Does anyone else feel like Bitcoin is a safe investment?

[LAMarcellus]

Seems to me there are two camps; Those who bought before the run-up and crash, and those who bought after the run-up.

Does 4 digit returns feel like a safe investment? *&#(%&* A Right it does.

Eventually everyone in the 2nd camp moves to the first.
So eventually everyone believes it's a safe investment.

[Swordsoffreedom]

Seems to me there are two camps; Those who bought before the run-up and crash, and those who bought after the run-up.

Does 4 digit returns feel like a safe investment? *&#(%&* A Right it does.

Eventually everyone in the 2nd camp moves to the first.
So eventually everyone believes it's a safe investment.

Time tells no lies anyways for those that got in at the higher amounts they are either in for the long haul or selling at a loss
For those that came in sub 100 they have been here for the thick and thin and probably won't leave or be worried about this price lol.

[right wing authoritarian]

Both camps are in the wrong. Bitcoin is good as part of a well diversified portfolio. Actually everyone should hold the same amount of Bitoin in their portfolio such that the portfolio maximises there return relative to their risk. Asking if Bitcoin is a safe investment is the wrong question. Instead we should ask how much Bitcoin to include in an efficient portfolio.

[blatchcorn]

Both camps are in the wrong. Bitcoin is good as part of a well diversified portfolio. Actually everyone should hold the same amount of Bitoin in their portfolio such that the portfolio maximises there return relative to their risk. Asking if Bitcoin is a safe investment is the wrong question. Instead we should ask how much Bitcoin to include in an efficient portfolio.

Bitcoin is approximately ∞% of my portfolio. Is that an efficient portfolio?

[johny08]

Refreshing basic mind:
Bitcoins are wide known as a virtual trading good spreaded over alot of people and controlled by, IMO, the foundergroup, which first developed e-gold (semantic analysis proofed) got seized by CIA and made than the anonymous e-gold bitcoins.

Classical analysis says, as the tulp mania or glass pearls mania showed us, it cant be. Bitcoins are the glass pearls of the internet time and its technology. BUT this glass pearls are having advantages over the FIAT pearls. So if you feel secure enough investing in glass pearls, which can be used for trading goods, then jump on. When not, then you could miss the train.

[fancyboy]

Refreshing basic mind:
Bitcoins are wide known as a virtual trading good spreaded over alot of people and controlled by, IMO, the foundergroup, which first developed e-gold (semantic analysis proofed) got seized by CIA and made than the anonymous e-gold bitcoins.

Classical analysis says, as the tulp mania or glass pearls mania showed us, it cant be. Bitcoins are the glass pearls of the internet time and its technology. BUT this glass pearls are having advantages over the FIAT pearls. So if you feel secure enough investing in glass pearls, which can be used for trading goods, then jump on. When not, then you could miss the train.

I am really interested to know what info your conclusion about btc being controlled by foundergroup is based on?

[NXTplayer]

i don't think it's a safe investment but worthy of trying.

[Snorek]

I think most of new Bitcoin users (lake me) are wondering how serous this currency will be. As for now I'm just chatting and watching other peoples opinion

[right wing authoritarian]

Both camps are in the wrong. Bitcoin is good as part of a well diversified portfolio. Actually everyone should hold the same amount of Bitoin in their portfolio such that the portfolio maximises there return relative to their risk. Asking if Bitcoin is a safe investment is the wrong question. Instead we should ask how much Bitcoin to include in an efficient portfolio.

Bitcoin is approximately ∞% of my portfolio. Is that an efficient portfolio?

If you hold another asset that is not correlated to the Bitcoin price then your portfolio will be more efficient as your risk return relationship will be higher even if the asset has greater risk and lower return than Bitcoin. So the answer is NO unless you regard Bitcoin as being less risky than Govt bonds. That is to say the only efficient portfolio that holds just one asset is where the asset is risk free. Now of course Bitcoin is like Govt bonds in that it is a monetary asset and one could argue that if Bitcoin is successful then that increases the risk associated with holding Govt bonds. So it depends how you value Bitcoin. If you value Bitcoin in Bitcoin then it is a risk free asset provided the software holds up (it does seem pretty good). If you value Bitcoin in dollars then it is very risky as we all know but probably not highly correlated to other assets. One thing you can say is that any risky portfolio that does not include Bitcoin is likely to be inefficient relative to one that does include Bitcoin but an all Bitcoin portfolio is also inefficient.

