Oh to have bought some when it was at such a lowly price…. Now that is has run up everyone seems to want some.
Bitcoin fits the profile an extremely speculative investment – is value is determined in part by the greater fool theory – hopefully someone will pay more for it than I bought it. How do you determine it’s value? I have no idea.
There will be a finite supply only 21m bitcoins will be able to be produced. I believe there are around 11.5m bitcoins in circulation at the moment. More and more computing power is now needed to produce a new bitcoin – thus leading to the development of botnet hacks to hijack computers to steal its functionality.
Does the world need a stable currency – probably, is an electronic currency independent of central banks desired – absolutely, is bitcoin the solution no idea. JP Morgan has tried to patent such an item 175 times and failed 175 times.
If you are considering an investment in bitcoin – I may council you to go to Vegas instead. It will be a speculative trip. Call the casino ahead of time let them know you are comming and want some comps. You may get great accommodation, food, travel and entertainment for free. A guaranteed return! You may also make and lose a lot of money at the tables – just like bitcoin.
Bye for now.