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RE: How does bitcoin or other cryptovaluta work?

in #bitcoin7 years ago (edited)

I don't think you should invest in BitCoin at all if you don't understand how it works. People who invest in things because their price is rising is always doomed to lose their money in the end. There are two main reasons for investing in things. Either the asset invested in can convert the capital brought in into production (giving you long-term profits), or you deem the asset undervalued. It is the last mentioned quality that makes serious entities invest in cryptocurrencies. But for now, cryptocurrencies has value because people are willing to buy. And they are willing to buy because they think others are willing to buy at a higher price. This investment strategy is unsustainable, and will only work as long as there are people stupider than you who also have money. They run out.

If you intend to read up on investment and if you can see some inherent value of BitCoin (I do not, therefore I am not invested) I advice you to continue investing. If you do not... Well, since you are already invested, and there seems to be a lot of stupid people with money these days, hold on for a couple years, and sell at a profit (don't get too greedy, or you will lose it all). But I strongly advice you not to further invest, do not speculate. That is gambling!

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