Nugget I've been trading in Bitcoin for quite sometime and sell Bitcoin mining units and Litecoin miners as well.
The majority of people have a total misunderstanding of digital currency and as Prospector B said above most people see them as volatile as not being able to see they are to not being backed by anything. That's the whole point of it, it's backed by it's users world wide and the more it gets used for purchasing the more powerfull and valuable it becomes.
Reality will show that paper currency is just that, a piece of paper and is not backed by anything but a countries promise to pay, this is what backs the US dollar, a promise and non stop printing press.
Bitcoin is the player in the digital currency and will explode again in near future. Japan has listed it as a commodity and put it in the same vain as gold, silver etc. US Federal reserve just came out the other week and have backed Bitcoin and major major players are getting in and investing massive amounts of money.
In recent months since Bitcoin hit it's all time high of around $1200 back in late December 2013 there has been some bad press relating to Bitcoin due to the Mt Gox fiasco and this put pressure on BTC and amnipulation of a bear market against BTC saw it plummet to the low $400 but and this is important to understand , this was just a correction of the market and BTC held steady and firm and started a slow rebound back into not the low $600's and in recent weeks with the Federal Reserve and the US NSA recognising bitcoin as a legitmate currency and not a threat in regards to money laundering, it's about to take off with big expected Bull markets to explode in coming months. I had a few friends dump their BTC through the Mt Gox period when BTC price dropped and dropped. They panicked but did not lose as they made 3-400% on their initial investment but had they held on that investment would now be worth 600% and with the prospect of it going higher and higher.
My advice is grab some when there is another bear push against BTC value and make sure you set up an offline wallet to keep it all safe.
BTC is gaining huge popularity in Oz with atm's being set up in Melbourne and Sydney and once the average punter get's on board it will explode, way, way more than gold. Hardest thing is people trying to get their heads around how it works and how it is valued. It's just they have been brain washed into believing paper currencies actually have value.
Ok with Litecoin the bonus is it's trading cheap so no need to invest large amounts of money but it does not move in value like BTC usually around the $9-$40 mark but say you buy $1000 at $9 a piece and then it goes to $40 and you sell well that's a tidy little profit. It does not move like this that often but it too will gain momentum but I doubt it will ever be like BTC.
Money can be made in Litecoin mining but the units can be expensive but you can make a tidy profit per month for what is basically a high powered computer humming away in back room.
Look you'll find a lot of naysayers re digital currencies and honestly it's mainly not understanding how they work and the financial gains that can be made.
Have a look at a few BTC charts from it's inception and you'll be hard pressed to find anything that has rising rate like BTC .
Digital currencies are not for everyone but are as safe as trading in stocks, bonds and currencies etc. World markets are volatile in all aspects e.g the GFC, so best to be wise when making decisions when investing in anything. Just be a smart investor and only invest 10-20% of what you can afford.
I have a heap of info I can send you to have a squizz and happy to answer any questions.
On another note, the biggest buyers of Bitcoin are the Chinese. When the price goes down they buy like crazy and they are not stupid investors..e.g who is buying most of the gold in the current world markets. The great thing with Bitcoin is there are bitcoin tracking programs and you can see in live time where all bitcoin being traded is going and that's the beauty of BTC, you can see where every single piece is in the bitcoin chain.
http://fiatleak.com/ this is basic but watch for awhile and see where it goes.
Digital currency is not for everyone but understand it and you can make very good profit and a good way to diversify your financial portfolio.
I chose to hit both side by investing in BTC and supplying the mining units as well so have got the best of both worlds.
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