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Question - Topic: Currency Trading
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shevamann
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Posted On: 2017-11-27 07:55:02
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What is Bitcoin exactly? A SCAM or a great investment?

What is Bitcon exactly?
Is it an investment or a currency play?
How much can I earn by investing/buying Bitcoins? Or is a Bubble and a SCAM that should be avoided? Seems like a great investment since it is up like 10000% or something like that.
What you all think?

Answers & Comments: 88
technedigitus2
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6 days 17 hours ago

Bitcoin is a commodity that can be used to be transfered to another as some valuable.

Bitcoin already have a marketcap.

Bitcoin is limited (deflacionary).

Bitcoin is being used.

Bitcoin have more than 10 years of history.
melo_mushrom
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6 days 13 hours ago
BitCoin is a Currency created by an Anonymous person maybe called Satoshi something. As such it has ZERO value.

Traditional currencies have value because the FULL FAITH of US Government, European Union, UK, China, etc with all their Armies, Navies, Bridges, Dams, Taxing abilities, etc. are behind these "Traditional currencies".

Cryptocurrencies like Bitcoin have absolutely NO such FULL FAITH of a Nation behind it. Again it is just a code by some anonymous guy!

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Nico5
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1 week 3 days ago

I will try to answer the question the best I can, but please excuse me for my English (not native).

Bitcoin concrete applications are not still well established. It is very little used as a payment method.

It's current usage is way more a dormant / speculation one (people tends to buy it and hold it until it goes high and send sell it).

That's not what medias say about it, according to them it is a revolution in the payment industry but it is currently a false assertion.

Visa, MC and AMEX are far more used for payments and there is no evidence that Bitcoin will become a major alternative payment method.

However the blockchain which the Bitcoin is based on could be an interesting way to solve a well known banking "issue" of replication mistakes which happen between banking networks' servers. The blockchain could also be useful in notary fields.

It is not a scam but looks like investing in the Bitcoin is more a speculation on a bubble than a wise investment.
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1 week 3 days ago
Most of what you have said id True. Except that BitCoin is far Worse than a SCAM. BitCoin gives SCAM a very bad name. To be more exact BitCoin at 2 Cents to US Dollar would have been an amazing SCAM. What it is then at current $8000 to US$, defies any words. BitCoin demonstrates the power of the Big Wall Street Media, aka FAKE News, such as CNBC, to brain wash the masses like Sheep to follow anything, no matter how bogus such as BitCoin or CryptoCurrencies have value!
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1 week 3 days ago
I agree with you ;) I was just not sure about the sens of the word scam in the mouth of the OP.

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melo_mushrom
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2 weeks 1 hour ago

My Hat off to Anoox answers and of course Anoox members for exposing what a total SCAM, well beyond SCAM, Bitcoin was when CNBC, Fox, ABC and other Wall Street based media sources, aka FAKE News, where hyping this BitCoin as the next great "American Dream" money making scheme. My hat off to you all :)
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1 month 5 days ago

It is described as digital money, which maintained by software rather than being backed by a Major Central Bank. And it's speculative with wild price swings.
I'll never buy it cuz I can't afford the risks.
Here an article that described Bitcoin as a bubble: http://www.gojoyer.com/news/show-39.html
Reporter
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1 month 2 days ago
BitCoin only has value because various elements of the right-wing Media, aka Ultra FAKE News, such as CNBC, Fox Business, etc. pushed and hyped this nothing on the People. Otherwise, BitCoin and other so called "digital money" are absolutely worthless unless and until major Central Banks recognize them as "Currency" or "Money", which they will NOT, because for a "Currency" to actually be "Money", actually have value as such a Nation with its Banking system needs to so designate it.

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FroogalStoodent
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1 month 1 week ago

People are calling BitCoin all sorts of nasty names, like "worse than a scam." If it were truly worse than a scam, why would anybody participate in it? Just because some idiots on the news talk about it? I don't think so.

BitCoin is given as a reward for using the power of your computer to solve increasingly complex algorithms; this procedure is called "mining." There is only a certain amount of BitCoin available, so it's a scarce resource, hence the perception that is has value. Here's an unbiased resource for how it operates: https://en.wikipedia.org/wiki/Bitcoin

Basically, it's meant as a decentralized currency for people who don't trust big banks or national governments.

