So, what's the deal with Bitcoin?

When you’re buying shares in Amazon it is a company that sells products and provides services, it makes profit and pays a dividend.

Bitcoin does none of that, it’s a currency, the only value you get from it is what people are prepared to pay for it. And I personally (and many others) would be prepared to pay nothing for it because I/we don’t need it for anything.

It’s in no way an ‘inflation resistant reserve asset’ because it has dropped half its value before.

Those companies brought stockpiles of bitcoin hoping to sell before the bubble pops and will say good things about it of course to get other ‘investors’ in, I fully expect they have an exit point planned or a stop loss set to prevent losses, normal ‘investors’ don’t have that and will potentially get caught holding bitcoin that’s worth nothing when the bubble eventually pops.

/r/fiaustralia Thread