Curious what makes everyone think crypto is gambling, when it isn't if you pay attention to the markets.
Why Are People Scared of Going into Crypto?
SimpleRoger on 27/02/2018 - 21:55
Comments
Have you seen the price graphs!?
because it sounds suspiciously like a Ponzi scheme with no intrinsic value, especially at current valuations.
This makes an interesting read about the founder of a multi $B alt-coin
https://www.smh.com.au/technology/it-was-a-piss-take-the-aus…
Crypto is not a ponzi scheme. Read the bitcoin whitepaper, cryptocurrency's are the future. Bitcoin being the first ever way you could transact money from one person to another online, without a COMPANY recording your transaction.
How about cash?
crypto is not ponzi but bitcoin is.
You clearly don't know much about crypto, do some research first.
don't get me wrong, I am fine with the concept of blockchain, crypto and anonymous electronic transactions.
what I'm not ok with are the ~1500 (and growing) different 'coins' that have appeared, most of which will end up as worthless.
If you can pick the winner, good on you. You'll be richer than all us plebs here. Personally I have no idea which ones will survive and which ones will collapse. Sounds awfully similar to gambling.
Also its happened before, research the dotcom crash and see how many companies survived.
Hahahahahhaha. Bitcoin is not a scam because BITCOIN told me it wasn’t? Hahahahhaha.
Cryptocurrency is only worth what people think it is worth - it doesn’t make or do anything. It is gambling pure and simple.
It doesnt make or do anything??? It allows for transactions without a middleman. Isnt that an accomplishment enough.
It allows for transactions without a middleman.
Sure it does theoretically. How much is that used in practice though? I challenge you to pay with nothing but Bitcoin for a month.
Because this is not feasible, the majority of people purchasing Bitcoin have no intention of using it as a transaction mechanism. Most people are buying it with the hope that it goes up and then they will sell it to someone else. This is speculation.
@therog1: Theoretically??? I've done plenty of transactions, without a middleman. It's here the technology is done, although it isn't being accepted, as people are scared of change.
Simpleroger.
Are you investing in Crypto or using it as a payments system.
If its value to you is investing, then the chances of it being a ponzi scheme increases as you have no real idea of how its created.
If its just for transactions to avoid the middle man, the transact away, but dont hold anymore in it than that needed to cover your transactions. Eg Buy some goods, get paid for some goods, then move the funds out.
I have no idea how bitcoin is created?? Read the whitepaper, it's actually quite interesting.
Username checks out.
Lol aside from all the joke comments here; OP, it's mostly because the majority of people don't actually understand cryptocurrency.
The media makes cryptocurrency look like a gamble because today it could be up 3x and tomorrow it could be down 5x.
DISCLAIMER: I hold cryptocurrency but I don't really care about it's value; I'm more interested in the application of it later down the track.
Ready to receive all the downvotes, as usual! :)
not to mention exchanges getting hacked and millions $ gone.
Cant get hacked if you have 2fa.
I believe he's talking about companies such as CoinDash where the exchange themselves get hacked.
@SimpleRoger: You'd be surprised. Have you seen all those people that see a random tweet from "Elon Musk" with s##ty English saying… (wait let me get you the exact wording):
Thank u President, i want to give away 100 ethereum to ur followers, just send 0.2 eth to the address below and u will receive 2.0 eth <random address>
And… you don't want to know how many people have sent + how much money was raised LOL
You are a smart man
bitcoin is like Paris Hilton.
valuable for being valuable.
but no intrinsic value.
<cough>
I beg to differ… Despite the numerous educational videos I have studied about bitcoin, none were as 'uplifting' as the one video I saw with Paris Hilton in it…
Yes the Simple life ft. Nicole Richie was a great show… Not.
I don't know if scared is the word, for me at least, first off its feels "advertised" like some sort of decentralised currency that can be kept private etc. But just trying to get an account from coinbase needs like my drivers license, birth cert, picture of my face holding a piece of paper with the writing of the date, utility bill and weeks of waiting. I can open up bank loans with less info and just seems counter to the point, I also note other sites are similar. It also doesn't look (I may be wrong) easy to turn that crypto back into money and it takes time especially for large amounts making it difficult to buy and sell quickly.
