I dont buy from bitcoin posts

Is it safe to move exchange holdings to that wallet instead of spending on an expensive Hardware wallet? Find a Bitcoin Exchange How to Secure Bitcoins As with anything valuable, hackers, thieves, and scammers will all be after your bitcoins, so securing your bitcoins is necessary. Instead, immediately transfer your holdings to a mobile wallet or a desktop wallet. A speculative cult currency like bitcoin is only valuable when you cash it out to a real currency, like the US dollar, and use it to buy something useful like a nice house or a business. What makes bitcoins valuable?

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You should not invest in Bitcoin. These are all things that people have bought in the past, driving them to absurd prices, not because they did anything useful or produced money or had social value, but solely because people thought they could sell them on to someone else bitcokn more money in the future. When you make this kind of purchase — which you should never do — you are speculating. This is not a useful activity. Even if you win money through rfom luck, you have postts time and energy, which means you have lost. Investing means buying an asset that actually creates products, services or cashflow, such as a profitable business or a rentable piece of real estate, for an extended period of time.

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You guys own Bitcoin, right? We also suspect that some of our colleagues think we were able to pull off this whole early retirement thing by striking it big with Bitcoin. Some are evangelists, proselytizers and zealots. Fundamentally, crypto is peer-to-peer virtual currency with no middleman like a government or bank standing in the way. Crime will find a way.

Why Invest in Bitcoin?

You guys own Bitcoin, right? We also suspect that some of our colleagues think we were able to pull off this whole early retirement thing by striking it big with Bitcoin.

Some are evangelists, proselytizers and fromm. Fundamentally, crypto is peer-to-peer virtual currency with no middleman like a government or bank standing in the way. Crime will find a way. For Bitcoin or any cryptocurrency to exist without a central vrom, you need a decentralized and democratized network of computers to keep those essential records, so that every Bitcoin owners knows what he or she owns and can prove it.

That record ledger is called the blockchain, and this short video is a good basic explainer. If you want the geek version of the explanation that goes bitcoi lot deeper into bltcoin, read this one.

But think of the blockchain as the secure data ledger for the currency, which lives in many different computers around the world. Every transaction that has ever happened with Bitcoin is logged in the Bitcoin blockchain. Enabling the exchange of Bitcoins and all cryptos are cryptocurrency losts or digital currency exchanges. These are the intended-to-be-secure businesses that facilitate the transferring of digital currency from one account for another for a fee.

For that reason, early investors paid peanuts for multiple Bitcoins, dong today a buyer might buy a fraction of one for thousands of dollars. The New York Magazine piece nicely sums up what Bitcoin or any cryptocurrency was intended to be, and what it has bjy.

But so many people got so excited dpnt buying into the system that a market developed around buying and selling it — with bitcoin becoming less important as a currency than as a commodity, like gold.

You can still buy things in bitcoin like you can with gold, sort ofbut many more people are now using it as an investment vehicle. You could take it from Robert Schillerwho wrote:. Dabbling in Bitcoin lies somewhere bktcoin gambling and investing. It is that no one psots attach objective probabilities to the various possible outcomes of the current Bitcoin enthusiasm. Or from George Soroswho said:. Based on a misunderstanding. Or you could look at some data. Via Fortune.

That itself is not a fatal flaw, but it does tend to suggest that Bitcoin is operating independent of larger economic forces. When the stock market crashes, housing prices tend to be impacted. When the dollar fluctuates, imports and exports shift. So if something is operating almost entirely out of that interconnected system, as the Citi analysis and Schiller quote show?

And when you see a bubble, run away, quickly. Which just adds to bubble worries. Except neither of those is true in reality. Bitcoins and other cryptocurrencies have proven fairly easy to hack and steal.

There was the first big Bitcoin exchange hack inof Mt. And these are not theoretical money numbers. But, fine. Blockchain surveillance firm Chainalysis, and certainly others, tracks every transaction on don Bitcoin blockchain and now even has multiple U. If you want bictoin hear the kind of stuff they can figure out by looking at supposedly anonymous key codes, listen to this recent episode of the Reply All podcast. The only proof you have is the digital key you get when you buy it, which is what lets you reference your ledger entry on the blockchain and at some point sell or transfer your value.

But turns out that digital key is easy to lose. If you lose any other password or account number, there is always a way to look it up or retrieve it. Not so pozts Bitcoin. By one estimate :. Producing the same value of bitcoin would require enough energy to power your house for four days. Ethereum and other cryptos are subject to the same critique. Regardless of which extrapolated figure or projection is correct, no one disputes that mining Bitcoins and running transactions on the blockchain consumes a lot of bihcoin.

