Bitcoin Forum

If someone would ask you an advice, how to invest better 1.000.000 $ into BTC economy, what would you advice him to do, to maximise his revenue?
(imagine he'd recognise you 50% of profit in case your idea helps him to make any)

I would tell him there are three direct ways to invest in BTC

1 Mining (creating BTC, providing network security)
2 Service (earning BTC already in circulation)
3 Advertising (actively making USD/BTC ratio higher by any other means)

1. Buy bitcoins. Say you manage 80,000 BTC (at 12.5 each).
2. Buy 50mn S.MPOE stock (~20,000 BTC atm). Buy 5mn S.DICE stock (~20,000 BTC atm)
3. Sit on ~40k BTC wait for the ASICs to show up or not. At some point in 2013 (or even 2014) when that industry finally is mature buy ASICs at a fair price (probably less than 1/10 what they claim now).

This strategy will likely return the highest USD-value portofolio on January 1st 2015. (~100,000 BTC worth $100 to $1,000 each).

Short term: Investing and Gambling (subtle differences) are options to consider.
Long term: Just Buy, secure and stash. Rise in value will get you a nice return 1-2 years from now.

What is S.MPOE stock?

S.MPOE (http://polimedia.us/bitcoin/mpex.php?mpsic=S.MPOE). IPO (http://polimedia.us/trilema/2012/sa-ne-jucam-de-a-investitiile-n-bitcoini/#comment-78745) information. Monthly reports (https://bitcointalk.org/index.php?topic=64962.msg1230084#msg1230084).

S.DICE (http://polimedia.us/bitcoin/mpex.php?mpsic=S.DICE). IPO (http://polimedia.us/bitcoin/assets/S.DICE_Prospectus_Full.pdf) information. Monthly reports (https://bitcointalk.org/index.php?topic=80312.msg1235146#msg1235146).

put it all in Litecoin.  pump & dump the hell out of that.

I like your idea and what about PPCoin and Namecoin?

The active way of investing.


The passive way of investing.


The evil way of investing.


I vote a sexy portfolio of ALL ideas :P

You could always do what most people on this forum did and place it in a ponzi, hoping to pullout before its tumbles.

slowly trade bitcoins for cash at 1%+ fee (in your favor), then hold bitcoins for 10 + years.

Buy bitcoins while subtly pretending to be providing a service.
"Get cash in mail for your GoxUSD/BTC!"

Place huge ask walls trying to suppress the price while you buy

Once you're all bought in, run TV ads for bitcoin.

I'd do a combination of:
1) $20k BTC purchase, $5k at a time over a few days.
2) $20k in futures contracts with either pools or forum members directly.
3) $10k in options either on an exchange or forum members directly.
4) $30k in mining equipment with Icarus in February.
5) $20k hedged in a combination of physical silver/gold instead, because the factors that would increase BTC would also increase those.

On the ones where you deal with forum members directly, look for those with established reputations only, anyone else, ignore.

You may want to also consider a purchase of $10k of GPUs here in the next two months or so and mining Litecoins instead. If so, I'd take $10k out of the futures contracts to fund that.

And what about the other $900k?

I lol'd.

Honestly, I'd just buy up 80k BTC.

Sell 83 333 contracts of this http://polimedia.us/bitcoin/mpex.php?mpsic=O.BTCUSD.P120N

If bitcoin will be above 12 USD by December - you will get 0.2 * 83 333 = 16666 BTC + initial 1 000 000 USD.

If bitcoin will be below 12 USD by December - you will have BTC 100 000.

Even more:

You can continue doing so until  one day you are assigned BTC. When you have BTCs you do same thing but upside down.

Sell Call contracts with strike at spot level.

In order to sell the contracts you have to first create them. That takes capital to cover. Perhaps you've not really tried the method you propose?

Let's say, I will transfer $1M to your bank account.

You, as market maker, will buy from me or sell to me if needed.

Will it work?

Nope, you'd have to open an MPEx account and transfer Bitcoins. At current market rates 83,333 O.BTCUSD.P120N will need roughly 80k BTC to cover. If these are never exercized then you get your 80k BTC back.

Start bitcoin business. Something your good at. Perhaps you could invest the $1000 into inventory that you could then sell to the bitcoin community. The leverage of running your own business can be a amazing. Invest in yourself and reap the profits.

I'm not quite sure if $1M USD would "fit" easily into the current BTC economy, but perhaps over time.

While mining can be quite the investment (or, now can be with the supposed ASICs coming out), I don't believe it adds much value to the Bitcoin economy, but feel free to correct me if it does. A strong economy is built off of products/services offered at a greater efficiency than they would be, else-wise. Mining Bitcoins does not feed people, transport them, or does little else other than churn out SHA256SUMs at high rates. I have nothing against people that mine, I just don't feel it's investing into the economy, as much as it is in your own wallet.

There will always be a demand for currency exchange. I would offer a healthy, marginally competitive rate on exchange between fiat, bullion, and BTC currencies. This makes Bitcoin more available, though usually does not directly benefit people much.

The biggest economic strengthening for Bitcoin is competitively priced products that people need. Sure, Bitcoin paraphenilia are cool, but they aren't life changing. I'd like to see more groceries and general goods available for Bitcoin. What about a supermarket that accepts Bitcoin and silver? Would really be something to me. Car parts for Bitcoin? What if all items on eBay could be purchased with Bitcoin?

The economy would be hugely strengethened if Bitcoin replaced high-fee brokers such as Paypal. Broker fees are like taxes. Let's say I have a dollar. Every time it passes through Paypal, something like 3.3% is taken off. And for what? Just the mere transfering of money.

So, let's say I buy an Apple over Paypal. $1 is sent, and the receiver pays the fees.
Bob the apple grower needs more water to grow another apple. He sends his 97 cents to the local water boy.
The local water boy is down to 95/94ish cents. The water boy buys a few pieces of gum with his 94 cents.
The gum man buys vegetable gum from a vegetable gum producer, for 92 cents.
The vegetable gum producer now has 90~ cents after fees. He wants to feed his child an apple. But how much does an apple cost? $1. He can't afford it.

All of these services and goods were worth about a dollar. The passing back and forth of the dollar encouraged useful product and service at each transfer. However, the same dollar became worth less and less, eventually not enough to buy an apple. This raises the cost of goods, for little benefit. Now, I'm sure the people at Paypal will eventually purchase gum, or an apple, and not be a "pure" economic waste, but it's still not nearly as efficient, in my opinion, as a broker fee-less market.

"When the industry is finally mature", ASICs are not going to be paying for themselves in two weeks, or even 200 days. They'll approach the same average interest rate as everything else in the Bitcoin economy. So you are actually giving up on a unique opportunity by waiting for things to settle down. But if low risk is what you want, then I guess it is the right option.