That said, I don't plan to "mine" or purchase any BitCoin, and you probably shouldn't either. It's speculative and prone to wild fluctuations at any point, for any reason. Mr. Money Mustache makes a good case for why you should ignore it: http://www.mrmoneymustache.com/2018/01/02/why-bitcoin-is-stupid
FroogalStoodent
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1 month 1 week ago
I should update with this, which is itself linked at the mrmoneymustache post: https://prestonbyrne.com/2017/12/08/bitcoin_ponzi/

Preston Byrne argues, like many people here, that it is a pyramid-style scheme. Note that some pyramid schemes are legal (e.g. Avon, Amway, Mary Kay), but regardless of their legality, it's not a good idea to participate in them.
FroogalStoodent
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1 month 1 week ago
Also, this blog post does a good job of explaining cryptocurrencies in general: https://blog.chain.com/a-letter-to-jamie-dimon-de89d417cb80
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1 month 1 week ago
"If it were truly worse than a scam, why would anybody participate in it"
Because People do fall for SCAMs. That is the freaking definition of SCAM!
And who is perpetuating this Mega SCAM? CNBC and other organs of Wall Street right-wing lying machine, aka FAKE News.

A great demo of this fact was this morning, when I had the unfortunate of watching CNBC for 10 Mins, in it they had a segment about Bitcoin:
1st they alluded to this Guy in Malibu that is selling his $45-Mill mansion and accepting
World_Traveler
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1 month 1 week ago
Bitcoin for part of the payment. But wait a minute, she could not show us the beach because she was their at night time! Then she goes on to say that this ONE guy who is accepting Bitcoin for his Malibu mansion, which means 99.9999999% of people in Malibu are not, this one guy "Wei Chei" super Rich guy, he actually going to accept Bitcoin for part of the price of the House, but she does not know what percentage of the price he will accept in Bitcoin, etc. non-sense.

And then she is filmed
World_Traveler
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1 month 1 week ago
being in a Bitcoin "mining operation"! And what is the Bitcoin mine, it is a server room in Washington State where this dude is getting rich Mining Bitcoin!

MINE is where you move Billions of Tons of earth to Mine a valuable Metal ore, not a freaking server farm which any dude can set up in days.

Then it gets better, or WORSE: CNBC reporter then tells these servers that are mining Bitcoin are "Special servers", "That cannot be purchased anywhere" WHAT. WHY! Are these Magic servers?

World_Traveler
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1 month 1 week ago
Well then she tells us these magic servers that are "Mining Bitcoin", can only be obtained from one supplier in China. WHAT! WHY!

And the SCAM and lies goes on and on, by CNBC about this Bitcoin, just as they lie about issue after issue, from State of Healthcare in USA being a catastrophe for 100-Million Americans because it is not operated on Socialized basis like rest of the developed World, to War after War reasoning USA is engaged in, to now this nothing Bitcoin being hyped as being Mined
World_Traveler
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1 month 1 week ago
by Magic Chinese servers to pay for (some) of the price a $45-Million mansion in Malibu, etc. crap and lies.

Now if you find all of the above issues too complicated to grasp, here are KEY reasons why Bitcoin is beyond SCAM:

1- Anyone, you and me, can run a few lines of "Block Chain" code to create "Crypto Currency", name it Bitcoin or ZitCoin or TitCoin

2- Couple of servers running DOES NOT mine anything

3- For a currency to have value Central banks need to accept it. NONE accepts Bitcoin
ThinkDeep
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1 month 1 week ago
Floog, WT has done a great Job of destroying some of your Key points, well the key talking points about BitCoin, but here is another!
That is you said and BitCoin pushers actually say:
"...for people who don't trust big banks or national governments."

So you dont trust the Governments of USA, Europe, etc. but you are going to trust an Anonymous, repeat an Anonymous, person with pseudo name of Satoshi who is the Guy, not country, but the guy, behind BitCoin!
You know how crazy that sounds!
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1 month 1 week ago
I'll reiterate--"That said, I don't plan to 'mine' or purchase any BitCoin, and you probably shouldn't either. It's speculative and prone to wild fluctuations at any point, for any reason."

It's not, repeat NOT, an investment! It's speculative.

