Hi,
I saw this article
http://nakamotoinstitute.org/mempool/the-correct-strategy-of-bitcoin-entrepreneurship/ . So I was thinking what is the correct way for me invest my money in a bitcoin economy so that it grows exponentially.
So suppose I have 10,000$ , so what are my options:
1. Buy bitcoins worth 10, 000$ and wait for bitcoin to explode , this seems like a safe bet and is most likely to happen
2. Invest in a bitcoin startup that earns and stores in bitcoin and not in dollars : This way the startup itself may accelerate like 5 times over the next two years and multiply that with the growth of bitcoin and we have a compound effect. I think bitpay or other payment gateway would be an example of this. But the concern is these gateway lose their coins and someday the owner could just transfer all bitcoins to his address and vanish. So tracking the company revenue maybe difficult.
3. Bitcoin mining contract: You expect to increase your btc using this , but I guess If this really increased your btc, mining company would never offer a contact in the first place. Instead it would just spend the btc buying and investing in more mining equipment. Good analysis here
https://bitcointalksearch.org/topic/bitcoin-mining-contracts-671304Any other ways I can do better? (I am not talking abt gambling btc
) !
#1 is your best bet.
#2 would be a great option if you had something more to the tune of $1,000,000 to invest. These startups are all private companies as of now and hold seed rounds only for accredited investors. The space is too new.
Well I'd just like to suggest trading a small percentage of your Bitcoin on the daily swings of the market in hopes to get more Bitcoins. Can be risky and you said you weren't into gambling so I guess that could be a matter of your opinion on trading. Their are services for those looking to trade that claim to profitable. Investing in start ups is another good option if you have the money and can find something worthwhile.
In traditional markets, 90% of day traders lose, while the number with crypto currency is probably slightly lower. It is a zero sum game. The majority of people fail because they don't understand the complexity and might of what they are up against (i.e. high frequency trading).
Swing trading can be profitable for those who are excellent with risk management, unemotional with the money they are risking, and have an above average understanding of what they are doing.
Best bet is to go with a long term investment.