Hey guys.
Some of my thoughts on investing in Bitcoin:
You might be tempted to quickly take all your money and pour it into Bitcoin. That might be tempting. But, let me ask you this:
Raise your hand if you really understand Bitcoin, how it works on an internal level, and all the risks involved with keeping all or part of your wealth in Bitcoin?
I think a lot of you in the room didn’t raise your hand. I didn’t. Therefore, it’s not a great idea to invest all your money all at once in Bitcoin, even if it is going up every single week.
Some risks inherent to Bitcoin and other cryptocurrencies:
- Like the old-style bank robberies of the wild west, rogue hackers will constantly attempt to steal Bitcoin that is stored on your computer or even on an apparently secure online wallet service. Though these companies will do an amazing job defending against these attacks, the hackers will constantly evolve in a Red Queen cycle that will constantly create a certain inherent risk of being hacked.
- Bitcoin can be stored in a secure offline wallet, but this wallet can always be stolen or foolishly lost. Kept in a security deposit box this way, it cannot be invested, except as a currency itself. Currently it is amazing just to have, but that may not always be the case.
-Bitcoin can be lost forever if you lose your password, your computer is destroyed or you are outright robbed. You may not be able to insure Bitcoin like you can normal assets, and this money may be lost forever.
That being said, you should be buying Bitcoin. Anyone who reads this now is what is called an “early adopter.” In other words, you are in a position to profit from Bitcoin simply because you are alive at the right time and understand the implications of this powerful social currency.
Full story here:
http://elitebtc.com/Casino/how-do-i-invest-my-money-in-bitcoins-and-how-do-i-get-out/
