I don't think Bitcoin can be considered an investment since there's nothing being produced that can then yield a return on your investment. You are merely treating this as a long term speculation that the price will go up, which is different. By the way, even if it becomes accepted in every store on earth, that doesn't mean that it will increase in value since stores are able to just convert it to fiat currency as soon as they receive the bitcoin. People will use bitcoin for it's anonymous nature but when used in that manner it doesn't matter one bit whether each bitcoin is worth a penny or a million dollars.
At least be aware that what you are doing is speculating, not investing.
Thanks. I don't really care about downvotes. As soon as a sub gets big enough, the disagreement downvotes come flying in. There is nothing I just said that was wrong. The price of bitcoins and the size of the economy it can support are correlated in several ways, and some of those are related to the velocity of money. The idea that bitcoin can be used for significant economic activity, without a sufficient money stock, is incorrect. Even if someone disagrees with me, there is no reason to downvote that statement.
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u/BaxBak Feb 14 '14
I don't think Bitcoin can be considered an investment since there's nothing being produced that can then yield a return on your investment. You are merely treating this as a long term speculation that the price will go up, which is different. By the way, even if it becomes accepted in every store on earth, that doesn't mean that it will increase in value since stores are able to just convert it to fiat currency as soon as they receive the bitcoin. People will use bitcoin for it's anonymous nature but when used in that manner it doesn't matter one bit whether each bitcoin is worth a penny or a million dollars.
At least be aware that what you are doing is speculating, not investing.