Cryptocurrency

That's certainly one of the major risks involved, I think China has already taken steps to stop some banks handling Bitcoin trades. A lot of people say it's a bubble waiting to burst and they may be right but theres certainly a lot of demand for an online currency.

Interesting article on the Tulips I enjoy a good history lesson!


With regards to cryptocurrency - I think since the early days of the Internet there's always been some kind of anti establishment movement and virtual currency is the latest manifestation of this. IRC/Hacking/Viruses/P2P File sharing/Streaming TV/Porn and to a lesser extent P2P/P2B lending/Crowdfunding are good examples. The Internet has always had an element of people wanting to break the norms and I think online/virtual currency is here to stay. The anonymity behind the currency also adds a dimension which makes it attractive to people wanting to evade law enforcement agencies (Silk Road). The only trouble is foreseeing how things will shape up and what format it will take. As you rightly pointed out govts will take measures (some already are) to stamp it out but as we have seen with file sharing once the cat is out the bag it becomes increasingly difficult to stamp it out. I think they will just have to embrace it like the aforementioned movements - IRC (social media is huge) Hacking (NSA/GCHQ) File sharing (Itunes/Netflix) Porn (billion dollar industry) and so on...

I've been following Bitcoin for sometime and IMO the ship has already sailed, unless you want to invest heavily and take a big risk there's no point getting involved now. Bitcoin also has the disadvantage of being the first to pop its head over the parapet and face the oncoming barrage from Govts around the world - anyone remember Napster? Its reputation has been tarnished by the likes of Silk Road and its just a matter of time IMO. Litecoin has been likened to the marketplaces Silver and its shown steady growth. I think there's still potential in the next year or so and if BC goes belly up then its in prime position to replace it. If you already have the Hardware to begin mining then I'd go for it, the only real expense is electricity to power your machine! I'm going to find a way to get my laptop to do it because I cant be bothered purchasing hardware. I think in the short term its an easy way to make some money and youve gotta get out before the bubble bursts.

There's a thread over on ZopaTalk with some useful input.  With Bitcoins it worried me how many of the real currency exchanges are in Yen.

I agree with Jimbo: I think the real money has already been made & anyone "investing" now shoulders a disproportionate level of risk.

Furthermore, I don't see how Bitcoin can continue to exist in it's current form.  The fact that there's an extremely limited supply is what gives them their value, but the supply is so limited it can never take-off as a replacement currency: there's just not enough to go around. I'm waiting for the announcement that suddenly there are another x million Bitcoins to be mined but (like QE) that will just devalue existing Bitcoin holdings.

I've no doubt virtual currency is the future but I'm just not intelligent enough (or brave enough) to call it at this point in time &, as Jimbo said, if they ever even look like they might become a real threat, expect the banks to step in & block it (or take their share...).