Bitcoin investing.

Just going to post a tidbit to anyone looking for things to invest a couple hundred in for short to long term.

On 2012-08-29 i bought 17.5 Bitcoins for $10.2 each, $177 total. and today i checked the value of my bitcoints again, the 17.5 coins are worth $17.31 each, $302 total for a 41.69% return.

Bitcoints are appearing to be a more volatile market than most precious metals and stocks, it might be worth keeping a rainy day fund invested in bitcoins.

 

Its worth a little looking into but dont go off selling your precious metals for cyber metals P; Bitcoin has alot of middle man properties I dont like.
But bitcoin gotten really popular lately.

 

That's not a bad return for only 5 months ....~8% per month. I'll run some maths and see if it's worth it

 

If I was smart when I got some in Aug for like 10.50 now it's almost 18 per, I mean the only thing is it goes up/down so fast.

 

Well, if you take a step back and look at the closing price trends over the past 6 months, or even year you see that they have been steadily, however slowly, rising since their huge peak back in June '12. But that's just a chart....and I realize how unpredictable the market is. I just don't see what you mean by the price fluctuating "so fast", as to me it seems to have been climbing a steady grade for a while now.

Edit: Fucked the month up
Edit2: Word, thanks Nytrix for the visual representation. Although that's the candlestick view, as opposed to the closing price.

 

This is the chart for the price of bitcoins since September 2010:

 

As Nytrix has shown there was a massive crash last year right after everyone started buying up BTC. It went from $30 to $15 almost over night. Also the largest markets have been hacked several times, so I wouldn't feel secure using BTC as an investment. I'd much rather put it into precious metals or penny stocks or something.

 

Iv been looking into this for a little bit but i can't find a place im comfortable buying BTC for CAD.

 

Invest in a really good computer, then btc mine.

 

The Kicker

Bitcoin mining used to yield 50 bitcoins per block (thousands of people mine the same block, and share the 50 bitcoins fractionally). but when the newyear switched over, they turned the bitcoin generation down by HALF.
They essentially doubled the rarity and difficult of obtaining bitcoins; so these babies im holding on to are oysters just starting to bloom.
--------------------------------------------------------
Woooooooooooow
Bitcoins went up to 19.9 since i created this thread.
here is the overall data, Nytrix proved a good point that the market once capped at 30. But since the bitcoin generation was turned down to 25, their prices are jumping beans.


Look where they went in this month alone


My initial investment of 177 is now worth 17.5*19.9=348.25.
I realized 96.75% return over 4 months oooo

This is how i initially got interested in bitcoins, but after running some calculators here
http://www.bitcoinx.com/profit/
I came to the conclusion that bitcoin mining only really profits if you get electricity for free.
Back when you got 50 bitcoins per block, i could make $1.33 per day after paying electricity fees. (and now that its 25, i would get $0.66, until the price stabilizes again)
If i had been mining for 4 months 24/7, i would have made $164.92.
Just by holding on to bitcoins for 4 months i netted $171.

I was mining on my brand new GTX690, and i eventually realized that mining RUINS your hardware; especially if you leave your computer running 24/7. My machine just felt crumbly after i stopped bitcoin mining, and i eventually had to system restore to get it back to normal (im a fanatic, isnt a shit computer)
This coupled with the fact that you cant play video games while you mine, so i would only be mining 19+ hours a day.

If you set up a mining farm it can be good profit, but you have to set one up with the singular purpose of mining; and put some research into it.

 

I do it at Walmart/CVS via Moneygram.

 

I have a few exchangers added that always have BTC in stock that take MoneyPak, Moneybookers, Liberty Reserve, Western Union, basically any payment method that isn't reversible.

Imo, if somebody wanted to invest in BTC they should of done it a few months ago, now everyone is kind of late to the party. I think it would be to much of a risk investing large sums of money now because last time BTC got to $30 it dropped down to like 4 or 5. I highly doubt that will happen again though, but I do believe they will be dropping here shortly.

 

Can someone explain what bitcoin is haha?

tryed looking on there website and it just says its basicly a money transfer?

 

i bought bit coins in early january at £11 each, i bought some today and it cost me £45 for a bit coin, i have also made money by accident by buying bit coins leaving them in my silk road account then going back to like 3 time as much.

 

God bitcoin is now skyrocketing I keep wanting to buy more but I keep thinking it's gonna go down. What's it gonna stop at $100?

 

I'm waiting for the bubble to pop again before investing

 

What're bitcoins demand based off of other than speculating how popular they're going to be in the future? At the moment it seems like there's very little to go on when you're deciding if they're a worthwhile investment, it just seems like a pure gamble. Also if the price can almost double in a week they can also lose half their value in a week.

These huge price fluctuations make bitcoins seem like an extremely high-risk investment which I personally would avoid. If I did want a high-risk high-reward investment I'd put my money on a derivative where I could make a more educated decision instead of just speculating like people seem to be doing with bitcoins.

 

its nw at
Last price:$189.90000
High:$194.90000
Low:$166.69346


probably too high to buy?

 

I'm disappointed I got out earlier. Would have been up about $40,000 at this point instead of the comparatively small amount I did make.

I'm not really sure what the smart move now is because something like this is incredibly difficult to value. I think that it will keep going up until it runs into a major challenge. If there were a guarantee that allowed bitcoin to operate freely and it were somehow invulnerable to attacks, bitcoin would be fairly priced much higher than it is. However, if there is a large government crackdown or some sort of vulnerability is developed, bitcoin loses most of it's value very rapidly.

These are uncharted waters and I think it's going to be very interesting to see how things play out, although I don't plan on investing any significant portion of my wealth in them in the near future.

 

its crosses the 200 mark nw. everytime i wanted to buy some but didnt do it in the end as i felt that the price would go down.