Originally posted by Eff Pandas
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There are other types of digital securities (not necessarily 'currencies') that you alluded to. I've read a lot (last year) about companies doing ICO (initial coin offerings) that promise investors the rights to future profits, business products, etc. However, I want to just discuss bitcoin.
If bitcoin acts as a currency then it would fluctuate (like other currencies do with one another) against other currencies. Right now the US dollar has appreciated against other currencies making it a strong currency. However, the dollar will eventually decline or plateau against other currencies. My point is, the dollar is not going to provide a positive return year-over-year or provide a net positive return over many years. In fact, inflation is going eat into any gain in value and reduce it's buying power.
Currency is a means to store and exchange value. It's a tool not an investment. Having said this, I would not buy Euros as investment or just keep cash as US dollars. This is how I think of hard currencies.
If cryptocurrency is similar to this, then I don't see how it is an investment opportunity.
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