Viewed 79k times. What happens if I buy Bitcoins and the price goes down. Will I lose a quantity of my money? Improve this question. Philip Kour Philip Kour 1 1 gold badge 1 1 silver badge 3 3 bronze badges. It concerns me that people who lack such basic knowledge of economy would invest in a cryptocurrency. Myridium OP has not stated that they have invested or is considering investing in a cryptocurrency.
Myridium If anything, it should concern you that people who lack such basic knowledge of economics would invest in anything. Show 7 more comments. Active Oldest Votes. Improve this answer. Hannah Vernon Hannah Vernon 1, 14 14 silver badges 29 29 bronze badges.
Your market view of trading any commodity stands true, but your key example is wrong. Bitcoin has no intrinsic value , and can become worth absolutely zero. Tax law is a completely different area. Consult a tax attorney or accountant in you jurisdiction for details applicable to your scenario.
Xen There is nothing fundamentally different in the intrinsic value of gold; if someone invented a machine that could fabricate gold out of thin air, your bar of gold would have zero value; if a replacement were found for all uses of gold, it would have a value very near zero. The difference, I think, is one of risk: there is a higher risk of the bitcoin network becoming obsolete, and investments in it worthless, than all uses of gold becoming obsolete.
JoseAntonioDuraOlmos I disagree. This is the correct viewpoint. This is the viewpoint that says "If I have an ounce of gold, I have an ounce of gold, no more, no less. Jestin Jestin 8, 1 1 gold badge 20 20 silver badges 32 32 bronze badges. It goes both ways, too. If I buy a litre of milk, I only have a litre of milk for a week or so, regardless of what happens to the price. David, true. Groceries lack a property of money, namely durability.
DavidRicherby I think everyone with half a brain can understand the relevant points of the analogy and discard the irrelevant ones like "milk goes off". Show 2 more comments. Community Bot 1. Nat Nat 2 2 silver badges 6 6 bronze badges. Glad to see an answer which really hits the nail. The bank will valuate the assets. Add a comment. Deepak Deepak 1 1 silver badge 3 3 bronze badges. Literally any other market is sensitive to the same things.
Would you happen to know any relevant trading simulators someone might try online? Keep in mind that trading simulations have a different psychological effect on you than trading with real money does. Many a would-be trader has expected their simulated success to carry over to the real-world, and been deeply disappointed in the results.
Vadim Ponomarenko Vadim Ponomarenko 2 2 bronze badges. The first word of his and my answer suggest we make a different point. Yes and no, depends on your perspective. Peter Peter 3 3 bronze badges. JustCoding JustCoding 1. I want to add some thoughts: It seems you are rather new to trading.
Please understand that there is no "magic money making" machine, and that trading profits are often viewed as the compensation for accepted risks. So be cautions with investing money whose loss you cannot afford. Bitcoin is highly volatile, meaning that the price changes in rapid succession. It might be hard for a beginner to handle.
You can, of course, but be extra cautious compared to trading, say, Dow Jones values. Bitcoin has no intrinsic value. Gold can be used for making jewelry, Coca Cola can still produce more drinks, but for a Bitcoin you need someone else willing to pay for it. Without spreading too much fear and doubt, it bears some reminiscence to once highly-priced collector cards.
Zsolt Szilagy Zsolt Szilagy 3 3 bronze badges. But I would rather use the definition of money used by wikipedia: Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context. If the answer is "I can buy the same" then no, you did not lose a quantity of your money. If the answer is "I can buy less for the same ammount of bitcoins than I could before the lowering" then yes, you did lose a quantity of your money.
They are diminished as a medium of exchange, now you can exchange those bitcoins for less than you could before. Anonymous Coward Anonymous Coward 2 2 bronze badges. ZOMG what kind of hyper pedantic answer is this. Of course he loses money if the price goes down. I think there is an interesting point here, although perhaps not well expressed: the bitcoins might be exchanged for something other than the original currency.
However, if it were possible to exchange Bitcoins valued at USD10 for USD20 worth of goods, this would be an anomaly that the market would correct for by adjusting one or both prices. Abdussamad Indeed, of course he does lose money. So I had to go the extra league. IMSoP - arbitrage is what happens when you trade a good or asset through multiple exchanges and make a profit. And yes, normally the "market" will sort that out extremely quickly, since stakeholders take advantage of the arbitrage forcing equilibrium.
The Overflow Blog. Check out the Stack Exchange sites that turned 10 years old in Q4. In most cases, the more expensive the car is, the more powerful it is! This is important because when miners attempt to solve the puzzle, they try billions of different combinations until they are correct. The more hashing power a hardware device has, the more combinations it can try each second! At present, the only hardware devices that are going to give you a chance to mine Bitcoin Cash is something called an ASIC Application-specific integrated circuit.
There are lots of different variations, with some being better than others. There is no point in considering anything other than an ASIC, as you will have absolutely no chance of ever winning the mining reward! This device requires a power supply of between V.
Every country has its standards, so you will need to check this first. For example, in the U. S, the standard is V, meaning that you would either need to hire an electrician or buy a converter! As a result, the DragonMint might not be suitable for the average miner who is looking to make a bit of money on the side. It is a device made for much more serious miners and organizations. If you do want to buy the DragonMint 16T though, or would like more information, clic k here to visit the official website.
The device is manufactured by a company called Bitmain, which is based in China. Some people think that Bitmain has too much control in the cryptocurrency industry. This is because not only do they sell the most mining hardware devices, but they are also one of the largest mining pools in the Bitcoin and Bitcoin Cash industry. The device is an upgrade from the S7, which was limited to a maximum hashing rate of just 4. The S9 is also much quieter than the S7, which sounded like a factory production machine!
