View single post by srossi
 Posted: Wed Jun 7th, 2017 08:20 am
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srossi

 

Joined: Sun Oct 14th, 2007
Location: New York USA
Posts: 53636
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Mysterious wrote: srossi wrote: Just under $3,000 now. This was on my radar in Libertarian circles back when it was 10 cents. So mad I didn't trust my gut and jump in at the beginning, but I got in at around $2,300 and people I respect are saying it could go up 20x more in the next 12 months. Then you have Mark Cuban who says it's a bubble that's about to burst. Certainly risky to get in now but if you drop less than $10,000 for 3 bitcoins, a very modest investment, you could still find yourself in a very good position. Curious if anyone else is in or researching this. I'm on the Gemini exchange and use the Electrum wallet.
Please explain to me what Bitcoin is and how it works. I was reading on another forum that had you invested a measly $100 back when it started, you'd be worth a shitload today.

I was hoping someone wouldn't ask that because it's not really easy to explain.  The most common question is "What is Bitcoin backed by?" and the answer is "Absolutely nothing", which is both exciting and terrifying.  It's crypto-currency, a digital payment system.  I have never understood how mining works or any of that stuff.  I basically looked at it as a long-term investment, like I would any stock.  You basically open an electronic wallet first, that's where you store your Bitcoins.  You have to be very careful about keeping these secure, hackers are out there and it's all just computer code waiting to be stolen.  Then they have exchanges, just like stock exchanges, where you can buy and sell.  Many merchants now accept Bitcoin as currency, the first big one being Overstock.com I think, but I've never bought anything with it.  It's going through the roof and hasn't had many setbacks and if you put any amount at all into it in 2009, you'd be a millionaire today.  It could also all fold like a house of cards at any time.

Last edited on Wed Jun 7th, 2017 08:21 am by srossi



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