PLPlum
Captain21,007 posts
19 Jun 2016, 20:00#1
Have ya seen what zi Bitcoin is doing lately? People putting some big money into that speculation.
Now, had you only purchased a few way back :)
MOMozart
Captain49,914 posts
MOMozartCaptain49,914 posts
19 Jun 2016, 20:16#2
Yep a nice run up, it's finally at about 2/3s of its 2014 values. Plum if you are measuring this thing in Rand terms....your gains have a big component of Rand decline in them.
PLPlum
Captain21,007 posts
20 Jun 2016, 00:56#3
It looks like the Chinese are buying a lot of them. Could it be another attempt from them at undermining the petro-dollar?
Nah, I was looking at the Dollar value. The last time I told you about them was just after the Paris attacks. Not sure if you remember. At the time we had a discussion about them being a speculation. I said I thought that their prices would rise because of the terror threat and subsequent instability blah blah.
If Bitcoin does get stronger whenever there is instability does it make them more then a speculation? I'm quite interested in that idea. Probably because I don't know enough about it to know it actually boring as vok. Hehe.
MOMozart
Captain49,914 posts
MOMozartCaptain49,914 posts
20 Jun 2016, 02:48#4
If it gets stronger when there is instability it's behaving like gold. But without a long history it's hard to say it will get stronger with financial instability. It's an interesting concept.
Something somewhat similar is the volatility index, the Vix, which you can actually buy and also goes up in value when risk increases. Risk calculated as the square root of the expected standard deviation of stocks, for the next 30 days. You can buy it on the options exchange or via tracker funds.
Investing in the Vix rather than bitcoins takes out a lot of noise....but in some ways the noise is easier to grasp than the systematic variances.
Just a random thought.
PLPlum
Captain21,007 posts
20 Jun 2016, 11:11#5
Sometimes a guy comes along...
http://www.coindesk.com/information/who-is-satoshi-nakamoto/
I find this utterly fascinating.
Bitcoin getting stronger on the basis of uncertainty does follow a sort of logic. Would it be right to say that it sits somewhere between being a commodity and a currency? If so, i don't think there is anything else like it, right? Would it also mean that it is inherently safeguarded against the many risks that normal currencies and commodities face? Obviously, i guess, it'll have some frailties of it's own.
MOMozart
Captain49,914 posts
MOMozartCaptain49,914 posts
20 Jun 2016, 15:31#6
In essence it's a synthetic asset. But the components are hard to define. Dabble if you wish, but be careful.
PLPlum
Captain21,007 posts
20 Jun 2016, 19:28#7
I might buy one and use it to attend a WC final 40 years from now :/
DBDbDraad
Captain26,388 posts
DBDbDraadCaptain26,388 posts
20 Jun 2016, 20:21#8
Plum, I'm no financial guru, but bitcoin will remain speculative for a few years still and they may run into some trouble in a few other countries like they did in Russia. If you're into those kind of investments, you might also try our lucrative spammer's angle.