Crypto?

[GFB]

Do you own any?

[GRANDPA]

I have about 850 PI that's worth maybe $3 last time I checked. A friend of mine, who is into a lot of those MLM schemes, got me involved in it. I have no idea what it originally cost him. I didn't pay anything. I was part of his circle, so when I or anyone else in the circle mined it, he also got some. I don't mine it anymore & deleted the app. It took up a big bunch of space.

[planosteve]

I'm with the Oracle of Omaha!

[Kiamichi]

I have tried to understand how it works but am unable to. Where does the added value come from?

[GFB]

I have tried to understand how it works but am unable to. Where does the added value come from?

The literal way is through..”the Greater Fool Theory.”

The hope that someone out there will pay more than you did.

No business plan..No earnings..pays no dividend..just..hope.

The greatest fool checked in at about $68,000 per bitcoin.

[Kiamichi]

I have tried to understand how it works but am unable to. Where does the added value come from?

The literal way is through..”the Greater Fool Theory.”

The hope that someone out there will pay more than you did.

No business plan..No earnings..pays no dividend..just..hope.

The greatest fool checked in at about $68,000 per bitcoin.

Sounds like a Ponzi or pyramid scheme, the belief that people will never stop paying in and everyone will rotate out as a winner in his turn, whereas if literally every person on earth signed up it would still collapse. But surely the operators are giving people some explanation as to what they are producing or investing in?

[Mark]

I have one question that nobody's been able to answer....

If this crypto stuff is so valuable, then why are the guys peddling it always wanting to trade it for dollars?

[GFB]

I have tried to understand how it works but am unable to. Where does the added value come from?

The literal way is through..”the Greater Fool Theory.”

The hope that someone out there will pay more than you did.

No business plan..No earnings..pays no dividend..just..hope.

The greatest fool checked in at about $68,000 per bitcoin.

Sounds like a Ponzi or pyramid scheme, the belief that people will never stop paying in and everyone will rotate out as a winner in his turn, whereas if literally every person on earth signed up it would still collapse. But surely the operators are giving people some explanation as to what they are producing or investing in?

There are true believers who are sure they will have the last laugh from their mansions in Malibu.

[jellowrestling]

I have tried to understand how it works but am unable to. Where does the added value come from?

The literal way is through..”the Greater Fool Theory.”

The hope that someone out there will pay more than you did.

No business plan..No earnings..pays no dividend..just..hope.

The greatest fool checked in at about $68,000 per bitcoin.

I agree with that assessment for all crypto except Bitcoin. Bitcoin is different for several reasons:

1. The number of Bitcoin is limited to 21 million, and always will be.
2. The security of its system is proven.
3. Broad, diverse user base
4. An increasing number of merchants accept it as payment. The Dallas Mavericks accept Bitcoin for tickets and merchandise.

I'm not completely sold on Bitcoin, but if more merchants continue to accept it, the value of Bitcoin will rise.
I bought a very small amount as a hedge against inflation. So far, that strategy has not worked out, but like all of my investments, I buy them for long-term results. We'll see.

[GFB]

I have tried to understand how it works but am unable to. Where does the added value come from?

The literal way is through..”the Greater Fool Theory.”

The hope that someone out there will pay more than you did.

No business plan..No earnings..pays no dividend..just..hope.

The greatest fool checked in at about $68,000 per bitcoin.

I agree with that assessment for all crypto except Bitcoin. Bitcoin is different for several reasons:

1. The number of Bitcoin is limited to 21 million, and always will be.
2. The security of its system is proven.
3. Broad, diverse user base
4. An increasing number of merchants accept it as payment. The Dallas Mavericks accept Bitcoin for tickets and merchandise.

I'm not completely sold on Bitcoin, but if more merchants continue to accept it, the value of Bitcoin will rise.
I bought a very small amount as a hedge against inflation. So far, that strategy has not worked out, but like all of my investments, I buy them for long-term results. We'll see.

If any of 1, 2, 3, or 4..actually prove value, or prospects for increasing value in the future..why would someone actually use them for money?

Not too many people think the prospects are good for greatly increasing value for the dollar.

[jellowrestling]

The vanishing value of the dollar is part of the whole point. The dollar is a fiat currency with little constraint on devaluation, because the government can just print billions of new dollars. That's not true with Bitcoin. Instead, it's the ability to create new bitcoins that is vanishing.

But you certainly have a point: if the value of Bitcoin is rising, why spend it? And my answer to that is, "As a hedge against inflation." If I'm planning a purchase, and Bitcoin is rising and the dollar is devaluing because of Bidenflation, I put the money into Bitcoin until I'm ready to spend it.