Bitcoin Survey

[Recyclersteve]

There has been an awful lot said on this site about bitcoin and other cryptocurrencies lately and even over the last several years. I have yet to see a bitcoin survey and thought that one on this controversial topic would be interesting, especially among a group of people that already considers alternative types of investments (i.e., stacking).

As we are only allowed 15 responses for the survey, I'm sure there are probably some that I forgot to include. Please feel free to add other items you wish would have been on the survey in your remarks.

This should be a very interesting survey.

[Bigjohn]

I am not completely for it or completely against it. I believe there are true uses for the block chain technology and it’s here to stay. I wouldn’t be surprised if bitcoin itself dropped to nothing and was replaced with something else. I also wouldn’t be surprised if it went up 10 times in 2018. I have an open mind and want to be able to take advantage of whatever opportunity that exists and am ready for changes that it might bring

[OneBiteAtATime]

I'm willing to profit from it even if I don't have long term faith in it.

[natsb88]

When you say Bitcoin, do you mean BTC specifically, or crypto currencies in general? Some people use "Bitcoin" to reference crypto currency the way Kleenex or Band-Aid or Velcro are used, even though they are just one specific example of a larger category of product. For me, some of the questions are "no" if referencing specifically and only BTC, but "yes" if referring to crypto currencies in general.

[Recyclersteve]

I mean cryptos in general.

[merchoarder]

Nate makes a good point. The distinction of Bitcoin specifically versus crypto currencies in general is pretty significant to many of the choices. That aside, a have a small amount of money in a few different cryptos. It has done very well, but if it went to zero tomorrow, no big deal. I've read articles of people mortgaging their house to buy Bitcoin. That is absolutely insane to me! In my opinion Bitcoin paved the way but something newer and better will come along and replace it. Who knows what and I could be completely wrong. I'm rooting for Litecoin, I have almost a whole 1 of those!

I also happen to be an online poker junkie and Bitcoin has allowed me to get back into the game so that's nice!

Edit: I see you clarified to cryptos in general, thanks.

[IdahoCopper]

Its more than just Bitcoin. Other cryptocurrencies have good potential to fill niches that Bitcoin is not so good at.

I think in the long run, Bitcoin will be used for large transactions like banking, homes, cars. The transfer fees are too high for small transactions. It is impossible today to predict which cryptos will last, and which will will fade away.

29 days ago, I put in [redacted], now holding [redacted] cryptos, with about 63% in Bitcoin. I'm up $[redacted], total accounts are worth $[redacted]. I sold [redacted] to do this. Did anyone [redacted] see a 71% gain in the last month? The other $[redacted] got me a new car stereo, a new windshield, and new eyeglasses. I have a rental house up for sale with equity of about $[redacted] will go into cryptos.

[redacted]


Yes, its is scary risky. I have avoided risk too much in my life. I sold my [redacted] business in July of 2016 and invested [redacted], for a monster box of silver. Bitcoin was at $600. If I had bought that instead, the $[redacted] would be worth $[redacted] today. In just 18 months. Hindsight is 20/20, without the new eyeglasses.

EDIT: Redacts, sorry guys, discretion here may be important.

[blackrabbit]

Wow, sorry for your lossed password. That is crazy.

[68Camaro]

The math of lost opportunity is such that if I had perfect foresight and invested my first quarter of allowance in 1964 and sold and reinvested at every best opportunity I would by now literally own the entire world. You can't do the "what ifs".

[Bigjohn]

I believe cryptos can make you money but it’s a risk/reward kinda deal. Risk is very high (but so is reward potential). I still believe in metals more as a long term store of wealth and haven’t sold an oz of silver to buy crypto. The little crypto that I have been buying, been with my “gambling budget” that I’d be okay losing

[Recyclersteve]

29 days ago, I put in $17,500, now holding 5 cryptos, with about 63% in Bitcoin. I'm up $12,500, total accounts are worth $30,000. I sold $19,500 of silver to do this. Did anyone holding silver see a 71% gain in the last month?

While it feels good to be up 71% in a month, I sure hope you have some kind of system for keeping a profit when Bitcoin pulls back. The higher it goes without a meaningful pullback, the sharper the pullback is likely to be once it happens.

I'm sure it feels great to be up, but don't get too cocky.

If you don't have some kind of system for getting out with a profit (in other words, if your plan is to wing it), then your emotions will be all over the map when bitcoin comes down sharply and you may have a very hard time getting out with any profit whatsoever, which probably seems silly right now. I say this as I remember quite a few people who had 500-1,000% profits on Cisco Systems and Lucent Technologies stocks. They ended up selling at a loss, which is an absolute shame as it didn't go down that much overnight. They had PLENTY of time to get out, but were like deer in the headlights and didn't know what to do. So, unlike something like fraud or bankruptcy where I'd feel sorry for the person, this was a different situation. These people felt invincible with their huge profits and that cost them dearly. Whatever you do, please come up with some kind of system.

