Who's brave/stupid enough to invest their life savings into Bitcoin? - page 3.

picolo

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Quote from: slaveforanunnak1 on December 30, 2014, 05:46:00 PM

Quote from: adaseb on December 30, 2014, 05:07:46 PM

I actually know a few people locally that invested all their life savings OR maxed out their credit cards buying BTC or buying GPUs or ASICs. Its sad actually.

thats very stupid and scary.
people, provide a service for BTC FFS

It was very risky and a bit foolish but they could end up making a fortune in a few years.

slaveforanunnak1

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Quote from: adaseb on December 30, 2014, 05:07:46 PM

I actually know a few people locally that invested all their life savings OR maxed out their credit cards buying BTC or buying GPUs or ASICs. Its sad actually.

thats very stupid and scary.
people, provide a service for BTC FFS

adaseb

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I actually know a few people locally that invested all their life savings OR maxed out their credit cards buying BTC or buying GPUs or ASICs. Its sad actually.

leex1528

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Why is everyone so concerned about what inflation is doing? The rate inflation is going up compared to what the average salary is a joke. There is a reason we are struggling to make a living in America, it is a complete joke, the minimum wage should roughly be 12/hr with everyone making a lot more in general, economy sucks!

Q7

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Quote from: Willisius on December 29, 2014, 12:03:27 AM

Quote from: Flashman on December 28, 2014, 08:29:26 AM

Quote from: jaberwock on December 28, 2014, 04:55:21 AM

If I will lose anyway by playing safe, why should I play safe?

That's true, I think headline inflation is massaged, and it's truly more like 5% PA, leading to losing nearly half the value of your money in 10 years, meanwhile you can get a maximum of about 2% interest in "high yield" savings accounts.

I am pretty sure both of your numbers are overstated. Inflation over the past year has been roughly 1.7% and interest rates on savings accounts tend to max out well under 1% (probably closer to .5%).

The return on things like bonds and stocks however are vastly exceeding inflation so if you invest your money in these kinds of investments (as you should if you have a long term timeframe) you will overall gain money after inflation

Yes and no. But over the years ive noticed purchasing power with the fiat that i own getting weaker. You can say average inflation is 2% but if i measure using basic necessities like for example eggs which cost probably like 15 cents a year ago and is now 20 cents, that doesn't actually reflect annual inflation of 2%

picolo

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Quote from: deluxeCITY on December 29, 2014, 06:50:24 PM

Quote from: Flashman on December 29, 2014, 06:36:40 PM

I don't care what official figure is, it's BS.

Could be wrong about what you can actually get in a savings account though, if I've seen 2% it's probably one of those $50,000+ term deposits.

According to bankrate the highest interest rates that are publicly available (that they know about) is 1.05% APY on savings accounts. It lists one offer for a 5 year CD with a $100,000 minimum deposit with a APY of 2.4%.

The core inflation rate really over estimates inflation because people will adjust their habits when prices adjust. For example when the price of chicken increases they will buy beef instead, or when the price of gas goes up they will consolidate their trips to the store

People spend less if price have gone up and spend more if price have gone down.

Flashman

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Hodl!

Quote from: deluxeCITY on December 29, 2014, 06:50:24 PM

The core inflation rate really over estimates inflation because people will adjust their habits when prices adjust. For example when the price of chicken increases they will buy beef instead, or when the price of gas goes up they will consolidate their trips to the store

Riiiiight, if there's no bread, let them eat cake.

deluxeCITY

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Quote from: Flashman on December 29, 2014, 06:36:40 PM

I don't care what official figure is, it's BS.

Could be wrong about what you can actually get in a savings account though, if I've seen 2% it's probably one of those $50,000+ term deposits.

According to bankrate the highest interest rates that are publicly available (that they know about) is 1.05% APY on savings accounts. It lists one offer for a 5 year CD with a $100,000 minimum deposit with a APY of 2.4%.

The core inflation rate really over estimates inflation because people will adjust their habits when prices adjust. For example when the price of chicken increases they will buy beef instead, or when the price of gas goes up they will consolidate their trips to the store

Flashman

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Hodl!

I don't care what official figure is, it's BS.

Could be wrong about what you can actually get in a savings account though, if I've seen 2% it's probably one of those $50,000+ term deposits.

pattu1

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Quote from: Willisius on December 29, 2014, 12:03:27 AM

Quote from: Flashman on December 28, 2014, 08:29:26 AM

Quote from: jaberwock on December 28, 2014, 04:55:21 AM

If I will lose anyway by playing safe, why should I play safe?

That's true, I think headline inflation is massaged, and it's truly more like 5% PA, leading to losing nearly half the value of your money in 10 years, meanwhile you can get a maximum of about 2% interest in "high yield" savings accounts.

