So, I’ve been watching Bitcoin and cryptocurrency news like many have over the last year or two. I’ve been encouraged to invest in it ... when it was in the $1,000-1500 price range. I dismissed the advice and thought it was a fad. I watched it gyrate between 1500 to 20,000 to 50,0000 and back to 35,000 and below.
Each time... I referred to the volatility as a reason to justify avoiding it as an investment.
But in the last 6-8 months, I’ve watched companies like Microstrategy and Tesla and Insurance companies decide to invest ALOT of capital (Billions!) in this digital currency that is currently unregulated. That lack of regulation is what draws investment by the uneducated but it’s also what worries me the most. Elon and Michael et al are saying that parking cash in Bitcoin is smarter than and more appreciative than watching their cash lose value in the bank due to inflation.
That said, it did not stop me from investing a whole $50.00 into Bitcoin. Not Bitcoin Cash but Bitcoin. More on that distinction later.
My chosen platform for this experiment? The PayPal app - where you can buy as little as $1.00 of Bitcoin. It’s likely not as efficient as a platform like eToro or Coinbase. My first $50.00 purchase of Bitcoin was at the beginning of the year. I have DCA into it and as of today- it’s at an all time high. I fully expect it will drop 50% or more in the next 6 months. I’ll provide exact details of my total investment in the near future.
Purpose of this thread? A cryptocurrency experiment. Can I / We use the volatility of Bitcoin and “market timing” and crypto to make money? Of course, the risk is that while I’m experimenting...it becomes a legitimate gold alternative— a better place to park cash as Elon and Michael Saylor are saying. If adoption continues to rise (and it IS)... I may regret not accelerating the investment. The opposite can happen too. It could crash as it has done previously... but can I or We trade in and out and make money? Can you?
Would appreciate replies that include stories or links promoting or detracting from the crypto conversation. I think it’s a worthy subject or topic for the investing community to monitor and evaluate. In full disclosure, I’m highly skeptical of crypto and generally conservative.
YTD... my return is +15% in Bitcoin. I’ll share specific details on total investment in a future post. At the moment, 1 Bitcoin is worth $55,500.00 Thoughts?
Here is a 13 minute video offering from 2018, one of many "Bitcoin for Dummies".
Is Bitcoin A Ponzi Scheme? Point By Point Analysis
Our bitcoin GBTC holding comprise ~ 0.0005% of portfolio. You may expect loose the whole house on Bitcoin.
Maybe bad to the ones that leave the latest/maybe sell soon
Lyn Alden Schwartzer: Analyzing Bitcoin's Network Effect
What intrigues me is that Satoshi still has 1 million unspent bitcoin in his original wallet that he mined in 2008-09. That's worth $57 billion today! Of course, Satoshi could be an individual or a group of people; nobody knows.
I'm also intrigued as to the timing of Bitcoin's development and launch - immediately following the crash of 2008-09 as stockmarkets were bottoming. Was this purposefully timed to quietly usher in a new method of financial transacting and accounting? I don't know or have any views, but I've read several theories for and against.
My experiment is... can I keep investing and selling and using house money to make a huge profit in the volatility of Bitcoin? Hint: There are patterns with how it trades.
Plus... will it go higher as more Institutional investors (Fidelity?) pile in or more Corporations invest? I would love it if we all benefitted.
Only curious, thank you.
PayPal will let you buy bitcoin BUT they hold it and you cannot withdraw, buy nor sell it. It's only for purchases you make using PayPal.
Sarcasm yes and yes I believe bitcoin is the ultimate Ponzi
probably would get in/buy little more and buckle up
sell when it reaches 70s levels
very small/play money
@catch22 for my experiment- I chose an inefficent vehicle - Paypal.
It's easy to buy and sell via the app.
It's easy to direct deposit funds into and out of Paypal.
No need for a wallet. They are responsible for keeping your wallet and security.
The spread is too wide.
Price seems too high on Bitcoin vs. selling price.
You cannot set limit orders
The pricing and fees are not as transparent as they should be.
You don't have your own wallet.
It takes a little effort to cash out
Coinbase or eToro are probably the preferred way to buy and sell ... until things like this happen: https://www.marketwatch.com/story/morgan-stanley-set-to-offer-wealthy-clients-access-to-bitcoin-funds-report-11615998321
The ancient mathematical pattern predicting Bitcoin will hit $70,000
Jon, you're correct. Because of your DCA via paypal, I googled it. It's their wallet and while you can buy it through them, they keep it possession of it. You can sell it to them and take your 'profits'. You can use it to purchase anything that will take paypal. However, you cannot withdraw your bitcoin to a different wallet, You cannot use it outside the paypal world.
That said, I think, you're making a good sense way to DCA into a holding as a speculation. I have issues with them being the wallet and not me if I wanted to hold it as a core asset holding in my portfolio. For that I want to be the wallet.
good luck and keep us informed,
rono who remembers bitcoin at $200.
Baseballfan. Point taken. That's my issue with paypal. They hold the wallet and you can only use your bitcoin within their system. You can't move it out but can only sell it to them or use it to buy stuff thru them. feh. I want to be the wallet, so I can buy pot.
Almost at $1000.00 (total gambling money) for this. Still seeing pretty impressive growth by DCA. I'm starting to believe I will regret not making it a 10K experiment. We will see.
Biggest threat is governments outlawing Bitcoin. That said, much smarter people than I are adding it to their Arsenal. Fidelity is close to adding a crypto ETF. As more institutions and companies embrace crypto... I can’t imagine they haven’t investigated this threat. Bitcoin managed just fine today with the options expiring. So far, I’m still positive with my 1K. Having fun with it. Will post an update when it’s worthwhile.