Please enlighten me! I'm looking at you @MrBee:
-
Here's a pretty good explanation
http://money.cnn.com/infographic/technology/what-is-bitcoin/
It's not super complex, to be honest. I think a lot of people are just now becoming familiar with it, though. It's been the common currency on the "dark web" for a few years now due to it's anonymous and secure format.
-
@loveisstrange: I read that article actually. I'm just confused by the idea that they are "created" by solving problems. It seems like they can be exchanged for actual currency, so the fact that they can be created by anything other than a mint is weird. Plus, with no FDIC insurance I would never want to "invest" in bitcoins. There's a big story this morning about a bitcoin website that just suddenly disappeared overnight so everyone lost their bitcoins.
-
@loveisstrange: I'm glad I refreshed this page before submitting my silly over-complicated explanation. That summary is perfect and much easier to understand!!
DH is very interested in the idea of bitcoins, he checks the rates many times a day and understands it much better than I do. We haven't invested in any but when the rate went up to over 1000 we were kicking ourselves for not jumping in sooner. It's still so volitile though it makes me nervous to invest in something so... theoretical/not-tangible. Especially when we are scraping by as it is. Maybe someday!
-
@thismustbetheplace: Tell your hubs that holding off may have been the right decision after all: http://www.marketwatch.com/story/mt-gox-bitcoin-site-disappears-2014-02-25
-
@MamaMoose: The "mining" of bitcoins is value in exchange for the computing/energy it takes to create them, I believe. The monetary value comes from merchants agreeing to accept them as currency and it's speculated on much like a "real" currency. When it went up in value so much, that was due to speculation.
At least, I think that's sort of the idea behind it. lol. I could be wrong.
-
If you are interested, I can wall you a a one-page whitepaper I typed up for a client, @MamaMoose. I'm a financial planner, so I get asked about everything under the sun finance-wise.
-
lol my husband does. He is always trying to explain and I am always trying to explain to him that 1) I don't get it and 2) I don't need to.
-
I understand that bitcoins are a type of virtual currency. But the concept of virtual currency and how it's feasible in the long run or why people would use it is just beyond me.
-
@BakerBee: I'd love it! I'm a financial advisor and I haven't been asked about it yet but I want to get a deeper understanding in case I do!
-
Investing directly in bitcoins would be a terrible idea, seeing as how volatile they are. If anything, invest in a computer to mine them yourself. My husband mines dogecoins, which are similar, because it doesn't cost anything so why not.
There are actually a few places in town here to physically spend bitcoins, which is kind of fun. But an overall terrible investment.
-
No not at all!
-
My husband is mining them....but I still don't truly understand them.
-
...FIL is obsessed. I don't get it.
-
@MamaMoose: walled you! probably more information than you want.
-
I know what they are. We're not invested in any though.
Reply
Subscribe to our newsletter
- Google Plus
- Stumbleupon
- Twitter
- Facebook
- Pinterest
- Favorite0
15 comments