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Also - There will ever only be 21 million Bitcoins and that last one mined is expected in 2140, but that estimation will go out the window if we all jump in now!
I just wouldn't put in *anything* that you cared about losing. It is tempting to think, wow, I could put in £10k, and make £10k in a month, but it is just so risky.
Everything else is too shady right now.
Of course, that's just my opinion.
https://www.investopedia.com/terms/d/dutch_tulip_bulb_market_bubble.asp
My feedback thread is here.
http://www.zerohedge.com/news/2017-12-12/its-official-bitcoin-surpasses-tulip-mania-now-biggest-bubble-world-history
I wouldn't advise "hanging on to BC for the next year to see what happens" as some people advise
I'd get the hell out of it
That said, not really in investment in the usual sense when you have a share of something with value, the actual value behind bitcoin is really nothing.
Bitcoin is limited in number, doesn't bio-degrade, and is fungible, divisible, etc. That doesn't mean it isn't a bubble, and I would say that it is certainly sentiment driven, but I am not sure if you can call it a bubble in the traditional sense. I do think there could be a massive correction though, like with the dot.com crash ,but companies like Amazon certainly bounced back well after that, because the value was still there.
Bitcoin is no amazon, but Amazon lost money for a long, long, long time before turning any kind of profit. Bitcoin is more like gold to me. Its value, is as a store of value. When/if people no longer believe it is a store of value, it will drop. That could be a long time away though.
My feedback thread is here.
There's some level of crash that puts the value of new-mined bitcoins as lower than the electricity required to mine them, but what happens then? No mining means no transaction validation. Something or someone would need to pay for that 4TWh/year of electricity to make it worth the miners' while. It's not going to be done with transaction fees - those will no doubt rocket astronomically the moment any boom turns to bust, but once the value of Bitcoins makes them uneconomic to mine, the transaction fees would rapidly exceed the transaction values!
The best options open to the miners would be to switch to another cryptocurrency, should one still offer economic gains, or try to cash out by selling up, getting whatever they could for the hardware.
The likely outcome of a Bitcoin bust is that it becomes frozen and abandoned. People would hold their Bitcoins in perpetuity, waiting for those Terawat hours of electricity that will never come.