Re: Buying Bitcoins in China

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#29683
Avatar photoJerryS
Participant

Bitcoin as a safe have ‘currency’ is wrong on every level. There is no track record for bitcoin and since prices are fluctuating like crazy over the past few weeks, i would not hedge with it bitcoin.

Prices increase on all goods and services due to supply and demand (basic econ here). So prices for BC increases due to high demand and little supply, which can be seen as the result for the past few weeks.

The fear is that there is no regulating body for BC or centralized ‘bank’ for protection. Many investment firms that are FDIC in the US, which accounts are protected if anything were to go wrong. With BC, it’s ‘in your BC wallet’ or some hard drive with source codes. As a consumer, i would like to know where my money is housed and see if there is any protection on my investments. I am not saying BC is like buying a penny stock, where if the stock does a reverse split or goes to 0, there is no saftey net.

As for currency haven, then look at currencies and see how they fluctuate. Before i took a big hit on my account, CAD was doing extremely well vs all currency. Heck even the Yuan is appreciating now. Currencies can be manipulated, but overtime they will go to the prices where their economy dictates. A currency is only as strong as it’s country. BC as a currency haven.. I wont hedge with it. There is no real substance with BC and most of the people who advocate it for long term does not have trading experience or investment.