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Buddy got into crypto this week....all I get is updates on how his DOGECOIN is booming.

I don’t even know what that is.....
 
mimico_polak said:
Buddy got into crypto this week....all I get is updates on how his DOGECOIN is booming.

I don’t even know what that is.....
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Will he be updating you when Dogecoin goes in the toilet? I hate this super speculative stuff that almost no one understands let alone knows when to buy and when to sell.

If I wanted to throw money around for sh*ts and giggles, I'd rather spend it on some Columbian marching powder and a hooker. At least I'd know what I was getting!
 
Green Meenie said:
Will he be updating you when Dogecoin goes in the toilet? I hate this super speculative stuff that almost no one understands let alone knows when to buy and when to sell.

If I wanted to throw money around for sh*ts and giggles, I'd rather spend it on some Columbian marching powder and a hooker. At least I'd know what I was getting!
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It's fundamentally similar to betting on the results of a properly constructed random number generator. You may think there is a system but it is based on luck with no intrinsic value.
 
BB722 said:
guessing the older crowd here rememebers the dot com bubble, a lot of these **** coins will end up with the same fate
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Hopefully, as with dot com, the smart among them pulled out their original money long ago and put it in conventional assets. That leaves crypto as a pure gamble which makes you feel rich but if you lose it all, you revert to your old life plan. For those that go all in, as with dot com, it is a harsh reckoning.
 
This crypto currency thing is likely a very viable future investment vehicle but right now is not the time to I want to be diving into that pool. Early days still.
 
Crypto has a big future but for all the existing ones (specially bitcoin) there are some short falls that at some point will make them plunge, when is anyone's guess. Of course the fan boys will always say no way this can happen, going to the sky....
  • Encryption (any and all) has a finite life span. While the foreseeable future says it is solid one day quantum computing becomes widely available (or something else) and the current cryptos will become untrusted. This does not mean that it is totally "hacked" just that enough damage is done by scammers to question the current blockchain, sort of risk of counterfeit. A new coin can totally move the bar higher to prevent this, but the current ones will be toast WHEN this happens.
  • Transaction rate, Bitcoin is less than 5 translations per second last I looked. Visa is somewhere around 1700 per second. The transactions per second will need to be way faster for it to be used wide scale for day to day transactions. A new one can address this at some point.
  • Barrier to entry, the entire thing seems simple enough to techy people for the average completely non-techy person it is was too complicated to buy actual coins and to store them. What has improved and helped the value a lot is the ability to buy ETFs in the mix and the barrier is falling as more people become savvy and easier methods come up. Obviously getting easy as scammer use it to scam rubes, and the rubes figure it out (usually Bitcoin ATM).
  • While the lack of central control is considered a plus today there are downsides and of course massive fluctuations. There are also concerns about regulation as it is used for black market transactions, trafficking, tax evasion or......
  • Currency manipulation and currency "warfare". History has shown us that currency manipulation has and still is something that happens. Hypothetical the US (or say G7) could get tired of the black market and the use for drug trafficking, tax loses, buy say 10 or 20% (maybe more) of the specific coin over a extended period then dump them in one shot causing a currency crash (ironically the slow transaction rate might help keep them up?). People lose their shirts, traffickers get screwed over and the crash kills the love. Maybe this is happening right now (buying)..... maybe there is Iran-Contra like CIA use right now....
Sooner or later one or more of these things will happen OR more likely a new better coin will become the king of the hill by addressing many of or all of the above (specially transaction rate), a better widget obsoletes the old ones.... which will potentially kill the current ones, but maybe not a hard crash? Like the housing market, dotcom, etc. when is the question, it cannot go as is forever but we would all be much richer if we knew the future.... but food for thought for investors.
 
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