Waiting for things to get better

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Waiting for things to get better

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  • Steve

    Am I the only one buying and holding coins? I’m in the position of wanting in on bitcoin because of its potential, but think the ecosystem is still too early and underdeveloped, ie too complex, unintuitive, risky (BTC’s are easily lost/stolen), fragile, etc. If ‘fragile’ doesn’t make any sense I can explain if you’d like.

    Combine this with the price volatility  – I bought most of mine at a higher price so don’t want to lose value by spending them now – and I really can’t think of a reason to spend them.

    I’m just waiting for things to mature, companies to come along and make this marketplace easier, more convenient and safer.

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  • Adam Hoisington

    I buy some Bitcoin every month. I haven’t spent any on anything except some Darkcoins. I agree about it being “fragile” as you call it. I think Bitcoin will change everything and I want in now, before it does. But I am also waiting and saving rather than spending.

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    Roger Browne

    It won’t be long! Travel agency Expedia today announced that they will soon accept Bitcoin for hotel bookings. It’s a great sign that “big guys” like Expedia are getting involved.

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    David Montgomery

    Dollar cost averaging is a wonderful way to take the stress out accumulating BTC.

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    Roger Browne

    I absolutely agree with David about cost averaging, for all investments.

    Buy investments when you have funds available to invest. Cash in your investments when you need the cash.

    Ride the long-term trend of the market and don’t fret about market timing. Even the experts can’t get it right, so you and I certainly can’t.

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    Neil Booth

    No I bought a while ago and am holding, though slowly spending.  e.g. just paid for my flights and accommodation for a 14-year delayed honeymoon through btctrip.com and expedia.com.

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    Kamuela Franco

    I think you folks who are buying and holding are doing a great service to the Bitcoin economy. You decrease the supply and drive up the price during spikes of demand. And as the demand rises because the price rises, entrepreneurs are entering the market to try to take some of your Bitcoin off you. The more you incentivize them to make it worth your while by continuing to hold, the better the goods, services, and deals they offer.

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    Jeff

    I’ve heard some people complain that others are “hoarding” their coins and should be spending them. Funny, what they call hoarding I call saving. An antiquated concept these days I guess.

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    Anonymous

    Depends, you don’t want to wait too long for things to get better. It feels hard to spend your coins when you feel like you are walking away from a potential future gain. I made a huge mistake a couple years ago (last one a year and a half) and sold off all my bitcoins. I was organizing my emails and found my last sell order (back then: Mt. Gox) of just over 85 BTC for a measly 17 dollars and 85 cents. Why? Because bitcoin had quite the run up again (60ish %) and too much attention so I figure I’d sell them because people were over-hyping in the media and on blogs and once it settled back down into the 10 dollar range I’d buy them back once sanity returned. Unfortunately for me, after selling, BTC over a period of just a year went over 1000 dollars. Every time I think about it I get a sick feeling in my stomach knowing I missed out on a huge quality of life changing event- constant regret.

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    Jeff

    For me personally, I’m more of a saver anyway. I’m not into spending just to spend and don’t really want a lot of “things”. So holding my coins isn’t really any different from holding my fiat.

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    Daniel Wood

    I’m holding long term. I’ll look at cashing out some of my BTC in 2017, but I have no plans on doing any withdrawals before then. In the mean time, I use BTC when needed and immediately replenish my stock through Coinbase.

    BTC is still in early adopter phase. It is likely that we are still only at the beginning of the growth curve. There are a number of things happening that could have massive impact on the price of Bitcoin. If/when the Winklevoss ETF comes online, BTC will then be available to the average investor and institutional investors without needing any knowledge of Bitcoin security and best practices. When people that are interested in Bitcoin can use their tax-advantaged Roth IRAs to purchase it, I see there being a huge demand from Bitcoin investors. These will be generally people looking to hold long term, further driving the scarcity of Bitcoin. Yes, the Winklevoss twins are prefunding their ETF with the Bitcoin they hold, but that stock will probably evaporate in the first few hours of COIN being traded and they will start purchasing BTC on the open market.

