Tell me about crypto currency…. Please

[CindysFriend]

So my husband just told me that he has set up a “ wallet” to start a crypto account. He said something about “fiat”.

He said he’s going to the bank tomorrow to wire money into this “wallet”. WTH is all this? He has been explaining it to me, but I don’t trust him to show me the larger picture here, if there is one.

Do any of you have experience or knowledge?

TIA.

 

[White Cat]

Don’t forget your numbers.

Better yet, stay away.

 

[tinkerbellandpeterpan]

I would not be very comfortable with my DH putting our money in an investment vehicle I didn't understand that he couldn't coherently explain to me. You can research cryptocurrency if you have questions about it I suppose, but perhaps he could wait a bit to make the investment until you feel more informed. Or alternatively you can agree on a particular amount of money you are comfortable losing entirely while you get up to speed on his plans. There is a lot to be wary about.

 

[Neapolitan Ice Cream]

I invested £25 in a crypto currency. All gone. Never again! You CAN stand to make a lot of money, but it's both pot luck and a LOT of know-how.

 

[tvguy]

Can you afford to lose that money? Sounds like you and your husband need to do A LOT of talking before deciding.

https://www.investopedia.com/terms/c/cryptocurrency.asp

 

[SM1992]

No experience with it but there's no way I'd invest in this.

 

[Smugpugmug]

I wouldn't recommend investing your money in something you don't fully understand. I especially wouldn't recommend it if you don't trust your husband enough to fully explain what cryptocurrency is and how it works to you.

 

[pens4821]

Very basic knowledge here. It’s another form of investment. Bitcoin is the most popular. It’s gone up something like 300% in the last 5 years. Although it’s not as safe, IMO, as say stocks (especially ones on the major exchanges that have to follow regulations) or mutual funds. However nothing is really safe. You could lose all your money on any of them. Some people believe these cryptocurrencies will replace our paper currency. If this is the case and you’re in now (or you’ve been in) you could make a boatload.

What I don’t really understand is how it works. The numbers are mined they say. Computers find this blockchain number then they are rewarded with bitcoin. Computers are running non stop trying to mine bitcoin. So they say it’s horrible for the environment because of the electricity use.

There has also been issues of where you store them or I’m guessing wallet as you say. Since it’s new (maybe not new but still just not well known by alot of people) there are alot of scammers out there. If you don’t have them in a reputable safe place you could lose them or they could be hacked.

If I’m not mistaken it’s also not regulated by the government. While bitcoin has been around for a long time, there are alot that have gone by the wasteside. So if you invested in those you’ve lost everything.

I’m not a risk taker so I’ve stayed away. Bitcoin especially has been up and down, but in general it’s been a gain unless you got in after covid when it was up huge. The major ones like bitcoin and ether have gained much more money in the past 5 ish years than the major indexes in the stock market. I just worry that it will go to nothing, but many out there don’t see it happening. If I were ever to do it I’d consider it like going to the casino. I personally couldn’t use it as a retirement investment because I feel it’s too risky, but some say it’s no more risky than your normal investment opportunities.

Just did some quick math so it may be wrong. If you invested $1000 in bitcoin 5 years ago it’d be worth $4161. Compare that to the s&p 500 (1597) or Dow Jones (1385). So once again, if you’re willing to deal with the risks you could potentially make out much more than normal investment strategies.

 

[Starport Seven-Five]

Sounds like your husband want down an internet rabbit hole haha.

Crypto is a lot of things but at the end of the day it's only worth something because others think it's worth something. There is no real product you're buying and speculation is huge in the space which results in large price swings. Even people who are into it advise not to put more than a few percent of your net worth into crypto.

 

[Dan Murphy]

but I don’t trust him

This is certainly a concern.

 

[GAN]

So my husband just told me that he has set up a “ wallet” to start a crypto account. He said something about “fiat”.

He said he’s going to the bank tomorrow to wire money into this “wallet”. WTH is all this? He has been explaining it to me, but I don’t trust him to show me the larger picture here, if there is one.

Do any of you have experience or knowledge?

TIA.

Why? I would stay away….

 

[jalapeno_pretzel]

So my husband just told me that he has set up a “ wallet” to start a crypto account. He said something about “fiat”.

He said he’s going to the bank tomorrow to wire money into this “wallet”. WTH is all this? He has been explaining it to me, but I don’t trust him to show me the larger picture here, if there is one.

Do any of you have experience or knowledge?

TIA.

Does he by any chance have a history of conspiratorial thinking? I've seen a couple of people get sucked into money schemes and it's kind of been linked to conspiracies about money and banks. Having done some reading about it, there are grifters that will prey on those that fall for that kind of thing.

If he doesn't have that issue, and if he's only putting in a small amount you could otherwise afford to lose, I wouldn't worry about it too much. Otherwise, you might start thinking about separating finances.

 

[_19disnA]

I understand enough about it to know I wouldn't put ANY of my money into crypto/bitcoin or any of the 'me too' followers (there are now several of them). It is mostly a combination of pyramid & ponzi schemes depending on how you define them. Bitcoin was invented out of thin air and is poorly regulated meaning the chance for fraud is high. It generates no revenue/sales/profit. It isn't a business or company and isn't producing any product or service. I would consider it more in the way of speculating vs investing. You HOPE others will continue to come along who will keep driving up the price. It is basically functioning as an unregulated digital currency and why anyone would be enamored with throwing their money at it baffles me. No one gets excited about buying euros vs. dollars vs. any other currency. The price has gotten as high as $70,000 and now hovers around $30,000 since the air has mostly gone out of that balloon. Seems those looking to make a fast buck have moved on to other things. Those still trying to hype it tend to be ones who would profit from having the price keep going up.

 

[GAN]

I could rattle off a half-dozen better options for your money, some with higher risk than others. Think …CD’s at 5+%, SCHD, MCD, JNJ, APPLE GOOGLE, PALANTIR. That’s without any thought at all

 

[Cannot_Wait_4Disney]

RUN

 

[Neapolitan Ice Cream]

TBH, you'd see a more reliable return (and a decent one) with premium bonds. Not only are the interest rates high to your benefit, you also stand to win cash prizes every month. Small, but surprisingly frequent. I know now person who has £200 odd invested over the past 5 months and she's won £25 in total in two batches! I'm just getting into it now

 

[hopemax]

Tech bro conspiracy theories are the worst. The original ideas behind crypto may have been genuine and sound, but the more time goes on, it's not delivering on it's promise. Current crypto is more like a 21st Century pyramid scheme. The earliest investors make money off the backs of more recent ones.

Like any investment, don't invest any money you can't afford to lose. Less knowledgeable investors should stick with lower risk options.

 

[MillauFr]

The only thing worse than investing in crypto is Gold. Zero inherent value.

 

[Starport Seven-Five]

The only thing worse than investing in crypto is Gold. Zero inherent value.

I think it’s the opposite because gold has some industrial value. That value is a pittance compared to current market value of gold but it’s more than the inherent value of bitcoin (zero).

 

[Powerline13]

Checking back in exactly one year.