Community Chat

[Pruett]

Good morning!

Can anyone here explain cryptocurrency and bitcoins in a simple way?

I've looked on line & so far can't find anything I can understand. I am confused! 

I have to leave for a dr appt now but I'll be back later.

tia! 

[millieshops]

@PruettI can't even though I've read and even sat through an hour of explanations and Q&A at my library.  I came away with enough understanding to know I don't know enough to involve any of my money in them.  Way too confusing to me so the risk feels very high.

[CelticCrafter]

@Pruett - last time this discussion came up I decided to Google it because I didn't understand it.

I found an article that was supposedly geared towards 5th graders and I still couldn't figure it out or understand it!

I'll stick to paper money and real coins.

[blackhole99]

It looks to me like it's basically limited entries in a database no one can change without fulfilling specific conditions. Just like brick and mortar banks, but out there in the decentralized digital cash system (no bank). Bitcoin consists of a network of peers. Every peer has a record of the complete history of all the transactions and a balance of every account. Like Ric gives X Bitcoin to Mary and is signed by Ric's private key. Basic public key cryptography. After signed, a transaction is broadcast in the network, sent from one peer to every other peer. Before you invest in any of these cryptocurrencies make sure you know what you are doing. My son is a real geek and very savvy when it comes to stocks and the way the ether system works. He invested in Bitcoin 2 years ago and made a lot of money when it was worth a lot. He's still invested in Bitcoin, but has bought into the new cryptocurrency start ups. He wanted us to invest, but No, just no.

[Pruett]

Thank you @millieshops, @CelticCrafter , @blackhole99!

Sounds like a big no for investing.

Appreciate your posts.

[blackhole99]

@PruettI didn't mean to say it's not a good investment, you just cannot be queasy when the thing is all over the place. We are too old to try to recoup money lost from any kind of investment. My son is only 34 and has nerves of steel when it comes to that stuff, he also is young enough to recoup any losses. 

[Mominohio]

I first heard of this quite a few years ago, and I went to my nephew who is pretty tech and business knowledgeable (he is studying to be an attorney that specializes in technology law), and he had never heard of it (at that time).

I hear some people are making big money (real money) by investing in and then selling bitcoin. If I had figured it out and got in on the ground floor, I could have made some big money, it seems. 

I tend though, to not invest (especially money, but sometimes, even time) in things I don't understand, so I've passed on this and continue to do so. I tend to be a very tangible person. I relate to having things of value (land, home, gold, silver, food, household necessities, equipment, etc.) over abstract things like this, and actually over just only cash. 

I've yet to read something about it I truly can understand either.

[Pruett]

Thanks @blackhole99 & @Mominohio!

I'll just keep looking!

[Montana]

I’ve heard of bitcoins, but had no idea what they were. Never heard the term cryptocurrency.

🎈This article tries to simplify it:

https://medium.freecodecamp.org/explain-bitcoin-like-im-five-73b4257ac833

Or Google:  “Explain Bitcoin Like I’m Five”

🎈Here’s another article:

https://cryptonews.com/exclusives/mommy-what-is-bitcoin-how-to-teach-kids-about-cryptocurrenc-1185.h...

Or Google: “Mommy, What is Bitcoin?” How to Teach Kids About Cryptocurrency 

I still don’t get it. Gonna have to reread.

[Hoovermom]

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@blackhole99 wrote:

@PruettI didn't mean to say it's not a good investment, you just cannot be queasy when the thing is all over the place. We are too old to try to recoup money lost from any kind of investment. My son is only 34 and has nerves of steel when it comes to that stuff, he also is young enough to recoup any losses. 

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@blackhole99:  My DS is early 30 and feels the same thing....a future thing (I guess).