Which is the better investment, Bitcoin or physical Bitcoins?
savitale
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I'm thinking physical Bitcoins because they would be less volatile. If Bitcoin drops precipitously, physical Bitcoins will still have collector value. If Bitcoin increases dramatically, the numismatic premium on physical Bitcoins will compress. I own no cryptocurrency of any sort, but I am wondering.
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It’s an academic exercise in my mind, with no real reason to own either one. Speculating in any currency isn’t a game I’m comfortable with.
Besides that, you’re certainly paying a premium above the “currency” value to acquire a physical bitcoin. The future value of the collectible value is also in question.
Most of the value of the physical bitcoin is the currency value. If the argument is which one won't go to zero, the answer is the physical coin. But since you asked about volatility, they are going to be equally volatile.
Speculative items, not investments.
I think that if the value of bitcoin falls, then the value of physical bitcoin will also decrease. The beginning of physical bitcoins was in 2011. They were created out of metal (usually gold, silver). They had a private key and a holographic sticker to protect them from unauthorized access. Nevertheless, this is only the physical medium of electronic coins. I have bitcoin in my account and sometimes earn free bitcoin. I don't see the necessity of buying physical bitcoins. Especially since they don't issue them anymore, holders can inflate the price.
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it depends on your definition of value. as time marches on, if bitcoin becomes ubiquitous along with other cryptos/alt coins, since many do "follow" the value of bitcoin in trends, up and down, if BTC goes to zero, the value of the physical coin will be moot because we'll be in a very nasty recession or worse. (i'm sure there people out there working diligently for this) nothing like a good collapse/recession to increase the disparity of wealthy vs not.
just based on the nov 21 spike, if what i read is true, then bitcoin going up, pulled A LOT of other nft/crypto digital assets (to be fair, nft and cryptos fed each other throughout 2021) with it and the same on the way down. i do NOT claim to be an expert on just how the intricacies of stocks, cryptos, collectables etc actually start going up or down but i do understand the middle a bit.
will BTC be the "leading" crypto/alt coin? if not, then it going to zero means much less. i'm pretty certain i've seen alt coins that are valued WAY above BTC fwiw.
but to counter-argue my opinions above, i have asked some crypto suppliers/creators if physical issues will be made but i've not had anyone say yes yet. if they exist outside BTC, i am unaware of it. fwiw
Speculative items can be investments, but you need to be able to absorb a 100% loss without it impacting your life. Most experts (which i am not), say to limit speculative investments to no more than 5% to 10% of total assets. I believe Bitcoin fits into this category, and i vote for the physical Bitcoin as long as the premium is nominal.
I have deliberately stayed far away from the topic of cryptocurrency/NFTs/etc, so I remain ignorant. Aren't they all true "Fiat currencies" anyway? From where do they derive their value?
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Isn't that physical Bitcoin just a gimmick? It says it is 0.5 Bitcoin. Did it cost $20,000 based on the current $40K+ value of a single coin? Doesn't make any sense to me.
The battle scars of all the good times
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as my understanding is, fiat, crypto, alt coin etc are synonymous. probably some other terms floating around out there too.
since the definition of fiat currency is that which is not backed by PMs.
if i had to say what an alt coins value is derived from (besides there being hundreds of billions (if not more) being invested in them, therefore people having a major stake in keeping them going), it is like a lot of things, a lot of people agreeing that they have value and in this case, function. i can go buy a car with alt coins, a house, food, other alt coins, nfts etc etc.
it would be interesting to read someone truly articulate with in-depth knowledge of the space speak in about 3-5 paragraphs, just what are the benefits/downfalls of the asset classes.
since so much is digital, it is only natural i think that there be a/some digital currencies, for better or worse.
now when decentralized is applied (as nearly impossible as this is to implement with the criminally minded and desperate running rampant, government, organization or individual level) it reminds me of the wild west and i've stated as such in discords/forums. the digital puritans like decentralized but it basically equates to a ffa to only benefit those with fingers on the buttons and/or enough specific technical knowledge to operate somewhat safely but can't really function w/o outside (non-tec experts capital). (no different than any other area of life) imo.
The physical Bitcoin contains a holographic key that can be uncovered which gives the holder access to the Bitcoin, in this case .5 Bitcoin. So the value varies and correlates with the market value of Bitcoin, plus there could be some collector value of the slabbed coin.
Once the key is revealed and the Bitcoin redeemed, then the only remaining value is the collector value. So you need to be aware whether you are purchasing a redeemed or unredeemed physical coin.
Your post is very informative, Thank You. If centralized would it prevent what the world tried to do to the ruble?
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Maybe gold beaned PCGS graded CAC'd Bitcoins?
Neither can be considered investment. Too easy to get wiped out in one fell con swoop, left with nothing. How can one be a student of this game? The sad answer is one can't be a student of the crypto game. It's smoke and mirrors.
Great spirits have always encountered violent opposition from mediocre minds.-Albert Einstein
Didnt Venezuela adopt a form of bitcoin to boost their economy? Since access to banks is spotty, people have turned to cryptocurrency as part of day to day commerce...
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El Salvador adopted bitcoin as legal tender.
Use in Venezuela is unofficial but they have their own crypto tied to the oil industry.
Edited to add: my information may be dated. After the launch of the petro crypto, it seems Venezuela did give bitcoin some kind of official status.
Aside from the putative “currency “ value, it is nothing more than a Chucky Cheese token. Then again, the same could be said of the underlying cryptocurrency but there’s no guarantee you would even find a pizza shop in town to accept it. 😪
I’m sure Venezuela loves crypto. It makes economic sanctions harder to impose on brutal dictators. Russia is probably loving Bitcoin right now too. This is all the more reason western economic powers will likely heavily regulate cryptocurrency in the future.
This is a game I’m very uncomfortable with. It’s the speciation game and I kinda suck at it. Good luck to those that venture into it, it’s just not for me.
Maybe CAC should start an alt coin (CACcoin) and rake in lots of cash for itself. JA deserves a nice retirement.
That is really not the issue in Venezuela. It is crippling inflation of 1000+%
I don't think it will be so easy to regulate a cryptocurrency.
Might be better off with an NFT.
Which is the better investment, Bitcoin or physical Bitcoins?
Silver.
I'm thinking Beanie Babies and Unicorn farts would be a better "investment".
Bitcoin is to real money what lottery numbers picked by a human-created computer algorithm are to lottery numbers picked from balls spinning around in a drum.
Computer algorithms can be, and have been, rigged. Numbered balls spinning in a drum, not so much.
My policy is to not play lotteries that use a computer algorithm to pick numbers.
Great spirits have always encountered violent opposition from mediocre minds.-Albert Einstein
Then you are unfamiliar with the Patrick Ewing frozen envelope.
And proof of stake changes the entire game on crypto.
And if you are so worried about cybersecurity, you better put all your money in a mattress.