I have never purchased any bitcoin or any crypto and always thought this is a scam/ponzi. Can someone explain what it is used for? This is not a troll post, curious to know what it actually does that normal currency can't do? How is it so expensive now?
Crypto - What Is It and Why and How
[Deactivated] on 12/11/2024 - 14:43
Comments
Maybe seeking to pay ransomware, avoid tax/currency controls or purchase CSAM? All the real uses of crypto besides speculation.
And at one stage you could buy a Tesla too.. Don't think they still take crypto
I thought it was DOGE they accepted, not BTC?
Never too late to party…you never know when the party is over until its over and the lights are out.
But to answer OPs question
With Crypto there are very high risks and potentially high rerwards as well and risk of mega losses
I'm thinking about investing in these limited edition monkey pictures I've just found
He could have short the top.
Crypto in short, does virtually nothing useful. The main purpose of crypto is to buy something useless that you hope other people will buy at a higher price later on. That's the use of crypto. If you buy a coin before it gets big, you will have massive gains if you sell before it gets rug pulled. If you buy at the top, then you have been rug pulled and you give all your money to the early buyers. It's a dangerous game, you can gamble when prices are low, don't buy when prices are at all time highs. Don't try to bet your life savings like I did…
Life savings.. ouch. I blew 8k what i was willing to lose.. and i feel really bad about it
Damn, What coin did you buy?
I bought a good variance of all the altcoins but my biggest purchase was V chain at the peak, I think I bought like $30k. That's why I wear it as my badge until it hopefully one day goes back there lol. Luckily my bank had a $20k limit per day so I could only buy up to $130k before the May crash of 2020. I was stubborn and refused to sell at a loss so I managed to scrape out of there with only a $40k loss when it went back up there again. I would be in a decent position if I didn't lose $22k on UST. So yeah, don't try to win the lotto people. Just put in a few grand here and there when the chart is well below it's all time high and I think you'll do quite well. I've got too much PTSD so I'm not sure if I can jump back in or not even though my gut is telling me that this is an amazing time to buy altcoins. It looks like they are going to go for a big ride soon.
@supersabroso: I have VET, but thankfully I bought at $0.012 Unfortunately I didn't sell at the peak so now only around a 2x
Obviously you bought garbage.
Bitcoin 45% pa and 1300% total return since exactly 7 years ago, during this ICO phase that probably sucked you in.
Still, you haven’t come around to understanding why Bitcoin has value and will continue to outperform every asset class for decades.
Have fun staying poor.
still early in the scheme of things
It goes up and down. If you buy low and sell high you make money. If you buy high and sell low you lose money.
So that's what I've been doing wrong!!!
Send it via the wrong exchange, you lose money. Receive dirty coins, lose money. Use leverage at the wrong time, lose money.
Sending it isn't exactly rocket surgery provided you have at least year 3 reading ability. No idea about "dirty coins". No idea why you would use leverage on something like this. Sounds like "do something stupid" and you lose money, which is true in most aspects of life.
You probably need to lookup how coins can be marked as dirty or blacklisted are if you are serious about crypto. Leverage can be used in any investment. Its used in realestate everyday in the form of a mortgage. Anyway yes many other common sense rules apply except the market isn't rational.
@buffalo bill: I'm not serious about crypto, I've made money with it but am under no illusion that it's anything more than speculation at best, gambling at worst.
Leverage in real estate makes sense as the risk is far lower.
The market is stupid. You can make money simply by buying whatever newly made coin is created, the moment it's created, then selling it 2 minutes later, before it dumps to zero 5 minutes later.
@buffalo bill: Dirty coins are only an issue if you're taking them off the exchange.
If you're trading crypto, you typically don't do that.@smalltime0: Wrong. If you attempt to cash them out they can be held or account issues can arise. There are countless posts on this including on this forum.
"There are only three ways a smart person can go broke: liquor, ladies and leverage” - Charlie Munger.
It's not intentional, but I always buy high and sell low. Can't help it.
I brought some stocks that were low, but then it went into administration.
I stick to ETF now.
should have bought btc instead of FMG!
Doing what to your girlfriend?
hopefully find her, have you seen her?
If You See Kaye
Tell her I love her, OK?
We met at UCLA.
Whoever knows the answer, please do share.
Hi google….