Then theres the fact of crypto moving around so much, it honestly does seem more riskier especially if compared to an ETF, you either need to play the short game and be good at buying and selling with trends (in which case its risk and luck just like a stock) or you play the long game and hope that a sort of risky currency outperforms an ETF.
I kind of feel like people are seeing crypto like stocks that they can actually afford and put money into. The thing I don't get (and may be wrong here) is that with a stock its for something, a company a product. Crypto seems more like supply and demand, of more crypto, it's dependent on people wanting more, not wanting a product. And no matter how amazing a piece of technology can be, people themselves are fickle and you never know what the future will be like.
I've stumbled on a few reddit pieces as well of people putting a whole heap of money in crypto and then it crashes and losing life savings from it, then theres sites that have been hacked over it and wallets been sifted out which I'll admit is a worry.
(Note though I haven't read the whitepaper yet, I'll have a go reading it this weekend if I get time).
I'm not saying I wouldn't invest in crypto, but I'd definitely be diversifying in other avenues instead putting too large sum of money in it.
Bitcoin may have been first before but it has major issues and there are already better ones out there. The price does not in any way relate to the true value.
You may make money but only if more idiots come along after you.Because people believe Tether (which backs bitcoin) is printing coin without fiat currency deposits backing, and there are calls for an audit.
It's not really a ponzi scheme but its a great way for big companies, drug dealers, casinos etc. to hide their money without it being traced or taxed. So the actual benefit is not really to the consumers but to people dodging government regulation.
You mean like cash? Bitcoin has more transparency than cash, which has zero.
Not exactly, bitcoin has a wallet that has a unique transaction id with it. But the id has no affiliation with name, address, location etc. Therefore you can move large sums of cash into these bitcoin wallets and hide the cash there.
Why Are People Scared of Going into Crypto?
You answered it yourself
Curious what makes everyone think crypto is gambling, when it isn't if you pay attention to the markets.
People just want to work, earn some money, spend some money. They are interested in friends, families, pets, eneloops. The present regulated financial systems, seem to meet most people's needs.
Why bother with BitCoin and all the 1000's of other Cryptos?
You mean the fractional reserve lending system? Where your money is worth less over time. Yeah sure it meet's our needs.
It meets our needs because "your money is worth less over time" it is acceptable because it is over time.
Cyrptos have wild pricing fluctuations in an unregulated speculative market and as you say, you must "pay attention to the markets".
Do you get paid in cyrptos? Do you shop at the supermarket with cyrptos?
Imagine for one moment that you did.
I'm saying the technology crypto has is good, the price is all speculative, like how the dot com started. But crypto is what amazon and facebook is now.
But crypto is what amazon and facebook is now.
You could be right, a speculative bubble. Why this bubble is ready to burst
I'm not scared I just don't care. Didn't invest in anything before crypto, why start now.
You don't want to make money?
I'd love to, but in order to make a significant amount I'd have to invest a significant amount.
Guess what I don't have, significant amounts of spare money.
Do you want to lose money?
they don’t scare, they just don’t know what is crypto, how to start and where to buy crypto. I remember first time when my friend told me about bitcoin in 2011, I asked how to buy and did they ship to my address? Can I buy on eBay?
I'm not at all scared of crypto. In fact I have a couple of thousand dollars tied up in STEEM right now. Much of it I made via blogging on steemit.com which is quite insane to think about really.
Now I have currency in ETH, Ardor, IOTA and Bitcoin. I've had varying levels of success but am ahead by a reasonable margin. Crypto isn't a ponzi scheme or gambling. But it does take some knowledge before you can do well.
That's why Steemit comments are all "Very interesting article, followed you! follow me back!"
That's true for some, but on my blog most of the people commenting actually have an interest about what I write.
Regulation, Banks freezing accounts of / banning crypto traders, AML laws, assets being frozen, (intentionally?) ambiguous tax laws making it hard to know if we're paying the right amount of tax.
Most importantly, crypto->crypto trades are CGT events.Buy BTC, hold for a week, then buy ETH with your BTC, and you suddenly owe the government whatever your BTC profits were.
