As a domainer, I’m reasonably good at spotting investment opportunities. And yes, Bitcoin is/was a great investment opportunity. Even someone like me who never used Bitcoins (I never touched Bitcoins because let’s face it, the day only has 24 hours and) can easily tell that as an investment opportunity, it performed marvelously. Those who bought low obviously did very well, I wouldn’t be surprised to see new highs and so on. But why people use this price development as an argument in favor of the fact that Bitcoin is a safe haven is beyond me to be honest.
First of all, look at all this extreme volatility. Down 20% today, up 25% tomorrow, you name it.
It brings me right back to the “investment opportunity vs. safe haven” observation. Volatility can be a good thing for traders and I’m sure savvy Bitcoin traders are using it to their advantage. But extreme volatility and safe haven status don’t go well together.
Right now, there are no reasons whatsoever to believe that Bitcoin can be a safe haven in the true sense of the word.
Great investment opportunity? Sure!
Save haven? Not quite, at least not based on what we’re seeing so far.
April 4th, 2013 at 4:38 pm
May be buy apple at 428 today is safe
April 4th, 2013 at 4:45 pm
@Jim: if you like catching falling knives 🙂
April 4th, 2013 at 7:28 pm
Falling knives? How so…. But at 428 and Apple TV launches then share goes back to 500 plus then sell all of it by June:)
April 4th, 2013 at 7:45 pm
@Jim: AAPL is currently in a downtrend and for this reason, the market interprets positive news in a “meh… whatever” manner and negative news (even if only slightly negative) as though it’s a disaster.
When a stock is in an uptrend, the opposite happens. The market interprets any hint of a positive development in an euphoric manner and downplays negative news.
Markets are often irrational, so always be careful and think twice before buying in cases like this.
April 5th, 2013 at 2:33 am
I just play scrabblecheat.net and have more fun.
Apple’s best days are over. They would have to come up with another big hit. Now they have to many enemies. Once a stock starts heading down its very dangerous to buy. But Apple seems to defy all the rules every time.
April 5th, 2013 at 8:46 am
Bitcoin has one major flaw that nobody is talking about.
Bitcoin is a peer to peer crypto currency that relies on users/miners leaving their PC’s and Miners on 24/7 so transactions can be verified and archived.
Users/miners are offered an incentive to leave their computers on 24/7 so orders and sales of bitcoin can be transferred, recorded and archived.
However the ability to Mine Bitcoins get progressively harder and harder as more users/miners come on line, with more and more powerful equipment.
It will soon get to the point where mining a Bitcoin will be all but impossible for 99.5% of the people/miners, as the cost to mine will outweigh the benefit of gaining a coin.
At that time the whole Bitcoin system will collapse for want of horsepower to run it, if their is no potential for reward, why would anyone leave their PC/miner running 24/7, utilizing power for no offsetting gain.
I think that time will arrive within 6 months. As new and powerful ASIC miner computers are coming on line daily, as I write this post.
So, get in and out quick or you will be left holding a bag/wallet full of worthless Bitcoins. JMHO
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