BITCOIN

Zola.

Ah Peter Schiff, I will maybe check it out....he is a massive Bitcoin critic (probably because he runs a gold business), has been for years,  hundreds of embarrassing tweets with horrible calls about bitcoin going back over ten years, but he is good to listen to in interviews and he is pretty funny. I generally agree with a lot of his overall economic sentiment (with exception to Bitcoin).

His son Spencer is a massive Bitcoin bull, Peter is no doubt hedging his bets through his son

GSP

What’s this Luna cryptocurrency?
Someone I know said it’s crashed from something like $100 to $0.0002!

Imagine investing just £20 at that low figure only for it to rise to the former.
Surely it can’t though?

bugbyte_2

GSP said:

What’s this Luna cryptocurrency?
Someone I know said it’s crashed from something like $100 to $0.0002!

Imagine investing just £20 at that low figure only for it to rise to the former.
Surely it can’t though?

Sorry to say it will never recover to those heights because - correct me if I am wrong - the way it was linked to Tether meant that when Tether crashed several million (billion?) new Luna tokens were created to try and prop up Tether, so unlike Bitcoin where 1 BTC should always = 1 BTC, 1 Luna is now 'worth' several thousand Luna. 

bugbyte_2

* Sorry, I think I meant TerraUSD. Same problem though.

HCIMbtw

bugbyte_2 said:

GSP said:

What’s this Luna cryptocurrency?
Someone I know said it’s crashed from something like $100 to $0.0002!

Imagine investing just £20 at that low figure only for it to rise to the former.
Surely it can’t though?

Sorry to say it will never recover to those heights because - correct me if I am wrong - the way it was linked to Tether meant that when Tether crashed several million (billion?) new Luna tokens were created to try and prop up Tether, so unlike Bitcoin where 1 BTC should always = 1 BTC, 1 Luna is now 'worth' several thousand Luna. 

Actually trillions.. last I heard there was a circulating supply of circa 7 trillion and if it were to recover to $100 based on the circulating volume it would become more valuable than every asset on earth combined xD 

Isn't happening 

GSP

HCIMbtw said:

bugbyte_2 said:

GSP said:

What’s this Luna cryptocurrency?
Someone I know said it’s crashed from something like $100 to $0.0002!

Imagine investing just £20 at that low figure only for it to rise to the former.
Surely it can’t though?

Sorry to say it will never recover to those heights because - correct me if I am wrong - the way it was linked to Tether meant that when Tether crashed several million (billion?) new Luna tokens were created to try and prop up Tether, so unlike Bitcoin where 1 BTC should always = 1 BTC, 1 Luna is now 'worth' several thousand Luna. 

Actually trillions.. last I heard there was a circulating supply of circa 7 trillion and if it were to recover to $100 based on the circulating volume it would become more valuable than every asset on earth combined xD 

Isn't happening 

Yes that would be ‘quite a turnaround’!

Rather than look at returning to c$100, from it’s figure now of $0.0002 I suppose if it went to $0.0004 means you would have doubled your money.

Could go the other way of course, but assume people that dabble in these in truth are saying goodbye to their money. And if it turns up trumps in anyway then great.

Dalby84UK

Its a risk like all "investments" however an easy way to look at it and why its important to have some is this:

Bitcoin has a fixed supply of 21 million, that can never be changed, therefore yes it will have ups and downs but overall will go up as no one (gov, bank of england or companies) can change the supply, therefore no third party risk. As time goes on more people will invest, some will lose their passwords, people will die (sadly) and fiat currencies will continue to be more worthless so the price will only increase due to this.

Normal (fiat) currency that you use (Pounds/Dollars) is constantly being created, that £1000 in your bank it becoming more worthless day by day (like a hidden tax), and the way its currently going you are losing 9% per year in purchasing power just having pounds in the bank or cash due to constant money printing.

So if you buy bitcoin and it goes down less than 9% per year you are better off, and on average it increases 150% per year on average over the last 10 years.

Hope this helps give some perspective

Notepad_Phil

Dalby84UK said:

....

So if you buy bitcoin and it goes down less than 9% per year you are better off, and on average it increases 150% per year on average over the last 10 years.

...

Hmmm. So lets say you can buy 1 bitcoin for £1000. In a years time it has fallen 5% so it's now worth £950. I sell the bitcoin because I'd like to buy some pizza and my local pizza place has never got around to accepting bitcoins. That £950 is somehow worth more than a £1000 if I had never 'invested' in bitcoin?

Or do the same in $ as they've got a similar inflation rate.

fwor

Dalby84UK said:

Hope this helps give some perspective

Unfortunately, you've missed one simple fact: there is no link between the effects of inflation on a fiat currency and the "value" of Bitcoin in that currency. Take, for example, a rate of inflation of 5% for someone whose local currency is Sterling. There is simply no mechanism that forces the "value" of Bitcoin to go up relative to Sterling by 5%. It might do, or it might not.

And, as Notepad_Phil points out, most of the stuff that most people buy can't be bought natively in Bitcoin, so they have to change back to their local currency before buying anything. At which point they suffer the effects of inflation in their local currency anyway.

Now some would argue that eventually everyone will be able to pay for anything natively in Bitcoin - but I don't see any sign of that happening any time soon. Probably the biggest reason is the instability in the "value" of Bitcoin, and there's no realistic prospect of that improving in the foreseeable future.

Frequentlyhere

@Dalby84UK, when I was a kid, I used to collect Beano annuals. I used to like the comic and thought the old ones would become ultra-valuable because of how rare they'd become.

They don't keep getting printed, I reckoned, and over time less and less will be in existence thus ensuring the rare copies would be worth a mint.

Well, as it turns out, it didn't quite work out that way. Most of my Beanos are still only worth a few quid. Why? Because yes there's a fixed and dwindling supply, but that doesn't dictate that the level of demand will remain consistent. People lost interest in Beanos and comics in general, just as they might do (or not) with Bitcoin.

Don't even ask me about my 'Beezer' annuals...