Bitcoin crash coming (1 Viewer)

Serious question. I have $500 I can afford to lose. (I understand I could lose it all if shit hits the fan. It's happened to me before on the stock market.)

Is there any chance with only $500 invested into a cryptocurrency that I could see a significant gain on my investment and cash it out into real money if it's selling sky high later on, like a stock?

I'm trying to read about crypto but I just can't wrap my head around it. But I have $500, lol.

Thanks.
 
Serious question. I have $500 I can afford to lose. (I understand I could lose it all if shit hits the fan. It's happened to me before on the stock market.)

Is there any chance with only $500 invested into a cryptocurrency that I could see a significant gain on my investment and cash it out into real money if it's selling sky high later on, like a stock?

I'm trying to read about crypto but I just can't wrap my head around it. But I have $500, lol.

Thanks.


I'm no expert, just starting out myself.

Let's say Bitcoin goes from 10K to 60K this year, that's 6x your investment. It's a nice chunk if you had 10K to plunk down obviously, and it's certainly more likely than some of the smaller alt coins.

But your biggest likelihood for a huge gain is also the most risky generally, which will be alt-coins that are selling for pennies or fractions of a penny. If they hit $1, or $10, etc. then that's a ridiculous boost.

Right now there are a LOT of uneducated buyers in the market falling for scams like Bitconnect (who I believe are now shutting down) and other coins that will only last so long before they crumble (although there's money to be made buying on the dips and selling on the highs)

And of course there's groups out there manipulating the pricing with their buys and sells as well, plenty of misinformation, etc.

So yes, it's possible you could put $500 into coins that are pennies or fractions of a penny and if they take off you have a nice return. But of course no guarantees.

My initial plan was to put 1K in and then do half on more stable long-term coins and the other half on the riskier but potentially higher return coins.

But now I'm going to put 8K more into the market but on Bitcoin which I expect will jump up quite a bit as the year goes on. So it's a more stable likely return than the other coins, guess I'm a bit of a nit.
 
Alright, here's where my first $750 has gone:

XVG (Verge) 999 coins
XRP (Ripple) 99.9 coins
NEO 0.4995 coins
Ethereum 0.12487500 coins
DASH 0.0999 coins
BTC (Bitcoin) - 0.02259634 coins


Would love input from those more experienced in this sector on my current portfolio :)
 
I recently looked at a project where a customer wants to install a larger electrical service to power his mining computers. While trying to learn about mining computers I found an article that speculates the power consumption from the transactions could equal the US total power consumption by next summer and by the end of next year it could equal total global power consumption.

Well, screw cryptocurrency then, invest in power companies. That's what all this boils down to right, electricity costs? Got to have electricity to have digital currency.
 
I took my play money and did a 1 full ETH this month. I look at all the coins/tokens like it was 1997 dot-com rage. First, do they have good tech. Second, what's the float, Third, do they have real world applications / customers / industry backing.
 
Mind if I ask which crypto exchange(s) you are using?

CoinBase to get initial money in, transfer to GDAX then to Binance (lower fees this way). I haven't used KuCoin but I've recently heard people may want to get their money out of there sooner rather than later, not sure of anymore details on it, but there's some concerns. Trusted friend on Facebook with the warning
 
I just read this entire thread and I have absolutely no idea what any of it means. Carry on. I'll keep reading and scratching my head.

For some reason I find it interesting. Even though you guys aren't speaking my language.
 
I just read this entire thread and I have absolutely no idea what any of it means. Carry on. I'll keep reading and scratching my head.

For some reason I find it interesting. Even though you guys aren't speaking my language.
Imagine someone created a new type of bucket. This new bucket is more expensive than the older type and has holes in it so that water leaks. Someone started a rumour about how great it was and everyone invested.

crypto is the currency version of that story.
 
Imagine someone created a new type of bucket. This new bucket is more expensive than the older type and has holes in it so that water leaks. Someone started a rumour about how great it was and everyone invested.

crypto is the currency version of that story.

Sounds like it would be perfect for some potted plants (y) :thumbsup:
 
I just read this entire thread and I have absolutely no idea what any of it means. Carry on. I'll keep reading and scratching my head.
For some reason I find it interesting. Even though you guys aren't speaking my language.

Imagine someone created a new type of bucket. This new bucket is more expensive than the older type and has holes in it so that water leaks. Someone started a rumour about how great it was and everyone invested.

crypto is the currency version of that story.

lol.. If you exchange a currency for x amount of said buckets and the agreed upon value of the buckets in relation to the currency you used to acquire those buckets increases, then, after the increase, you exchange those buckets back for the currency you initially used to acquire them, it's all good ;)
I don't know of a good way to over simplify it...
It can be very confusing and abstract.. it's volatile for sure.
 
Bitcoin is the first digital currency to use blockchain. All blockchain is an accounting ledger of accounts and balances. The ledger is distributed and the miners are the accountants that reconcile the transactions.

