Considering dabbling in Bitcoin

ChesterDog

Bitcoin-tracking ETNs are allowed by the FCA from 8 October.

I've had a little bitcoin on and off (currently off), but am intending to gain some exposure via one of these in due course.

InvesterJones

Kiran said:

Linton said:

I think you should avoid putting any money that really matters into bitcoin and you dont rely on it to make a significant difference to your life.

Thanks, and I agree. As I said, I'll equate it to buying £50/month of lottery tickets and consider the cost to be packed lunches over meal deals etc. It is speculative, has the potential to compound well, but understanding fully that it could turn to nothing, I won't be forced into a life of eating Tesco Value baked beans.

Just a point of interest (no pun intended) around compounding - compounding is usually thought more to apply to return generating assets, e.g. interest rate returning savings, or equities - your early returns are buying more return-generating assets, so the returns compound. I don't know how applicable compounding is to a non-return generating asset like a commodity or currency or bitcoin - they feel more like one day they're worth x, another day they're worth y - additional assets aren't actually going into doing more work. 

Kiran

ChesterDog said:

Bitcoin-tracking ETNs are allowed by the FCA from 8 October.

I've had a little bitcoin on and off (currently off), but am intending to gain some exposure via one of these in due course.

I wonder if Trading 212 will allow make Exchange Traded Notes available on the platform come October? If they don't, could anyone share the pros and cons of ETN's Vs going to another platform like Coinbase or Exodus and buying the asset directly? 

Thanks

Kiran

InvesterJones said:

Kiran said:

Linton said:

I think you should avoid putting any money that really matters into bitcoin and you dont rely on it to make a significant difference to your life.

Thanks, and I agree. As I said, I'll equate it to buying £50/month of lottery tickets and consider the cost to be packed lunches over meal deals etc. It is speculative, has the potential to compound well, but understanding fully that it could turn to nothing, I won't be forced into a life of eating Tesco Value baked beans.

Just a point of interest (no pun intended) around compounding - compounding is usually thought more to apply to return generating assets, e.g. interest rate returning savings, or equities - your early returns are buying more return-generating assets, so the returns compound. I don't know how applicable compounding is to a non-return generating asset like a commodity or currency or bitcoin - they feel more like one day they're worth x, another day they're worth y - additional assets aren't actually going into doing more work. 

Thanks, and yes I agree. My statement wasn't that clear. What I should have said was it has the potential to grow from the returns and also reinvested dividend payments. Poor choice of terminology on my part

InvesterJones

Kiran said:

InvesterJones said:

Kiran said:

Linton said:

I think you should avoid putting any money that really matters into bitcoin and you dont rely on it to make a significant difference to your life.

Thanks, and I agree. As I said, I'll equate it to buying £50/month of lottery tickets and consider the cost to be packed lunches over meal deals etc. It is speculative, has the potential to compound well, but understanding fully that it could turn to nothing, I won't be forced into a life of eating Tesco Value baked beans.

Just a point of interest (no pun intended) around compounding - compounding is usually thought more to apply to return generating assets, e.g. interest rate returning savings, or equities - your early returns are buying more return-generating assets, so the returns compound. I don't know how applicable compounding is to a non-return generating asset like a commodity or currency or bitcoin - they feel more like one day they're worth x, another day they're worth y - additional assets aren't actually going into doing more work. 

Thanks, and yes I agree. My statement wasn't that clear. What I should have said was it has the potential to grow from the returns and also reinvested dividend payments. Poor choice of terminology on my part

I presume you mean you're diverting dividend payments from other assets into this? Bitcoin doesn't pay a dividend.

Kiran

InvesterJones said:

Kiran said:

InvesterJones said:

Kiran said:

Linton said:

I think you should avoid putting any money that really matters into bitcoin and you dont rely on it to make a significant difference to your life.

Thanks, and I agree. As I said, I'll equate it to buying £50/month of lottery tickets and consider the cost to be packed lunches over meal deals etc. It is speculative, has the potential to compound well, but understanding fully that it could turn to nothing, I won't be forced into a life of eating Tesco Value baked beans.

Just a point of interest (no pun intended) around compounding - compounding is usually thought more to apply to return generating assets, e.g. interest rate returning savings, or equities - your early returns are buying more return-generating assets, so the returns compound. I don't know how applicable compounding is to a non-return generating asset like a commodity or currency or bitcoin - they feel more like one day they're worth x, another day they're worth y - additional assets aren't actually going into doing more work. 

Thanks, and yes I agree. My statement wasn't that clear. What I should have said was it has the potential to grow from the returns and also reinvested dividend payments. Poor choice of terminology on my part

I presume you mean you're diverting dividend payments from other assets into this? Bitcoin doesn't pay a dividend.

Ah, I was answering the wrong post. I thought the comment was regarding my £50 in speculative shares which was commented on above, not the Bitcoin. My mistake

kempiejon

On the picks and shovels analogy one could research the shares of shares Coinbase and Strategy and I'm sure others who hold or exchange BTC. Those 2 are on the US market.

jaypers

I consider myself to be pretty financially savvy. Bitcoin however……do not understand it at all, and I’ve tried. Don’t like things I don’t understand so never have any intention of touching it with a barge pole. If as a ‘get rich’ vehicle it was easy, everyone would be doing it. 

aroominyork

Just one word: tulips.

thegentleway

I started buying some bitcoin on Coinbase but now just buy MSTR on T212 as a proxy for bitcoin.