Bitcoin has been a currency that has remained in the news, front and centre of any financial reporting over the recent past. Bitcoin has made massive gains reaching unknown highs of $69000.00/Bitcoin in November 2021, then dropping suddenly before beginning a new rise. It is these fluctuations and the volatility, as well as the massive amounts of money that is involved, that have made Bitcoin one of the favoured online currencies of all time. This article will look at whether you, too, should be investing in Bitcoin.
Understand the cryptocurrency concepts
As with any investments you make, there must be a clear understanding of the concepts and terms that are associated with Bitcoin and the investment process. You don’t need to know the code and blockchain itself and be able to mine it yourself. However, you will need to know the value of the currency, where it works, how to use it, and what can be bought with such e-currencies. Once you fully understand what you are investing in, then it’s worth giving it a go.
It’s now a mainstream currency
Bitcoin has gone from being a niche, techies-only currency to one that is now a mainstream event. It can be used to access an increased number of activities, from online casinos at https://www.internetpokies.org/deposit-methods/Bitcoin-gambling/ to buying high value motor cars and even property. As such, it is more widely used and accepted than ever before, which has seen its intrinsic value and purchasing power increase steadily over time. This is what investors look for, a steady rise over time, regardless of the few blips and reductions in price that also happen along the way. Bitcoin has clearly shown this increase over the long term.
High risk equals high returns
Yes, Bitcoin has proven to be increasingly volatile, and although there was a meteoric rise, there can also be a sharp fall. This is a major consideration factor to be at the top of your list, in that you could very well make a lot of money but also be prepared to lose some of it. So, the best advice is not to put all your investment eggs in this one specific Bitcoin basket (or wallet).
Invest or earn on the rate of change
Lastly, there is also a way to earn from the volatility of Bitcoin. Traders are able to essentially bet against the price changes of Bitcoin. Either placing money and earning as the currency rises or drops in value. This is not about buying Bitcoin, simply trading on the price, as is possible with any other currency, but is highly risky based on the inherent volatility of Bitcoin.
Bitcoin is proving to be a great investment for those who got in early, and it has been the route to wealth for many. It is, however, not a sure thing, and as with any investment, you should have a wide range of products and investments that are geared to your specific needs as well as the available finance you have to invest. Bitcoin is still one of the best ways to hedge against inflation as the value of the virtual currency is not in any way determined or linked to inflation.
