Any theories on why?

As an investor, I'm a fuddy duddy. When I invest it's because I think a company has a good product or has good management or is positioned well in a promising market. Bitcoin seems like gold on steroids. The price goes up because people think the price will go up. Not sales, not profits - just price.

What am I missing? There's gotta be something I'm not seeing.
I have no idea why. On the surface it looks like a pyramid scheme and my gut just says stay clear of it. But there are folks leveraging some serious buying power from it - which is sure to attract more of those less risk adverse.
 

Skip Enge

Active Member
#44
just gambling...it takes money to make money they say...BTW, I was a dumb arse...should have taken an extra $50 and put it on my mortgage every month would still have the house and paid off that 30 year in 18
 

JayB

Active Member
#45
Any theories on why?

As an investor, I'm a fuddy duddy. When I invest it's because I think a company has a good product or has good management or is positioned well in a promising market. Bitcoin seems like gold on steroids. The price goes up because people think the price will go up. Not sales, not profits - just price.

What am I missing? There's gotta be something I'm not seeing.
If you're really interested - check out the links I posted earlier in the thread. The idea behind bitcoin was to create an asset that combined the anonymity and fungibility of cash, the inherent scarcity of gold, and match or exceed scale and speed of existing digital payment systems while doing away with the need for conventional intermediaries to make any of the above possible. Peer-to-peer digital gold is the most concise one-line summary. Store of wealth and a medium of exchange, etc.

It's not clear if bitcoin will actually succeed in any of that, and in countries that aren't corrupt hell-holes most of the institutions that we rely upon as intermediaries work well enough that a cryptocurrency like bitcoin won't offer much, or any real advantage to the average person. Having said that - most of the world's population lives under governments that are authoritarian, corrupt and have a history of stealing any wealth they can get their hands on through inflation or confiscation. I think that there's a very significant pent-up demand for an asset that serves as a store of value and a medium of exchange that can't be devalued or confiscated, and that you can transfer without the local kleptocracy getting their hands on it. Couple that with the exponential increase in smart-phone adoption that will eventually culminate in every human being having access to the internet - and I think there's a compelling use-case there. There are quite a few heavy hitters in Silicon Valley that are way smarter and vastly more influential than myself that have envisioned other technological applications for the blockchain technology, but for me giving ~4 billion people the chance to circumvent the crooks was the killer app.

Bitcoin as it exists now is having scaling issues that have rendered it almost useless as a medium of exchange, except for very large transactions, so the price increases are being driven almost exclusively be speculators betting on the store-of-value side. It's also not particularly anonymous - so if you actually use it to transact and someone with enough computing power wants to know who you are they're almost certain to be able to do so. Having said that - there are cryptocurrencies that have successfully addressed the scaling issue (Bitcoin Cash), and the anonymity issue (monero). Then there's Ethereum - which as far as I can tell combines cryptocurrency functions with programmability (Think of a vending machine. The function programmed in is 'You insert 4 quarters, I dispense one can of coke). Evidently there's all kinds of fascinating things you can do with that technology, but I frankly don't understand what they are.

I have no idea if the experiment will succeed or not, and if the blockchain technology is like every other technological breakthrough (electricity, trains, radio, television, the internet, etc) what we're seeing at the moment is a speculative frenzy that will crest in a wave of delusional euphoria that lasts longer than anyone thinks possible on the way up, crash more quickly than most can imagine on the way down, and leave a handful of winners and a durable technological platform that people can do useful things with behind in the rubble. Time will tell.
 

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