by Jeff Pierce, Zentrader
It’s a lottery ticket at best. At worst it will be added to the 2014 revision of “Extraordinary Popular Delusions and the Madness of Crowds”.
It’s unlikely that this will end well for the 99% of the people that try to trade this. I don’t understand the first thing about mining bitcoins or how the whole concept works, so I’m personally going to stay away. If you were lucky enough to get in at the beginning with some spare change that you can afford to let it ride to see if you can make spectacular gains, then go for it. That’s the only way I would advise participation right now.
To me it seems like the potato is being passed around so frantically right now that there are about to be a lot of burned hands and the media is really stirring the pot on this. Maybe it goes higher, in fact, it likely will increase the velocity of ascent before it’s all said and done, but the reward to risk just isn’t there in my opinion.
If you find that people who normally are speculators talking about an investment that is going to return double, triple or more your investment…it’s doubtful that it will happen. If it was that easy to make money in any market then everyone would be doing it.
Another suggestion is to wait for the bubble to burst and then take a small spec investment if you really believe that bitcoins have a future. Every bubble that bursts often has a reaction move where it attempts to revisit the highs. There could be an opportunity to profit in that small window, but you’d better be nimble.