Topic: Bitcoin is NOT a investment (Read 4288 times)

Bitcoin is memory:

https://bitcointalksearch.org/topic/bitcoin-is-memory-234731

This is the kind of stuff People need to do with the various
Cryptocoins I believe they each have their own Value
and we need to let the World Market decide exactly
what that value is.

I believe if we went to our local Grocery Store, Hardware
Store, Computer Store, etc... to Invite them to learn more
about People that are using their computers to create Money,
Commodities, Equities,

I am the Owner of ADSactly and my Plans are to put together
a Scam Free Environment where we can all work together to
Take Down the Bankers One Day at as Time. By Providing
Ultimate Products and Services that help anybody create
a business online.




I got this Article from Road To Roota which
I am a Private Road Subscriber!

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The REAL value in Bitcoin is not in the price speculation, get rich quick schemes or trading the crazy price volatility but rather in its value as a MONETARY UTILITY in the exchange of goods and services.
 
With the annual Gross Domestic Product (GDP) of the world above $70 Trillion fiat dollars I would think there is plenty of room for a few competing currencies like Gold, Silver and of course for online transactions...Bitcoin!
 
Apparently so does Overstock.com as they just announced that they will start accepting Bitcoin...
 
Overstock.com Will Start Taking Bitcoin Next Year
http://finance.yahoo.com/news/overstock-com-start-taking-bitcoin-191550579.html
 
So in the 2nd quarter of 2014 I will be able to buy any of the 984,000 items that Overstock.com offers...with a click of a mouse paying no transaction fees to the banksters!
 
Hmmm...
 
I wonder how long before Amazon, eBay, Google, Facebook, etc figure out that accepting Bitcoin can increase their market share, add to their revenues and drastically decrease their banking expenses?
 
The battle to retake our financial system is in full view of the world now.
 
In 2014 EVERYTHING WILL CHANGE!

It is an investment. (Some) Users buy bitcoins to see the value go up and sell them. Thus investing in them. Please see the definition below. Thank

Rainbow Text Created at http://freebitcoinfaucet.com/bbcode/

I suspect that using Bitcoin in the manner that the OP prescribes/demands/dictates/whatever would probably kill it (as a interesting an promising solution adhering to some modicum of decentralization) faster than any realistic attack.

In the mean time, it's proven quite an attractive and lucrative vehicle for high risk speculation.  And doing so (and thus acting as a buffer of sorts for in the highly volatile market space) has at least the potential to facilitate a better distribution.  Happy days!

The bolded part is key.  Right now people are investing (call it speculating if you want) in the prospect that bitcoin is not at its saturation point and that it will continue to climb to some saturation point.  That is an investment as surely as is someone putting money into a startup company.  It is a high-risk investment, but an investment just the same.  When bitcoin does in fact get near and/or reach that saturation point, then your comparison to trading USD/EUR will be accurate.

No, if that was the case then we would all still be living in caves.
Wealth can be created, it can be destroyed, and it can be transferred.


If you spend your money to start a company that manufactures something then your investment has created something, that is producing wealth. If you hire contractors to build a house where none existed before, you created wealth. When you write software you create wealth. A farmer growing corn is creating wealth.

If a city is bombed or burned down then wealth is destroyed. A car or a tracktor wearing down over the years of use is wealth being destroyed, a house rotting away over the years is wealth being destroyed. A HDD failure making you lose the sourcecode for your software is wealth being destroyed. A person eating corn is destroying wealth.

Speculation is buy low sell high... or at least attempting to. Everything you gain by buying low and selling high, someone else lost by buying high and selling low.

Usually speculation doesn't occur in a vacuum and is married to production. They finance the creation of new wealth (company that sold the stock has more capital to invest in machinery or raw materials), but they also facilitate the transfer of wealth between individuals (value swings on the stock market).

In bitcoin terms:
mining = create wealth as new coins are created
destroying a wallet containing coins = destroy wealth (well, lose it, probably permanently)
buying low selling high & vice versa = transfer of wealth. For every $ you make on buy low sell high, someone has lost exactly the same amount of dollars buy selling low and buying high.

PS. I do not support the op's notion that speculation isn't an investment. Nor do I think that the existence of speculation is bad. Since people who speculate inadvertently also finance wealth creation

I've put money in to it, so I'm calling it an investment. I could lose money, but I've still invested it in BTC.

Remember - "beta" status is meaningless in software engineering. A software can be published for public or not. That's it. It is not possible to fix all bugs in a project.

any sort of investment is pretty much a "Transfer of wealth" one way or the other, when you're buying real-estate, gold, silver , etc etc if you are defining things this way it's all gambling as the price can go up or crash down.

You may use USD or Euros but that doesn't mean other people don't do other things with them. If people want to invest in bitcoin then they are investing in bitcoin. Maybe the argument can be made that it's not a good investment.

I think, I understand the root problem:

OP and couple of other users argue that holding and trading of Bitcoins does not produce wealth; therefore, it is not an investment.
I do agree, that it doesn't produce wealth.
However, definition of investment says nothing about wealth, it only states that investment will appreciate the value.
Therefore, if Bitcoin (or any other asset) appreciates in value, it is an investment.

I think he meant encourages with their policy not with their words, the two differ because they are liars

it doesn't matter what people classify or even label as what constitutes an investment. if you store some of your hard earn wealth in it, and it grows over time then that is an investment. If one person can find a way to grow his wealth through pink elephants then that is an investment.

Bitcoin is an investment because it can (and has) been to used to grow a store of wealth over time. People label it as a none investment doesn't actually matter. sorry

and yes people invest in fiat currencies all the time and make profits off it.

You also have no evidence of your assumption of saturation or that there will not be any more occurrences of the price rising.

Ignorance is bliss because you are always right.

google "forex" before you write silly things like this

Actually government encourages saving, because your savings lose value over time.

Bitcoin itself doesn't encourage saving, but won't lose value over time.

Kokojie you are equipped with a high level of intelligence but these days investors have got too crazy for a digital currency bitcoin which wasn’t formed for profit but now days everyone is holding to book a profit for himself and then leave bitcoin alone. Bitcoin has turned highly volatile due to these investors who are greedy for making money for themselves. 

Bitcoin is a currency, which also makes it an investment oppourtunity for some.....whole companies are set up to trade Forex and make money off price swings, just as they do with stocks and shares etc.

People saying it speculating or a gamble....that is the definition of an investment....you put your money into something with the hope that you see a return on your investment...no-one is ever 100% sure on an investment, so that makes it a gamble or speculative.

And im sure a lot of people on this forum have made very large returns on their investments over the last couple of years.

It is a currency. Is the USD and other fiats no more a currency than Pogs or Beanie Babies too?

Sounds like you don't like the price of bitcoin going up!! Well that's too bad for you then. Bitcoin is the peoples money currency it will continue to become worth more and more dollars. You should be more worried about USD and the EURO as there is trouble brewing at the Federal Reserve and we could see the start of a implosion of the USD by April of next year. The markets as we know them today would collapse, the collapse in 2008 proved just how interconnected the markets are to one another; we live in a globalized marketplace.

You can invest your money in EURO or USD or any other currency if you want. You can invest your money in potatoes or tulips as well. There are plenty of people  who make good livings off trading various currencies with each other.

Yes, BTC is a currency, but people are investing their money in it by speculating on the value. At BTC's peak I was up nearly 1000%. I plan on holding it for the future in the hope that it does become a mainstream or more wildly accepted currency, which I believe it will, then I will begging to spend it and/or possibly sell it for GBP. I think people can use it or do with it what they want, and that includes using it as an investment or even a get rich quick scheme.