And I must correct myself I kept referring to it as a stock which it is not. It's not a debt instrument, real estate, Currency or anything of real value. It's a currency that is backed by ?????
While the US dollar (or any currency really) is backed by the government, it mostly is backed by the faith of the people in said government and/or their economic policy. We've come to an agreement as a society that this or that is the value of said currency.
The value of bitcoin now a days stems not only from its ease of transfer and transportation but its rarity due to difficulty to "mine" one. In the early days when they were plentiful, bitcoin could be mined on a regular laptop. As the difficulty in solving the problem to make one increased exponentially, the hardware to do so became exponentially costlier, to the point that only server farms in the millions of dollars can make one. Technological leaps can improve things (from CPU mining>to GPU mining> to ASIC mining), but there's also a limited number of coins and once that limit is reached, no more will be "made".
Having said that, no one can stop someone else from making a bitcoin-like coin and starting from scratch (which is what most of the alt-coins are, albeit w/different protocols and/or problem to solve) but as expected, these coins are worth only cents.
Bitcoin is a pretty secure transfer of funds as well, and as far as I know, short of hacking, bitcoin fund transfer hasn't been compromised.
So the people's faith in bitcoin and the millions (probably billions at this point) of dollar being spent in "infrastructure" to make it more ubiquitous as a payment system is what makes it valuable.
Do you understand that this is trading on exchange that you've never ever heard of and they could halt trading in an instant for any reason.
Yes, the lack of regulation is what's driving profits for many, as the market is extremely "naive" and every manipulation scheme that would shock the SEC is fair game. So I see it as the price you pay to play in an unregulated market.
Do you understand the exchange that this was a traded on in 2014 went bankrupt and lost hundreds of millions of bit coin money?
Yes, companies go belly up all the time and people's investments in said companies vanish into smoke. Sure, you could argue we would've pulled our assets from said company as we know better. Now many simply don't keep their gains in said exchanges for more than the trading day and dump it back into their electronic wallet away from the exchange.
Do you understand of hackers successfully attacked millions of the coin money and stole it from that very exchange?
Any electronic currency can be hacked and stolen, there are countless cases of US dollars being hacked from accounts. This is a nil point as the security is only as good as the software/hardware to keep it secure. You have to understand that the most brilliant minds in Comp-sci and computer engineering are heavily attracted to the tech.
If you've got something of value then speak up. But not one person has given any valid argument against my facts of why this asset is a good thing to own.[/QUOTE]
