RE: Saving and investing - my point of view

[bhoa]

Very wonderful post. I feel the best investment is investing in self. The returns are not imaginable. However, most people don't do this of which I am guilty of too.
A question for you..

How safe is it to invest in bitcoin?
Why is it safe?

Comments

[zuerich]

Thanks for your comment!

I think the main risk with investing in Bitcoin is holding it on exchanges. An exchange can be hacked (like mountgox or cryptsy) and then your BTC are gone.
Plus, BTC is a rather volatile asset. There are certain risks concerning the technology.

I wouldn't say BTC is completely safe, nothing is. But compared to fiat currencies there are some big advantages:

• no single point of failure (due to BTC's decentralized nature): if a central bank makes bad decisions (Venezuela, Zimbabwe), the currency will devalue very quickly.
• a capped, maximum supply of 21 million: that's unique
• no middleman: If I have your public address I can send BTC directly to you without depending on a middleman (like a bank).

[bhoa]

Good points I must say.. What do you think about gold ?

[zuerich]

Gold is an established and good saving instrument.
I, personally, regularly buy small amounts of gold, not for speculation, but for the long term. Gold`s supply is limited and the yearly inflation (by mining) is limited. In that sense I use gold as an inflation-hedge.