8 minutes ago, DrKrettin said:

The price of gold might be weird, but at least it is a commodity with an immense practical value. The "value" of bitcoins and dash and other internet currency is even more bizarre, and I just don't understand how it operates. It is based on nothing at all other than the price somebody is prepared to pay for it. But it represents nothing. Why has the value rocketed over the past year? Perhaps it deserves its own thread.

I am guessing it is because a sufficiently large number of people see it as an alternative investment in times of uncertainty and ow interest rates. A high risk investment with a chance of a high return. It is a limited resource so the price will be determined by demand.

43 minutes ago, Strange said:

I am guessing it is because a sufficiently large number of people see it as an alternative investment in times of uncertainty and ow interest rates. A high risk investment with a chance of a high return. It is a limited resource so the price will be determined by demand.

A friend bought about €16,000 of bitcoin/dash and within a year the value had risen to about €80,000 and still rising. It is based purely on the willingness of people to buy, but represents absolutely nothing. From my naïve outsider point of view, it looks like a giant Ponzi scheme, even when they claim that the total number of coins is limited.

People will invest in pretty much anything that is tradable and has limited supply: wine, land, art, oil futures, ...

With Bitcoin, you also have the blockchain (giant transaction ledger). All currency works on faith though. A dollar has value because you have faith the government won't print out a googleplex of them overnight.

New fork BitCash looks more promising longterm. Kind of interesting that they are making progress towards something  more broadly usable.

 

Gold's value is mostly based on how financially (in)secure the world is feeling.  See this with BitCoin too. We use up some each year but we are also mining more, so we are stuck with this monstrous surplus. Periodically dips down to its true value. Do your homework if you ever look at buying it as an investment. Either price can drop or you can end up buying something like coins at a markup.

Edited August 22, 20178 yr by Endy0816

On 22/08/2017 at 4:39 PM, Strange said:

People will invest in pretty much anything that is tradable and has limited supply: wine, land, art, oil futures, ...

Futures, a concept that deserves its own thread; for me, its as big mind f$%£ as relational databases.

I was thinking about gold a bit more. I think the value in early societies could have been more than just that it was shiny and pretty (and malleable and easy to melt). In an era of poorly understood decay, disease and death, a material that was apparently completely incorruptible must have seemed miraculous.

7 minutes ago, Strange said:

I was thinking about gold a bit more. I think the value in early societies could have been more than just that it was shiny and pretty (and malleable and easy to melt). In an era of poorly understood decay, disease and death, a material that was apparently completely incorruptible must have seemed miraculous.

Indeed there are many examples of its magical properties, the golden fleece springs to mind.

1 hour ago, dimreepr said:

Indeed there are many examples of its magical properties, the golden fleece springs to mind.

Ancient mythology has many examples of gold being the ultimate prize, for example the Golden Apple

3 minutes ago, DrKrettin said:

Ancient mythology has many examples of gold being the ultimate prize, for example the Golden Apple

Agreed, but magic doesn't accrue value in the futures market.

8 minutes ago, DrKrettin said:

Ancient mythology has many examples of gold being the ultimate prize, for example the Golden Apple

Agreed, but magic doesn't accrue value in the futures market.

Or does it???

Bitcoin is the most popular crypto currency at the moment. Bitcoin created a lot of noise around. In turn, I wish to buy bitcoins. I read a good article on how to buy bitcoin https://buybitcoincard.com/ , but I want to hear recommendations for acquiring. How much money can I gain on bitcoins? I still didn't have an idea whether to own the bitcoins. 

OT:

Nobody can tell you if the value will rise or fall. Best advice is to look at trends and the wider market.

Do avoid letting others effectively hold your coins, generally where folks lose out. A site is 'hacked' or shutdown by the Feds and you're left hanging.