I am pretty sure both of your numbers are overstated. Inflation over the past year has been roughly 1.7% and interest rates on savings accounts tend to max out well under 1% (probably closer to .5%).

The return on things like bonds and stocks however are vastly exceeding inflation so if you invest your money in these kinds of investments (as you should if you have a long term timeframe) you will overall gain money after inflation

Maybe the numbers correspond to a region other than the United States?

Willisius

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I'm really quite sane!

Quote from: Flashman on December 28, 2014, 08:29:26 AM

Quote from: jaberwock on December 28, 2014, 04:55:21 AM

If I will lose anyway by playing safe, why should I play safe?

That's true, I think headline inflation is massaged, and it's truly more like 5% PA, leading to losing nearly half the value of your money in 10 years, meanwhile you can get a maximum of about 2% interest in "high yield" savings accounts.

I am pretty sure both of your numbers are overstated. Inflation over the past year has been roughly 1.7% and interest rates on savings accounts tend to max out well under 1% (probably closer to .5%).

The return on things like bonds and stocks however are vastly exceeding inflation so if you invest your money in these kinds of investments (as you should if you have a long term timeframe) you will overall gain money after inflation

picolo

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Quote from: Flashman on December 28, 2014, 08:29:26 AM

Quote from: jaberwock on December 28, 2014, 04:55:21 AM

If I will lose anyway by playing safe, why should I play safe?

That's true, I think headline inflation is massaged, and it's truly more like 5% PA, leading to losing nearly half the value of your money in 10 years, meanwhile you can get a maximum of about 2% interest in "high yield" savings accounts.

7% inflation a year means you lose 50% of the value of your money in 10 years.

Flashman

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Hodl!

Quote from: jaberwock on December 28, 2014, 04:55:21 AM

If I will lose anyway by playing safe, why should I play safe?

That's true, I think headline inflation is massaged, and it's truly more like 5% PA, leading to losing nearly half the value of your money in 10 years, meanwhile you can get a maximum of about 2% interest in "high yield" savings accounts.

picolo

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Quote from: Rassah on December 28, 2014, 02:13:56 AM

Quote from: picolo on December 24, 2014, 08:29:31 PM

The risk was very high and it looked likely that Bitcoin will fail soon.

Those who were really lucky were those paid in bitcoins or mined bitcoins very early on then forgot about their bitcoins

Or those who understood the technology behind it, believed that there are no other serious options to replace it, and thought there was very little chance that it will fail, and a bug chance that it will take off and replace much of the financial system. There are quite a few of us who thought the concept of "cashing out" of bitcoin made as much sense as "cashing out" of dollars.

By the way, how many people have 100% of their savings invested in dollars, or euros?

You can think of a solution to replace Bitcoin but it is not there and Bitcoin has a size that matters : if you want to safely and anonymously transfer hundreds of thousands or millions you need Bitcoin.

jaberwock

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Quote from: botany on December 17, 2014, 02:03:10 AM

Quote from: LordSonjai on December 15, 2014, 07:38:49 PM

brave enough or suicidal?
You never invest all your money into one category that is rule number 0 it goes without being said.

Bitcoin would never form more than 1% of your portfolio, if you took investment advice.
However, every one of us has a gambling streak within.

If I take the economic advices seriously then I will need to save for one decade or two before doing any investment that has real odds of giving a decent revenue. If I get mega luck and don't take long to get a new job after being fired, what would eat all my savings.

Without BTC I would be stuck forever in the same situation for ever maybe.

If I will lose anyway by playing safe, why should I play safe?

Rassah

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Quote from: picolo on December 24, 2014, 08:29:31 PM

The risk was very high and it looked likely that Bitcoin will fail soon.

Those who were really lucky were those paid in bitcoins or mined bitcoins very early on then forgot about their bitcoins

Or those who understood the technology behind it, believed that there are no other serious options to replace it, and thought there was very little chance that it will fail, and a bug chance that it will take off and replace much of the financial system. There are quite a few of us who thought the concept of "cashing out" of bitcoin made as much sense as "cashing out" of dollars.

By the way, how many people have 100% of their savings invested in dollars, or euros?

Zendikar

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That is like gambling your life savings away, just not a good idea.

leex1528

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Quote from: Gyfts on December 27, 2014, 05:49:04 PM

That's stupid. Never invest your full life savings in ANYTHING. Providing no security if things go south...For someone to invest after the crash last year, they would see and prove to themselves it was a stupid decision.

100% agree. I don't care if I had a 99% chance of making money, I am not going to invest all of my eggs into 1 basket. The simplest thing you learn when investing is this.

itsAj

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