Virtual Coins?
This topic maybe boring for some people, but I found it interesting and I was wondering what people thought of it.I was reading today this new popularity for virtual money called "Bitcoins". It's apparently taking the world by storm because you can buy products with digital money. Apparently it is popular because it isn't affected by inflation or generated by a government but rather by a computer algorithms.
So I'm wondering about what is everyone's opinion on it? Do you think it is safe?
Comments (25)
Please don't get me wrong, I'm not advocating in any way the digital money, but just wondering about it
Money is such transient stuff anyway, I would have thought that investing in something concrete (perhaps literally) is a safer option.
Regards.
welcome to CS
One of the primary risks is that they could become illegal to use in major countries. If they were to become illegal to use in America especially, that could be the end of them. They would become worthless in an instant if this happened.
Central banks are not fond of competition from cryptocurrencies, so this is a real possibility.
We often hear criticism of the Federal Reserve in America and how, since the gold standard was abandoned, it has become a fiat currency with nothing backing it and therefore very risky to own.
But I'm betting all my dollars that the US dollar will be the LAST currency to fall in the event of a worldwide economic catastrophe. And so are most savvy investors all over the planet. The US Dollar IS the world's gold standard. Cryptocurrency is highly risky. Invest in American enterprise and the US dollar if you want your money to be safe.
This is a rookie investor's misunderstanding.
All profits are "paper profits" unless and until they are "cashed out." This includes money you have in a bank account, a stock, a cryptocurrency or any other investment that involves a book accounting entry. It isn't cash until it's cash.
So there is no relative disadvantage to an investment just because the profits have not yet been converted to cash. That is true of all investments.
Gambling can offer a reward, at considerable risk to your capital. But if you hit a winner...
Keeping cash in a bank offers you very little reward, but it's relatively safe.
Somewhere in between is investing. In this you speculate, evaluating risk and reward. There really are no guarantees here, despite what a seller (broker) might say.
A good rule about speculating is that only put up what you can afford to lose. In the long run, if you do things right, you will be OK.
Think of your local market. For every seller there must be a buyer. But the price is dynamic, depending on demand.
Land (real estate) is not liquid. Pick well, buy right and don't be in a hurry.
Business? Better know what you are doing. Most fail in the first three years. Covid has not helped this platform.
Precious metals are a good thing to study. They are steady and then something happens and if you sell, you will do fine. Wait and maybe you won't.
Try anmmo. Those who bought long ago are harvesting record profits. It's hard to say what might happen if made illegal. I think it might spike a real climb, but now you have risk and had better know your buyer well.
Bitcoin is too ephemeral IMHO. It might be OK if you are near the top of the blockchain... oops, sounding like a pyramid hahaha
China did make loans to quite a few African countries that couldn't repay. But that's old hat, China is still Australia's largest trading partner
You might think millions of people and trillions of other sentient beings getting killed because your un-elected lunatic mate thinks its a good idea to start a war against Russia and China to boaster the US economy, please let me remind you that the Chinese constitution demands the People's Liberation Army (PLA) protect Chinese citizens private as well as commercial and also the states interests anywhere on the planet.
To laugh about Australia potentially being attacked by China clearly displays your perpetually drunk or on drugs or something raphael I suggest you should stick to the OP topic Virtual Coins