Topic: When do speculators plan to cash out? (Read 815 times)

I plan on saving most of my coins for a couple years but i would really love to start using it as a my main currency

I put 10% of my generated coins by side.
As buffet sayd, my favorite holding time is forever.

I have invested in the Second Life world since 2006, and became a very active currency trader there. It was not the "price speculation" type of trading, but rather arbitrage by offering to buy and sell their internal currency from other users.  The margins were small (0.4% per trade), but steady.  As long as I could trade in enough monthly volume, it made a reasonable investment.

My philosophy on cashing out was simple: I took money out when I needed it, or when the returns became lower than alternative investments.  The latter happened in Sept of this year, so I have cashed out all but a residual amount.

For those not familiar, Second Life is a virtual world with a very active internal market.  Their currency exchanges transact US$ 350,000 per day.  The internal currency, the Linden Dollar (L$), is issued by the owners of the World, mostly as a weekly stipend to users with a premium account.  Users can exchange the currency without overhead with each other, for any reason.  Most of it goes to paying for virtual land in the world, and buying items to wear or use for your avatar.  The exchanges allow you to cash out your L$ to other currencies, including bitcoins via Virwox.

For Bitcoin, for now I am just accumulating a balance, via mining and gradually exchanging my residual balance through Virwox (I still get weekly stipends from my premium accounts, until the subscriptions run out).  I have not yet found a niche to earn coins by selling a product or service, and the amount of BTC is not very large, so my strategy for now is just buy and hold, and see how Bitcoin develops.  Just watching governments and banks inability to understand Bitcoins has been sufficient entertainment, and the mining helps heat my house in the winter, so I feel like I have got enough value out of them to not worry about getting a profit.

Investors (the sane ones, at least) plan to cash out when the value of their bitcoin holdings compared to their other assets (and thus the amount they stand to lose if when there's another bitcoin crash) exceeds their tolerance for risks. Eg, if you're willing to risk putting half your money in bitcoins, and then the bitcoin price doubles, you'd suddenly have two-thirds of your money in bitcoins. If you consider two-thirds of your money to be more than you're willing to risk on bitcoins, then you'd want to sell some of your bitcoins at this point (in this case selling a quarter of your bitcoins would bring you back to a 50:50 allocation). Note that you should never sell all of your bitcoins, no matter how high the price goes - you'll be kicking yourself if the price goes up even further.

Speculators will always trade a currency as volatile as bitcoin. There's too much profit potential to just cash out. Up AND down.

FTFY

They're all waiting for the price to go over $30USD again.

my bitcoin is a savings account.

i hope i never have to dip into my saving.

but if i NEED too i will.... but i will plan to replace and grow my savings

same here, my wallet is nearly empty. but i dont plan on "cashing out" any time soon. i support the idea of bitcoin and will try to use it as much as i can.

I don't actually have any more than a fraction of a bitcoin, but if/when I do decide to pick up some for savings it will be for long term.  I'd plan to keep them unspent until at least 2033.  Of course if bitcoin continues to grow and opportunities arise for me to use it for everyday expenses, then I'll pick up additional for spending beyond what I'd be saving.

For those of you who hold bitcoin as a currency investment, what is your strategy... or at what price will you cash out? ...or, what year