Yeah, the volatility with bitcoins is such that it is more of a speculation than an investment. It is currently very difficult for the common investor to make any money with this currency, and I would stay away from it unless you want to buy some bitcoins instead of playing the lottery.
I still cannot grasp the idea of Bitcoin. If it is like a currency then there should be a Central Bank like organization that handles it. And is it legal tender? Since the value of Bitcoin is more than $200 in the market, that is something we cannot just ignore. But then again, why would we invest in something that we do not clearly know? What if the proponents of Bitcoin suddenly say that Bitcoin has no value anymore? And that they can run with the money, what happens to our investment?
I hear there is money to be had in Bitcoin, but it is not something I would feel comfortable investing in, unless it was a very small amount. Bitcoin is too associated with scandal. It is one of the many options that are out there, but maybe can not be trusted. I think Bitcoin and investing in it is at the discretion of the buyer. These are one of the items you should be wary about in investing I think.
You are totally wrong and confused about what a ´currency´is. At this point, Bitcoins are nothing except a paypal alternative. At the point of sale, the sale price of an item is always converted into US dollars first, and then the value of bitcoins compared to USD is multiplied to determine the price you need to pay in bitcoins. Here is what I am talking about. You cannot walk into a store and see a sign saying a car is selling for 100 bitcoins. Instead it will be in USD and then they will convert it to btc. You can not get subscriptions or sign a lease in bitcoins, because neither party is comfortable anticipating the value in 12 months. You can pay your rent in bitcoins, buty your rent is always going to be $500 USD. There are almost no transactions using actual bitcoins that are not converted to USD at the point of sale. Yes, more and more companies are accepting bitcoins, just like more and more companies are accepting paypal. Investing in bitcoins is no different than investing in the currency of some third world country. There are not enough transaction being done to make the currency stable at all, and there are a few people who control a majority of the currency and can disrupt the value at any time. Two years ago, people were buying bitcoins for $1300... now they are at $250?... why? no reason at all. You might as well go to Sudan and convert your US dollars into their currency and then hope you can reverse the transaction later.
16 months ago, people said there was money to be had in Bitcoins, and they bought them for $1300. Today you would sell them for $250. There is money ´to be had´ in anything.. you can buy copper, you can buy pork bellies.. and hope the value goes higher. there is money to be had, there is also money to be lost.
The other major problem with bitcoins is security. There is no FDIC and bitcoins are mostly stored in either online wallets or wallets on your PC. One of the most important libertaians features of bitcoins is that they are untraceable, which is why they are being used for money laundering and illegal activities. But this very same feature allows people to hack/steal your bitcoins and you have no way to trace it. A few of the major online wallet websites have already been hacked, or had insiders steal bitcoins from those that deposited then, and hackers are getting more and more clever about hacking people´s personal PCs or tricking the person into handing over the bitcoins.
It can be high gain but as with most high gain potentials it can be high risk as well. I had been disciplined and only invested what I could afford to loose. I had slowly built up a few single BtiCoins (Several hundred dollars worth) via investing sites (BTCJam or BitLendingClub). I was getting good 3 - 5% per MONTH gains but I wasn't diversified enough. Some of the most solid, reliable people I invested in turned around and took the money and ran, or ran into financial troubles of their own when the market didn't turn they way they expected it to. Now what I have been doing with my remaining coin is buying/selling on LocalBitCoins. I can buy at 0 - 1% over USD then turn around and sell at 5% - 10% and make a few bucks at a time. It's been ok at best but sometimes the hassle in dealing with others and the LBC system outweighs the profit potential.
Bitcoin is certainly an interesting concept, and I think it would have potential, considering that most of the world has been migrating, if not already migrated, to online methods of order, however it could be a poor time for beginning to establish it. Paypal has already taken the internet as an online form of currency, though it is related to physical currency. With its greater security and features, I think it would be hard pressed to find someone that will risk a foray into the world of bitcoins. Bitcoins can be a decent resource depending on the market, though will enough users justify the business? Definitely risky, and it's too early to tell if it will fall flat on its face or skyrocket as technology grows and develops.
Yes. Why not. I have been trading bitcoin at FreshForex broker since 2013 even for now I'm trading ripple. Now I'm passing really good days.