The usefulness of Google searches has diminished in recent decades..
1000000000 results give you genuine answer…
10000000000000 give you crapRemember never type into Google Are Bengal Cats legal in Australia
Good luck filtering through it all. :)
YMMVYour google must be broken! First hit is enough, you don't need to go through 1,000,000,000,000 search results
https://www.coursera.org/articles/how-does-cryptocurrency-wo…
Definitely a scam, first link is to skynews!!!
First result is Wikipedia with an extract which is a decent summary.
Did they try to scam you into donating money to the Wikimedia foundation?
Mine was a link to a Department of Agriculture PDF about importing wild or hybrid cat species…
Further down there was a Sky News article about the top links being to malware, so I assume that's likely what this is all about…
just append 'reddit' to the search, that fixes it
hi A.I
It's a highly speculative asset. There are tens of thousands of crypto coins and tokens out there, of which more than 99% have collapsed in price due to theft, scams, fraud, etc. As the whole area is basically free of any financial regulation, it attracts people who naturally love that.
Even the old school well established crypto coins like bitcoin can crash in value. Bitcoin has fallen peak to trough 80% more than four times during its history, so if it crashes from USD$88k now to under $20k it wouldn't be unusual. Price has always recovered and continued to grow… so far.
Only put in money you are prepared to lose. Stick to the well established major crypto coins if you want to speculate and invest.
just say shitcoins
doge n pepe ?
meme coins that are also shitcoins
It's useful for money laundering and crime. Plenty of examples of it being used successfully there!
Otherwise not entirely sure…
I think cash is more popular
Cash is if you can find an ATM that works, and/or doesn't charge you $4 to just do a balance check.
Nearly Impossible to find a branch that still exists to get cash outstrange I've never been charged a fee from a branded ATM since the 90s
lots of branches have cash
@Poor Ass: I've never been charged a fee for using ATM's either (depends on your bank).
(Un)-funnily I got out $700 from an ATM last week, and it gave it to me in all $20 notes :( :(
So how did they do money laundering b4 crypto? How did they do money laundering in Ukraine ?
Start a business… ZERO customers but money is coming in from somehwere :) so the government doesnt ask were you got the money from.
Got that from breaking bad :)
Im always wonder about those obviously-not-have-many-customer shop around town. One day last year that idea pop in my head. Some of them even have BTC-ATM machine thingy
breaking bad
I haven't seen that show.
@vid_ghost: Breaking Bad is also widely considered to be one of the top TV shows ever e.g. often occupying top spot in IMDb Top 250 list.
Checks calendar.
Just like I thought. It's not 2011. FFS.
I wish I was in 2011. If I put my $15 an hr part time job into btc I'd be sipping cocktail on an yacht somewhere..
It’s like magic Monopoly money.
Get on now or miss your moon lambo.It's all Greek to me.
Would you prefer Latin ?
Cogito, ergo sum
It’s crystalline material originating from Superman's home world of Krypton
LOL
As retail enters we have 6 months at most before the peak of the cycle. Best of luck @techfast @rektrading and the others let me know if otherwise
I think rekt got rekt. He couldnt cope with the bear run and got washed out.
nah rekt made it
source: i like to believe he/she/they made it
Last time he/she was online was peak bear market. It's now Bitcoin season and it's hunting down 100k fast. He absolutely got rekt I reckon, otherwise he'd be here boasting like usual.
But, head canon is also an entirely acceptable line of thinking too :-)
@KangaDrew: surely to have gotten to that point he'd have weathered a few bear markets. the most recent bear market wasn't even brutal by historical standards
nah not possible, they were buying the dip even if it included luna. I doubt their majority was luna. Most likely diversified into btc and random others. Either way, they are for sure chilling. The convicted stay convicted no matter what
It's gambling. A completely unregulated currency which has no backing at all, using a computer system you know relatively little about, in a "digital wallet", whatever that might be.
Invest heavily, obviously, because as with all gambling, for every winner there has to be many more losers. /s
It can do far less than a regulated currency, and is expensive solely because of cryptobros, scammers, and other people you probably don't really want to know. Note the lack of /s here.
