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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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Hi Woody. I never meant this to be Bitcoin vs Stocks or anything. Like Greg said, Bitcoin is a digital currency. Just like the dollar, its backed by nothing more the the people who use its. The main difference is that Bitcoin can not be artificially distorted by central banking manipulation. It's a peer to peer, open source user driven system. I knew about them and was very skeptical when they were $1 each. When I brought them up here, they were $70. Today they are busting out at $104. This is a direct result of the outright theft that has occurred to the people of Cyprus having their money outright stolen from the Banks they kept their money in. All of EU is debt to the same bankers. Bitcoin at $103 today is still a GREAT deal, I believe, as this mess is only going to get worse in the EU, and people are looking for other options.
As far as Bitcoin being something for "fun" I would agree! But its very real. It valued at more that alot of sovereign currencies are! It's total value topped $1 billion and soon could rival the dollar and euro. And you can always exchange back into dollars at any time just like any other currency. Of course to dive in you need to be tech savy and that right there turns a lot away, or scares them. But we all know the role technology is playing in this future.
As for stocks, the people I listened to seen it coming. I sold my home right before the bust. Because I listened to all the people the "stock" shows were calling "Crazy"... I listen to the guys who proved themselves right by calling out where these bubbles are. They are saying the same thing about the stock market.. it's very much an illusion that's being propped up. We are simply on bought time at this point.
Greg you should just go for some Bitcoin... Get in and out, now is the time... then kick yourself later for now staying in!