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Why You Should Probably Buy Bitcoins

In 2009, probably within the first couple months of its existence, I downloaded the Bitcoin client and began mining bitcoins. Back then it was really easy-- you could get hundreds of Bitcoins per week for free, but they weren't worth anything. Not wanting to waste my time, I deleted the Bitcoin client, and any bitcoins I had mined went along with it.

Last March I thought about Bitcoins again and decided to check up on them. As I read about the progress that had taken place in the preceding years and learned more about the technical aspects of Bitcoin, I was blown away. This is going to change the world, I thought.

So I bought a few when they were around $30 a coin, a few more at $80, and then again at $110. I'm not a Bitcoin millionaire or anything awesome like that, but percentage-wise, it's the best return I've ever gotten on anything. In case you don't fanatically check the price like I do, it's at around $825 per coin as I write this.

I'm going to write the rest of this blog post to explain why I think it's important that you buy some Bitcoins, but take it all with a grain of salt. I do know a fair amount about Bitcoin, but I don't know much about investing or, more importantly, your financial situation.

Bitcoin, Finance, logs etc

On Ideas in the Making

Bit coin is going crazy, tons of arbitrage opportunities for those with large bank accounts and verifications set up I'm talking literally risk free profits everywhere, though not instant. Today bitcoin had a massive correction as it was nearing 90 RSI as I predicted earlier last post. I still think we are headed for the moon for the following reasons.

1. A lot of bank transfers/wires are probably in the process of clearing as people saw that bitcoin was hitting a new all time high. This seems especially true in China. I expect prices to go up this week as more money is injected into the system.

2. People believe in bitcoin now substantially more. This isn't 2012 anymore were bit coin had never seen the front page of anything but popscience. Bitcoin has prominence, its on the wall street journal, forbes, business insider, cnbc. This is being taken seriously.

3. More countries are too join. I have already invested in an exchange that is hoping to cater to South American customers. South America has a lot of capital controls, espcially in places like Venezuela, Brazil and most of all, Argentina. I expect these countries to inject even MORE money into the bitcoin system.

4. Because of #2, a lot of people with a lot of bitcoins are just holding on to their bitcoins. Why sell when you have 1k+ when you are gonna lose a ton to slippage and have to deal with taxes and a myriad of other stuff? Furthermore what is the real risk here? yeah they could go down, but now you can actually buy things with bitcoins. So unless you really just wanna cash out, moving 1k+ bitcoins out of the system just costs too much atm, for too little gain.

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