For what it is worth, I do remember one guy who had a system whereby he would do the following: Anytime he had a profit of 10% or more, he'd attempt to keep at least 1/3 of the profit. If he had a profit of 20% or more, he'd attempt to keep at least 1/2 of the profit. If he had a profit of 50% or more, he'd attempt to keep at least 2/3 of his profit. Whether I agree with his exact numbers or not is irrelevant. At least this guy had a system. I'd bet that over time he'd outperform someone who didn't have a system.

Bottom line: Develop some kind of system and don't be jealous when you hear of someone else in Bitcoin making even more money than you.

[IdahoCopper]

I sure hope you have some kind of system for keeping a profit when Bitcoin pulls back.

Up $1,100 today in only 14 hours.

The system for this is when the whole shebang is worth $35,000, which is just over double what I put in ... plus $1,750, I withdraw $1,750. When I've done that 10 times, my initial outlay is recovered. I might take out the $1,750 two or three times a week, and it will still be double what I put in. We will see what happens later this week.

[Recyclersteve]

Good- I'm glad you have a plan.

Now, what about the downside? If you happened to buy near the peak (or near-term peak) and it goes down 40-60% pretty fast, do you have some point where you'd get out? In some cases the answer here is not to get out when something is "on sale" but to buy more.

The important key for someone who does buy multiple times is to be sure that even after buying something 5-6 times, they shouldn't have a big percentage of their net worth tied up in the investment. So, if someone put, say 10%-20% of what they have into Bitcoin with their initial purchase, they likely wouldn't have the luxury of doubling down. An exception would be an ultra high net worth individual- someone worth $20 million who only needs $5 million to live comfortably the rest of their life. They could put $2 million into Bitcoin (or some other investment), double down and still be ok even if they lost it all. That said, the might be setting themselves up for sloppy habits that eventually cost them everything.

Think about two people who both buy $50,000 of XYZ stock (or Bitcoin or whatever) at the same time. Person A has $100k to their name and Person B has $10 million. If XYZ goes down 20-30% quickly, person A is likely in a world of hurt and may not know what to do. Person B can say "Great- it is on sale. I'll buy some more." And they can do that perhaps 5-6 times. Even after buying all those times, let's say the investments go to zero. Person A just had their net worth cut in half, a real gut punch. Person B just had their net worth drop from $10 million to perhaps $9.7 million- they will be just fine. As my boss used to say "Rich get richer."

[johnbrickner]

I would have answered different were I to know it was Cryptocurrencies instead of Bitcoin.

In some form or another they are here to stay. It's early in the technology so like when the internet was new we WILL see some shake out. Money will be lost. Much more will be made. If it makes things virtually any things more secure but especially computer, cyber, or internet security then they will create value.

If it makes buying, selling, and life easier, more efficient, and secure it will have value. We'll how it all shakes out.

[IdahoCopper]

Now, what about the downside?

Depends on what news is causing the selloff. If its crushing news for all cryptos, then sell ASAP. News like that is rather unlikely, but not impossible.

As a general plan, I probably would ride it down until selling all of it would net my initial outlay. Profits are a want, not a need.

[Morsecode]

I also happen to be an online poker junkie and Bitcoin has allowed me to get back into the game so that's nice!

Seriously? I didn't know that.

Now I want to change my answers

[Recyclersteve]

I just changed the survey so we can all change our answers. Thanks for the feedback.

[dpwozney]

Rather than bitcoin and other cryptocurrencies, I recommend "zinc coin", also known as the Lincoln Cent, minted by the U.S. Mint since 1982. It's physically real and valuable, having a December 18th metal value of "$0.0082050" or 82.05% of face value, according to the "United States Circulating Coinage Intrinsic Value Table" available at Coinflation.com.

Also, rather than bitcoin and other cryptocurrencies, I recommend "cupronickel-alloy coin", also known as the Jefferson Nickel, minted by the U.S. Mint since 1946. It's physically real and valuable, having a December 18th metal value of "$0.0404532" or 80.90% of face value, according to the "United States Circulating Coinage Intrinsic Value Table" available at Coinflation.com.

[Cu Penny Hoarder]

Funny how this thread ended right after blipcoin took a swan dive. I expected more here to be smarter than this. I wonder how many bought at the very top, then took a nice haircut - ouch.