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How to invest in Bitcoin ? (as a long term play)

LessThunk: Be careful, this is high risk. Volatile, wild wild west, but the technology behind BTC is ground-breaking.

If you are convinced about the long-term viability of Bitcoin, there are many different ways of taking advantage of the rising trend of acceptance:

  • Buy and hold; Slowly move in a given time frame into Bitcoin, or better, invest slowly by buying when it dips. As only 21 million (full) Bitcoins can ever be issued, if BTC stays around in its current form, it will surely gain in value. The easiest way to buy Bitcoin is via exchanges like bitstamp.net (for Europeans) or convaise (in the US, etc.). Consider cold storage (on a USB stick for instance) to reduce the number of things that could go wrong;
    holdbtc
  • Like in the gold rush, invest in companies that sell the shovels or into professional Mining companies; like in real life, mining is hard.
  • Invest into public companies related to Bitcoin, via it’s so called “blockchain” technology.
    e.g. invest with funds, VCs, angels that are buying into Bitcoin related startups.

Examples of public companies
– Bitcoin Investment Trust (BIT) on SecondMarket ($25k minimum)
– Winklevoss ETF
– Bitcoin shop (BTCS), now also entering the mining sector
– NYSE (coinbase for example has a investment from the NYSE)

What could go wrong?

  • Everything. Like in any other high risk, early stage investment.
  • Know your individual tax regulations
  • Regulations might change, theft, Bitcoin might go out of usage, technical flaws might appear, password loss, you name it..

Why might you want to use a tiny bit of money anyhow?

Due to the scarcity of BTC (capped at 21 M full coins) the return over a long period (in 10-20 years) could be eye-watering!

goldbtcbtc_1coin

 

 

BTC in USD, last 3 months;

Screen Shot 2015-03-16 at 12.31.04 PM

looks even better in EUR

Screen Shot 2015-03-16 at 12.32.20 PM


Categorised as: BTC

Posted by: Kramer

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We may or may-not (coincidentally) hold some quantity of stock or other investment related to any given post, no endorsement is implied in any sense.

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