I can’t seem to open up any social media application or watch the news without hearing about Bitcoin. Either the cryptocurrency just set a record price or it plummeted 30% within ONE HOUR.
It’s the latest investment craze that is grabbing the world’s attention and for some of us we may be asking – should I Invest in Bitcoin or cryptocurrencies?
Before you decide to invest your money, we want to make sure our audience is prudent about their money, but more importantly provide you with a clear understanding of what Bitcoin is.
What is Bitcoin?
Bitcoin is a form of digital currency – it is intangible and cannot be printed. Unlike the United States dollar, bitcoin is unregulated and makes it attractive to buyers and sellers. Buyers and sellers no longer have to use a bank to transfer cash directly to each other – it eliminates the intermediary in transactions. This is an attractive feature because it minimizes transaction costs, there are no limitations to how much money is being transferred, and it can be used around the world.
Check out this brief video below that offers a concise introduction to Bitcoin!
Why is everyone investing in Bitcoin?
The exchange, Coinbase announced that approximately 11.7 million users at the end of October 2017 – that’s more accounts than a traditional brokerage account! The headlines we see in the news grab our attention and may entice us to begin investing our money because of the extraordinary returns this currency has produced. Bitcoin was valued at $1,000 at the beginning of 2017 and is now valued at over $18,000 at the time this post was written.
It almost seems that this investment is too good to be true – people do not want to miss out on an opportunity to grow their wealth. While it may be sound enticing to earn high returns, remember that investments do not guarantee you a rate of return, you CAN lose your money. With that being said, there are significant risks with this currency – it is volatile and you can lose money. Only invest what you can afford to lose.
Ultimately, the choice on how to invest your money is up to you – tread lightly.
“Be fearful when others are greedy and greedy when others are fearful”. – Warren Buffet