Bitcoin - Is It For You?

Discussion in 'General Trading Discussion' started by Chartman, Dec 5, 2017.

  1. Chartman

    Chartman Senior Investor

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    Bitcoin continues to go from strength to strength despite governments around the world queuing up to say they will do what they can to disrupt speculative investment. Is Bitcoin something you would invest in?
     
  2. kirtimeliwal

    kirtimeliwal Senior Investor

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    Bitcoin is the type of digital currency, basically, it came into existence before eight and a half years but still it is the oldest and highly valued cryptocurrency over there. Although it has controversial history still it has attracted a fair share of high-profile investors. It secured a different place in a very short span of time.

    stock tips
     
  3. JR Ewing

    JR Ewing Super Moderator Staff Member

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    For all practical investment purposes, I see this as another commodity. A new, speculative, highly volatile, unregulated commodity. Something to perhaps dabble in with a few bucks the way one would with any other speculative investment or commodity.

    I am personally considering jumping in LIGHTLY the next time it sells off really hard.

    I would never put any more than 5% of my money tops into this (or any other individual security, for that matter). There is currently a mania in this, because everyone and his brother is assuming that because this has had such an incredible recent runup that its past performance is predictive of its future performance.

    Those of us who have been around a while know better. The bigger and faster the runup in these bubbles, the bigger, faster, and harder the inevitable crash will be when it happens - and that's when I want to start dabbling in it.

    When biotech stocks I have owned such as Clovis Oncology and Puma Biotechnology have recently shot up 700% a year and 180% in a month respectively, and when HMNY shot up some 1400% in a recent month, I was scaling out of those positions as they shot up so high - I wasn't buying more of those stocks at those times. I'll do with bitcoin as I did with those and other bubbles - I'll start buying in on weakness, and hopefully sell out later into strength when the mania comes around again.
     
  4. longtermbull

    longtermbull Administrator Staff Member

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    Hi JR - is there only a certain amount of Bitcoins in existence? How does it work?
     
  5. Chartman

    Chartman Senior Investor

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    One bitcoin is now worth more than $15,000!

    All at a time when governments and central banks around the world are declaring war on cyber currencies. I also saw a prominent gaming company is now refusing to take bitcoins because they are too volatile.
     
  6. longtermbull

    longtermbull Administrator Staff Member

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  7. gowiththeflow

    gowiththeflow Senior Investor

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    I have been reading up over the weekend - there is only a certain amount of Bitcoins in existence but they have not all been "mined" yet. Also been reading about more and more cyber currency "bank robberies".
     
  8. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Yes, only a finite amount of the original BTC was created. There are other coins emerging all the time, but I'd be especially careful with those - seems as though a few have turned out to be scams.
     
  9. longtermbull

    longtermbull Administrator Staff Member

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    Anything which stinks of a get rich quick scheme - or people think they have missed out the first time around - attracts the scammers and many investors jump in blind. The Bitcoins price will go pop at some stage - when, nobody knows!
     
  10. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I've made a small fortune recently trading Bitcoin related stocks such as RIOT. But they should definitely be handled carefully.
     
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