Investing in Bitcoins

Muffinator · July 1, 2013

-Not sure if this is in the right place, it is about bitcoins but not actual mining and stuff-

Most of you know that bitcoin values fluctuate. I'm wondering if it would be smart to purchase bitcoins and hold on to them for a bit and sell them if they get higher.

Opinions?

RuecanOnRails · July 1, 2013

Only invest what can lose.

http://letstalkbitcoin.com/ Listen to some of their podcasts for interviews and general news about bitcoin it can help you understand whats going on and what the possible future market may look like.

Bitcoin is one of those things that is IMPOSSIBLE to speculate with any accuracy. Bitcoin is a volatile ever changing market and still very young and small.

You can check the economics section of the bitcoin forum. https://bitcointalk.org/index.php?board=7.0

Jmjam · July 1, 2013

I say if you want to live dangerously drop $1000 right now ($90/BTC) and once it goes over $100 like it usually does sell them and make a nice quick profit. Ofcourse there's always that $1000 you got to have to invest :P.

xXxYOLOxSWAGxXx_420BlazeIt · July 1, 2013

Don't do it with money you cant afford to flush down the toilet.

The value of Bitcoin fluctuates directly with the interest/hype surrounding it.

RuecanOnRails · July 1, 2013

My honest opinion. Jump in with both feet and do more than just hold for the future. (don't over invest beyond your means. Getting money in is one thing, getting it out when you need it, can take a bit of time if you don't spend the coins directly)

Throw some money in there. Currently the price is a little lower than what's it's been the past couple weeks due to asics and people dumping their newly mined coins but as the difficulty continues to climb and more companies embrace bitcoin your investment now may see a decent return.

As for investing and just holding, you can do that, but I'd hold 60% of your investment and trade the other 40%. Because it's a volatile market you can ride the waves of constant price fluctuation. You might lose some, but you might gain some. If anything you gain experience in trading and become better at taking in news and forming your own ideas on whether to buy, sell, or hold.

Don't forget there are other coins besides Bitcoin. You can watch the smaller exchanges and try to predict the next "big" coin and buy a bunch of it for cheap to diversify your holdings. While there are a lot of "scam coins" you can luck out. Nothing like a large amount of a coin when one of them double, triples, quadruples in price if it hits a larger exchange or gains new interest. Usually those "scam coins" lead to nothing but losses.

Frix · July 1, 2013

I would use the money you would want to invest and build a pc capable of doing a decent amount of mining

RuecanOnRails · July 1, 2013

I would use the money you would want to invest and build a pc capable of doing a decent amount of mining

Unless you already have a enough spare parts to build a majority of the mining rig. Pick up 3 gpu's for $1000 You can get 2175 K/Hash mining Scrypt / Litecoin. You would only make about $240 a month at current price. It would take just over 4 Months to pay off that initial $1000 Not including the costs for electricity. Depending where you live at .1034 cents per KWH you're looking at about $60 in electrical. Bringing your monthly gains to $180. Pushing your break even point to nearly half a year.

Or invest that $1000 directly into coins (let's say Litecoin as the only mining rig worth making with gpu's is for litecoin) you could pick up 340 coins right now allowing you to trade and hold as you see fit. Then invest that $60 you would have spent on electricity per month to pick up a few more coins.

With the current rising difficulty of all coins that matter (LTC and BTC) you will likely end up with more coins buying them now, than you would at your break even point of mining as the difficulty and price both raise to compliment each other when the market is strong.