30% of it is owned by UAE (so likely only a few people).
to be fair, most trading (as opposed to investing) is calculated gambling. how successful you are depends on how informed you relative to other gamblers, your risk management and a healthy dose of luck
Key word: regulation.
there's btc and eth ETFs now to bring it into the open arms of uncle SEC.
which doesn't mean very much mind you, everyone knows how much insider trading goes on that cannot be prosecuted.It is so decentralised that it is difficult to regulate it effectively. But countries are trying.
Oh, BTW, all sales and trade actually constitutes a taxable event in Australia, if you are a resident for tax purposes.
well, companies you buy shares of actually do something and produce income. BTC is speculation only as no one uses it like a currency and only valuable because 'Line Goes Up'. and yes, totally unregulated so known (i.e. 51% network takeover) or black swan events totally possible. oh, don't lose your keys or get hacked as you will probably lose it all!
yet so many institutional buyers have BTC
Never let facts get in the way of a sleepy bear
ever done kanga?
Oh my god I can barely read what you posted because of all the proof you provided.
maybe you should go to Specsavers
like others say, it is too late to buy, you are buying at the peak and it might go up a bit or a lot however the most likely situation is that it will come back to normal level.
This is not financial advice.
Remember this
It is best to buy when the (owners) start to cry (value gone down around 80%)
and sell when the people outside want to buy (now)true, so now we should try to sell to OP
I don't think it'll crash that bad anymore now that there are more institutions buying it
Maybe. However, investment banks make money by trading, not buy and hold, and definitely not hodl. As soon as it falls below some support line many institutions will dump it.
Yes they will dump and buy it back for sure
But overall they would want the price to go higher and higher so for people who hodl until they need to cash out is alright
too late to buy
That’s what they all said in 2017. Just because the price is at ATH doesn’t mean you’re late. MSTR just bought a bunch of BTC recently.
saylor gunna keep buying the top. it's never too late
In every other crash, once you are hearing about BTC everywhere (such as here, now) you are too late for current cycle.
I have never purchased any bitcoin or any crypto and always thought this is a scam/ponzi.
Most crypto seems to be a scam, the remainder a ponzi.
Can someone explain what it is used for?
Speculative trading and a way to easily transfer money from crime. Bitcoin has been a boon to ransomware scammers.
This is not a troll post, curious to know what it actually does that normal currency can't do? How is it so expensive now?
Serious answer, in a way it's a reverse currency. With a regular currency, we print more of it and increase the circulation to ensure it's easy to use and there's plenty of liquisidy in the economy. It also decreases in value over time. Managing money supply is complicated business.
Bitcoin does the opposite, limit the amount available and you don't need to manage the money supply anymore, you just let it run free and the price goes up and down (more akin to gold, yet without something physical backing it up and very predictable supply).
Imagine if there was only $20m Australian dollars available, no more were ever made. In the 1800s, that might have been all the currency we needed. But if we didn't increase the money supply (which we have done so, massively over the years), each of those dollars would be worth a small fortune because they're the only way to trade here. You could buy a house for 50c but actually carrying out that transaction would be incredibly difficult. That has happened with bitcoin. The total pool of bitcoin needs to be valuable enough to deal with all the trade and free flow of money to keep it going. But because it is so valuable the idea of buying a pizza with bitcoin is long dead, it's most valuable to people who want very unregulated movements of money and are prepared to take a large hit on foreign exchange gains/losses (like ransomware scams).
But back to that pool of money, it's also worth recognising that very little bitcoin is actually traded, making the amount actually circulating quite small. Which means the value of that traded piece needs to be quite high in order to support the whole network. Those that hold a lot of bitcoin could introduce more liquidity to the market, but they have zero interest to. They're not a reserve bank, they're here to make a profit. It's a speculation game on whether anyone will want to blink and simply cash in on it, start selling off before everyone else does. Much like billionaires having a paper value but turning that into cash value is quite difficult (it's why they borrow against their shares and not sell them).
It's too late. By the time your grandmother is showing you her crypto portfolio on her phone, you know it's too late. There's no more rubes left.
It was too late when institutions entered. Making 20-30% profit is their target so they will pull their investment long before anyone doubles their money. You'd have to take a gamble on a small layer 1 coin to have a shot at 10 or 100x, but there is exponentially more risk of that being a rug pull.
People entering crypto now are being manipulated by the large holders who need liquidity to cash a fraction of their holdings out to buy some assets. Next cycle they will do it again.
Hi ChatGPT…
You are very late to the party!