Let's say I buy a Paulson set from you. You give me your address and I send the agreed amount of bitcoins to that address. You send me the Paulsons. Issue is, if you never send the Paulson's, I cannot reverse the transaction.

Ethereum is another digital currency that uses blockchain. The difference is it handles smart contracts. I want to buy Paulsons from you, we enter in a contract for you deliver the chips and me to pay a certain amount of Ethereum. Maybe that contract is tied into UPS. So the ETH is held in escrow until UPS confirms delivery and then the ETH is dispersed to you.

Another difference between coins is how fast they can perform transactions and what it costs. BTC while being the first has seen transactions become slower and more expensive. Virtually all coins are trying to increase txns and reduce cost. Ethereum has Proof-of-Stack (Casper) that eliminates the need of miners and shading to speed transactions in testing now.

Other coins are specialized and some private such as Ripple. Ripple is being used to reconcile cross-border payments between banking institutions. Stellar cloned Ripple and is basically for the people. Which will likely be popular in places like Africa.

Ultimately the idea is transferring funds over great distances and borders is cheaper and faster then the banking institutions. It cuts out the middle man.

The value of a coin is simply supply and demand. The enormous amount of speculative investors is why it is so volatile. Also only 21M coins will be made for Bitcoin and 84M for Ethereum. Ripple is something like 2 billion. Unlike a gov't that just cranks up the printing press when they want more money.
 
Thats a good explanation, but the "mystery" of bitcoin is understanding how its mined/created. I think that's where you lose most people.

Unlike a gov't that just cranks up the printing press when they want more money.

To be fair, the government also destroys currency (like bills) when they are no longer usable. But yeah...
 
Thats a good explanation, but the "mystery" of bitcoin is understanding how its mined/created. I think that's where you lose most people.



To be fair, the government also destroys currency (like bills) when they are no longer usable. But yeah...

Bitcoin uses the hashcash proof-of-work function. The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins.
 
Bitcoin uses the hashcash proof-of-work function. The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins.

 
Bitcoin uses the hashcash proof-of-work function. The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins.

You-keep-using-that-word.jpg
 
I think I will stay where I am at with my finances. I am not sure I like something that has a cap of 21 million bitcoins and recently they already had 4 million vanish and never to be found. almost 20% of what was there is now gone. Where did it go?

Now this I like and have loved, I mean I have loved the past running year so far.
Screen Shot 2018-01-19 at 2.52.15 PM.png
 
Or more correctly, replaces... i.e - the amount of currency in circulation does not change..

Currently, the US government maintains over US$800 billion in cash money (primarily Federal Reserve Notes) in circulation throughout the world,[18][19] up from a sum of less than $30 billion in 1959. Below is an outline of the process which is currently used to control the amount of money in the economy. The amount of money in circulation generally increases to accommodate money demanded by the growth of the country's production. https://en.wikipedia.org/wiki/Monetary_policy_of_the_United_States

Where did the $770 Billion come from then?
 
Currently, the US government maintains over US$800 billion in cash money (primarily Federal Reserve Notes) in circulation throughout the world,[18][19] up from a sum of less than $30 billion in 1959. Below is an outline of the process which is currently used to control the amount of money in the economy. The amount of money in circulation generally increases to accommodate money demanded by the growth of the country's production. https://en.wikipedia.org/wiki/Monetary_policy_of_the_United_States

Where did the $770 Billion come from then?

You misunderstood my post.. To clarify, what I was referring to (and quoting if you look again) is physical bills being destroyed do not change the amount of currency in circulation as the bills being destroyed and taken out of circulation are replaced with new bills of the same exact total value.
I was showing the non-connection of @WedgeRock 's post about physical bills being destroyed in response to your post of US currency being created.

Where is the extra currency coming from.. "printed" out of thin air as you stated..

US Currency -> There was approximately $1.59 trillion in circulation as of November 15, 2017, of which $1.55 trillion was in Federal Reserve notes.
 
I think I will stay where I am at with my finances. I am not sure I like something that has a cap of 21 million bitcoins and recently they already had 4 million vanish and never to be found. almost 20% of what was there is now gone. Where did it go?

The bitcoins themselves didn't go anywhere, the key to access them is gone/forgotten. A good analogy would be forgetting your email password with no way to recover/change it. Your emails are still there, you just can't access them.

Not a comment on bitcoin itself, just wanted to explain how they ended up "missing". Don't take that as gospel though either, still learning myself. ;)
 
Our server became encrypted with ransomware over the weekend (I was actually here Friday night when it started and got a 2-day jump on trying to restore it... Unfortunately, the backup was also encrypted.)

Anyway, the criminals who did this requested Bitcoin as the ransom currency to get the unlock key...
 
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Our server became encrypted with ransomware over the weekend (I was actually here Friday night when it started and got a 2-day jump on trying to restore it... Unforunately, the backup was also encrypted.

Anyway, the criminals who did this requested Bitcoin to give us the unlock key...
A hospital system in Indiana had this occur and they actually paid the ransom and received the unlock code.
 

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