Bitcoin?

blunomore said:
If only this sentence was in English!! I wish I could understand Bitcoin but really nobody can explain it to me in simple language. I feel so left out when they all start with geek speak.

If people want to save money for a future need e.g. kids' education, Bitcoin is not advisable? Should it jsut be used as a small side investment, or ....? Or what ?
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It's a high risk investment. Some people would call it a gamble. You've got the potential to make a lot of money but there's also a chance that you'll lose a lot of money. So yes, in my opinion I'd say to rather go with a small side investment into Bitcoin and save money for the education in something more traditional.
 
Solitude said:
It's a high risk investment. Some people would call it a gamble. You've got the potential to make a lot of money but there's also a chance that you'll lose a lot of money. So yes, in my opinion I'd say to rather go with a small side investment into Bitcoin and save money for the education in something more traditional.
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So why are people carrying on about it in the way they do?
 
blunomore said:
If only this sentence was in English!! I wish I could understand Bitcoin but really nobody can explain it to me in simple language. I feel so left out when they all start with geek speak.

If people want to save money for a future need e.g. kids' education, Bitcoin is not advisable? Should it jsut be used as a small side investment, or ....? Or what ?
Click to expand...
Pm incoming
 
blunomore said:
So why are people carrying on about it in the way they do?
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It's main advantage is that it removes the need for banks and the traditional banking system. Cuts out the middle man so to speak.
 
blunomore said:
How does SARS deal with Bitcoin?
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They don't deal with bitcoin specifically, SA doesn't recognise bitcoin as a legitimate currency.

If you trade bitcoin for Rands though, I would guess SARS treats it as any other form of income.
I'm not sure and I'm not sure if SARS is sure either.
 
C4Cat said:
They don't deal with bitcoin specifically, SA doesn't recognise bitcoin as a legitimate currency.

If you trade bitcoin for Rands though, I would guess SARS treats it as any other form of income.
I'm not sure and I'm not sure if SARS is sure either.
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The paradigm shift is hard. For me and for SARS, apparently! :D
 
C4Cat said:
It's main advantage is that it removes the need for banks and the traditional banking system. Cuts out the middle man so to speak.
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So does SARS have any way of knowing if someone has funds in Bitcoin or how much or the kind of transactions that go on there?
 
blunomore said:
If only this sentence was in English!! I wish I could understand Bitcoin but really nobody can explain it to me in simple language. I feel so left out when they all start with geek speak.

If people want to save money for a future need e.g. kids' education, Bitcoin is not advisable? Should it jsut be used as a small side investment, or ....? Or what ?
Click to expand...

I'll try and simplify it for you.

The biggest upside of Bitcoin is for the "farmers" people with big expensive PC's using their Graphics cards to "farm" coins. This option is unlikely to benefit and single person. You can join farms if you have a good machine but then coins mined are split. Mostly not even worth the power used to mine.

So that is the IT side of it.

The investment side:
You buy Bitcoins, the coins fluctuate in value just like any other currency based on supply and demand. The more places start excepting Bitcoins as payment, the demand grows and the value increases. Then you have some article somewhere about someone trying to take on Bitcoin again about something and the demand drops.

The currency is very volatile and the reason you either make a lot of money or lose a lot of money. It has over the years as it becomes more acceptable evened out a bit so the hayday is over. But good money can still be made if you invest and sell at the right times. I would recommend it but just remember at ANYTIME something can happen and the currency can crash and never be seen again. So invest but play it like you would all short term investments. Buy when low, sell when high. If you do it very well you can make a killing. @Keeper I know has mastered this and made a fortune in Bitcoins.

Just haven't seen him online for a while.
 
blunomore said:
So does SARS have any way of knowing if someone has funds in Bitcoin or how much or the kind of transactions that go on there?
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It's the same as having money in an offshore bank account, but once you start using it you're going to start a paper trail.
 
blunomore said:
So does SARS have any way of knowing if someone has funds in Bitcoin or how much or the kind of transactions that go on there?
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If you buy or sell bitcoins using Rands then obviously SARS can track it (unless you use hard cash I suppose) because the banks are then involved. If you buy stuff with bitcoins or receive bitcoins from elsewhere then SARS can't track it unless they know your unique bitcoin address. Bitcoin is transparent in one way because all transactions are available to be seen by anyone. But all it shows is that bitcoins were transferred to a particular bitcoin wallet which has a unique address. My wallet, for example, has the address 17qcceJf1p5StSVQ5pinNU41fsx3CgZeup so if you transfer bitcoin to my wallet anyone who looks in the ledger can see that transaction but unless you know that wallet belongs to me it doesn't really mean anything.
 
Thanks for all the explanations.

I will have to read up more and try to familiarise myself, because I feel like I know too little to venture in there!
 
I was very surprised to see Lunchworks in Cape Town CBD supports Bitcoin as payment.

Must make for one very confusing menu. :)
 
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