Should you invest in bitcoin? | IN 60 SECONDS

A college student recently asked me
whether students should invest in bitcoin. I said I don’t give investment
advice, but I cautioned her: Be careful what you mean by invest! You see, crypto
currencies – or coins – aren’t like stocks that give you rights to a company. With
most coins, all you own is the right to transfer it to someone else.
She said, “That sounds like traditional currencies. So why does bitcoin fluctuate
in value so much?” With traditional currencies, when people want to do more
transactions or save more, the amount of the currency grows (if governments are
doing their job), so the value stays about the same. Not so with cryptocurrencies!
Their supply is driven by software which generally creates new coin at a fixed pace,
regardless of the demand for the coin. So whenever people want more, whether for
transactions or to speculate for future values – or just because they’re
enthusiastic about coin – the value grows. When people want less, the value drops.
It’s all about demand. So with cryptocurrencies, know what you own. Do you think cryptocurrencies are a good investment? Let us know your comments.
Also, let us know what other topics you’d like our scholars to cover in 60 seconds,
and be sure to like and subscribe for more research and videos from AEI.

16 thoughts on “Should you invest in bitcoin? | IN 60 SECONDS”

  1. my advise would be: never take investment advise from someone who doesn't even get the difference between investment and speculation.

  2. Good points, but right now while bitcoin is relatively small, it is designed to increase in value, once it is being used the plan, at least in theory, is for it to be stable. Currencies today are not actually stable, they are designed to decrease in value slowly over time, just slow enough to appear to be stable. Anyway, the short answer is yes, she should own some bitcoin but shouldn’t over due due to its volatility

  3. Cryptos are not an investment, it's pure speculation. Nothing wrong with pure speculation as long as you don't spend more money than you can afford to lose.

    Also, the number of cryprocurrencies is growing exponentially. This in itself is a form of inflation.

  4. Crypto currencies have great potential, but 99% of them are hype only and will eventually crash & burn.

    Bitcoin and Ether are relatively safe bets though. Yes they fluctuate way more than any traditional storage of wealth, but the overall proposition is solid. They won’t go away any time soon.

    From there on, good luck picking out the pearls from in-between the heap of garbage-coins.

  5. Crypto currencies may or may not be sound investments, but their supply does NOT keep growing for most crypto currencies. For example: The maximum amount of available bitcoin is fixed! This is opposite to traditional (non gold backed) currency which can be created without limit.

  6. Bitcoin is an intrinsically valueless Veblen commodity trapped in a permanent loop of speculative bubble after speculative bubble, unable to bottom out at it's intrinsic value because it A) has none, and B) forms a new bubble while it falls.

  7. If you want to buy into something that is likely to plummet in value and see your money disappear, get some today ! Be quick before the next plummeting happens.

  8. Is this the argument for FIAT currency? I mean it's the same argument you would say for be careful with investing in say, gold/silver.

  9. I like how he lied and said that the government printed money in order for it to stay the same value. That's a funny way to explain why my dollar has lost 90+% of its value and isn't backed by anything. I'd expect better from AEI but I guess convenient lies are better than destabilizing truths.

  10. Bitcoin TERRIFIES Big Banks, because it threatens their centuries-long monopoly over the world. Because Bitcoin makes it possible for ANYONE, who has some brain and knows how to use the technology, to become rich and be part of the money elite.

    That is what TERRIFIES them, because they don't want that. The Big Banks rather want us ALL to remain poor and in debt for the rest of our lifes while they SUCK away everyone's money like BLOOD LEECHES . There is a war between THEM and US. We want to become TRULY independent. They want to PREVENT us from becoming independent. That is the harsh reality . BITCOIN TO THE RESCUE .

Leave a Reply

Your email address will not be published. Required fields are marked *