The recent press about BitCoin acting as an easy way to buy illicit materials has skyrocketed the price. I want to try BitCoin out (as a small investment, not a currency) but I feel the price has been driven too high because of the recent attention. Yet in the long run this has the potential to go way up and maybe its better to forget about short-term trends and just buy as soon as possible. Do you guys believe I should wait for the price to drop or buy now?

 

From what i've seen the price has gone up so much recently, so i'd expect a slight drop soon if not a crash. How stable can bitcoin really be? Don't take my word for it though >_<

 

This could be true, but what if the Government tries to crack down on this because of the illicit activity related to it, and what happens when all of the press goes away in a month or two?


Interesting blog I found, just skimmed but it seems to argue well both-ways.

http://www.quora.com/Bitcoin/Is-the-cryptocurrency-Bitcoin-a-good-idea

 

This is a high risk investment, but it does have great potential. To say BitCoins have reached their "peak" right now simply because of recent rises is purely speculative. Who is to say what a BitCoin should be worth? Right now the demand seems to far outweigh the supply, and as more and more people hear about BitCoins, this pattern should continue.

However, do realize that if the carpet is pulled from under them, BitCoin will crash quicker than Enron stock. "Do Not Risk What You Can't Afford to Lose" is a famous quote in the High Yield Investment community. If you are investing money you depend upon for living, this is not the place to do it. But, if you have money sitting around and can afford the risk, this is a cool place to put it.

 

You could look at it from a short-term investment standpoint, get in while it is exploding upwards and get out quick before the bottom drops out.

 

Bitcoin has gotten a lot of popularity in the past few months and their price is continually rising. I would say it's a pretty safe investment with the way the market is going. I am thinking of getting in the business my self to be honest.

 

While it is a real currency, it takes on the risks of a penny stock because of its lack of governmental backing. Just because BitCoins can be used for certain things, doesn't mean they will be. It is not absurd to say BitCoins have a high probability of becoming worthless. In example, a better, more trusted, and more easily accessible version of BitCoin could take over the market.

 

Isn't the USD the most traded currency? I know nothing about economics but I'm interested in to why you think that.

 

The US dollar isn't backed up by gold any more you know? In the end they have the same chance of going out except the dollar is more commonly accepted than Bitcoins.

 

I agree and note that previously said on another thread speculation makes the value of this currency increase.

It'll be worth it to invest a small portion into this market until you've realized the full potential, and understand FULLY what the BitCoin can do for you.

Sythe has the computer science degree to help influence his statements and to drive the point across on the topic of BitCoin. This is just a waiting game to see how this new digital market will react. I'm slowly easing into BitCoin to understand the flow of the market, and the benefits of it's value (not currency value, but the potential future value of this product, and how it may offspring others of it's kind to life).

 

It's the world's reserve currency...a virtual currency probably isn't going to be worth much if chaos erupts and governments fall.

BitCoins are risky, much riskier than almost all government issued currencies. It has nothing to do with the fact that they are restricted in supply and the US dollar isn't, it has to do with their demand and usefulness.

 

When does having a computer science degree mean that you are an economics expert?

I am not questions his knowledge on the subject, I am just questioning the reasoning behind the opinion. The US dollar is widely traded, you can go to nearly any place in the world and buy a good or service with a US bill. The BitCoin is limited in usefulness as it can only be traded virtually. I can't go to walmart and buy L.A. Noire with BTC. I could go buy illegal street drugs off the internet with it, but beyond this what is the usefulness of the currency?

 

It's the world's reserve currency...a virtual currency probably isn't going to be worth much if chaos erupts and governments fall.

BitCoins are risky, much riskier than almost all government issued currencies. It has nothing to do with the fact that they are restricted in supply and the US dollar isn't, it has to do with their demand and usefulness.

 

this.

+limited quantity and more and more attention will keep a steady flow of this item, definitely something worth investing in.

 

http://www.quora.com/Bitcoin/Is-the-cryptocurrency-Bitcoin-a-good-idea

Very interesting read ^

Anyways, what most people are forgetting is that people aren't treating this as a currency, they're treating it as an investment. No one is buying or mining BTC right now so they can save up and buy something, they're buying or mining it to hold on to, so they can sell it off later for USD.

It's a high risk investment, not a currency in that sense.

I can also guarantee the US dollar will be around a hell of a lot longer than BitCoin, and the fact that you're actually making that an argument is laughable, at best. BTC is absolutely useless at the moment, and it will continue to be. Do you honestly think online retailers are going to start accepting BTC as a payment method? No. BitCoin reminds me of e-gold, and just like e-gold, it will never break into the mainstream.

 

This was a good post, and it is true. People aren't currently using it as a currency but they are stocking it up hoping for that huge jump in prices. When the market is finally saturated with BTC then the price is going to bottom out and as I have said before. Who is going to wait for 2021 or so for the market to fill out?

I don't think you really understand at the point where the market of BTC is at right now, the press about it is about the black market uses of it. The negative attention isn't drawing in the kind of attention you are wanting for a budding currency.