The point of Bitcoin and other cryptocurrency is not that you're trusting the person with this "Satoshi Nakamura" pen name; you're trusting the cryptographic system that he designed. I'm not a computer scientist and cannot fully evaluate the system.
FroogalStoodent
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1 month 1 week ago
Cryptocurrencies like Bitcoin only have value if people agree that they have value. Traditional currencies work in much the same way (https://en.wikipedia.org/wiki/Fiat_money), except that they have gov backing. Trust can be easily taken away; we'll have to see what happens in the future with Bitcoin & other cryptocurrencies.

As for whether WT has 'destroyed' my 'key points,' the readers may decide. People are welcome to read the links I posted and make up their own minds on the topic.
FroogalStoodent
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1 month 1 week ago
My conclusion is that it is not a scam, but that doesn't make it an investment, either.

Deal with cryptocurrency at your own risk, and never put more money into it than you can afford to lose. Something (e.g. cryptocurrency ban) could easily happen tomorrow that would scuttle the value of Bitcoin to near-zero. Traditional currencies like the dollar, yen, rand, etc. are far less volatile.

If you put money into a cryptocurrency, treat it like going to a casino.
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1 month 1 week ago
It is just total non-sense to say:
"you're trusting the cryptographic system that he designed"

What the hek does that mean! Why would that make for a currency!
Again Bitcoin only exists because CNBC and other organs of Wall Street based Media, as their game of screwing with mind of American People have been hyping this junk. As per the example of the 2 reports by CNBC reporters just this freaking morning.

And then you, as well as the BS Machine on CNBC have say this gem:

World_Traveler
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1 month 1 week ago
"Cryptocurrencies like Bitcoin only have value if people agree that they have value. Traditional currencies work in much the same way"

Traditional currencies have value because the FULL FAITH of US Government, European Union, UK, China, etc with all their Armies, Navies, Bridges, Dams, Taxing abilities, etc. are behind these "Traditional currencies".

Cryptocurrencies like Bitcoin have absolutely NO such FULL FAITH of a Nation behind it. Again it is just a code by some anonymous guy!


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3 weeks 1 day ago
So a gov promises that money is worth something, therefore it is?! Do you believe every promise made by every politician? If you don't trust their promises for anything else, why trust their promise that currency is worth something? Govs are, after all, run by politicians...

Look no further than Zimbabwe in 2007: https://www.forbes.com/sites/stevehanke/2017/10/28/zimbabwe-hyperinflates-again-entering-the-record-books-for-a-second-time-in-less-than-a-decade/
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3 weeks 1 day ago
If you're not sure what I mean by "trust the cryptographic system that Nakamura designed," you should read the links I posted above. They do a good job of explaining how the system.

Some people have more faith in mathematics/computer logic than in the decisions of politicians and economists working for a government. The fact that those people agree that cryptocurrencies are worth something are what gives it its value, just like cigarettes are valuable as 'currency' in a prison.
PeteFaquino
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2 weeks 3 days ago
You all need to watch a documentary on Bitcoin call "Banking On Bitcoin!"

It tells the incredible journey of how the coin came to be, obtained great wealth quickly...then almost got the boot cause of silkroad...
PeteFaquino
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2 weeks 3 days ago
Bitcoin and the crypto exchanges are no different than the stock exchanges of fiat.
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2 weeks 1 day ago
PeteFaquino, no that is 99% false. That is whereas Stock market is reflecting the value that a Company can create, from Airplanes they make, to Food they sell, etc. BitCoin reflects NO value at all. BitCoin and all these Crypto Currencies are worthless ZERO real value entities since for a Currency to have value a Government needs to back it, or since anyone can run the Block Chain code to crate their own Crypto Currency. So as others have stated only reason BitCoin got its value is due to CNBC
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2 weeks 1 day ago
and other right-wing Media outlets due to their nefarious reasons pumping this.
Now this is not saying that the current stock market is properly valued, it is not. It has been going Up and Up and Up for no good reason but so because the Wall Street cabal behind Trump is pumping it up so that Trump can say look:
'"MAGA" because stock market is up. When the fact is USA is one of the most miserable nations among all OECD Nations, as you can see from state of Healthcare in USA, mass shootings, etc

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