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A Simple Analogy of How The Bitcoin Works. A lot of monkeys lived near a village. One day a merchant came to the village to buy these monkeys! He announced that he would buy the monkeys @ $100 each. The villagers thought that this man was mad. They wondered how somebody could buy stray monkeys at $100 each? Still, some people caught some monkeys and gave them to this merchant, and he paid $100 for each monkey. This news spread like wildfire and people caught monkeys and sold them to the merchant. After a few days, the merchant announced that he would buy monkeys @ $200 each. The lazy villagers also ran around to catch the remaining monkeys! They sold the remaining monkeys @ $200 each. Then the merchant announced that he would buy monkeys @ $500 each! The villagers start to lose sleep! ... They caught six or seven monkeys, which was all that were left and got $500 each. The villagers were waiting anxiously for the next announcement. Then the merchant announced that he would be going home for a week. And when he returns, he will buy monkeys @ $1000 each! He asked his employee to take care of the monkeys he had bought. The employee was alone taking care of all the monkeys in a cage. The merchant went home. The villagers were very sad as there were no more monkeys left for them to sell at $1000 each. Then the employee told them that he would secretly sell some monkeys @ $700 each This news spread like fire. Since the merchant would buy monkeys @ $1000 each, there would be a $300 profit for each monkey. The next day, villagers lined up near the monkey cage. The employee sold all the monkeys at $700 each. The rich bought monkeys in big lots. The poor borrowed money from money lenders and also bought monkeys! The villagers took care of their monkeys & waited for the merchant to return. But nobody came!Then they ran to the employee. But he had already left too ! The villagers then realized that they had bought the useless stray monkeys @ $700 each, and were unable to sell them! The Bitcoin will be the next monkey business ... It will make a lot of people bankrupt and a few people filthy rich in this monkey business. That's how it works. _________________________ | ||
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Do you know how to make a small fortune in Bitcoin? Invest a large fortune in Bitcoin. | |||
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| Yew got a spider on yo head  |
 Just another sucker here. Guess doubling my money invested in mining was a dumass move. | |||
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eh-TEE-oh-clez |
Seems to me that everyone who is participating in the bitcoin markets is doing well for themselves, and everyone else is just enviously watching and secretly (or not so secretly) hoping that it all collapses. But, not every person who participates in the bitcoin "craze" is destined to lose money. There should be more than a few people out there who should be able to make a bunch of money, and get out without holding the bag. I've only invested a small amount of money in bitcoin speculation, and unfortunately have not made a huge fortune. However, I've invested quite a bit of money in nVidia because of the demand for video cards...and those stocks have more than doubled in the past 12 months. | |||
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Chip away the stone |
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| I believe in the principle of Due Process  |
Think “tulips.” Some say that an asset is valued at what others will pay for it. That is almost axiomatic, a tautology. What it omits is that what others will pay can vary from time to time, sometimes considerably. Adam Smith believed that the value of everything was based on the amount of labor one could command with that asset. A hour of labor was worth so many bushels of corn, etc. I’ll let those who are interested have the delight of reading Smith’s explanation on your own. It’ll take your mind off our present political controverseys for several days anyway. We value everything in reference to dollars or some other currency. To buy Bitcoins, you give up dollars, or Euros, or francs, or pesos, etc. What can you do with Bitcoins? Luckily, I have enough willpower to control the driving ambition that rages within me. When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson "Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown | |||
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| I believe in the principle of Due Process |
