Quote:
Originally Posted by GregWeld
All people really need to understand...[snip]
|
It's investing in an alternate currency, one that is user controlled and freely exchanged without "interest, fee's, taxes" etc that banks and govts make money off of. So people are investing or buying into using that currency. Yes some are speculating making money, but that's all part of it. Judging by the price we have more people buying into this than cashing out.
I'm not naive though, bitcoin is in direct competition with the dollar. I know how central banking works, and I can bet you that they are buying in as well. They can do that since they print up the electronic dollars willy nilly. They will sell all at once, the price will crash and they will try to set off a panic. That's all they can do against bitcoin.
I agree with you on spending. But do you think your "dollars" in the bank are really there? Ask the people of Cyprus what happened to their Euros. And stocks are just paper that can become 'farts in the wind' as well. Some things have more risk than others. Bitcoin has a ton of it, there's no denying that. But understand that there are a LOT of people who despise having their dollars slowly devalued through inflation, robed of the purchasing power and savings, having their Euro's stolen and so on. So Bitcoin is a direct free market response to that.
I think you should always invest in what you are knowledgeable about and what you believe in. Succeed or fail, I think a free market should be in control of their currency and completely own it free of any other intervention. That's why I'm supporting it. Heck yeah it's high risk, and there's a good chance it's a bubble and will pop for now... but I'll risk what I can loose.
Whatever happens remains to be seen, but it sure is fun watching so far.
Should I have diverse investments based on advice given here? Absolutely. I not knocking any other investments, just bringing this one up for discussion.