    Even throwing $65 down today to secure 0.1BTC instead of purchasing a PS4 game (aka, beer money) is not a bad decision at all. Worst case, you lose $65 that you would have spent on beer/entertainment. Best case, Bitcoin displaces the dollar and that $65 now has several zeros behind it.

    As with any investment, there is risk. For me, I have determined that I am more at risk in keeping large amounts of liquid cash due to the inevitable high levels of inflation that the USD will experience than I am holding on to some Bitcoin for the next decade.

    This doesn’t even take into account that Bitcoin is still a pain in the ass to manage securely and is no where near ready for mass adoption. That is quickly changing and Bitcoin will be as user friendly as PayPass in the next two to three years.

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    Jeffrey Tucker

    The only thing we think we know about Bitcoin is that it is going to go up in price — at what point and by how much and when, we have no idea. Given that, I do think the best approach is just to buy when you can, spend when it works for you, and otherwise just ride it out. I think of this is electricity or railroads or any other great innovation, just something to observe growing and expanding over the long term. I agree that we are very early on in this process. There are too many opportunities for user error to wade in too deeply and widely — unless you really really know what you are doing.

    It’s a beautiful technology and it’s fun to see it emerge in real time.

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      Kamuela Franco

      I also think that it’s a very practical matter to work with the future of money. The worst case scenario is that a hard fork to something better does not preserve today’s wealth in Bitcoin. I think once people realize that Bitcoin is open source and thus any new advance that takes today’s interests into account will be adopted.

      In short, it’s more powerful, useful, and secure than people can imagine. It’s a growing organism that will adhere to a natural selection process that will only result in its strengthening.

      The absolute worst case scenario is the breaking of the encryption scheme as a mathematical breakthrough. In which case, the next fork will use a stronger scheme. This transition would cause the worst damage I can think of though, but by that time so many people will have their digital assets at least partially secured that it wouldn’t be so bad.

      I could go on for days with my bullish chanting.

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    Jeff

    Fortunately the bitcoin space has entrepreneurs fighting like rabid dogs to get a piece of of the pie. Some are well intentioned, others are not. What this makes me though is hopeful that all of my needs and concerns are going to be taken care of by someone relatively soon.

    Top of my list: easy, rock solid security. The day I can somehow comfortably and easily store my life savings in bitcoin is the day I’m all in.

    I can’t even imagine how wonderful a world it will be where every luddite can own and use bitcoin with ease, and without fear of theft or loss.

     

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    Daniel Wood

    Jeff,

    That day you can safely and securely store those bitcoins long term with ease is almost here.

    1. Multi-sig wallets can use m-of-n parity for securing the private key in separate locations. You can manage the split however you want, 2 of 2, 2, of 3, 3 of 4, etc. Only if someone has access the required number of “shares” can they form the full private key. This has pretty amazing potential when it comes to things like inheritance.

    2. The Mycelium Entropy is a device that will generate paper wallets without ever touching a computer. It is $40 on Indiegogo right now. It also has the option to generate multi-sig wallets.

    That pretty much solves the long term storage problem. The everyday use problem is being solved on a couple fronts, but the forerunner right now is the Trezor Hardware Wallet. The current iteration is not mass consumer ready (no bluetooth, USB only), but within a year we should see a bluetooth/NFC version or a competitor. The Trezor stores the private key of a HD wallet. The only function of the device is to sign transactions. Because of how the Trezor functions, you can manage your bitcoins on a completely compromised device and the absolute worst thing that happens is your transaction is never forwarded to the bitcoin network.

    Secure ease of use for bitcoin is going to be ready for the masses within another two years. It is a really exciting process.

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      wolske

      Multi-sig is not a panacea — to me it introduces more complexity than it’s worth. Now you need to have two or three “places” to store parts of the key, or two/three/four other entities to share the parts of the key with, and a way to bring those parts back together to re-create the key when you want to transact. You could make it a three-out-of-20 share, but if your 20 friends have abandoned that service in two years then the BTC is irretrievable.

      For me, an offline HD wallet with paper backups in two separate places (safe deposit boxes) is sufficient. Armory (with offline transaction signing) accomplishes this nicely.

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