If bitcoin, which skeptics say is a bubble, suffers the same fate as past financial manias, look out below. Fears of a bitcoin crash are growing amid an early-year plunge that has wiped out 50% of the digital currency's value since its December peak of $19,500 per coin. "There is significant precedent to suggest that the more rapid the appreciation, the more rapid the depreciation," says Scott McGann, a finance lecturer at San Diego State University. Bitcoin's wild ride continued Monday when it was down more than 11% at $10,050 after cratering last week to a seven-week low of $9,200. The Bitcoin phenomena experiences both record highs and lows this week, but…uhh, what the heck is it again? USA TODAY History is filled with examples of big busts after gargantuan gains. The Nasdaq fell nearly 80% after the dot-com stock bubble burst in 2000. The Dow tumbled 86% following the 1929 stock market crash. The Dutch tulip bulb craze in the 1600s had a similar bad ending. If the pain following past popped bubbles is a guide, bitcoin believers who cheered the cryptocurrency's 1,400% gain last year should brace for further declines. The reason: The bitcoin bubble is the biggest ever. Bitcoin's value has risen 65-fold, which tops the 50-fold rise of tulips in the 1630s and tech stocks' four-fold rise in the 1990s, according to Convoy Investments, a New York-based investment firm. "Historically, most major asset bubbles tend to lose close to 80% of their peak value," says Howard Wang, co-founder of Convoy Investments. Recent bitcoin turbulence has been sparked by fears of a regulatory crackdown by foreign governments. More: Bitcoin selloff deepens, digital currency now down 50% from recent peak More: Bitcoin breaks under weight of regulatory scrutiny More: Bitcoin Price: Digital currency had big swings in 2017 Still, Wang reminds investors that bitcoin has survived many drops. Bitcoin bulls, like Tom Lee, co-founder of Wall Street firm Fundstrat Global Advisors, see its recent troubles as temporary, saying the $9,000 level marks a major low. Lee has a year-end 2018 price target of $25,000 on bitcoin, the unregulated digital currency that's not backed by any government. Institutional investors, he says, will get more comfortable with its evolution and commit more cash to it. Tech-savvy Millennials, which are entering their prime income years and are distrustful of traditional financial institutions, will drive adoption of digital currencies, he adds. The bubble crowd isn't buying the optimistic spin. "Bitcoin is a bubble," Vicky Redwood, a global economist at Capital Economics, noted in a report. "Most people are buying bitcoin, not because of a belief in its future as a global currency, but because they expect it to rise in value." Given that bitcoin, despite its first-mover advantage, has no intrinsic value like a stock or real estate or gold, it's only worth as much as people are willing to pay for it. If bitcoin crashes like skeptics predict, people that own it will lose lots of money, says Eric Schiffer, CEO of Patriarch Organization, a digital investment company. But massive bitcoin losses, which could be triggered by a government crackdown, a major hacking event or it being usurped by one of the nearly 1,500 other cryptocurrencies, won't cause a financial meltdown, says Redwood. The reason: Bitcoin's overall market value, when compared with stocks, bonds and gold, is so tiny that a total collapse wouldn't cause major harm to the economy or financial system. Bitcoin's current market value is $179.5 billion, according to coinmarketcap.com. That's far lower than the U.S. stock market's value of nearly $28 trillion, the U.S. government bond market at roughly $20 trillion, or gold, with its estimated value of $7 trillion. "If the price of bitcoin fell to zero today, the paper losses would be equivalent to a 0.5% fall in U.S. stock prices," says Redwood. Big institutions also aren't aggressively invested in bitcoin, which reduces the chances of financial contagion if it crashes. What's more, the number of Main Street investors in bitcoin is nowhere close to the broad ownership of tech stocks in early 2000 or real estate in 2007. There are no bitcoin mutual funds or exchange traded funds available yet to retail investors. A recent survey of 2,000 U.S. adults by Blockchain Capital showed only 2% of people owned bitcoin. "Folks losing money in bitcoin may cry, but they don't pose a risk to the financial system," says Axel Merk, president of San Francisco-based Merk Investments. Link Luckily, I have enough willpower to control the driving ambition that rages within me. When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson "Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown | |||
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| Little ray of sunshine  |
The original analogy is not accurate, but whether or not Bitcoin is a bubble or about to crash is another question entirely. The fish is mute, expressionless. The fish doesn't think because the fish knows everything. | |||
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His Royal Hiney |
That's a similar take on the "buying the hardware stores that sold pans and shovels to the gold miners than becoming a gold miner. The analogy is close to the truth; I just wish I had bought bitcoins from the onset. I think it's just like any currency or valuable today like diamonds. Either production or distribution is tightly controlled and the desirability and perceived utility is managed. The current derision is indicative that bitcoin is still on the upswing. As most know, when everyone and his brother is sporting some bitcoin in their portfolio and touting it as an investment, then the bubble will burst. "It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946. | |||
