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Speculate or Invest

There are two ways to either speculate or invest with bitcoins. First, you can do a pure speculation on the currency appreciation relative to fiat currencies, gold, silver, etc. Bitcoins have outperformed gold over the last few years and gold has outperformed all major national fiat currencies. Second, you can invest in bitcoin denominated investments. There are a few Bitcoin related stock, bond, option and futures markets but they come and go. And beware as previously largest exchange GLBSE failed . 15 The interest rate on a currency is dependent on the underlying strength of the economy using it. Since the United States and Eurozone are so weak the yields have been in a zero-interest rate environment for years. Of course, bitcoin investments should be treated as highly speculative and you should do as much due diligence as you feel comfortable with before deciding whether to speculate or invest any capital in either bitcoins or bitcoin denominated investments. There is risk of fraud, embezzlement, etc. But there is also tremendous opportunity. When you invest in a high-yield investment where compounding is possible while denominated in a strengthening currency then your returns in the base numeraire, like dollars, euros or gold, can be multiplied. If you begin any serious investment in the Bitcoin economy then I highly recommend you get a lay of the land for tax law.