dbm300 wrote: SilverDoge wrote:
dbm300 wrote:So for someone who is ignorant can you explain what it is you are doing (use small words)
Are you buying bitcoins and Litecoins etc like a stock and hoping they go up?
Oh man I could go on a serious tangent on this one. Luckily dbm300 wasn't asking me.... so... definitely, maybe?
Well go on a serious tangent in a PM
Someone tell me what's going on. I don't want to be ignorant
Ok, I'll bite. The true answer is it depends on several factors, but really two important questions: when, and how, did one come to crypto (like bitcoin and litecoin)? Anyone who was into bitcoin before that first big spike up, was most likely into it because they saw the disruptive breakthrough technology of blockchain, understood the ramifications of verified transactions without the necessity of a "trusted" (aka controlling banks and payment processors) third party to facilitate those transactions, and wanted to be a part of the movement that could leave modern banking in the dust. Being a precious metal holder already helps in that mindset because there is already a healthy skepticism of government, banks, elites, etc. But we are also paranoid to an extent (if you don't hold it you don't own it), and anything resembling a currency that isn't backed by a physical asset is almost immediately shunned. I was of this mindset too for some time. As I like to say, every person who is a crypto believer, was at first a crypto skeptic.
The biggest problem for some was the anonymity of Satoshi Nakamoto. Who was the inventor of bitcoin? I used to follow Chris Duane, who helped me get into silver. He was rabidly against bitcoin even though I thought it made sense. Now in retrospect, he was trying to pimp his own coins and didn't want his followers diverting their money into some new unverified tech that is "almost guaranteed to be created by the CIA" as he would say. So I held off but continued monitoring bitcoin in the background. The whole invented by the CIA trope didn't add up logically to me. Why would the CIA create a competing currency to the US dollar, especially when they can't control the price? Just doesn't add up. Even if the CIA had created it, they would no longer have control anymore.
There are definitely a fair number of people into crypto who want to speculate, make as much money as possible, and cash out. These people aren't really in bitcoin, they are into the alt-coin market. Bitcoin is too large to be controlled now and a whale buying a big lot isn't going to move the market like he used to be able to. Plus there are OTC (off exchange) deals where whales don't even place an order on an exchange because they don't want to change the price. So the real speculation occurs in the alt-coins. The lower the trading volume and market capitalization, the easier the coin is to manipulate from a high net worth individual's perspective. Now most of your rich Wall St types likely aren't trading crypto....yet. It is a bit of the wild west where trading is concerned. I could theoretically create an alt-coin out of nothing, market the hell out of it, convince some exchange to list it, pump the price and walk with profits. That does happen, so one needs to tread carefully. I chose PIVX when it had just barely breached the top 20 coins in market cap. The top 10 are probably your safest coins.
Personally, I was able to get into crypto because I already owned PMs. For a newbie starting out, I always advise stacking gold and silver first. But if you have a stack that you are comfortable with, then why not branch out a bit and diversify?
I can envision a world where you walk into a store like JC Penny or Sears (or even better just buy online). You go to check out (or online cart). The clerk (or robot) asks you how you'd like to pay. You say crypto. You are then able to pay in one of any hundreds of cryptos you have on your mobile wallet on your phone or on your computer. The store receives your crypto (be it bitcoin, litecoin, PIVX, dogecoin) etc. The store can then immediately converts your crypto into bitcoin (this happens automatically), and if it desires, convert that amount into USD every hour, or every day, week, etc. A savvy business owner might also set aside a certain percentage of his sales in crypto and NOT immediately convert to USD and accept a bit of currency risk to give himself potential for crypto profit (better than depreciating dollars).
Does this sound far fetched? Guess what, it already exists. It just hasn't reached mass adoption yet but the question is why wouldn't it? If enough consumers determine that crypto has value, that we don't want to empower the banks who screw us whenever they get the chance (or get fat bailouts while we get nothing), we don't want eBay or PayPal dictating our limits or telling us who we can and can't do business with, and that crypto actually has the ability to make them a bit of money while also being used as a convenient payment method - then why not use it? Of course there are a million objections. There were also a million objections to the invention of the automobile, modern electricity in houses, the computer, the internet, and on and on. We forget about all these initial objections after the fact, once some technology has become convenient enough, and has been actually adopted, we wonder how we did without it. This website already offers the exact service I just described and it is fairly easy for a business to install this on their website right now: https://www.coinpayments.net/
TL:DR - yes we would like the price of crypto to increase, but for many that was not the initial reason we got into it. We won't object to the price increasing, but we also understand that for a mass adoption of a crypto with a limited supply, economics dictate that the price must increase relative to the overall demand of that good. For some people, yes they just want to speculate and make money - but that happens in every market ever invented.