For some reason it seems like a huge con to me. Investing real money to buy virtual money feels like a bad idea. It wasn't such a long time ago that thousands of people lost their life savings and homes to what seemed like a boom investment that turned out to be an absolute con. People were investing their money to lenders who were using it to offer sub prime loans.
The global financial crisis happened because shares were being sold to invest in giving out irresponsible loans to people with sketchy ability to repay these loans. This funded a housing bubble in the US where property value became inflated by the fact that a lot of people who couldn't afford to pay off their loans were driving up the price of housing. When people began to default on these loans, house prices suddenly became worth a lot less than the amount the loans people took out to buy them. Potentially these sub prime loans would have earned the lenders higher interest rates, but in practice the irresponsible lending fell apart because people weren't able to repay the loans. The people behind the investment scheme sold their shares at a high profit before the shares became worthless.
I personally searched for information about what crypto currency is actually about and I can't see that there is any physical value to it. It doesn't seem to be connected to any business. It seems like it's fairy tale money that people are paying for with real money. As long as people see the potential for it to be profitable and keep investing it potentially will keep rising in value. To my way of thinking at some stage whoever is creating these crypto currencies could decide to run with the real money people have invested and thus make the crypto currencies another worthless investment. Perhaps this is just my cautious way of thinking, but i really can't see why virtual money will retain any value.
Before you invest in anything do your research. Look at things that are real and will hold value would be my advice. I just can't see that crypto currency fits that bill. It may have the potential to make a huge short term profit. But that profit is based on the fact that people are willing to keep paying more money for shares as far as i can tell. Getting involved in crypto currencies is probably a gamble like any investment. So to my way of thinking it's a better idea to aim for long term proven investments into businesses that will hold real value in the future.
