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Your thoughts on Bitcoin?

Discussion in 'Bitcoin Forum' started by Spencer-Ho, Oct 14, 2020.

  1. Spencer-Ho

    Spencer-Ho New Member

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    Got invested in bitcoin a few days ago, the CME contracts. Not sure if that's the best vehicle for it since I'm looking at it as a long term play, maybe sell if it spikes to 50K, or 100K. But now I have to constantly roll over the contract. Also, the initial margin wasn't that much different from the current value of it, so why not just buy actual bitcoin? Wondering a few things:

    1. Did I make the right move to invest in Bitcoin? I don't know alot about it from a fundamentals perspective. I undrestand it's different than fiat currency in that they can't print more of it that causes it to get devalued, and unlike gold it can easier be used as money, and it's getting easier to use it as such, if I understand, or am I wrong? The fact that there's a CME futures contract for it is saying something about its staying power perhaps. Also, won't people in countries that suffer from high inflation be more likely to use more Bitcoin? Saw an article today related to Venezuelans' increase use of bitcoin. Do I understand this correctly? Secondly, there is a culture, tone, passion, not sure what it is, but something about it seems good and cool to me. I like the tone and spirit behind it. Maybe it reminds me of dotcom era, maybe the early phase of smartphones, or the rock and roll of 1960s. There's good power and passion in those things. You can't easily kill that sort of culture. Also, in determining the trends of usage and laws regarding it, it's might be important to consider not just what my age group thinks (44yrs), or older, but what younger generations will do.

    2. Did I invest in the right vehicle for bitcoin? Some concerns here are security, trouble of rolling over contract, and being able to use margin. Is the CME contract more secure? Should I invest using another method? What if it get's hacked?

    3. What about other cryptocurrencies? Is some other crypto better than Bitcoin? Bitcoin has name recognition, which is important. But often in products there is a powerful alternative, like Coke and Pepsi, Apple and Android, etc. Wondering what you think might be the other product that might be the powerful alternative? And how would you know? If you can find the potential powerful alternative before it get's huge it might be a good investment as well.

    Anyways, would like to know your thoughts about it, where you think Bitcoin will go, why, etc.
     
  2. Vdubman

    Vdubman Well-Known Member

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    If you bought cme contracts you did not invest in Bitcoin, you are gambling like buying options of securities.

    if you want to invest in Bitcoin, do it like gold and buy physical. You will get margin called and wiped out in a day trading futures of crypto. It’s like playing with fire and having a pack full of liquid methanol on your back.
     

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