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by windsurfer
5543 days ago
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I still don't see why people would pay money for this virtual thing. It doesn't have any real value yet, everything is promised to come. It looks like some kind of scheme that promises future value in exchange for your cash today. Isn't this called a Ponzi scheme? http://en.wikipedia.org/wiki/Ponzi_scheme If, on the other hand, governments backed this currency by guaranteeing some kind of flat conversion rate, I would be all for this system. As it is, I'm staying out. |
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However, the ironical thing about starting a new currency is that the value of it is determined by the trust people have in it. Since Bitcoin is new and unproven, the trust is quite low. Until it is trusted it won't have real value, but a lot of people won't trust it until it has real value. It's a chicken and egg problem.
By investing in Bitcoins you are investing in the belief that the currency will gain in popularity. It actually is no different from investing in a company at an early stage. By investing early before something is proven the risks are higher - but so are the potential rewards.
The people who invested 50K in Facebook early are rich now. Those who invest 50K in Facebook today won't see anything close to the return the early investors did, even with the same investment. A lot of people lost their investment by investing in some other social network instead of Facebook. This is just like any other high risk/high reward investment - you invest on your belief that something will succeed.