What is Bitcoin?
Although cryptocurrency is on the rise, most people don’t completely understand what it is. Most people purchase goods online using their debit or credit cards, however this is not always the most secure method of payment. Cryptocurrency is a method of payment that works just like USD without the risk of using of your credit or debit cards. The most popular form of cryptocurrency to this day is Bitcoin, although there are hundreds of other types of cryptocurrency which are often referred to as ‘altcoins’. In simplest terms, Bitcoin is digital currency.
Should I invest in Bitcoin?
The trading value of Bitcoin has been on a meteoric rise. For example, a Norwegian man’s $27 investment in 2009 turned into a $886,000 cash windfall in April of 2013 . He cashed in before the value of coins dropped from its peak of $266 to a low of $50. Imagine if he had invested $100? That would be $3.2 million.
This shows Bitcoin has a promising uphill trend, but is also extremely volatile. Since cryptocurrency is a relatively new concept, its difficult for professionals to properly assess its value and future.
You Only Need $1 To Start Investing
Bitcoin is also traded in relatively low volume. You can buy Bitcoin with as little as $1 (you’ll get 0.00021 Bitcoin). This makes it perfect for first time investors, but also sensitive to moment-to-moment market fluctuations.
The Best Advice
Diversify your investment. If you already have some money invested in stocks or a 401k, then definitely go for Bitcoin. Stocks on average will give you a maximum return of 20-25% in a year. Bitcoin has the potential to make you way richer. Over the last year alone, it gave a 729% return. $600 in Bitcoin last year is $5,000 today ?
Bitcoin is definitely worth being a part of your investment portfolio. The rapid growth Bitcoin is seeing now cannot continue forever. The value of Bitcoin should stabilize in the future, but it could even crash or just continue to fluctuate. If you’re going to invest, now is the time.
A lot of people compare Bitcoin to Tesla stock.
The real question is do you wish you invested in Tesla back in 2010? Based on the stock graph below, the answer is a resounding YES. Nobody thought electric cars would last, but they’re predicted to take over the market in 2040. Experts predict cryptocurrency will follow the same path and eventually take over the market share.