Is It Time To Invest In Bitcoin?
Bitcoin is a cryptocurrency that intrigues many people. Regular people and companies alike have started accepting this new way of paying for goods and services or conducting their business in the real world. Bitcoin is experiencing phenomenal growth and it is only natural for people to wonder:
‘Is it a good idea to invest in Bitcoin?’
If you are capable of enduring the massive volatility, then Bitcoin is definitely something you should invest in. When it was initially launched, it was valued at nothing and at the time of this writing is it worth $6,500. The growth of Bitcoin has been nothing short of outstanding and institutional and individual investors alike are betting that it is here to stay.
Investing in Bitcoin
It is important to first understand the cryptocurrency before you invest in it. For an average person, you can get into Bitcoin investment in a variety of ways, each with its advantages and disadvantages. You can buy your Bitcoin from an exchange or you can mine it. However, buying it straight from an exchange is not recommended. Mining is a far more attractive option.
What You Should Know Before Investing in Bitcoin
Investors looking to invest in Bitcoin need to be aware of 3 key facts:
– It is decentralized i.e. it is not backed by a central government
– It can be highly volatile
– It is still not widely acceptable
The fact that it is decentralized is what makes it so attractive to investors since they can send it wherever and to whoever they wish without any government intervention. The issue of not being widely acceptable won’t persist for long since companies are increasingly accepting it as a payment for goods and services. The high volatility won’t be an issue for a lot longer since it will become more stable as it becomes more widely acceptable.
It is also important to understand that Bitcoin was never designed to be a speculative investment vehicle. It was originally designed to allow for an efficient exchange of property that involves minimal transaction costs as well as a high level of security.
Is it time to invest in Bitcoin?
If you have the courage to withstand the volatility of Bitcoin then it is definitely time to invest in it. Bitcoin has proven its resilience even after the naysayers have been predicting its downfall since its launch. All you should do is make sure that you invest wisely and don’t risk money that you cannot afford to lose. Happy Investing!