Just made my finance lecturer proud.

[makebitcoin]

I'm pretty sure the coin will rise in the long term but you never know what will happen short term.
A lot of people are now buying and holding, which I heard is actually a little bad for Bitcoin since it won't be adapted as a currency that much.
When the block sizes half  (in 2016)the price will definetly rise if I understood correctly.

[DRZoidberg]

It depends on how long you want to invest. Speaking about of couple of years-maybe. But as long time it’s unpredictable. I believe that government won’t allow bitcoin to replace current money.

[right wing authoritarian]

Both camps are in the wrong. Bitcoin is good as part of a well diversified portfolio. Actually everyone should hold the same amount of Bitoin in their portfolio such that the portfolio maximises there return relative to their risk. Asking if Bitcoin is a safe investment is the wrong question. Instead we should ask how much Bitcoin to include in an efficient portfolio.

Bitcoin is approximately ∞% of my portfolio. Is that an efficient portfolio?

Sorry I did not see the your infinity sign. But the answer is still no, if you are borrowing something less than infinity times your wealth to invest in Bitcoin and there is another portfolio which has a higher risk return relationship then you can borrow more to put into said portfolio and you will make more money for less risk. Only if Bitcoin is the highest returning asset in the market and you actually borrow infinity times your wealth to invest is it an efficient portfolio and then it depends on what rate you can borrow at.  

[PCUser]

Most people feels like bitcoin is very risky but probably very profitable investment

[Moria843]

I believe it's fairly safe, if you have a long term view, but a very speculative investment. I personally started investing after the Mt. Gox and China controversies didn't kill it. I've been buying through Coinbase when it gets down around $430. I'm also mining about 3 BTC/month. Also have a Kraken account and trading BTC to build to 1000 NMC and 500 LTC. Then I'll stop and see what happens.

The more I learn about BTC, the more I believe in it. It's one of many investments and I could lose all without it affecting my life style.

[Malin Keshar]

USA is the biggest of the world, and as far I can see their expenses are not getting lower(at least not lower enough). Only thing Obama does year after year is allowing the debt be bigger, that is, making a bigger and bigger ticking bomb.

The Euro zone has economic stagnation, with unbalanced public accounts and unemployment rates near 25%. And all interconnected (remember Portugal and Greece).


I don't believe that Euros and Dollars are safe investments. Plus the govs can't directly take bit-coins from wallets, and they can with most of all other investments. You know, desperate and full of debts govs have the bad habit of o stupid things like seize people's investing and savings when things gets ugly.

[twiifm]

Investments are that things that pay dividends.  BTC is a speculation

[Mayuyu48]

Investments are that things that pay dividends.  BTC is a speculation

how about gold? it doesn't pay dividends. so buy gold is not investment?
for long time holding, i think BTC is one of investment portofolio

[twiifm]

Investments are that things that pay dividends.  BTC is a speculation

how about gold? it doesn't pay dividends. so buy gold is not investment?
for long time holding, i think BTC is one of investment portofolio

Gold is a commodity and should be considered speculation as well.  There's no guarantee the price goes up.

I consider things to be investments are dividend paying stocks, bonds, rental property, income producing businesses

[Malin Keshar]

Investments are that things that pay dividends.  BTC is a speculation

how about gold? it doesn't pay dividends. so buy gold is not investment?
for long time holding, i think BTC is one of investment portofolio

he probably Warren Buffet's follower. In some sense he is right, because with dividends one can get money from investing without having to sell their patrimony. But assets without dividends can be good for trading, like bitcoin indeed is, and enterprises that do not gives dividends have more money to invest, grow than have their papers more valuable.

Plus you can get interests in bitcoins. At least one exchange over there(cryptsy?) offers this service. Can this be considered a form of dividend?

[IIOII]

Fiat is not a safe investment. Bitcoin is not a safe investment.

I'd say, there exists no such thing as a "safe" investment. Every investment involves risk.

In Bitcoin's case risk does not come from inflation but from technology/adoption. I would say Bitcoin involves a lot of risk and I would only invest what I can afford to loose. On the other hand the potential reward could be very high - so I would say one should not ignore Bitcoin as an investement either.