[ChuckMcM]

Sure, you should not invest.

I say that because investing has different skill levels and different risk/reward profiles. The lowest level is perhaps savings accounts and CDs and at the most extreme end are derivative financial instruments. Long before you get to currency speculation you go through equity value investing, bond investing, and equity option investing. After going through those things you get to commodities, precious metals (a form of commodity) and then currencies.

So to ask the question "should I invest in this right now?" doesn't make a lot of sense to an investor who is always looking at what they have invested, the risks of those investments, and the forces that move things. If you are wondering what the outlook is for price expansion of bitcoin relative to the Yen or Yuan, or what geo-political events are most likely to move the value of bitcoin and in which way, then you are looking at the investment in context and really the only answer is one with your other context which isn't part of your question. If you portfolio was a million dollars and you wanted to put $10K into bitcoin as a 'kicker' (something that would potentially kick up a big return but if you lost it in its entirety it would only represent 1% of the return. That's an interesting question. It has far more downside than upside at this point.

[eliasmacpherson]

A voice of reason in a world gone mad! He would have to clarify the amount of risk he wants to take and how much time he wants to spend on it. A friend has very successfully invested in bitcoin (1000%+ return), but I am very sure he has the price up on his smartphone 24/7 and can sell very quickly.

I don't know how much downside it has, as a long term gamble, because there's an upper limit on the amount of currency. If it does take off with the general public, the longer you can hold the more it will be worth.

"Hard limit of about 21 million Bitcoins" say you bought 1 million bitcoin at $1 and bitcoin becomes a replacement for paypal?

[ChuckMcM]

Well the downside is that that loses all value. That can occur for a number of reasons but the two most widely speculated on are a global response (something like the G8 deciding that they won't allow trading it) or a technical defect (which invalidates some part of either the transaction train or the currency itself).

But that said, its also very volatile as a currency and that makes for a lot of speculation and rapid market changes. Not for the faint of heart and certainly not a place for any money you might actually need a year from now.