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Is cryptocurrency (bitcoin, ethereum, ripple) etc a scam?
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Original post by 23 and Grey
What you've written applies equally to buy lottery tickets.
Are you seriously suggesting investing in new technology (blockchain) is the same as buying a lottery ticket? Which is a clear cut gamble with demonstrably low odds.
Original post by CHEM AND BIO TIME!
technically as long as people continue to believe/use bitcoin it can be quite lucrative..but the moment its use dissolves and a new form of currency comes along, be prepared to jump ship asap
Well JP Morgan, Microsoft, Intel etc have invested in Ethereum so why would they do that if it did not have serious potential?
From a quick google search Ethereum is a network that requires "gas" (ether) to use and the only way to get the ether is to "mine" it or buy it from those who have mined it.
The question is what can this network offer? What's so special about it?
Original post by 23 and Grey
Was about to say this. Buying bitcoin is anything from ideological libertarianism to speculation, but it's not investing, then again buying gold isn't real investing either.
It's speculation.
Gold is usually a contrarian play depending on market conditions and is used as an effective hedge so does play part of an investment strategy in many portfolios
Original post by EternalLight
Are you seriously suggesting investing in new technology (blockchain) is the same as buying a lottery ticket? Which is a clear cut gamble with demonstrably low odds.
Buying bitcoins is not investing in new technology. You're paying for information on a ledger hoping someone else in the future will pay more for it.
Original post by The_Mediocre_One
It's speculation.
Gold is usually a contrarian play depending on market conditions and is used as an effective hedge so does play part of an investment strategy in many portfolios
Gold is usually a contrarian play depending on market conditions and is used as an effective hedge so does play part of an investment strategy in many portfolios
this is totally correct
These days, they are far more lucrative things to invest 50k into than Bitcoins.
Original post by WoodyMKC
These days, they are far more lucrative things to invest 50k into than Bitcoins.
yeah man go buy fixed interest bonds
/s
Original post by EternalLight
My sisters husband wants to invest £50,000 into cryptocurrencies but is this stuff actually legit? It's just digital money I don't understand why people buy it.
He briefly explained the process but this is what criminals use to buy dodgy stuff right? I've been looking at it a little bit and the return on investment is unbelievable. Ethereum has had investment from JP Morgan, Microsoft and others and rose 4000% in value in 6 months.
It just seems too good to be true. Then I read about ripple and apparently 150 banks around the world are adopting it including RBS, Bank of Amercia and Bank of Abu Dhabi.
Is this just one giant scam or does cryptocurrency actually hold real world intrinsic value, like gold?
He briefly explained the process but this is what criminals use to buy dodgy stuff right? I've been looking at it a little bit and the return on investment is unbelievable. Ethereum has had investment from JP Morgan, Microsoft and others and rose 4000% in value in 6 months.
It just seems too good to be true. Then I read about ripple and apparently 150 banks around the world are adopting it including RBS, Bank of Amercia and Bank of Abu Dhabi.
Is this just one giant scam or does cryptocurrency actually hold real world intrinsic value, like gold?
It is extremely risky, much more than investing in stocks and shares or bonds. Tell him not to do it unless he has a large portfolio and wants to invest into cryptocurrncies for diversification. Maybe he could invest into companies that are involved in the cryptocurrency sector as that would be safer. Also, I'm sure it would be considered gambling to take that sort of risk. As well as this, don't trust a bunch of teenagers on a student forum for advice on how to invest £50000.
(edited 6 years ago)
Original post by WoodyMKC
These days, they are far more lucrative things to invest 50k into than Bitcoins.
You say that but look at Ripple. Ripple is a network which allows for instantaneous transactions from country to country. If I want to send a payment from the UK to Egypt it takes multiple days, incurs fees and is just not convenient. The Ripple network allows you to do the same transaction in seconds.
That is a growth of 7000% in 4 months!
Why are banks all around the world adopting this technology if it's not worth it? Think of the effort involved in switching your entire banking system to a different network. If banks are using this I suspect this will be the next Swift and the preferred payment method by banks around the world.
Original post by Trapz99
It is extremely risky, much more than investing in stocks and shares or bonds. Tell him not to do it unless he has a large portfolio and wants to invest into cryptocurrncies purely for diversification purposes. Maybe he could invest into companies that are involved in the cryptocurrency sector as that would be safer. Also, I'm sure it would be considered gambling to take that sort of risk.
How?
The closest thing to this would be to invest in companies which have a positive beta with crypto-currency such as video card devs since when the price of cypto goes up more people try want to mine (you can mine on video cards, not that it's viable for BTC anymore). Loads of companies which deal in cryptocurrency have been far more dodgy than the crypto-currencies themselves.
Just look at mt gox, the creditors are still waiting to be repaid after it went down maybe 4 years ago.
(edited 6 years ago)
Original post by 23 and Grey
How?
