Would Bitcoin be a Good Investment?
For many people across the world, the word Bitcoin is synonymous with a certain Internet phenomenon that is unrelated to their lives.
A phenomenon that is related to money, yet one that remains complex and incomprehensible, to understand which these people have neither the strength nor desire.
Despite all the technical difficulties and security problems in conducting transactions, Bitcoin is still the most popular electronic cryptographic unit, which is nowadays used not only in the form of a means of payment for services or goods, but also as a good way to invest. The journey it has been on so far is remarkable, to say the least. At its inception, it was worth no more than a few cents. At its peak, which occurred in late 2017, it nearly reached the $20,000 mark, and that’s in less than a decade. It still has a century of mining, development and utilization ahead of itself, so to think that Bitcoin is past its prime already, would be foolish and unwise. Even though it has experienced a significant drawdown the past year, that is no reason to abandon the ship and write Bitcoin off as history.
A key attractive feature of Bitcoin is its limited nature. The fact of the matter is that the total volume of Bitcoins ever available will never exceed 21 million. This number was derived after calculating the decreasing geometric progression of the remuneration amount for the mining of each new block in a chain of 210,000 blocks. It is easy to calculate that by 2031, the size of the emissions when creating a new block will be less than one Bitcoin, and by 2140, emissions will stop altogether. It is likely, that by that time the commission for the process of forming new units could become a significant source of profit. However, everything that is related to a distant future is simply pointless to discuss and speculate on, especially things concerning the prospects for Bitcoin in the XXII century when we barely understand what is going on right now.
Ways to invest in Bitcoin
There are two investment strategies that are considered successful when talking about Bitcoin as an investment asset:
The essence of this strategy is represented by the name itself. A person can invest in Bitcoin by simply buying a specific amount and expecting its value to grow in the future. Buying cryptocurrency for cash is easier than ever. Many virtual exchangers offer these kinds of services in exchange for commissions. A few examples: Indacoin, XCHANGE, 24change, and WMGGlobus.
This strategy implies active trading on a specific cryptocurrency exchange. The basic principles of trading Bitcoins are in many ways no different from the principles of classical stock trading or the trading of currencies on Forex. A few examples: Bitfinex, Kraken, Bitstamp, and Tradingview.
Is it profitable to invest in Bitcoins?
No one is truly capable of saying with 100% confidence that investing in Bitcoin will make you rich, and those that do are only lying to themselves.
This is and will be the case for a while now, and for one simple reason — the world around us is highly unpredictable, to the point that only the most die-hard optimists can make claims about Bitcoin with certainty, and they may not turn out to be right after all.
Avoid falling into the endless abyss of everyday philosophy and opinions about Bitcoin.
All you truly have to do is to listen to professionals, successful people, billionaires who have risen to the very top and ask yourself whether or not you believe them, and are you willing to put your money on the line.