All Topics / Creative Investing / Investing in crypto?

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  • Profile photo of DonCallisDonCallis
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    @doncallis
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    Hey, guys. Do you consider investing in bitcoin or any other cryptocurrency as a good investment tool? Share your opinions!

    Profile photo of DawiidGDawiidG
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    @dawiidg
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    No, bitcoin is too volatile. I honestly don’t understand why everyone is so obsessed with crypto.

    Profile photo of AlisoninAlisonin
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    @alisonin
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    Bitcoin is always a good idea

    Profile photo of AndreaBurAndreaBur
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    @andreabur
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    Yeah, the cryptocurrency market is becoming more and more popular among people, and today you can buy a bitcoin almost everywhere, as well as sell it, or buy something using it. Because of the fact that it can’t be tracked, a lot of people prefer to make their transactions using bitcoin or other cryptocurrencies. If you invest today in crypto, you will be rich in 10 years. Also, you can try an ETF investment option which is also very profitable and very useful.

    Profile photo of PimobpiPimobpi
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    @pimobpi
    Join Date: 2013
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    Hi Don,

    Your question is answered below but I want to initially state how Real Estate & Crypto are relevant to each other.   Giving respect to the site theme. They are connected in many unusual ways.  I would like to share how their attributes collide & what could come of it.   Property ownership is targeted for disruption (if some crypto’s are successful).   It could mean a paradigm shift for property owners. It potentially means that property values will experience massive rises & could also mean that property ownership will be done very differently in future.

    Reminder to all:  Crypto has its issues & everything it hopes to be is unproven as of right now.  Saying that, there are very smart & determined people looking to solve these problems. Example: Bitcoin cannot scale yet.  It cannot scale without compromising on some of its key features.  Other coins/token have their different problems. The money you put into Bitcoin is a bet on human ingenuity.  This is a quote from Paul Tudor Jones.

    Back to how real estate & crypro collide:

    Enjin coin has partnered with LABS group in the hope of selling real estate incrementally. Owning 1/10th of a property for example. They are leaders in providing Non-Fungible Tokens & created the tech for gaming assets to retain their real world value.  They understand that their ideas of NFT can also disrupt real world Real Estate (I am not meaning just virtual land that you see in games, I am talking about the houses that we live in).

    For those interested to know more about this, I can offer some details but google is your friend here. It’s up to the individual to make up their minds about whether the tech has any possibility of success.  The ideas are outrageous & unbelievable but do not have a closed opinion before performing your research as millions of $US have already exchanged hands on the sale of these NFT’s. The space is moving rapidly, I am no longer able to keep up.  I have been interested in crypto’s since 2016 & I still have fundamental flaws in my understanding of it.

    I have tried to make most of my comments relevant to property investment but the crypto subject is grand. I am happy to hear from anyone who disagrees with me but only if they can do that with the intention of wanting to teach me something.  I am still learning & am sure that many of you know more about this subject than I do. I am also happy to respond to anyone that wants to know how to get it.

    Wishing more health & wealth to all of you that read this (& the ones that don’t read it).

    • This reply was modified 1 week ago by Profile photo of Pimobpi Pimobpi.
    • This reply was modified 1 week ago by Profile photo of Pimobpi Pimobpi.
    Profile photo of PimobpiPimobpi
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    @pimobpi
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    @dawiidg, I agree that Bitcoin is volatile – That would be the story for sellers only.   Yesterday Bitcoin reached an All Time High.

    Everyone that purchased (and held) Bitcoin at any time since its 12 year inception is now in profit (on virtual paper).

    The above statement is only false for people who purchased their first Bitcoin yesterday & was purchased right after it reached it’s All Time High.   In any case, over 99% of Bitcoin holders are feeling rich right now & new millionaires are made daily.  To answer your question: that’s why many are obsessed with it.  It’s simply because many are obsessed with making money & many love the tech. The perceived volatility should diminish if it grows to an even larger market cap.

    Keep well.

    Profile photo of PimobpiPimobpi
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    @pimobpi
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    @alisonin, I also agree that Bitcoin is a good idea, I like its intension & think that we should all have some slice of that.