And as the price of Bitcoin increases, the incentive xont mine them will become that much greater because the reward for each coin will offset the cost of consuming more electricity, giving miners an incentive to use even more power, at least in the short butcoin until the scheduled payout decreases.

We could be using that power to add value to the actual economy. The Bitcoin blockchain is now so big and unwieldy and getting bigger every day that the network is struggling to process more than four transactions per second.

Which means two things:. Source: Timothy B. Lee using Blockchain. And as frkm reasonable investor knows, fees are the fastest wealth killer. If you moved your money out of a high-fee brokerage and over to Vanguard or Fidelity because you prefer low fees, then this alone should be reason enough to font away from Bitcoin.

But the longer transaction times also mean:. If you own stock in a company with physical property that folds, you can at least get the proceeds of the sale of those properties, so in a sense, you are diversified in those stock holdings by owning both the company and its real estate.

With crypto, you own. More than that, something only truly has value if we all agree it has value. Gold has value beyond being an investment instrument, and everyone in the frrom sees the Buuy. Dollar as being worth.

A dollar frm also backed by the full faith and credit of the U. Treasury, which is unlikely to disappear anytime soon. See. And for those who argue that Bitcoin and other cryptos do have underlying valuebecause theoretically people could also decide to stop trusting the U. The bircoin rule of sound investing is not to try to beat the market. Also, does it need saying? Even the pros! If you want to make Bitcoin or any other cryptocurrency part of your portfolio, just treat it as your gamble.

Or whatever money you would otherwise have used on gaming or some hobby, use. Put your real money into index funds, dividend stocks, real estate or other assets that will generate passive income and reliably grow wealth for you. But if you do buy it, by all means, keep your wallet secure. Fan of Bitcoin? Bitcoin hater? Still on the fence? Subscribe to get our periodic newsletter with tons of top secret, behind-the-scenes info nuy never share here on the blog.

You’re officially one of our favorite people. Categories: we’ve learned. Tagged as: bitcoinbitcoin miningcryptocurrencydon’t i dont buy from bitcoin posts bitcoinearly retirementethereumfinancial freedomfinancial independencefinancial bkyinvestingNEMrant. Ah Tanja, I think I love you :- Kudos to you for taking this one on, and writing a thorough and detailed piece on it. I do think that blockchain technology is pretty cool and has tons of uses yet to be discovered.

Informative post Tanja. What are you doing up at this hour? But we shall see! Gotta say, it was pretty sweet. I think blockchain and smart contracts are cool, bitcoin as a currency?

No thanks. The world is full of assets that can 10x their value very quickly without the huge learning curve and on the simple things like — where do you hold bitcoin?

Your mom was very wise. Nice post. I recognize that they are two separate things but for all intents and purposes Bitcoin and blockchain are the same thing. That is like saying you like all the cool tech stuff underlying the iPhone but not the case use itself, the iPhone.

There is plenty cool tech in an iPhone. Does frmo mean that the tech of the iPhone is more valuable than the phone. Are the parts of an iPhone from Intel, Samsung, Broadcom, Skyworks and many more, more valuable than the iPhone itself?

Regarding environmental impacts and electrical usage predictions I draw parallels to peak oil arguments. The 70s, 80s, 90s all produced multiple never ending reports on peak oil and how we must conserve find alt energy sources. Here we are today posst a world oil glut.

One thing technology has proven time and again is that solutions to problems are often. Sure, alarming stats like mining electricity consumption equal the country of Denmark and by the entire U. There frrom always be some tech solution to a problem. Hi DivHut — Interesting point about separating the two.

Bitcoin and cryptocurrencies ‘will come to bad end’, says Warren Buffett

Let me hear your thoughts in the comments below! Investing Cryptocurrencies Economics features. Instead, immediately transfer your holdings to a mobile wallet or a desktop wallet. As the legend goes, in an anonymous developer published a white paper under the fake name Satoshi Nakamoto. However, if you bitcoinn a full-time job or some other responsibility, treat your investment into Bitcoin as you would any i dont buy from bitcoin posts investment — focus on the long-term gains instead of the short-term fluctuations. Anybody can make a pill, and it costs only a few cents per dose. These days, stocks in the US are regulated by the Securities and Exchange Commission, precisely, because in the olden days, there were many stocks issued that were much like bitcoin, marketed to unsophisticated investors as a get-rich-quick scheme. Even if you win money through dumb luck, you have lost time and energy, which means you have lost. Most popular. This site uses Akismet to psts spam. Thinking of investing in Bitcoin? Believe it or not, such incidents psts actually happened. As a real-world comparison for blockchain and frojtake this example from the blogger The Unassuming Banker :.