Back in 2003 I found myself trading stocks on a Scottrade account. I poured about $10,000 into some different stocks and it grew. A few months went by and I found myself trading penny stocks for possible bigger gains. Not knowing what I was doing I ended up growing my $10,000 to $30,000 in a matter of months. Then one fateful day I took all the money I had acquired and put it on a "sure thing". Of course we all know that there are no sure things in life. By the time it was all said and done I had roughly $300 in my Scottrade account. I vowed never again to put a lot of money into the stock market. I then began acquiring precious metals (gold and silver). By 2011 I was up about $100,000 after an investment of about $35,000. I ended up selling a lot of it because I was between jobs at the time. So I find myself always giving a smiling face to Precious Metals....
NOW:
I find myself watching the crypto currencies taking off like mad. One part of myself says to jump in and make some easy money. The other part of me says to remember what happened in the stock market. Needless to say I am still on the sidelines.
Here are my reservations about crypto currencies:
1)Its digital (free from banks but digital)
2)Its not backed by any commodity
3)It can be hacked at times. I've heard of people getting their bitcoin stolen digitally
4)If something happens during a "crash" banks would close. You wouldn't be able to pull money out of the bank, therefore if you transfer your bitcoin or other crypto to a bank you can't get to it.
5)If the so called "crash" happens you can't barter with your neighbors for water, food, and the like. You may not even be able to access your computer if the net is down.
6)So many people are jumping into crypto currencies right now tells me that it is bound for a substantial pull back. Don't forget the stock market crash of 1929. There is a story of an investor pulling his money out of the market because he was getting stock advice from a shoe shine boy. Everyone was jumping into the easy money.
7)Could it be that the crypto currencies are being played right now to suck everyone into the crypto markets for some sinister reason? We all have seen bitcoin go up and down $100 a day. It could drop $1,000 in an hour if something spooked the currency. To volatile
8)Just to intense. I'll stick with precious metals for now. I can hold them, barter with them, use them as weapons (ha), and sell them in an hour and have my money.
So I wish those in the crypto currencies good luck. I'll be on the sidelines writing stories and posting video's of my likes, family, and the like on Steemit. God bless, and thanks for your comments.
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I'm not going to address the "alt coins" for this purpose, i'll just talk about bitcoin. For sure bitcoin is still a fetus as its only 9 years old. However in that time, it has never gone down i.e. stock markets crash etc.. its been ticking away solidly for 9 years. Volatile sure, but increasingly less so. Bitcoin is a store of value, a currency and a commodity. It is divisible down to 100 000000 or 8 decimal points, and the blockchain that underpins it makes it impossible for your bitcoin to be stolen (assuming you use best known practice for keeping them safe) i.e.. Cold storage on a paper wallet offline or a hardware wallet where only you control your private key. The hackings you hear of are exchanges, and it is never recommended to keep your bitcoin on them. As for not being able to exchange your bitcoin for fiat in a crisis, many places accept bitcoin and adoption is growing exponentially. I think part of the point of bitcoin is that you won't have to change back to fiat or use the banks. As for an emp or internet being switched off or some other end of the world scenario, if it ever gets to that
then we are all fucked anyway. I'm not suggesting you invest or don't invest, I'm merely trying to help clarify some points to assist you in your decision. Bitcoin is rare, much rarer than gold, and its market cap is still microscopic in comparison to the fiat market or gold. By the year 2140 when the last bitcoin is mined, there will only ever be 21 million bitcoin in existence. This makes it a deflationary currency i.e.. it increases in value over time. Its the exact opposite of the "print money out of thin air" fiat system which is inflationary and your dollars buying power is increasingly less over the years. If this is the price of bitcoin now, just wait until some of that money starts flowing into bitcoin. Those are 100s of trillions markets whereas bitcoin is 30 billion odd... It hasn't even started yet.
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Wow! An incredible reply. The deflationary aspect which makes the currency increase in value is interesting. I think I'm quite overwhelmed at the price explosion and I have a stock market mind set. If bitcoin does drop big I may join the club. I am subscribed. I look forward to your expertise on the matter of bitcoin in Steemit. Take care.
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I'm happy to share whatever knowledge i can to help.
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Thank you.
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Anytime :)
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It's true that the precious metals can not be hacked and are more "secure" I'm in cryptos apart from the money because it can be a change in the monetary system (or even further with DAO's)
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I agree. Bill Gates sure is on board. I think a part of it is I see what's coming and it can be a bit frightful. I'm subscribed.
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I believe you are right to be cautious. I felt like a rogue telling people to be careful.
In another way, if you check how the .com started we had roughly the same ratio of believers and sceptics. Now, nothing is complete in business without the net.
Emp attacks is a reality not to many are aware of. In any case, resolving to have hard assets is a long term guarantee.
I really laugh at the comment about using gold as a weapon. You're a crafty man!
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Yes, I wouldn't want to get hit in the head with a gold/silver coin. haha. What you says makes sense. I didn't even think of the .com boom when it came out.
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