Is it a good idea to invest in cryptocurrencies right now?

Is it worth it to invest in cryptocurrencies?

Yeah. It’s a great idea if you have a large appetite for risk.

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No one knows.

One rule I always use: If everybody is talking about it, it’s probably not the right time.

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As @Anarchist it depends on how much risk you are comfortable with. Bitcoin is pretty high risk, though it looks like it’s generally going up in the long run it seems to vary wildly. People that bought in a couple of years ago when it was going up are still hugely out of pocket with no indication of when that might see a positive return.

And keep in mind bitcoin doesn’t have anything behind it, it’s not like a stock, it’s a virtual ‘asset’ that can be easily swayed by rumour, speculation and hype.

I think if you do invest in it then pound cost averaging is the way to go. Put in only what you can afford to lose. A little each month.

Difficult to see where “investing” comes into this. Isn’t it merely a gamble?

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I did exactly that. Put in £100 and pulled the plug after it reduced by £90 in six months!!!

I guess it depends on why you want to buy crypto currency. Is it to try make some quick money or because you believe in its purpose? Do you already have savings, a good pension and a diverse portfolio of low/medium risk long term investments and further disposable income? If not, then no it’s probably not the best idea to view it as an investment as the value of crypto currencies is so volatile.

If you believe in the idea of crypto currencies or the technology being used by a specific currency, see it as an interest/hobby you want to get involved with then by all means.

I know people who purchased BTC back in Dec 2017 and those who purchased many years ago. With hindsight it’s very easy to say whether they think you should’ve purchased some but you’ll get very different answers.

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I think it’s worth a try. Cryptocurrency industry is vastly developing now and investment in it may be profitable. Moreover, crypto technology may change the future, so I think it is worth to support it. I always keep track of crypto signals, it helps me stay tuned and get succeed.

Neither does any currency. The gold standard was abandoned decades ago. Currencies rely on trust and confidence for their value, which is determined by supply and demand in a floating market. I think there are a handful of currencies which are pegged to the US dollar, however the US dollar itself floats.

The difference between bitcoin and other currencies is only the level of confidence in it.

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With the way bitcoin works is probably more like investing in an asset type than gambling. Its considered a commodity in a lot of places, we know how much is available and its production, and limits (21 million bitcoin max?).

by the pure definition of gambling every choice you make is a gable, but i presume you’re more thinking like placing a bed in a casino. In the case of bitcoin your not just giving your money away your buying a set amount of a commodity. The value of which can go up or down. You don’t lose what you paid for, the value of what you paid for just might change.

Bitcoin isnt really considered a currency, nor does it act like one. Everyone treats it like a tradable asset or virtual commodity with the intention of it increasing in value to sell for usable currency.

When im saying it doesn’t have anything behind it i’m talking in terms of it being a commodity or asset, unlike a stock for example which essentially represents the ownership of a tangible company, bitcoin is a virtual asset with nothing really behind it. Thats all i mean.

I see, though if the value of what I’d paid for went through the floor, I guess the result would feel the same? :woozy_face:

If you have to ask then the answer is ‘no’. If you’re intrigued though, do some serious research and then, one day, you might just find you’ve arrived at the answer yourself!

It’s a long read, but this is an excellent place to start:

“The Bullish Case for Bitcoin” by Vijay Boyapati https://link.medium.com/HIo65bj8WX

That is probably true as a generality and I think I understand the point you are trying ot make, but I think that the differentiation is one of degree rather than fundamental principle. The main difference between forex trading and commodity trading is that the latter deals in manufactured good, such as coffee. Banks trade speculatively in currency (casino banking) and there are many places to spend your bitcoin to make purchases.

“bitcoin is a virtual asset with nothing really behind it”

Which is exactly what all currencies are.

I don’t think our views are really that different and I accept that most people won’t be using it to buy things, but ultimately, its value hinges on retail outlets accepting it in payment - what else would make its value fluctuate?

There is lot of misunderstanding about the true nature of money. When we are knocked back to the bronze age, the rich man’s billions will not be worth anything, but the house he bought with it will still have value. Money is just a complex form of IOUs whose value depends on trust that they will be honoured

I think the only main difference we really have is i don’t believe that the vast majority of people treat bitcoin like a currency. Currency doesn’t have anything really backed behind it, you use currency to buy an asset like bitcoin. I think the way bitcoin behaves and the way people treat it means it isnt well suited as a currency, at least not now.

For beginner research purposes, I recommend this documentary level video (ignore the eye watering title, the content/narrative is great):

Personally, I bunch BTC et al in the bracket of crowdfunding. High risk, high reward. Speculate or invest what you’re willing to lose. Accumulate and see what the future holds.

I also regard it as an uncorrelated alternative asset that has diversification benefits for my portfolio.

Crypto and blockchain tech generally is an interesting space/movement generally too.

Personally I think until anyone can justify this:
https://www.nature.com/articles/d41586-018-07283-3
I really don’t think Crypto is worth investing in

This is kinda true really its about putting a value to rehashing the blocks in the ledger(because of the energy requirement(Computational power) to rehash). The “Gas price” can be manipulated. Also insert debate about anonymity here(and whether it has an inherent value). :sweat_smile:

To answer the question to invest in Bitcoin and crypto in general I would argue no. The digital technology( Digital ledging) I would invest in companies that with leverage this). I would also get on an Online Course to understand the logic behind the technology and why people want to use it.

I will say this, if you are an investor, then no. If you want to trade then yes. It’s just that everything happens quickly there and you need to monitor every day and make a decision on what to do tomorrow.

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