I bought Bitcoin at $9K and sold 9 months later at $12K, about a 45% annual return. One month after I sold, it skyrocketed to $40K IIRC, so I had a lot of seller's regret.

Buying in now if you can get it at low 30's, might be a good investment. If big countries don't move to outlaw it, it should maintain value and probably hit 40K or 50K within the next year or two.

Although ETH dropped more recently, so that might be the better alternative.

Have you bought back in?

Reply 12

Quady

Why would one trade bitcoin when you can just invest by buying and holding to make way more profits?

Reply 13

Napp

Original post by JVM2020

isn't Bitcoin some sort of gambling activity?

they used to send me spam.

Bitcoin isnt a person or an entity, 'they' cant send anything..?

Reply 14

NonIndigenous

Bitcoin and cryptocurrency is like the 'wild west'. People are praising it for being decentralised and thus independent of being manipulated by central banks and governments, but this also means it is more susceptible to being manipulated by large private investors. It is somewhat lawless, compared to traditional currencies, which is a large reason why it's so volatile.

The other reason it is so volatile is because crypto currencies don't really have any 'economy' or 'hard assets', supporting their value. The value of crypto is literally almost entirely based of what people perceive it to be worth. And people's perceptions change.

The broad trend seems to be that crypto rises in popularity, when our people's confidence in our central governments and banks suffers. The creation of cryptocurrency is even thought to have been inspired by the 2008 financial crash in the first place: https://www.livemint.com/Money/YTYMYUD7dytGK5PGSpdRTN/The-2008-global-meltdown-and-the-birth-of-Bitcoin.html

I think it will carry on growing for a while still, particularly as our Western economies that largely dominate the financial sector... are not living up to their historic success, thus leaving people looking for alternative investments.

But, (depending a little on the currency), every transaction has to be 'validated' by another person online (kind of like how banks do), and those people get paid in crypto for validating others' transactions. This is called 'mining'. There is a finite amount of Bitcoins that can be produced however, I think it has been limited at 21 million, or something like that. New Bitcoins are intermittently released and issued to the 'miners' for their work. Once we hit the 21 million limit, or start approaching it.... who is going to pay the miners? That could shake the system.

But Bitcoin is just one currency, and others work slightly differently. There are some 'creative' cryptocurrencies that are trying to back their value with assets, by simultaneously offering various types of services or even online retail. I don't know much about these, but it felt a little 'gimmicky' when I took a look and not like a longer-term solution.

That's most of what I know.

The global economy is worth... a lot. Crypto is still only worth a tiny fraction of that. If how we value and trade assets is to move over time from traditional currencies to crypto... then crypto still stands to gain a lot in value, whilst our traditional currencies will likely decline... unless something radical happens such as governments intervening and attempting to outlaw it somehow, or at least tax it to death. I don't predict that would be successful at all though in stopping crypto, unless it were a joined up effort across many countries.

Reply 15

AkerKhan

I mostly did trading because of how exciting the market's volatility was.
Several of my trades were in ****/meme coins that was popular in blogs. To be honest, the euphoria at making a killing was great but nothing like the depressing cloud that hovers and drenches you at a loss. I've stopped now, the little stake I have in the cryptocurrency market now is a few Bitcoin and Ether that I'm merely holding.
Sometimes, I wonder if I had a gambling problem back then.

Reply 16

Quady

Original post by rayshow053

You have to think about legal side of my future business.

Can you explain why?

Reply 17

hihellohola

Invest in any crypto (even Bitcoin) the amount of money you aren't afraid of losing.
Bitcoin is a highly manipulated asset. It is keeping on faith. You never know what will be next, either Bitcoin will hit 100k or drop to 10k. Somebody made a good fortune, but many bought Bitcoin when it cost 60 k and now count their losses.