No, I am not joking. I just bought one coin as a souvenir.
One of my friends called yesterday and urged me to invest in Bitcoin. This is the second time he called this year. He called me early this year and advised me to refinance my home and take the excess cash to buy another home in Toronto. Luckily, I didn’t follow his advice. He is a good friend, and he just trying to help me to become wealth, but his advises are not easy to follow.
Few readers also asked me my opinion about BitCoin. So, I decided to make a post about it. Please understand that everyone has a personal opinion about BitCoin. This is my opinion and should not be taken as advice or recommendation. Please do your own research before make any financial decisions.
BitCoin is the hot topic in most mainstreams financial media. As of this writing, Bitcoin is trading around $16K.
Around 1600% gains in a year, 50% gains in the last few days.
Holy Moly!
It creates few Billionaires and many millionaires overnight.
Some people say it will hit to million dollars soon, while others say it will crash and go to zero. There are no clear explanations for both claims.
BitCoin bulls called it is an digital gold and it has value, while bears called it is a scam and investors will lose all.
To be honest, I have no idea about BitCoin and I am not interested in investing at all. For me it doesn’t make any sense to invest it.
And, I don’t understand how it works. Also, nobody knows who developed the program and whether the person is still alive or not.
What is the guarantee that the developer or the group of people who developed the software can’t come back and manipulate the settings to benefits for themselves? Even I don’t know whether it can be done or not.
What is the guarantee that same developers or some new developers come up with new concepts that much better option than BitCoin?
Again, I could be completely wrong because I seriously didn’t understand about BitCoin.
I am in technology field; I am interested in Blockchain technology, but not interested in BitCoin.
I like to follow legendary investors’, Warren Buffet and Peter Lyne, advice – invest what we understand. Therefore, I don’t have any plan to invest in BitCoin. I will be quietly watching from the sidelines while others riding on the Roller coaster.
Sometimes it is fun to watch instead of participating.
I could be making a big mistake by not investing in it, but I won’t regret it.
For fun, I bought a couple of physical BitCoins from Amazon for $8.99 CAD (free shipping), and am planning to keep one for myself as a souvenir and give rest of them for my family and friends as my holiday gifts.
Now I have a BitCoin too.. a fake one.
If BitCoin reaches to one million dollar, then every time when I see my souvenir coin, I will kick myself for not investing in it. If it crashes to zero, then I will kiss myself for not investing in it.
Amazon Picture
What is your opinion about BitCoin? Do you own it? Please share your thought below.
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Excellent post! A lot of speculation going on with Bitcoin at the moment. I am equally confused with Bitcoin and want to stay out of it.
I have found great insight into Bitcoin and blockchain technology given by Patrick O’Shaunessy on his podcast Invest like the Best. As of writing, he has 3 episodes called Hash Power explaining how the technology works.
Incredible stuff!
Hello Kevin,
Thank you for stopping by and sharing about the podcasts. I would like to invest my hard earn money into companies that I understand well, instead of speculate something I don’t know about it 🙂
May be Bitcoin is not my investment style..
Cheers,
I think bitcoin will blow up. I fear that not only will the bubble burst but the blockchain and crypto currencies will follow suit.
So am I saying a crash is around the corner? Well if you look at the markets there is tension not only in that sector but in the housing market too. CIBC is invested heavily in the housing and it will not recover. TD is better equipped and will do much better.
So my question is what in the hell do you do with a Bitcoin? Who will buy it off your hands. That’s the big question. i never heard of virtual billionaires or millionaires.
I, myself, isn’t interested but if you think it’s worth it then do it for yourself.
i do know that there have been some hackers getting their paws on some investors accounts on Bitcoin.
It’s just too risky. The phenomenom will not last and I fear the hype is making investors dilusional.
Invest wisely and I say if you want to make money then either invest in stable dividend companies or research like you never did before. Cheers my friends.
Hello Paolo,
I am with you. Invest wisely with the companies you understand well instead of speculate about the future.
I like Blockchain technology, but not crypto currencies.
Best Regards,
Dear FJ, you almost had me fooled. I’ve read your posts in the past, you seem like a well level-headed investor. And I was thinking to myself “FJ is gonna buy bitcoin… the world is coming to an end”. I just can’t believe it.
I’m an investor who is sitting on the sidelines too. Wishing that I had bought bitcoin years ago, but not one of those panicking to get in before it’s too late deal. I do believe there is a bubble, and I believe it’s gonna pop once we get some bad news on bitcoin. It’s already popped twice before.
Justin
Hello Justin,
Sorry I didn’t mean to fool 🙂 It is a fun post as many people asked about what I think about BitCoin investments (?) 🙂
I like invest in what I know and what I understand. To be honest, I really don’t understand how BitCoin works and how we can use them in the future.
Best Regards,
Pretty much in the same boat. There is a famous quote “Buy Fear, Sell Greed”. Bitcoin is under extreme greed. I will stick to dividend growth stocks for now. Something I understand and something that produces income. Quite frankly is bitcoin money or commodity?
Hello Dividend greek,
Thank you for stopping by,
Same thing here! I will stick with what we know and understand. BOC says BitCoin is speculation.. so, it may end up so bad.. time will tell.
BitCoin is money or commodity? It is hard to put into a category since I don’t know what is it 😀 .. people say it a currency, so lets put into money category for now 😀
Cheers,
Awesome post!
I almost believed you actually went in!! I feel the same way about BitCoin and cryptocurrencies in general. I am a developer myself, hence I believe in the blockchain technology, but the currencies themselves, at the moment, are unregulated and used for many bad reasons.
I particularly enjoy your posts because I feel like we share the same investments ideals. I too had a friend who called me more than once this year, strongly encouraging me to get in on LiteCoin, BitCoin and Ethereum. It’s been hard to resist, and like you, only time will tell if I ended up kicking myself in the butt for not going in :p
Merry Christmas to you and your family!
Hello Anthony,
Thank you for stopping by,
Same as you, I believe in the blockchain technology. It may change the way we do banking in the future.. but not 100% sure. For digital currencies, there are so many of them and it is hard to guess which one lead the way for longer term.
I would like to invest in more secure investments than speculations.
Wish you all the best and merry Christmas to you and your family as well 🙂
Cheers,
Been following bitcoin for a while. My buddy works as a hacker for the federal government and knows a lot about the bitcoin market and how it works. He often advises me that it is a disaster waiting to happen. Law suits and fraud are going to make many people very depressed when it crashes. Keep in mind that bitcoin is a non-traceable cryptocurrency, therefore many people are using it to purchase illegal items on the dark web. Organs, weapons, drugs, even slaves….yes human slaves. Paper cash is an integrated part of our society, and it is government regulated. Cryptocurrency is NOT regulated and anyone can take advantage of it. I will be very happy watching the world leaders crush this market knowing I chose not to invest. If it ain’t pumping money into the corrupted federal government, then they will find a way to take it down.
Here is a quote from a recent article: What does the former head of the Federal Reserve think of a digital currency that operates outside the control of central banks? The answer, unsurprisingly, is not much.
“Bitcoin is an attempt to replace fiat currency and evade regulation and government intervention. I don’t think that’s going to be a success,” Bernanke said on Monday afternoon in Toronto.
Hello Eric,
Thank you for stopping by and sharing your ideas about BitCoins.
As you mentioned, there are so many uncertainties surrounding with BitCoins. That is the reason I decided to not invest in it. Even if I missed the massive gain, I won’t worry about it.. 🙂
Cheers,