At the time of writing, the Antminer S9 is slightly more expensive than the DragonMint, even though it is less powerful. If you want to buy the Antminer S9 or would like more information, click here to go to the official web page! The nearest device in terms of power is the Antminer R4, which has a maximum hashing power of 8.
However, if you are planning to join a Bitcoin Cash mining pool, then you can purchase a much less powerful device. This is because your share of the mining reward is based on the amount of hashing power that you contribute! So, if this sounds more suitable for you, check out my suggestion below! It is also manufactured by Bitmain and can produce a maximum hashing rate of 4.
Although this is much slower than the S9, it will allow you to earn Bitcoin Cash when you join a Bitcoin Cash mining pool. It is a highly reliable and proven piece of hardware that used to be the most popular in the industry. Before buying the Antminer S7, there are two things you should consider. You will not be able to compete with more powerful models.
Secondly, the S7 is noisy, so if you plan on running it during the evening, be prepared for complaints from your neighbors. If you want to purchase the Antminer S7, click here to buy it from the official Amazon store. So, now that you know all about the hardware requirements, the next part of my Bitcoin Cash mining guide is going to look at what software you need. Just like your desktop computer or laptop device, the software is just as important as hardware.
Once you have purchased your ASIC device, you will need to download some software to accompany it. However, in most cases, the required software will be included with the product. It is not recommended to use software other than the one included with your product. There are various third-party mining programs available to download, but these are only suitable for GPU or CPU mining. If you have read my guide up to this point, you will know that neither of these devices is suitable for Bitcoin Cash mining, as you will need to use an ASIC.
When you install your software program, there are various things that you can configure. Firstly, you will need to enter your Bitcoin Cash wallet address. This is important as this is the address that your mining rewards will be sent to. You will also need to tell the software how much power you want the hardware to generate. It is highly recommended that you read the manual included within your hardware device before amending any settings!
Finally, you will also need to tell the software the number of hours you want it to mine. If you are purchasing a quiet device like the Antminer S9, then it makes sense to run it 24 hours a day, as you will want to maximize your profits.
However, if you are using a noisy device like the Antminer S7, then depending on where your hardware is situated its best to only use it during the day. So, now that you know about the requirements to download software, the final part of the guide is going to discuss Bitcoin Cash mining pools. If one side of the rope has 5 people, and the other side had 10,, then no matter how powerful the people were, the side with 10, would always win!
This is why Bitcoin Cash mining pools are so great because they give everyone a chance to win a piece of the pie! However, it is important to remember that mining pools hold a lot of control. Although you are sharing your hashing power, the pool has full control over their terms and conditions. This means that they can change the membership fee or reduce the number of rewards that are shared.
There are a lot of mining pool scams out there which will never pay you any rewards, so always conduct enough research before joining one, or choose a well-known mining pool like the one I have listed below. Antpool, just like the Antpool hardware device, is owned by Bitmain.
When you connect your device to the Antpool mining pool, you can start mining straight away without having to pay any fees. On the other hand, the company keeps all of the transaction fees that are won as part of the mining reward. The block reward of To find out more information about joining Antpool, cli ck here.
Learn about the the most secure vaults in the world, and how you can acquire one of such vaults yourself! Learn how to convert Bitcoin to cash on Binance P2P, and start exchanging today! I hope you have enjoyed my Bitcoin Cash mining guide. If you have read it from start to finish, then you should have a really good idea of whether Bitcoin Cash mining is right for you.
Back then, it was a fair system that allowed anybody to get involved. However, the only real chance you now have is to either spend a significant amount of money on the very best ASIC hardware or instead, join a mining pool. Who knows, if the Bitcoin community ever agrees to make changes to the code, then one day they might be able to ban ASIC devices from connecting to the network. Until then, the ability to win the mining reward is now in the hands of a few mega mining farms. Also, you can always use reliable cryptocurrency exchange platforms and buy Bitcoin instantly without much trouble!
So, what are your thoughts on Bitcoin Cash mining? Would you prefer to buy a DragonMint or Antpool machine, or are you going to settle for a cheaper option? Please let me know in the comments below. We do not publish biased feedback or spam. So if you want to share your experience, opinion or give advice - the scene is yours! Picking out the best crypto exchange for yourself, you should always focus on maintaining a balance between the essential features that all top crypto exchanges should have, and those that are important to you, personally.
That said, many users believe that Coinbase is one of the simpler exchanges on the current market. The exchange platform i. Binance acts as a middleman - it connects you your offer or request with that other person the seller or the buyer. When considering cryptocurrency exchange rankings, though, both of these types of businesses exchanges and brokerages are usually just thrown under the umbrella term - exchange. This is done for the sake of simplicity. No, definitely not! While some of the top cryptocurrency exchanges are, indeed, based in the United States i.
Coinbase or Kraken , there are other very well-known industry leaders that are located all over the world. While there are many reasons for why an exchange would prefer to be based in one location over another, most of them boil down to business intricacies, and usually have no effect on the user of the platform.
See Best Crypto Exchange for Miners. By Laura M. All the content on BitDegree. The real context behind every covered topic must always be revealed to the reader. Feel free to contact us if you believe that content is outdated, incomplete, or questionable. Laura M.
If you'd rather work for your Bitcoin than invest in it or trade it, perhaps Bitcoin mining is for you. Although the details can get a bit. Though technically you only lose money if you sell an investment for less than you bought it for. This is known as “crystallising your losses”. “Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors' money. If.