Quote:
Originally Posted by 'Hamas' Jenkins
I've got an idea: invest in assets that have intrinsic value rather than timing a speculative bubble.
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I work at a private trading company that is one of the most active in Bitcoin. I have watched its rise from afar with some bemusement.
Over the past two weeks, I have seen more bubble-ish signs than I've seen in almost anything in my career (working in financial markets at an investment bank, etc since 2003).
The highlight was my wife asking me last week to buy a Bitcoin for her because her friend in fashion heard it was a good investment.
I only offer the above as caution. Red flags are everywhere. The only saving grace is that there's very little leverage in the market, but that's countered by the fact that there are a lot of unsophisticated investors who have just gotten in over the past month.
I'm not sure how I feel about it intrinsically. I imagine it will someday be worth nothing but have thought that for awhile and have certainly been wrong. I'm just saying that it's been in bubble territory recently and its "value" right now isn't something that's good risk/reward at all to be betting on. This is a bad lottery ticket.