Menu
Forums
All threads
Latest threads
New posts
Trending threads
New posts
Search forums
Trending
What's new
New posts
New profile posts
Latest activity
Members
Current visitors
New profile posts
Search profile posts
Upgrades
Log in
Register
What's new
Search
Search
Search titles only
By:
All threads
Latest threads
New posts
Trending threads
New posts
Search forums
Menu
Log in
Register
Navigation
Install the app
Install
More options
Contact us
Close Menu
Forums
Community
Technology
Investing in crypto currencies
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Mikee" data-source="post: 424179" data-attributes="member: 76567"><p>Bitcoin like fiat money cannot be 'invested' in. This is purely a result of the fact that an investment contains some sort of asset that backs it.</p><p></p><p>An asset is something that provides future benefit.</p><p>e.g.</p><p>Bonds are an investment because the certificate and coupons are the assets behind it (in other words, the certificate and coupon provide a future benefit)</p><p>And stocks are an investment because of the assets behind the company (such as equipment, products, etc.) (these too, also provide future benefit)</p><p></p><p>Bitcoin on the other hand like currency does not have anything that provides future benefit. The only future benefit is its future value. Which is speculative in nature. So what you are doing technically is not investing but speculating on price changes. This is MUCH harder than investing. Because when I invest in a company or plan to figure whether to invest I do research. I read financial statements of that company, I read the news on individuals' opinons' on the companies' intrinsic value etc.</p><p></p><p>But since bitcoin has none of that, you are simply speculating on its future value.</p><p>Best that you can do is known as backtesting.</p><p>Which is using historical data to speculate what its future value will be.</p><p>But according to the random-walk hypothesis this will never be perfect.</p><p></p><p>My point? You're taking on a challenging task at a very weary time.</p><p>The greatest investor Warren Buffet is quoted famously for saying "Be fearful when others are greedy and greedy when others are fearful"</p><p>Since right now the bitcoin market is extremely bullish, you'll tend to preform well overall but up to a certain point. This hype will certainly die and the price will stabilize. This isn't my guess, but my guarantee.</p><p></p><p>So my advice, be careful and be smart. Understand what the market is doing and why, never make a decision just because. If there is hype then buy the hype, if there is fear sell the fear.</p><p></p><p>As far as fees, idk much about that. I'm in finance, not in bitcoin specifically and I don't plan to be since speculation isn't in my nature, since it's as close to gambling as can be.</p><p></p><p>Goodluck,</p></blockquote><p></p>
[QUOTE="Mikee, post: 424179, member: 76567"] Bitcoin like fiat money cannot be 'invested' in. This is purely a result of the fact that an investment contains some sort of asset that backs it. An asset is something that provides future benefit. e.g. Bonds are an investment because the certificate and coupons are the assets behind it (in other words, the certificate and coupon provide a future benefit) And stocks are an investment because of the assets behind the company (such as equipment, products, etc.) (these too, also provide future benefit) Bitcoin on the other hand like currency does not have anything that provides future benefit. The only future benefit is its future value. Which is speculative in nature. So what you are doing technically is not investing but speculating on price changes. This is MUCH harder than investing. Because when I invest in a company or plan to figure whether to invest I do research. I read financial statements of that company, I read the news on individuals' opinons' on the companies' intrinsic value etc. But since bitcoin has none of that, you are simply speculating on its future value. Best that you can do is known as backtesting. Which is using historical data to speculate what its future value will be. But according to the random-walk hypothesis this will never be perfect. My point? You're taking on a challenging task at a very weary time. The greatest investor Warren Buffet is quoted famously for saying "Be fearful when others are greedy and greedy when others are fearful" Since right now the bitcoin market is extremely bullish, you'll tend to preform well overall but up to a certain point. This hype will certainly die and the price will stabilize. This isn't my guess, but my guarantee. So my advice, be careful and be smart. Understand what the market is doing and why, never make a decision just because. If there is hype then buy the hype, if there is fear sell the fear. As far as fees, idk much about that. I'm in finance, not in bitcoin specifically and I don't plan to be since speculation isn't in my nature, since it's as close to gambling as can be. Goodluck, [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
Community
Technology
Investing in crypto currencies
Top