If you hold ETH for 2 years and it crashes really badly, you can't claim back all of what you paid in tax 2 years ago, and would actually have lost MORE than you put in (via tax).
Why are you paying tax on BTC when you haven't converted it back to Fiat?
Because, as much as I hate it and want to migrate out of this shithole of a country, that's the law.
That's what got me OUT of crypto for the time being..
Took FOREVER to track down all those trades. I sometimes moved into shitcoins just for fun without knowing the tax mess I was creating.
There's also a 50% CGT discount if you hodl for > 12 months. This held me back from making some trades. ie, it would have to get me more than 50% profit for it to be worth trading, otherwise I might as well just hodl what I have.
This is the most depressing book I ever read:
https://www.docdroid.net/6acfHMo/practical-guide-to-crypto-i…Just read from page 18.
Agreed.
As long as you aren't one of the exchanges or big guys on localbitcoins, you don't need to worry though.
However, as you get bigger, you become a bigger target. This makes crypto a shitty asset to hold as the more you hold, the more likely you are to get burned or robbed in real life.
Remember a few months back when some big wig travelled to Ukraine and got robbed by the Neo-Nazi in Ukraine?
Remember a few months back when some big wig travelled to Ukraine and got robbed by the Neo-Nazi in Ukraine?
Yep, can never be too paranoid if you've got a lot of crypto.
I disagree with your username though. VPNs are not a silver bullet, but they serve a purpose.
crtpto has no actual value. its pricing is set by what people are willing to pay for it. at some point, there won't be any more dumb people to invest so the price will either plateau or tank spectacularly. it's like a stock market, except you don't own a small part of a company, you own literally nothing.
What are you talking about? You own the currency.
Don't see why someone downvoted you. Brought you back up.
You own the currency. If it is worthless or not is a different story, and I believe that was the message you were conveying.
Don't see why someone downvoted you
Mentioning crypto in general often attracts downvotes on OzBargain.
Thanks Mate.
People fear change and what they that don't understand - so they start spreading FUD like Terminal2k.
There are tons of great projects being developed using blockchain. Research the teams, read the whitepapers and invest in the projects you believe in.
They're the ones who are upset thinking they missed the boat, or just don't understand the technology.
There are no cash flows stemming from owning traditional cryptocurrencies.
No idea, why you were downvoted.
People are idiots mate. I'm really surprised that a place like OzBargain is so put off by it. This is the greatest technological advancement of our lifetime. Fast forward a few years once it's more mainstream and people will be upset they didn't invest. Until then, more for us :)
Exactly the more money we make i guess.
You can have my share as i will not touch it.
Bigger and quicker gains to be made on the ASX with lithium and cobalt plays. Check out KRC over past month
Yeah I'm in LPD, but not much happening at the moment. KRC looks like a goer, nice work.
Nice. I bought some lpd today and ayr
Why aren't you happy with bitcoin at $10 a coin when all you want to do is transact and keep the middleman out?
In fact it would make transaction fees lower.
If you really love the coin, you won't care how many people are buying in. You won't care about the price.
The fact that you do, means you are not a true crypto-believer.
Shun the Non-Believer!
Shun the Non-Believer!
Shun the Non-Believer!
Shun the Non-Believer!Sure, but i'm just saying it's a great time to make money as well. Also i don't see bitcoin as a form of currency the way it's going. But the technology is good, and probably another coin will take it's place.
I want to try crypto but not sure where to start. Also a bit worried that if my investment suffer losses, then i will be personally liable to pay any losses.
Am only planning to put less than 5k and leav eit there. Revisit after 5 years. If it devalues to zero fine. But if it gets eaten by monthly account fees, thats one thing am also worried.
If it becomes negative and i forgot, the exchange might run after my personal properties.
Not sutr if my worries can hapen though.
No there are no monthly account fees. Now is the perfect time, it's dropped so low, and for sure gonna come back up. Ethereum, would be a safe, investment. If you wanna go risky follow Data Dash on youtube.
ive never lost on the pokies either
so maybe im lucky