I have a couple thousand dollars in a savings account. I am getting almost no return since the bank accounts interest rates are so very low.

I know nothing about the stock market, so investing there is not at the top of my list. If I put the money into a bitcoin wallet, theoretically, isn't it gaining value faster than the savings account? Even with any fees involved, it might be a good place to hold my money.

Also if things go bad here in the USA, I'd like to have some money safe.

  • 3
    "I know nothing about the stock market, so investing there is not at the top of my list": If you know nothing about bitcoin, do the same. Warren buffet, a great investor said "Don't invest in something you don't understand". In addition, Dollar is not as volatile as bitcoin, so you take no risks.
    – user19440
    Commented Sep 24, 2014 at 13:12

5 Answers 5


Keep in mind that funds held in a Bitcoin wallet carry considerable financial risk (compared to a savings account). The value of bitcoin can increase rapidly, but it can also drop rapidly.

If you believe that long-term, the value of bitcoin will continue to increase, then bitcoin might be a good investment for you. However, the future is unknowable, and something could happen that causes the bottom to drop out of the bitcoin market and its value to plummet. Your choice.

Note also that in the US, you may be liable for taxes on realized capital gains through investment (this is not tax advice).

  • Is there some sort of chart of bitcoin value over time? Thanks for the great info. I do think it will be a good investment. Maybe I'll start slow and buy 1 bitcoin first.
    – Branndon
    Commented Jan 23, 2014 at 1:34
  • There's lots of charts available, an easy one is bitcointicker.co (click on the "6Mth" link in the top right for more history). Commented Jan 23, 2014 at 1:37
  • Thanks. I'll watch this and see how it goes over the next month or so before doing anything.
    – Branndon
    Commented Jan 23, 2014 at 1:43

Considering adoption of bitcoin seems to be increasing exponentially, as long as all other things stay the same, bitcoin's value is likely to increase proportionately (until market saturation). https://bitcointalk.org/index.php?topic=366214.0

The only worry I have is the coming regulation. If you look at the period from the middle of Nov to now, you can get an idea of what regulation can do to bitcoin. China made it illegal to sell BTC for their currency and the price dropped around 50% over a month or so and it's still pretty volatile. With larger companies like Overstock starting to accept them, the US is starting to feel some pressure to clarify their position on crypto. My biggest worry is that their decision, depending on how restrictive it is, has the possibility to make BTC almost worthless. The choke points like exchanges are currently vulnerable to being shut down by money laundering laws.



People who have missed out on the early days of Bitcoin may find it hard to justify investing at this point in time. That is understandable, as over $15,000 per Bitcoin is quite a steep price. The best time to invest in Bitcoin was yesterday. One should not contemplate whether or not to invest for too long. Opportunities will come and go with Bitcoin. Even if you would buy today and the value dropped by 20% overnight, there is still a good chance one will score a profit by just holding onto this Bitcoin balance for the foreseeable future.

If you have done your own research into Bitcoin and think it might be worth trying, there are few reasons to wait. It is important to keep in mind one does not necessarily need to buy a full Bitcoin either. Unlike most other currencies in the world, Bitcoin can be divided up to eight digits after the decimal. Even purchasing a fractional amount of a Bitcoin is a smart idea right now, as it will most likely appreciate in value if you have some patience.

  • I think this answer understates the risk involved. Bitcoin prospects look good now, but you won't know otherwise until it's too late. For someone who knows little about investment opportunities, like the OP, I think it'd be worthwhile to at least mention risk vs. reward and the benefits of diversification. You paint the appreciation of Bitcoin as an inevitability, when the reality is far from it. Commented Dec 8, 2017 at 19:58

Bitcoin is not an "investment" it's a speculation. Purchasing (part of) a company and sharing in its profits is investing. I recommend reading Bogle's classic book in index fund investing. The best strategy is to grow rich slow and this easy to read and understand book will show you how.

If you must delve into Bitcoin, just put in 5% or an amount you are comfortable losing.

I'm nearing retirement and regret not saving 10-15% of every paycheck and putting it into the stock market. Had I done that I could have retired early.


Here is what I would do:

  1. Take a "small" amount of USD, e.g. $100 ("small" = an amount that you can afford to lose)

  2. Use those dollars to buy Bitcoin. (You do not have to buy integer values of Bitcoin)

  3. When (or if) the value of your Bitcoin increases to some amount > $100, [i.e. $(100+x) where x > 0] withdraw $100 worth of Bitcoin back into your USD bank account.

Congratulations! You now have $x worth of Bitcoin that cost you nothing.

If the condition in step #3 does not become true soon enough for your liking, just convert all the Bitcoin back to USD. Your potential loss is limited to $100 (which should not matter to you) but your potential gains are unlimited.

Remember to pay taxes as required in your country. Most probably, you should only have to pay taxes on your profit in USD in the year that you sell any Bitcoin, but this is not professional tax advice.

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