Don't invest in bitcoin; invest in services!

[ohiofarmer]

Apparently, the richest man in Asia, Li Ka-shing, is invested in bitpay. So now, we get an article saying that means you shouldn't invest in bitcoin, but rather you should invest in bitcoin services: http://www.scmp.com/business/banking-finance/article/1390224/bitcoin-service-firms-best-investment-not-virtual-currency

The chief economist at Invesco John Greenwood is saying investing in bitcoin doesn't make sense because it doesn't satisfy three requirements for currencies: "be an effective medium of exchange for a wide range of goods and services; be a long-term store of value or be used for the settlement of long-term contracts; or be a universal unit of account."

If Greenwood really believes bitcoin's doomed, I don't think he's be advising people to invest in bitcoin services...

[HairyMaclairy]

The core problem is that fast growing tech start ups tend to have all of their value stripped out before they IPO. Just look at Twitter, Facebook etc.   which makes coins exciting because there is a chance to beat Wall Street at its own game.

[EvilPanda]

He even has a good name for a businessman. I guess Li was Ka-shing out a lot  

[ohiofarmer]

The core problem is that fast growing tech start ups tend to have all of their value stripped out before they IPO. Just look at Twitter, Facebook etc.   which makes coins exciting because there is a chance to beat Wall Street at its own game.

Agreed. Everyday investors don't have a shot at investing in a company like bitpay, either...

[LiteCoinGuy]

when you invest in a single company, you have all eggs in one basket. when you invest in bitcoin, you invest in all companys that do business in bitcoin - so the whole BTC system. make your choice.

[QuestionAuthority]

They are all equally valuable. When you invest in the infrastructure you are investing in the future success of the concept which will lead to future profit and increasing the likelihood that Bitcoin will succeed.  When you buy Bitcoins to hold you are investing in the future price of Bitcoin which will lead to future profit and increase the likelihood that Bitcoin will succeed. When you transfer value with Bitcoins with a purchase or trade you are investing in independence and freedom from financial oppression. 

[BTCisthefuture]

I agree 100% that there is a ton of potential in investing in bitcoin related startups/services.  Of course I don't have millions of dollars to approach these companies and offer to invest in them like actual investors are able to do.  Maybe some day

[gambit1]

Where would you invest in such companies?

[hilariousandco]

Apparently, the richest man in Asia, Li Ka-shing, is invested in bitpay. So now, we get an article saying that means you shouldn't invest in bitcoin, but rather you should invest in bitcoin services: http://www.scmp.com/business/banking-finance/article/1390224/bitcoin-service-firms-best-investment-not-virtual-currency

The chief economist at Invesco John Greenwood is saying investing in bitcoin doesn't make sense because it doesn't satisfy three requirements for currencies: "be an effective medium of exchange for a wide range of goods and services; be a long-term store of value or be used for the settlement of long-term contracts; or be a universal unit of account."

If Greenwood really believes bitcoin's doomed, I don't think he's be advising people to invest in bitcoin services...

Why not invest in both? I'm sure he holds some Bitcoins as well.

[yatsey87]

The chief economist at Invesco John Greenwood is saying investing in bitcoin doesn't make sense because it doesn't satisfy three requirements for currencies: "be an effective medium of exchange for a wide range of goods and services; be a long-term store of value or be used for the settlement of long-term contracts; or be a universal unit of account."

Why does it not satisfy these requirements?

[quone17]

It's tough to invest in some of the services when several of them are shady and maybe won't be fully supported by the government.

[Mjbmonetarymetals]

Hopefully there will be more opportunity for us to invest directly in company's via crypto too

http://www.prnewswire.com/news-releases/worlds-first-winery-for-sale-for-bitcoin-235396861.html

[pening]

The chief economist at Invesco John Greenwood is saying investing in bitcoin doesn't make sense because it doesn't satisfy three requirements for currencies: "be an effective medium of exchange for a wide range of goods and services; be a long-term store of value or be used for the settlement of long-term contracts; or be a universal unit of account."

Why does it not satisfy these requirements?

Lets try this.  Its not effective for a wide range of goods and services, yeah you can get a pizza, a pint and lots of ISP services, but generally its pretty limited range currently.  As a long term store of value it looks useful, however to settle an account?  Ask yourself, would you sign up to a contract to pay BTC100 in say 5 years time, not know what that value will be then? The future value is too unpredictable.  As a unit of account its as good as anything so don't see that one.

[yatsey87]

The chief economist at Invesco John Greenwood is saying investing in bitcoin doesn't make sense because it doesn't satisfy three requirements for currencies: "be an effective medium of exchange for a wide range of goods and services; be a long-term store of value or be used for the settlement of long-term contracts; or be a universal unit of account."

Why does it not satisfy these requirements?

Lets try this.  Its not effective for a wide range of goods and services, yeah you can get a pizza, a pint and lots of ISP services, but generally its pretty limited range currently.  As a long term store of value it looks useful, however to settle an account?  Ask yourself, would you sign up to a contract to pay BTC100 in say 5 years time, not know what that value will be then? The future value is too unpredictable.  As a unit of account its as good as anything so don't see that one.

It's early days for BTC. Let's see how many merchants are accepting Bitcoin this time next year.

[frente]

Maybe $25M invested in Coinbase will turn to $25B stake before BTC rises from $730 to $730k, but I believe BTC will go from $730 to 7.3k before any other investment rises tenfold.


 

[bryant.coleman]

Maybe $25M invested in Coinbase will turn to $25B stake before BTC rises from $730 to $730k, but I believe BTC will go from $730 to 7.3k before any other investment rises tenfold.

Well.... nothing is impossible. Long before Google, the Dell stock had a climb similar to that.

In 1990, the price was $0.10 per share. Went all the way up to $56.32 in 1999. That is a 560x rise in nine years.

Bitcoin has already achieved a 10,000x rise (2011-2013). So let's hope for the best!

[Shawshank]

Horizons Ventures, managed by Li Ka-shing, is also a stakeholder at SecondMarket. SecondMarket owns the Bitcoin Investment Trust, which safekeeps bitcoins of high net worth individuals. Maybe Li Ka-shing himself is one of them?

[Kyt Dotson]

It certainly seems to me the title is certainly the way to go.

Bitcoin is at its core a payment system that produces a currency. That system has a giant number of applications that can be adopted as and by services -- BitPay, Coinbase, Blockchain.info, exchanges, etc. All of these represent ways of abstracting away the technical nature of BTC payments and putting them closer to the ease of exchanging a piece of paper (or physical coin.)

Services that use and relate Bitcoin to natural financial industries are the key to increasing adoption and making BTC a popular medium of exchange.

[gambit1]

Yeah but where would one invest in such services and would it be safe (I mean from scammers).

[qualia8]

Smart thing for LiKaShing to do is buy BTC first, and then make his announcement.  I wonder if that's what he did, and that's why we're not being hammered by the India/China FUD.