Monday, 18 September 2017

Bitcoin

Does anybody own any of this stuff and can anybody please explain it to me in, as Jeremy Irons said in Margin Call, words a child would understand. I mean a sentence or two of low syllable words which I don't have to google.

 You see our son has got some. We were with him in group on Saturday evening and he's got some and so has one of his friends. I didn't like to express my ignorance in front of a few people, although I wouldn't be at all surprised if some of the others didn't understand it either, a more sophisticated version of The King's New Clothes. P appeared to know what it was and said it was still dangerous and volatile even though it had produced mind-blowing returns for people over the past few years. Coming back home in the car I said if it was dangerous, should our son really be buying it but P said he's a big boy now and has to figure out these things for himself, he also said he'd been weighing up the case for buying some but only on a dip. He said he'd talk with our son about it but he wouldn't be trying to persuade him for or against, only that it would be prudent to hold only a modest amount in his opinion.

 I still had no idea what it really was, only that you don't get anything you can rattle in your pocket. I asked him why he would be considering getting some if it was potentially dangerous but he said it was possibly the future of currency and by having a small stake he would be more likely to pay attention to it, like when you buy shares in a company you naturally tend to show more interest in that company or sector. Well I understood that but I still didn't understand what the bitcoin actually was and when he started talking about blockchain and cryptology I lost the plot completely and asked him to start from the beginning and use simple words. My husband sighed and said no point, he'd do it some other time, I wouldn't understand it anyway. Bastard.

 When we got in I poured a couple of glasses of wine and asked him again to explain it and told him I wasn't thick, which was what he'd implied, but perhaps he was if he couldn't boil it down to a simple explanation. He wouldn't do it and said there were other things to talk about and he'd explain it tomorrow and he'd spank me if I kept going on about it. He was joking, worse luck, and I could tell so there was no point me carrying on and we switched to tree surgeons and neighbours.

 I didn't bring the matter up next day but I did have a quick look on Wiki, it didn't help much, I feel like a whole chapter of technology has slipped by me. I would love to drop it out in casual conversation one day that I was thinking of buying some too (even though I don't think I would), just to show him! Or better still actually do it, or make out that I had, that would get his attention, I could imagine his 'What! You did something as stupid as that without consulting me?'.  Might even merit a spanking. Then another one when he found out I hadn't really done it:)

Have a good week.

 Ronnie
xx 

11 comments:

Cat said...

Hey Ronnie...Here are 3 good links that I think will help explain Bitcoin to you in a way you can easily understand...Hope they help.

https://www.coindesk.com/bitcoin-explained-five-year-old/
https://www.buybitcoinworldwide.com/beginners-guide/
https://www.lynda.com/Business-Finance-tutorials/Up-Running-Bitcoin/167065-2.html

Hugs and blessings...Cat

an English Rose said...

Hi Ronnie, well I am no help , as I clicked on the title of your blog I asked hubby what is bitcoin? He said I dunno really it's that virtual money or somesuch! We are clearly no help at all. Don't think it has reached our neck of the woods yet,lol
love Jan, xx

Roz said...

Hi Ronnie, I'm afraid I don't know much about it either and am no help. Glad Cat posted the links. Will have to check them out myself lol.

Hugs
Roz

Red said...

interesting articles by Cat, but bitcoin is not appropriate for me. We will stick with cash.
bottoms up
Red

Eric51 Amy49 said...

Not a clue... but learning along with you!
Amy

ronnie said...

Cat - Interesting links. Helped thanks.

Roz - Yes take a look at Cat's links. Thanks.

Jan - Maybe I'll get son to explain it to me. Thanks.

Red - Probably not for me either. Thanks.

Amy - Interesting links from Cat. Thanks.

Love,
Ronnie
xx

Kyrel said...

The links from Cat probably explain it a lot better than I can, but in short from my perspective, Bitcoin is basically a means of payment that is completely virtual and not subjected to any one country's monetary policy. Supply is limited and increasing at a predictable rate which means that the value of the Bitcoins are pretty much determined by the demand. Bitcoins have a value like most other stuff, and that value changes with the supply and demand for it. This means that it can be used as a means of investment where you through buying and selling the Bitcoins can either win or loose money, depending on when you buy and sell.
Historically Bitcoins have increased in value A LOT over time, and some people have made a fortune buying Bitcoins at the early stages, and either keeping them, or selling them after they increased significantly in value. I have an acquaintance who became a millionaire on this. He's now living in Schwicz where he's in the process of starting up a proper Bitcoin bank I believe.
With regards to their value, Bitcoins are volatile, so take care if you invest in them. They are no worse than other volatile investment objects, so don't be afraid of them in that respect. Just remember that they are a risky investment like all other such.
One thing that is worth remembering with regards to the risk of investing in them, is hacking. People have experienced having their Bitcoins stolen through hacking, so pay close attention your account and take the usual precautions against hacking (updated computer, firewall, beware of phishing attempts etc.).
Other means of digital currency does exist, i.e. Etherium. They are similar but might have some primarily technical differences.
Don't know if that helped or suplemented anything not already said or available in previous links.

Hermione said...

I never knew what they were either so thank you, Kyrel, for the explanation.

Hugs,
Hermione

Ella said...

Well, this was all way above my head. I have a niece who is a financial advisor, and I will ask her about it.

Think of it, though, with the world wide web, the idea of virtual money doesn't seem like such a far leap at all.

Hugs Across the Pond,
Ella

ronnie said...

Kyrel hello - Thank you for the explanation. Excellent and sensible advice.

Hermione - Kyrel explained it well. Thanks.

Ella - Way above mine as well. Be interested in what she says about Bitcoin. Thanks.

Love,
Ronnie
xx

ronnie said...

Thanks to everyone who commented.

Definitely staying with the jingle of ordinary coins for now but might still decide to kid P into believing I've bought some:)

Love,
Ronnie
xx