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A Grateful American |
 "...so, I created a virtual "currency" to be used in an online simulation for day trading, and called them "Bitcoins", and before you know it, all this real money started rolling in when people actually started "selling" the darned things." "the meaning of life, is to give life meaning" ✡ Ani Yehudi אני יהודי Le'olam lo shuv לעולם לא שוב! | |||
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I was waiting for you to weigh in....  _________________________ | |||
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Bitcoin may crash, but I can see a real need for a decentralized currency using block chain. It would remove the need for a “trusted” third party like a bank. | |||
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| The Main Thing Is Not To Get Excited  |
I don't understand your point. A bank is an intermediary, I get it, but how does this fit in with the need for a 'decentralized currency'? _______________________ | |||
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| stupid beyond all belief  |
I can see why no one likes the idea of bitcoin. kudos to anyone who read the Satoshi white paper. Kudos to anyone who can explain Blockchain. The problem with bitcoin is it forces people into to learn technology(again). This is why the fight to understand it is so hard. To put it simply, Bitcoin is gold 2.0, it is actually on the exact same trajectory as gold from the 70s. It's quite interesting. The Bitcoin wallstreet futures contract ends on the 26th. Bitcoin will go down again. Followed by months of a huge run-up. Bitcoin is on wallstreet, it's not going anywhere. https://medium.com/swlh/will-t...-to-gold-b7d35704641 Here is even a forum favorite explaining the potential rise of cryptocurrency in 1999. Do I think you should invest in it? No. Do I think you should try and understand, absolutely. Link to original video: https://www.youtube.com/watch?v=onn34J74dnU What man is a man that does not make the world better. -Balian of Ibelin Only boring people get bored. - Ruth Burke | |||
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| stupid beyond all belief |
A bank collects fees, takes days to reconcile the ledger. Decentralized currency can't be manipulated, think Africa with all the crazy printing, think about all the countries just printing money including the good ole USA. Purchasing power of the dollar has dropped a ton. As long as anyone can just print money the system is corrupt. We are lucky to live in a country where the dollar is not worthless. Average shelf life off currency is 27 years. A decentralized currency does not allow for anyone to control it and it is not inflationary and holds it's store of value. What man is a man that does not make the world better. -Balian of Ibelin Only boring people get bored. - Ruth Burke | |||
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| The Main Thing Is Not To Get Excited |
I see. Got it. _______________________ | |||
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| Member |
Blockchain has a really long way to go before it becomes useful. One of its' many problems is its slowness and high resource consumption for decryption. The link below is a bit long and technical but gives a good explanation why a ten year old technology has not taken off. It shows promise for some things but not as a "guardian" of global monetary transactions. Ten years in, nobody has come up with a use for blockchain | |||
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| stupid beyond all belief |
Yup, all the trials are just finishing or starting. The end of the year will prove either good or bad for blockchain. Vermont is trialing blockchain this month ICON is trialing and releasing Dapps at the end of this month. Ripple/XRP trials are finishing up at the end of this month with Japanese and S. Korean banks. Moneygram is trialing XRP as we speak. Going to be an interesting next 2 quarters. Wallstreet is long on the Bitcoin futures after June 26. What man is a man that does not make the world better. -Balian of Ibelin Only boring people get bored. - Ruth Burke | |||
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I for one hope the price of bitcoin drops so low. I will buy some then. After that it may take a few years, As always it will go up and up and up. God Bless  "Always legally conceal carry. At the right place and time, one person can make a positive difference." | |||
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| stupid beyond all belief |
Rumor is 2-8k friday. Wallstreet gotta make theyre money. They turned it into a real pump n dump. We shall see. Hoping for the same. Better get ur account now. Exchanges been adding 150k people a day, some arent excepting new registrations. What man is a man that does not make the world better. -Balian of Ibelin Only boring people get bored. - Ruth Burke | |||
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