Bitcoin

LostChord

Well-known member
How does the average investor buy Bitcoin?

I've got what I'd call a healthy understanding of finance and investing, but admittedly, know very little about crypto-currency. I tend to diversify asset classes, and when it comes to the stock market, I generally stick to mutual funds. I have limited time available to devote to the research and homework needed to feel confident picking individual stocks as an overall investment strategy. That said, I keep a small amount on the sidelines for just that purpose. So, one item I'm considering along these lines is Bitcoin, but am very naive here.

Thanks!
 

chris snell

Administrator
Callsign: NW5W
Staff member
I'm shocked that people still want to put money into Bitcoin, given how many exchanges have been stolen from and how technical it is to keep it safely in your possession.
 

LostChord

Well-known member
Excellent point Chris...one that underscores the importance of understanding what you invest in. For me, I'm barely scratching the surface of learning more, such as how does one even buy it!
 

1of40

Well-known member
I guess it’s much more we’ll suited for those that have more time to make up for a huge financial mistake. That’s not me. I’m on the back 9 of my career and have no interest in redoing any holes. Not many folks have done poorly by buying what they know and can explain to objective listeners.
 

AdamSanta85

Well-known member
I'm shocked that people still want to put money into Bitcoin, given how many exchanges have been stolen from and how technical it is to keep it safely in your possession.

That is why crypto ETF's are soon to be a thing, as well as Bakkt (owned by ICE/NYSE).

"Bakkt is designed to enable consumers and institutions to seamlessly buy, sell, store and spend digital assets. Formed with the purpose of bringing trust, efficiency and commerce to digital assets, Bakkt seeks to develop open technology to connect existing market and merchant infrastructure to the blockchain. "

 
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chris snell

Administrator
Callsign: NW5W
Staff member
I'm not even talking about understanding the market or how blockchain works--I'm just talking about the systems and network security required to protect it. It's like buying gold bars and keeping them in your car's cupholders.
 

AdamSanta85

Well-known member
I'm not even talking about understanding the market or how blockchain works--I'm just talking about the systems and network security required to protect it. It's like buying gold bars and keeping them in your car's cupholders.

That is why an ETF, or Bakkt solves that problem.

Buying Bitcoin ETF will be like buying any other commodity ETF like GLD (Gold), USO (US Oil) or SLX (Steel), WEAT, whatever, you don't have to hold actual goods.

Buying Bitcoin today is like buying gold bars, buying Bitcoin ETF will be like buying shares of GLD.
 

LostChord

Well-known member
I'm not even talking about understanding the market or how blockchain works--I'm just talking about the systems and network security required to protect it. It's like buying gold bars and keeping them in your car's cupholders.

Along those lines, with reasonable precautions like cold storage, couldn't it also be like storing gold coins in a safe?
 

chris snell

Administrator
Callsign: NW5W
Staff member
The cold storage device/stick may be secure, but if you're plugging that into a compromised workstation and accessing it, all bets are off.
 

mimo500

Member
Gold has historic and intrinsic store of value with multiple real life, applicable and legal uses. Very worst case a standard 24lb gold bar can be used to beat the intruders that try to rob you.

The value of bitcoin is linked to nothing with no real necessary use. The most certainty we have is that its market price is most heavily determined by its largest holders and their needs at the time. If a bitcoin ETF was so easy to create, it would exist by now. But in the end someone has to hold it and someone has to be able to trade and liquidate it if they are running a benchmark that tracks its price. This far no bitcoin etf bids have been successful.

Save your money and go buy some tulips.
 
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