Bitcoin

aidantaylor

I've researched this as a means of funding a new car, holiday etc NOT to become a millionaire (you probably have to gamble thousands for that). I've also read the scam articles about Martin, This Morning etc so know the pitfalls. However after a bad year Bitcoin seems to be recovering so is it still worth it for the basic $250?
Who are the most reputable traders? Are decent profits still possible despite COVID? All advice gratefully considered!

Grenage

You're basically gambling your money on the assumption that something going up will keep going up.  Unless you have some particular insight as to why the value of such would increase then it could just as easily be worth far less in a month.  It's a not a material asset or a stake in a company - it's entirely driven by sentiment.

It might be a bit of fun for some but it's not a means of funding a purchase.

Another_Saver

Here we go again...

https://forums.moneysavingexpert.com/discussion/comment/77716012#Comment_77716012

Firstly bitcoin is not an "investment" per se. It's a digital currency or commodity, completely unregulated, with no FSCS protection of any kind at all, which pays you no interest, rent or dividends like a savings account, bond, buy to let property or share in a company would. There is absolutely no certainty at at all that it will generate a positive return, in the same way a savings account or an investment into a good multi-asset fund or broad global index fund is almost guaranteed to over the long term, barring an apocalypse.

Secondly it is extremely volatile.

Thirdly, the only people who "invest" in it are bitcoin cultists and the people stupid enough to be duped by the bitcoin cultists.

Now, it you're willing to accept all that and think "ok, maybe I would still like just a little of my wealth in bitcoin, say 1% or so" you run into the next problem.

The "bitcoin investment industry" abounds with scams.

Bitcoin "brokers" come and go all the time and when not if the broker you choose goes under, you're unlikely to have any recourse to recover your bitcoins.

Finally, if you have to ask on this forum a bunch of strangers on the internet whether "investing" in bitcoin is a good idea, this demonstrates that you do not understand it nearly well enough and should stay away.

This comment was sponsored by common sense.

Bitcoin bros telling me I'm wrong in 3, 2, 1...

jimjames

If you're buying a car for $250 then just buy it. If you're expecting $250 to be $20,000 then I suspect you may be disappointed. 

TBC15

What sort of car do you think you can buy for $25?

Reaper

Yesterday I sold all my remaining crypto. I never really believed in it, I just bought in the hope the bandwagon would take it higher. It feels like gambling rather than investing. I had planned to hold it for a bit longer but it is too volatile and stressful for me. I made a modest 25% profit and I am relieved to be out so I don't have to keep fretting about what will happen to it next.

RichTips

Another_Saver said:

Here we go again...

https://forums.moneysavingexpert.com/discussion/comment/77716012#Comment_77716012

Firstly bitcoin is not an "investment" per se. It's a digital currency or commodity, completely unregulated, with no FSCS protection of any kind at all, which pays you no interest, rent or dividends like a savings account, bond, buy to let property or share in a company would. There is absolutely no certainty at at all that it will generate a positive return, in the same way a savings account or an investment into a good multi-asset fund or broad global index fund is almost guaranteed to over the long term, barring an apocalypse.

Secondly it is extremely volatile.

Thirdly, the only people who "invest" in it are bitcoin cultists and the people stupid enough to be duped by the bitcoin cultists.

Now, it you're willing to accept all that and think "ok, maybe I would still like just a little of my wealth in bitcoin, say 1% or so" you run into the next problem.

The "bitcoin investment industry" abounds with scams.

Bitcoin "brokers" come and go all the time and when not if the broker you choose goes under, you're unlikely to have any recourse to recover your bitcoins.

Finally, if you have to ask on this forum a bunch of strangers on the internet whether "investing" in bitcoin is a good idea, this demonstrates that you do not understand it nearly well enough and should stay away.

This comment was sponsored by common sense.

Bitcoin bros telling me I'm wrong in 3, 2, 1...

Regarding your "cultists" comment, that doesn't seem to be an opinion shared by, for example, Brian Brooks, a US financial regulator: "It may have been a bubble two years ago, but with more clarity, institutions that see this as a real thing are going to adopt at scale, which they’ve already started to do".

verybigchris

RichTips said: Regarding your "cultists" comment, that doesn't seem to be an opinion shared by, for example, Brian Brooks, a US financial regulator: "It may have been a bubble two years ago, but with more clarity, institutions that see this as a real thing are going to adopt at scale, which they’ve already started to do".

It's pretty disingenuous to paint Brooks as a "US financial regulator". He only left his post as Chief Legal Officer at Coinbase earlier this year: of course he's going to talk up crypto while he's still got a stake in them.

A_Lert

Cryptocurrency has become a speculative bubble. It's an extremely high risk "investment". There's no inherent value to Bitcoin, it's just A Thing that has finite supply and can be traded.

As mentioned, while Bitcoin itself isn't a scam, there are lots of scams around it so you need to be very careful.

EdGasketTheSecond

RichTips said:

Another_Saver said:

Here we go again...

https://forums.moneysavingexpert.com/discussion/comment/77716012#Comment_77716012

Firstly bitcoin is not an "investment" per se. It's a digital currency or commodity, completely unregulated, with no FSCS protection of any kind at all, which pays you no interest, rent or dividends like a savings account, bond, buy to let property or share in a company would. There is absolutely no certainty at at all that it will generate a positive return, in the same way a savings account or an investment into a good multi-asset fund or broad global index fund is almost guaranteed to over the long term, barring an apocalypse.

Secondly it is extremely volatile.

Thirdly, the only people who "invest" in it are bitcoin cultists and the people stupid enough to be duped by the bitcoin cultists.

Now, it you're willing to accept all that and think "ok, maybe I would still like just a little of my wealth in bitcoin, say 1% or so" you run into the next problem.

The "bitcoin investment industry" abounds with scams.

Bitcoin "brokers" come and go all the time and when not if the broker you choose goes under, you're unlikely to have any recourse to recover your bitcoins.

Finally, if you have to ask on this forum a bunch of strangers on the internet whether "investing" in bitcoin is a good idea, this demonstrates that you do not understand it nearly well enough and should stay away.

This comment was sponsored by common sense.

Bitcoin bros telling me I'm wrong in 3, 2, 1...

Regarding your "cultists" comment, that doesn't seem to be an opinion shared by, for example, Brian Brooks, a US financial regulator: "It may have been a bubble two years ago, but with more clarity, institutions that see this as a real thing are going to adopt at scale, which they’ve already started to do".

Then they are even bigger dupes than the 'cultists'

barnstar2077

Thinking a bit about the practical side of Bitcoin a couple of questions / scenarios come to mind that I would appreciate any input on.

Some Bitcoin enthusiasts would like to see it, or some form of crypto currency, become the new world currency, free from the meddling of potentially corrupt governments (obviously all large institutions, including governments, are corrupt to some degree, but that is perhaps a discussion for another time :  ) 

At the moment, if there is a large economic decline then governments can always print more money to inject into the economy, including the undertaking of large projects that create jobs that help to turn peoples outlook around (which in turn makes them spend money, therefore improving the economy.)  If Bitcoin, or some other form of independent online currency were to take over how would economies recover from recessions?

Secondly, when you invest in shares, funds etc (even gold!) you have the choice at any point to cement your profits or losses.  So, say Bitcoin is the only currency available and I need money to buy a new house, how do I know that the amount of money that I need will be there when the time comes?  At the moment I could simply sell up and convert my Bitcoin to sterling or dollars etc.  No matter what you are saving for, whether it be a new car, house, or for retirement you need to be able to get off the train at a stop of your choosing,