Bitcoin Forum

Is Bitcoin like other commodities that are prone to ups and downs in value? Is there a risk of a crash like in the stock market of a country? Will the value of bitcoin just keep on increasing forever?

there is the risk of bitcoin crashing like gold

The thing with gold is it almost always goes back up. BTC is a fairly new concept. I'm just wondering if its a better alternative to the usual investments we're used to, like gold etc.

There is no fun without taking risk.

It is extremely volatile and while hugely exciting, be clear that a 100% loss is possible

high risk high return

Yes.


Yes.


Probably not. It will be volatile for quite a while, then eventually probably steady off, but it will always fluctuate just like any other currency. Nobody can predict what is going to happen to cryptos in the long run. Weigh up the risks and choose the gamble or not, that's the fun of it.

Bitcoin can easily be worth 0 tomorrow if something is found flawed with the transactions or compromises addresses.  So yeah this makes it extremely volatile and irregular.

The way i see it there are 2 possible outcomes. It will keep on increasing forever or it will go down to 0.

There's also the risk of the US Goverment shutting it down if BTC starts fucking with its dollar in some way.

I don't think they could even if they wanted to. How can they shut it down without banning the internet or computers, and under what legal grounds? America isn't the World Police.

Are you sure?

Anyway, thats not the point here. I'm just trying to learn about the pros and cons of digital currency.

of course there is a risk, but only with the risk you make some good money.

bitcoin seems to make much more sense as a digital currency

Haha, well they might like to think they are, but if they struggle to shut down torrent sites, I think they'll have an even bigger task of shutting down bitcoin. They could outlaw it in the States, but it wouldn't stop people using it there or any where else. It'll be like the War on drugs; an unwinable, costly and futile endavour. They'll either need to embrace it or better it.

Very likely beause of deflation nature, but not as much as now. 100% (and more) yearly will not last long

yea of course there is risks, but just go for the buy and hold a long time method

I sure hope it will be 3$ again soon, then use all the funds to buy more coins and just wait for value increase :)

You might try luck with some shit coin instead because this wont happen ;)

I very much doubt it'll plummet down to $3 any time soon if at all, and if it did it would probably because there was obviously something fundamentally wrong with Bitcoin. You might as well jump on LTC or FTC or another crypto.

if such a thing ever happens it will skyrocket up again as everyone will want to purchase bitcoins for 3$ a piece..

I heard about Bitcoin a long while ago and I didnt really think it would get so huge. Oh well.

Everything has its own risk. Depends on how you are looking at this. If you mean if you buy bitcoin today will you face this risk that the price will decrease tomorrow, that's true. But if you mean if one day BTC will loose its value completely, I dont think this will happen because a huge number of people have accept this currency. The acceptance of a currency by people will give it value and will make it reliable and valid. 

It is probably tptb that are interfering with the prices, they are running scared that we will not need banks. Something fishy is going on with the price decline of some coins.

I was convinced bitcoin would NOT rise to such high level as now ($800), particularly when the main trading place (MtGox) only can receive money, and do not return (almost).

No pain, no gain! :)

People are lining up right now for cheap BTC. And when i say cheap i mean 400$ - 500$ cheap  :P

Waiting for the bubble bursting.

bitcoin will never see 3$ again its up up and away from here ;D

I think at the moment it won't go much higher, so yes if you invest now there is a risk.

http://en.wikipedia.org/wiki/Tulip_mania

"As the flowers grew in popularity, professional growers paid higher and higher prices for bulbs with the virus, and prices rose steadily."

"Many individuals grew suddenly rich. A golden bait hung temptingly out before the people, and, one after the other, they rushed to the tulip marts, like flies around a honey-pot. Every one imagined that the passion for tulips would last for ever, and that the wealthy from every part of the world would send to Holland, and pay whatever prices were asked for them"

"People were purchasing bulbs at higher and higher prices, intending to re-sell them for a profit. However, such a scheme could not last unless someone was ultimately willing to pay such high prices and take possession of the bulbs. In February 1637, tulip traders could no longer find new buyers willing to pay increasingly inflated prices for their bulbs. As this realization set in, the demand for tulips collapsed, and prices plummeted—the speculative bubble burst"


So.. sure there are risks and history seems to keeps repeating itself.
Of course i would like to see BTC price going to replace current monetary system - but lets keep our calm ;)

I can only guess how many times the tulipomania bubble has been brought up during those 5 years of bitcoin.
Yet look where we are now   :P

I totally agree. i mean theres not much you can do with tuplips anyways. bitcoins will buy you a ferrari lol

The Tulipmania comparison is annoying for sure, but here's the thing; it is quite possible that at some point in the future Bitcoin will lose its value for whatever reasons. It could become worthless or worth very little quite quickly or on a gradual decline, and if it does, all those naysayers will spout "I told you so". USD or GBP could tank quite easily or lose its value quite quickly, especially with banks printing more and more money willy-nilly. Paper fiat money is just a piece of paper at the end of the day, just like Bitcoin is bits of code and currencies are only ultimately  worth what people are prepared to pay or purchase with them.

It should become worthless like a bubble for those guys to speak "I told you so". If for example it becomes wothless because of a fatal technical flaw that has nothing to do with bubbles and tulips. After all if it becomes worthless the naysayrs will be the least of our problems  :P :P

high risk=high profit

What goes up must come down.
Just get out of the way when it falls.

If you are planning on investing now, it is likely you may see a loss as a crash is imminent.

we'll have a tons of cryptocurrencies soon. that's all