Investing in bitcoin

xAlphaStick · May 27, 2013

As of now bitcoin is 134 USD. Is it a good idea to buy bitcoin as an investment? From what I here it will either skyrocket or fall dramatically.

dalekphalm · May 27, 2013

As of now bitcoin is 134 USD. Is it a good idea to buy bitcoin as an investment? From what I here it will either skyrocket or fall dramatically.

The short answer? no

The medium answer? Who knows?

The long answer? There is no way to tell. Historically, the price has risen as high as $250 USD per coin. HOWEVER, at $134 USD, this is considered to be a GOOD price already. I personally wouldn't buy any coins at this price. It's possible it'll keep rising until a new bubble is hit, but there is no way to know for sure.

It's also possible that the price will stay the same, and/or eventually drop down to $100/coin or so (Or a true bubble will burst and the coin could totally devalue). In my opinion, there's a bit too much volatility. If you were to invest, I would wait until the price is around $100-120/coin and is trending upwards.

RuecanOnRails · May 27, 2013

I think it depends on how much you intend on investing.

As with all investment opportunities only invest what you can afford to expect to lose it all.

It's a very volatile market, however the price since the last market dip it appears to have stabilized over the past couple weeks and is increasing at a decent rate.

Check the charts over the past month or so. http://bitcoin.clarkmoody.com/

Instead of investing in the coins directly, you may choose to invest in mining equipment which over time can surpass the amount of coins you could get right now for the same price.

Sklomp · May 27, 2013

I am totally into what RuecanOnRails says. Because if you want to make a decent profit out of bitcoin trading you would need a lot of bitcoins which does cost a lot. If you buy yourself a decent mining rig you might turn it into a profit after about 4 months. This probably is quicker than if you are going to buy some bitcoins. Beside of that, you get unlimited bitcoins till you deside to shutdown the mining rig. You also should look into Litecoins, more profitable when mining and have a lot more headroom to increase in price.

For mining I recommend to check this site out to compare all the cryptocurrencies for mining:

http://www.coinwarz.com/cryptocurrency

Algo scrypt is the methode used for litecoins, so the numbers to calculate the estimatie khash you can find on this site:

https://github.com/litecoin-project/litecoin/wiki/Mining-hardware-comparison

For SHA-256 you can choose to use a ASIC or mine with GPU's, you can use the same numbers as for bitcoin mining, which are on this site:

https://en.bitcoin.it/wiki/Mining_hardware_comparison