The Hoarder Next Door – Will holding coins make you rich?
I have a friend who lost a lot of money on their investments. How they achieved I’m not quite sure but I think it was down to financial advisers, but we had a long conversation about Bitcoin. Especially as I explained that my savings (which are small) are pretty much tied up in Bitcoin mining. Every day I can login and see my investments increasing which is really good.
My other plan is to build up a fund of Bitcoins that just sits in a wallet, probably a cold wallet and is backed up somewhere. I may even set up a full node (a node is where you download the whole Blockchain), it’s expensive on disk space but at least I’ll know where my coins are. I would advise people NEVER to hold a lot of coin in a centralised system.
So I suggested to her an investment of £100 – £100 into something like Splitit Mining because they have an auto-re-invest feature, whereas Genesis doesn’t so they just pay you out and you have to invest back, EOBOT though wins through because it can diversify investment across different coins, including earning more mining power,, I explained, will be slow, but steady, but we are more banking on Bitcoins going up in value against other currencies, and then to hold £100 in Bitcoins (0.1 or so), wait and watch both things mature.
It is quite odd though, that my Bitcoin savings actually look safer than her accounts that have simply lost money, saying that, I had a pension worth around £35000 that is now worth £170000. If I’d have put that money into Bitcoin say 5 years ago I would have a staggering £350000. That of course doesn’t mean it’s going to continue in this vein, anything can happen, but the demand for Bitcoin increases all the time, as people discover how they can transfer around money.
So for me the 0.1/0.1 plan seems quite good and will hopefully yield results. People do say to me that mining is very slow, but it’s money for almost nothing and it will build up, as the Bitcoin price increases so the VALUE of the coins mined goes up, even though there will be less coins to mine, at least the value will be more – so it should balance itself out.