For now I'm going to pass on it, but I'm going to keep a watching brief. I kind of think it could be a fad, or will be replaced by something less volatile and more durable. But the longer it stays around, the less I'm willing to completely dismiss it relevance. People have clearly made some money out of it. I'll just wait a bit longer before I even consider trying my luck.
I have never invested in bitcoin, but I am started to think that now it's a good time to do it because the price is really low, around $200 USD, so what can happen, only value more right?
Here is what can happen... it can drop to $100..... and at that point you can say ´ what can happen´ so you buy more at $100. Then it goes to $50... and you say ´what can happen´... and you buy more at $50. Here is what you, and most people don´t understand. Bitcoins are not a stock, this is NOT a company with assets that can be sold-off. There is absolutely no bottom in value. There is no reason not to say that 1 bitcoin = $1 or even less.
There's a very interesting article in this week's Businessweek that those interested in Bitcoin should take a look at. In a nutshell, the argument states that as a transactional currency it's not gaining traction at all, with only 55,000 transactions a day (which is extremely small for a currency). But some companies are looking at Bitcoin as a money transfer technology to compete with Western Union. So it will be the technology that will prove to be the most important part of it, not the 'currency' element.
I haven't invested in bitcoin simply because it looks too volatile to me. Now would be a good time to buy though because it's extremely low, but who knows if it will disappear?
Really, that is all it is right now, and you see the Feds and FBI all over it. Besides speculative investing and some very minor commerce, the main use of Bitcoins is illegal activites. Dread Pirate Roberts etc.. it is a way to launder money and move it without gov´ts being able to follow it.
Stocks don't have bottom of value either. They could drop to zero, specially in the case of online businesses which likely don't really ow any tangible assets. My main issue with bitcoins is how volatile they are.
I really wanted to invest in Bitcoin early last year but seeing the price drop so drastically like that...i had to make a quick pause in my walk down that path...i guess that is a dream that will never flourish for me ...just sad!
It's actually been levelling out recently, steadying at the 200 bucks mark if I'm not wrong. Recently a few big names have also adopted btc as a form of payment. I sound like a salesman here, but I think now's the best time to invest in btc
