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Others have given you wise advice. Buy what you can afford to lose. Hold it for at least a year. Try other currencies. Everything goes up and down in time. And do look at the history since 2009.
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It is the same for any unknown or unlearned new product or service. One camp is saying that the era of Bitcoin and cryptocurrency in general is almost over. They use standard procedures for evaluating investments in general. The old methods of prediction don't necessarily apply to the new future. The stock market and the Fed do not influence these currencies like they do with the old style of economics.
The other camp believes that the decentralized use of Blockchain technology to initiate financial movement person to person without a mediary such as a bank or clearing house is the future of the global economy. This makes good sense to many, as each old style transaction has more fingers in the pie and more opportunity for disruption and theft.
More and more companies are using the Blockchain platform to complete international movement of funds for purchases of products. This usage then tends to eliminate doubt about the technology that is present in the believers in the old style of funds transfers. As more companies accept this usage, the reputation of it will grow to be more mainstream. Since cryptocurrencies exist because of Blockchain usage, believers envision greater acceptance will be realized as the platform gains wider acceptance.
The world is changing. Changing with it is one way to grow.
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In the USA, bitcoin is regarded as property. Therefore, capital gains are involved for property held less than one year. If you are paid in crypto, it is treated as ordinary income. For 2018, the IRS will be watching out for trades and sales. Last year people who declared gain from coins numbered in the hundreds, not even a thousand. If you trade one coin for another, the coin you trade will be valued as of the sale or trade date.
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Can you buy a house with BTC? Yes! All you need is a buyer with coins and a seller that will accept them. The value of the transaction is as of the date of the contract, when the coins change hands.
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No. There would be little chance for major growth and it would be boring.
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I don't believe so. The popular thing to do in the stock world is arbitrage. People see that a stock is selling at one exchange for pennies more than at another. They short at one and sell at the other.
This is not to say that arbitrage will work at all with BTC. My point is that people will buy when the price is down and sell when it is high. Of course, the points of high and low are relative. If you bought at 5,000 and BTC is selling at 9,000 you are doing well. If you buy at 10,000 and you expect it to go to 20,000, again the relativity kicks in.
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We have noticed a lot of overly cautious buyers and sellers labeling the attempt at doing deals as a possible scam. Though that may be true in some cases, a word of warning here. Don't be too quick to accuse someone of a scam. It can hurt their reputation and increase the overall wariness of the BTC family. Of course, if you do run into a true scam, let others know to be aware.
How do we avoid scams?
The first thing we want to do is verify that the buyer/seller can prove money/coin. There are several ways to do this, but what most people want is a photograph of the bank account/wallet, with a picture of the date coming from an outside source, such as a cellphone. We believe that telephone contact and a personal meet are the best way to establish trust and create a relationship. After all, if one is buying or selling the chance of them doing it again are great. These are people that you can do business with for a long time.
For larger corporate deals, there are several KYC companies that will assist you to verify their strength and veracity. Know Your Customer is also true with smaller deals, but you can do it on your own. This is where phone calls and meeting in person can affirm your belief in their reputation.
One good way to start off your business trust is to begin with a small amount and see how the deal proceeds. One should be open and honest about the exchange and not want too much anonymity. It is always a red flag to me when someone won't identify their country. It doesn't identify a scam, just a difficult way to do the deal.
We should also talk about escrow accounts. These can be a great way to safely transfer money to coin. Some are better than others, some charge more or less than others, but all are 1 percent or less on average. Look for recommended escrows and ones that people have written about in several different online formats.
Google what you can in all of the above procedures and make yourself an expert in verification. Life will be a lot less stressful when you are trading knowledgeably.
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After spending many years as a financial advisor, I find the ravings of many "experts" today as banal. There are those that speak of coins as a "Ponzi" scheme and denounce the validity of the new form of economy. There are also some that want this world to go back to the 50s, and with it all the junk that we have been working to rid ourselves of.
Looking at the new order, I can see many similarities to the monetary base that we are used to. Our economic base is not tied to any metals or valuables, but believed to be of value and tradeable as though it were tangible treasure. We have not backed our currency for many years (since 1971) but our currency has been the standard of the world.
Why then are these "old-timers" so afraid of crypto? Because they are afraid of change. The same reason that we still have racism in this country and others, the same reason that we still have wars. The world has changed, and not everyone is comfortable with that. But to not change with it is socialogical death.
Yes, it is prone to swings in value. Anything that has potential is. But we need to have a universally accepted basis so that sane commerce can prevail. It is the future, and there will always be something that is new. But by understanding it and working within it, one can determine whether it is something to stick with or ignore. I choose to stick.
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