By Terry Savage on December 15, 2013 | Investments

My son decided to take 7K of his hard earned money and invest it in Bitcoins. Are Bitcoins the really deal or just a scam? I’ve read many articles about them. What is your professional advice on this, I guess new money….

Terry Says:  Honestly, I’m still working on understanding them.  This is a global, online “currency” that is completely digital.   Right now this is a VERY speculative market — as if you were trading any other commodity  in exchange for dollars.  And because of the global nature of the market (supposedly Chinese investors are using it to get wealth out of the country) there have been some huge,spiky moves in price.  That alone tells me to avoid this market.  But my own son (an investment pro) tells me there is some merit to the concept!  So, if your son knows he is speculating, and is willing to lose some of his money to learn about it, then there’s not much to say.  I do hope he is also investing in a retirement plan that has a better chance of making money for him!

I continue to read all I can about Bitcoin, and I must say I am fascinated — but not enough to get involved!



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