With cryptocurrencies soaring, is it high time to start investing in bitcoin? Bitcoin is a global and digital currency that is now comparable to the value of gold.
With people becoming dependent on technology and the internet, there is also an increased demand for a new currency – bitcoin.
This newfound asset has caught the attention of eager and hungry investors who would want a slice of this cryptocurrency pie. One bitcoin is said to be equivalent to hundreds of dollars which makes it valuable than fiat money.
The Law of Scarcity
Bitcoins are playing out the law of scarcity and the law of demand and supply. Bitcoins are considered valuable because it is scarce or limited and is also useful in the society. It behaves the same way as gold. There is very limited supply of gold. With the quest on mining for more gold, less gold are left and it becomes more challenging to mine for new gold.
Bitcoin and gold share that same storyline, There are only about 21 million bitcoins to date that are currently in circulation. These are mined by traders and brokers. As time goes by, it will become harder to discover new bitcoins in the process.
Owning Your Bank with Bitcoin
Bitcoins’ value are validated and verified by the community itself. In effect, this can be transferred from one wallet to another without any interference from middlemen or banking institutions. Your account cannot be blocked or censored by anyone. As such, bitcoin traders would say that they own their banks.
Investing in bitcoin is a sound idea – if you can decipher the jargons and be open to understanding the technology surrounding bitcoin and blockhains.
Standard Value of Bitcoin
There is no set price or value for bitcoin. Its market value fluctuates and is mostly dictated by the demand or the price people are willing to pay. Investors have pooled funds of over $2 billion for ICOs which speaks volumes of how bitcoin is now dubbed to be a high-profile cryptocurrency.
Wealth management experts or coaches see much potential with bitcoin investments but only if you are willing to hold out for a long time. As with any investment vehicle, there is always a degree or regulatory and market risks but if you are willing to invest for long term then this is the right investment opportunity for you. For now, investors can but speculate especially because along with the investment wins are risks of losses; and you should be aware of the potential results.
Buy and Hold
If you look at history, bitcoin has gained momentum and has increased in value at a rapid pace which is followed by a slow yet steady downward slope – and then it becomes linear.
It is important to note that bitcoin is a global currency and is not in any way affected by the economic or political conditions of one country. In fact, bitcoin is apolitical and is not dissuaded by political changes.
Bitcoins should be in cold wallets that you control and should never be left in exchanges. If you want to mine bitcoins, you should be prepared to shell out millions of dollars to fund a warehouse full of computers. You won’t profit with a single computer or just a room full of it. Investing in bitcoin is a rigmarole of buy and hold. You have to monitor the market rates to ensure that you get your investment’s worth and more.