Quote:
Originally Posted by Tony_SS
 It's clear that there's a lot to learn about bitcoin, but I'm enjoying the reactions. "internet people"
Valuation bubbles happen all the time with fads. Bitcoin is emerging right now, but still very much under the radar. It's the antithesis to establishment central banking right now. For that reason alone, it holds great risk as the eye of Sauron looks on. Unless some major 'event' happens, I don't see a mass exodus or devaluation out of using Bitcoin. Either way, it'll be interesting.
Corrections just don't happen in tulip markets Everything's a gamble. In 2008 many investors lost huge. Now look at the dollar, look at the debt, look at the EU/euro. When the Fed stops pumping, then what?... tick... tick... tick... |
I don't know anything about bicoin, but from what others are saying here it looks like it may be a very risky stock. Sure the stock market has risks, but if you invest in solid companies and diversify, you greatly reduce your risk. You mention 2008 as an example in the stock market. I was invested in 2008 and did not lose, because I did not sell when everyone else was panicking. My portfolio is now worth much more than in 2008.
The difference is you are comparing one highly speculative stock that could go down signficantly and never come back up.
As far as what happens when the Fed stops pumping money into the sytem, who knows. They will likely stop pumping money into the system when they feel the ecomomy is strong enough, so maybe nothing happens.
If you watch CNBC at all there are so many people who claim to know what is going to happen, but no one really knows. For those that have been around long enough, do you remember Harry Dent. Many years ago he wrote a book projecting the Dow would go to 15,000 within a few years. He had all kinds of great reasons why it would hit that level. I believe that was in the early 2000's some time. Now he is claiming the Dow is going to go back to 6000. I would be willing to bet he will be wrong on that prediction as well. Unfortunately people listen to these guys.