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Originally Posted by Woody
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.
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Woody --- Bitcoin is NOT a stock -- it's a "currency" that is traded on it's own exchanges. So not only is it speculative - the entire concept is "electronic" - and is only worth what the next guy will pay. It can be used to buy stuff - but only from others that are willing to accept it as a payment.
I couldn't agree with you more when you say the talking heads on TV all have the answer for what's ahead. That's what makes a market - one guy selling - the other guy buying - both betting they're right and everyone else is wrong.
It's why I HARP on the INVESTING aspect of the market rather than all the hype and speculation. You've heard it before - buy good stuff - that pays a dividend - companies you know and understand etc.
Bitcoin is for "fun" and for speculators. Maybe it becomes something and maybe it doesn't. I won't care one way or the other because I'm busy making real money off my investments... I have an open enough mind to look - read - discuss... but that's as far as my interest goes. It's a bit ironic since I made my money off speculative deals --- but a man has to know his limitations and say when is enough, enough. Personally - that's where I'm at.