How do we fund our toys

hoyin

Member
Messages
1,842
What is interesting is how bitcoin has taken off in countries such as Zimbabwe where bitcoin is a more stable currency than their own.

It takes a phenomenal amount of computer power now to mine bitcoin. As the algorithm gets more difficult to solve.

There are bitcoin farms in China in industrial areas that have opened because the local government encourages businesses by offering discounted electricity.

It has 25,000 machines, uses $35,000 of electricity a day running 24hrs and live on site mechanics to keep the machines running. Doesn't say how much it makes in a day though.

https://qz.com/1055126/photos-china-has-one-of-worlds-largest-bitcoin-mines/


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bigbob

Member
Messages
8,952
What is interesting is how bitcoin has taken off in countries such as Zimbabwe where bitcoin is a more stable currency than their own.

It takes a phenomenal amount of computer power now to mine bitcoin. As the algorithm gets more difficult to solve.

There are bitcoin farms in China in industrial areas that have opened because the local government encourages businesses by offering discounted electricity.

It has 25,000 machines, uses $35,000 of electricity a day running 24hrs and live on site mechanics to keep the machines running. Doesn't say how much it makes in a day though.

https://qz.com/1055126/photos-china-has-one-of-worlds-largest-bitcoin-mines/


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Zimbabwe gave up on the Z$ a while back after a period of hyper inflation and now largely uses the US$. I was there last year and the street vendors try and sell you a Z$1bn note for a US5$ bill!
 

Wattie

Member
Messages
8,640
So what happens if everyone cashes in and there isn't enough money in existence to pay out.
Well if you were worried about that you wouldn’t bank in a fractional reserve banking system would you.........the case for the defence rests m’lud!

Cheers Wattie
 

D Walker

Member
Messages
9,827
Well if you were worried about that you wouldn’t bank in a fractional reserve banking system would you.........the case for the defence rests m’lud!

Cheers Wattie
I'm not worried about it, honestly I would like nothing better than every single person to remove all there funds from banks, I also ensure I do not go past the "guaranteed" limit, tho I tho k if tested the guarantee would be wriggled out of.
I trust banks less than I trust the French!!!
 

Wattie

Member
Messages
8,640
I'm not worried about it, honestly I would like nothing better than every single person to remove all there funds from banks, I also ensure I do not go past the "guaranteed" limit, tho I tho k if tested the guarantee would be wriggled out of.
I trust banks less than I trust the French!!!
That’s why these “blockchain currencies” are becoming popular...people don’t trust banks or bankers anymore! If they were good at what they do, why did they all need bailed out....Goldman et al.

Cheers Wattie
 

D Walker

Member
Messages
9,827
So when you cash in your Bit Coin, where does the "cash" go and how do you turn it into cash in hand. Through a bank??

Forgive me for being uneducated!!
 

Wattie

Member
Messages
8,640
Typically the exchange you use will allow you to swap for other coins.....or send the cash you have generated to your selected bank account.
Listen,you’re not uneducated....just unfamiliar....think of it like buying a stock.......it’s the same. You buy at a price and sell at another.
That’s the potential though. People are now beginning to get interested......so the sky is the limit.
BUT, only invest something you are prepared to lose as it is volatile.

CheersWattie
 

Contigo

Sponsor
Messages
18,376
What is interesting is how bitcoin has taken off in countries such as Zimbabwe where bitcoin is a more stable currency than their own.

It takes a phenomenal amount of computer power now to mine bitcoin. As the algorithm gets more difficult to solve.

There are bitcoin farms in China in industrial areas that have opened because the local government encourages businesses by offering discounted electricity.

It has 25,000 machines, uses $35,000 of electricity a day running 24hrs and live on site mechanics to keep the machines running. Doesn't say how much it makes in a day though.

https://qz.com/1055126/photos-china-has-one-of-worlds-largest-bitcoin-mines/


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Sickening really that they make us/them burn so much fossil fuels for one bitcoin. Humans need a good shoeing don't they?
 

hoyin

Member
Messages
1,842
Has anyone actually tried taking money out?

I read this:

https://www.reddit.com/r/Bitstamp/c...cepts_transfers_from/?st=jb9xvfk8&sh=4eb2dc28

"To add to this list... HSBC UK. and be aware that this is their policy announced in last 6-4 months. Local hsbc bank floor manager advised that: "if we find any transactions to or from your account that are associated with bitcoin in anyway we will seize the funds and close your account immediately" me: "but why? its from a registered company and would come from another bank?" them: " we dont know who it is from or what it was payment for and we have a tough money laundering policy" me: " but its from another bank?!?" them: "it could be payment for anything, we dont know if it is legal"

So, HSBC UK stance toward bitcoin (and i assume other digital currencies) is that they are for money laundering and criminal activities...

HSBC ... not that they'd ever do anything that wasnt squeeky clean, and cash is soooooo clearly not used for illegal activities... "When HSBC was caught out, the head of the US Justice Department's criminal division, Lanny Breuer, said that cartel operatives would arrive at the bank's branches and “deposit hundreds of thousands of dollars in cash, in a single day, into a single account, using boxes designed to fit the precise dimensions of the teller windowsâ€" https://www.theguardian.com/commentisfree/2015/feb/15/hsbc-has-form-mexico-laundered-drug-money

Also apparently Lloyds: https://www.reddit.com/r/Bitcoin/comments/40b0nd/my_uk_bank_account_got_suspended_for_buying/
Natwest's position: "we dont know, what country uses that money?"


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hoyin

Member
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1,842
So what happens if everyone cashes in and there isn't enough money in existence to pay out.

The issue is not there being no money.

The issue is there is no value. The value is only what people will want to pay for it.

So if it is crashing and everyone wants to sell there are no buyers and so you won't be able to sell your holding and it will be worth nothing.


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allandwf

Member
Messages
10,958
Bitcoin, with all the hype at the moment,once it's in the news telling you what a great way to make money, looks to me like the rich will offload them then the price will crash and its the poorer people left holding whats left with little or no value. Not for me thanks.
 

hoyin

Member
Messages
1,842
Bitcoin, with all the hype at the moment,once it's in the news telling you what a great way to make money, looks to me like the rich will offload them then the price will crash and its the poorer people left holding whats left with little or no value. Not for me thanks.

Totally.

Once the Winklevoss twins withdrawal their billions.


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conaero

Forum Owner
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34,593
You've all lost me.....:conf1: lol

As with any trader, you only ever see their gains and never their losses. I was the same when I did it.

One piece of info that was drummed into me was: 'never try and catch a falling knife' which translates into dump it when starts to lose, take lots of small losses and move to avoid taking a big loss. It doesnt matter if it then goes up (which they invariably do)....just avoid that big loss potential.
 

Contigo

Sponsor
Messages
18,376
Not sure I agree with that as most shares go up then down and up and down most days. If you get in early then you are most likely to be in profit plus it only affects traders. You need to buy and play the long game that is when you see the biggest gains.
 

conaero

Forum Owner
Messages
34,593
I was always told to short term shares plus have some buy and holds but I dont do it anymore so what do I know?

Short term is hours to a couple of days, as you say, shares go up and down. If you can get off on the ups and sell on the downs you can maximise the gain but its risky.

Thats what buy and sell stops are for I suppose but I have seen shares close above your sell stop and open the next day below it and thus not triggering it. Things may have changed now I expect.