Actually you're right, it's not possible
Original post by Trapz99
It is extremely risky, much more than investing in stocks and shares or bonds. Tell him not to do it unless he has a large portfolio and wants to invest into cryptocurrncies for diversification. Maybe he could invest into companies that are involved in the cryptocurrency sector as that would be safer. Also, I'm sure it would be considered gambling to take that sort of risk. As well as this, don't trust a bunch of teenagers on a student forum for advice on how to invest £50000.
I'm not asking for advice lol I just wanted to know if it was legit or not. He is old enough and nothing I say is going to influence him, this is just for my own curiosity. He isn't an amateur.
Original post by EternalLight
I'm not asking for advice lol I just wanted to know if it was legit or not. He is old enough and nothing I say is going to influence him, this is just for my own curiosity. He isn't an amateur.
It is legitimate, yes. The well known cryptocurrencies like Bitcoin, etherising, ripple aren't scams. Maybe there are scams out there but the big ones aren't scams.
Yes it does, thanks.
The price at the moment may have already priced in big corporate interest but this is brand new tech, Ethereum is considered in beta phase at the moment and the tech itself is relatively new. With a brand new technology like this it might be expected to get huge growth at the start, then a cool down period where the hype has died a bit and then a steady upwards trend based on mass adoption.
Look at Microsoft, you had explosive growth initially and then a cool down period and then steady growth which will surely continue for many years to come.
The price at the moment may have already priced in big corporate interest but this is brand new tech, Ethereum is considered in beta phase at the moment and the tech itself is relatively new. With a brand new technology like this it might be expected to get huge growth at the start, then a cool down period where the hype has died a bit and then a steady upwards trend based on mass adoption.
Look at Microsoft, you had explosive growth initially and then a cool down period and then steady growth which will surely continue for many years to come.
Original post by EternalLight
I don't think he is investing just yet but he was talking about it. He has experience with investing so I'm sure he knows what he's doing. Just sounded a bit strange that some random made up money can be used to purchase things with cash value.
I don't think he is investing just yet but he was talking about it. He has experience with investing so I'm sure he knows what he's doing. Just sounded a bit strange that some random made up money can be used to purchase things with cash value.
I mean, most real money is more made up than cryptocurrency. Real money used to be backed up by gold or silver but now it's essentially numbers on a spreadsheet.
Cryptocurrency on the other hand gets its value from mining, the coin is worth that tangible mining work. Although its value is also inflated by interest and the blockchain technology.
Original post by Helloworld_95
I mean, most real money is more made up than cryptocurrency. Real money used to be backed up by gold or silver but now it's essentially numbers on a spreadsheet.
Cryptocurrency on the other hand gets its value from mining, the coin is worth that tangible mining work. Although its value is also inflated by interest and the blockchain technology.
Cryptocurrency on the other hand gets its value from mining, the coin is worth that tangible mining work. Although its value is also inflated by interest and the blockchain technology.
Having read some more about it I see that mining is actually very expensive because it uses a lot of electricity so this is where the value comes into play.
1 bitcoin is worth $2500 because it takes a lot of dollars worth of electricity to mine one. Now I understand it a little better because before I thought people just ran the program on their computer and made bitcoins but it turns out you need many many computers all connected to make the mining worth it, which in turn costs a lot of electricity.
Original post by Helloworld_95
I mean, most real money is more made up than cryptocurrency. Real money used to be backed up by gold or silver but now it's essentially numbers on a spreadsheet.
Cryptocurrency on the other hand gets its value from mining, the coin is worth that tangible mining work. Although its value is also inflated by interest and the blockchain technology.
Cryptocurrency on the other hand gets its value from mining, the coin is worth that tangible mining work. Although its value is also inflated by interest and the blockchain technology.
Not entirely true, the money supply is backed by federal governments and is manipulated depending on economic conditions.
Backing it with something like Gold or Silver doesn't intrinsically make it any better.
i have been doing research on this and i assure you it is scam ,perpetuated by big holders of the so called coins and speculators .The people who do what is called mining the curreny and run the exchange .let alone people who see aspects of using the crypto currencies have a vested interest in making the concept spread ..the shares may well go up in several versions ..However i assure you a time will come when ,if the money of people who want to gamble on it stops coming the whole scam will collapse ..it is just like an old fashioned chain letter ,based on technology
Original post by murray11
i have been doing research on this and i assure you it is scam ,perpetuated by big holders of the so called coins and speculators .The people who do what is called mining the curreny and run the exchange .let alone people who see aspects of using the crypto currencies have a vested interest in making the concept spread ..the shares may well go up in several versions ..However i assure you a time will come when ,if the money of people who want to gamble on it stops coming the whole scam will collapse ..it is just like an old fashioned chain letter ,based on technology
There are many scam coins (research Bitconnect- it's a ponzi scheme which recently scammed billions worth of BTC).
However, most in the top 100 at least are absolutely not scams and are reputable.
If you think they are a scam, then don't invest. Your loss.
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