bash script use cut command at variable and store result at another variable

The awk solution is what I would use, but if you want to understand your problems with bash, here is a revised version of your script.

#!/bin/bash -vx

##config file with ip addresses like 10.10.10.1:80
file=config.txt

while read line ; do
  ##this line is not correct, should strip :port and store to ip var
  ip=$( echo "$line" |cut -d\: -f1 )
  ping $ip
done < ${file}

You could write your top line as

for line in $(cat $file) ; do ...

(but not recommended).

You needed command substitution $( ... ) to get the value assigned to $ip

reading lines from a file is usually considered more efficient with the while read line ... done < ${file} pattern.

I hope this helps.

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