Is Bitcoin A Good Investment?
What is bitcoin cryptocurrency?
Bitcoin can be described as a cryptocurrency. A form of electronic cash rather than a physical coin. It is a decentralised digital currency without a central bank or single controlling administrator. Bitcoin can be sent from user to user on the peer-to-peer Blockchain Bitcoin Network without the need for paying or delivering interest; as in normal physical currencies.
Is Bitcoin A Good Investment?
Bitcoin (BTC) is essentially a store of value. It is valuable due to its scarcity. Bitcoin is relatively easy to move. It has risks though; especially risks in it’s security. It can easily be lost, storage data corrupted or sent to the wrong Bitcoin address when transmitting between wallets.
Is Bitcoin A Good Investment?
So now we know what it is, but is Bitcoin a good investment?
Let’s be frank. Bitcoin is a speculative medium at the moment. It was the first blockchain currency and could be superseded by a better, faster, cheaper crypto currency. It’s not really electronic money, because it’s much more expensive & slower than competitors for that.
Bitcoin has no intrinsic value of its own, while gold does. Gold can be used in jewellery, industrial processes and can at least be held physically.
My Verdict – Is Bitcoin A Good Investment?
My verdict is that I like Bitcoin. I invest in Bitcoin and have made money in Bitcoin.
But for me, it is not yet universally accepted money. It’s not yet, a safe store of value superior to gold. It is a prototype type digital currency and could easily be superseded by a competitor that does what it does, but better and cheaper.
Is Bitcoin good to invest in? By all means speculate and invest in it, but don’t “bet the farm”. Don’t put 100% of your money into it. Don’t mortgage your house to buy Bitcoin, as some people did in 2017.
Be strategic, buy the dips and sell the highs or buy when the market really crashes and hold for the long term. Remember it’s important to have multiple income streams, and not just your salary sand Bitcoin!
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