    As far as I understand, it’s a very binary thing.  I think it will either completely fail or it will engulf most of the world value.  It was not designed to stop half way. The Game theory of it so far has meant that crypto is doing what it was meant to do.  It may have a very tiny possibility of success but it is showing adoption like nothing that I have ever seen before.  That’s good enough for me to want to own it.

    Cheers.

    Profile photo of PimobpiPimobpi
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    @pimobpi
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    @andreabur, yes adoption has grown remarkably over the years.  Like you, I also used to think that Bitcoin couldn’t be tracked but now I understand that it can be.  The on and off ramps (converting from fiat & converting to fiat) all require KYC.  Exchanges have that built in.  There are decentralised exchanges but that’s another story.

    Developers have produced clever code that can easily scan through the entire blockchain pinpointing every transaction ever made by the same person that used the on/off ramps.  Developers, you & I are anonymous but the state can get your details from an exchange & then use the code etc etc to get a very good understanding of what you’ve done.

    In some ways this is a good thing as crooks once thought that they could hide illegal activity from the state but that’s now mostly a misconception.  Cash is far more anonymous for crooks. That’s why most illegal transaction are still done in cash, crooks are very bad but some are also intelligent enough to find these holes.

    That is the story with Bitcoin, some other coins claim that they cannot be tracked thus far as they were produced for that very purpose, those coins are failing now because the population can see that they will never be accepted by the state.  Governments may want to end Bitcoin but if they cannot do that then the next best thing is to regulate it.   Bitcoin is becoming more regulated as each day passes & ATO treats it like an asset.  No big deal really, it’s all there on ATO web page.  CGT is to be paid when converting it to fiat or when exchanging it for another coin.  They have very smart people working there too.

    Simply buying crypto & holding it in a wallet does not have a tax liability (at this stage).

    Some coins/tokens fail completely & I have seen dozens disappear.  I would say that if one invests today in a non-failing crypto then yes it could mean that the person will be rich in 10 years.  Some of them 1000 x so the people who invested in them are now being driven in luxury cars.

    Kind regards.

    Profile photo of CashHouseBuyerCashHouseBuyer
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    I like the concept of have wealth outside Fiat currency and see the merits of Crypto. I wish I bought some years ago but feel the risk is to high to enter the market with all the hype. I acknowledge that there is a risk of missing huge gains but there is also risk of losing the majority of capital. Personally I think real estate is a better balance of risk and return.

    CashHouseBuyer | NOLA Cash House Buyer
    https://www.nolacashhousebuyer.com/

    Property Flipper and Landlord

    Profile photo of PimobpiPimobpi
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    @pimobpi
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    Hi CashhouseBuyer,

    I really enjoyed reading what you wrote in another reply, “the best investment you could make is in education”.

    That sounds perfect to me – nice work.

     

    I also think real estate is a good balance of risk/reward (I own a modest portfolio).

    Missing out on huge gains can sting & missing out on gains is not something that I feel a powerful need to hedge against either.

    Instead, what I think could eventuate is that we may not be able to miss out on the huge losses.

     

    Without painting a picture of the end of the world, I’ll try to explain myself below.

     

    For me, stacking precious metals & crypto strengthens that balance parity.

    Real estate ownership rules can or will change without my consent & other assets can benefit from another asset’s demise.

     

    What would happen to real estate values if the rules are changed?

    What could happen to the gold price if a fundamental flaw is found with Bitcoin code?

    What would happen to Bitcoin price if the world’s Reserve Banks back their currencies with gold?

     

    Seems to me like the unsolvable ‘Triangle of Power’ classic dilemma.

     

    It would be reckless for me to get into the crypto space without taking failure as the possible outcome….

    but it may someday be considered even more reckless not to be involved in the space whilst we still can participate.

     

    If crypto is successful, today’s prices will seem tiny.  Crypto is extremely bipolar.  It can only do 2 things.  Fail or work.

    “To be or not to be” or making a current generation reference: it’s like “timid Bruce Banner or smash everything like hulk”.

     

    I know that I am not very funny but I do love laughing at myself if/when I happen to reread.  Please forgive me.

    I think mitigation concepts should be developed in both positions – whether we think that it will fail or succeed.

     

    I am not a Mini-Me of Robert Kiyosaki although he must have an influence on what I do because I seem to copy him a lot.

    Wishing everyone well in our interesting journey.

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