I caved today. I don't really believe in bitcoin, but the FOMO is real. Not going crazy. Just put $5k into bitcoin. Worst case scenario, we go to zero and I lose it all(not very likely) Best case, we go to a million and I pay off my house.
Smart way to play it. I love the idea about blockchain tech, but execution is really bad. My biggest issue is Tethers. Where you and I need to deposit 5K of real money to but Crypto, BitFinex just creates tethers out of thin air and allowed to use them to buy Bitcoins. This is ridiculous, but it is a reality. They use Tethers to keep price up and lure more public. But in your case it is a small investment like you said.
better learn to trade rather then to invest. This way if FOMO Bitcoins run to $1 million or FOMO Bitcoins run to $1 you will earn tons of money. Just put $5k to trade bitcoin. Bitcoin runs to $1 million, it pays off your houses. Bitcoin runs to $1, it also pay off your houses. _____________________
There are better trading opportunities than trading bitcoin, especially in this current market. I keep my trading accounts and investment accounts separate.
But that's the nice thing about bitcoin -- it's not trading, it's like a lottery ticket that doesn't expire. You put in your 5k, and someday, it may shoot up, or it may not. But it's completely hands-off.
Bitcoin to a million?? Never going to happen. Could reach new highs, but a million, nope That would put over a $20 trillion valuation on coin that was created out of thin air. At one point it was being accepted as form of payment, it still is, but since valuation has dropped and the hype has totally disappeared you don't hear much of anyone willing to accept it as form of payment anymore. And too volatile to be accepted as a form of payment. Who wants to use real money to buy a coin that could be worth 9879 one day and 8392 next week is pointless. And some believe its easy to use bitcoin, the computer techy type might think that, but the other masses of people wouldn't find it easy to buy fractions of a bitcoin using real money .....to buy fake money using real money to then go purchase an item they could have originally and easily paid for using greenbacks....
what's with the 'outa thin air' routine? bitcorn at least has a mathematical limit to the number of tokens possible. there may well be other concerns to bash bitcorn with, but the thin air argument only works for those who pay and get paid in tokens that embody intrinsic value. thin air is good enough for federal reserve company incorporated, so why not good enough for bitcorn? hmm? be specific, the answer is in there, lets hear it. the original founders of the USA wrote that into the framework of the country, coinage area there. that was quite inconvenient for the subsequent politicians and firmly entrenched non-elected unaccountable bureaucrats and special interests. sooo, though illegal, usa runs on fumes, faith, debt...
The death of cryptocoins, if it ever comes, depends on advances in quantum computing. That's the extinction event. All ECDSA (Elliptic Curve Digital Signature Algorithm) based coins, like Bitcoin, Ethereum etc. would see their value crash to zero as soon as a quantum computer can crack the cryptography in days / minutes. If that happens, there will be no gradual erosion of value, just a drop to zero.
i'm shakin in my boots. call me when the singularity in honchospace is well on the way toward bustola so's i can shart my pantaloons.