Bitcoin invest 04 16


To me, bitcoins look more like tulip bulbs. Andy There are bitcoin least three ways, though only one of them bitcoin rational today.

First, you could mine your own bitcoins. Second, you could buy some from an exchange.

Why Invest in Bitcoin?

Third, you could buy shares in a fund that has invested in bitcoins. Please note that answering your question is not a recommendation, and I am not qualified to give advice on investments.

However, as electronic payments expert Dave Birch put it to me on Twitter: The problem is that people can make money by buying things that are bitcoin worthless, such as used postage stamps, Beanie Babies, and historically tulip bulbs. For example, tulip bulb prices may be insane but they keep going up. I may be a fool to buy them, but I expect a bigger fool to buy them from me.

Bitcoin works until you run out of fools. Their prices may vary dramatically, but over the long term, they retain real value. When tulip bulb prices were tumbling, everyone wanted to sell. Does Bitcoin have value? Bitcoin is a digital currency.

Blockchain Basics: What Are You Investing In?

In reality, you have to balance a range of factors including convenience, security and transaction invest. But if you are investing, does bitcoin have an intrinsic value, like gold? The price of a bitcoin may increase because, for example, it is attractive to technology enthusiasts, and because we are all reading stories about how people made — or failed to make — fortunes.

But, like tulip bulbs, bitcoins could be worthless when the bubble bursts. There is a finite supply. There is no intrinsic value. If anybody is persuading you that it invest somehow be related to some GDP or gold … put down the Kool-Aid and back away.

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