But still, how good of an idea is it to invest in Bitcoin or any other crytpo project? Is it stable? Can you trust it to keep your money safe? Well, the short answer is that it depends on who you ask. There are several things you need to consider before you invest and decide where you stand on these questions. There are many big name players entering the space of crypto, like Amazon, which can be a really good sign for its long-term health, but bad news and government regulations can also spread negative sentiment quickly. It’s important to do your own research on whatever crytpo project you may want to invest in.
However, one thing is always sure. You should never invest all of your money into a single thing. The broader your portfolio, the more likely you are to be successful.
The value of Bitcoin comes solely from the tacit agreement that it does have value. If you are more of a traditionalist, chances are that you will not like this idea, and may be more suited for owning gold or real estate; things with substance and real world tangible value.
On the other hand, the majority of world’s money nowadays operates under the same rules as Bitcoin – we all just agree that it has value. Bitcoin is designed to only ever have 21 million units. That means that inflation is impossible, making Bitcoin a keep its value compared to other currencies.
The same principle applies to the security issue. If you are able to put your trust into the computer-based currency and trust it not to be hacked, Bitcoins are pretty decent investment opportunity for you.
If, however, you feel like anything digital and computer-based is prone to hacker attacks, you may want to steer clear of this investment opportunity.
Ups and Downs
This is probably the biggest point of contention when it comes to Bitcoin. The fact of the matter is that Bitcoins are volatile and have had an inconsistent track record. Despite the temporary oscillations of the price, the value has been relatively consistently increasing. If you are OK with the relative insecurity of the market, you can join the ranks of Bitcoin owners. You can always use services like bitcoin up which can help you in automating your bitcoin trading and reducing the risks of losing your money due to the insecurity.
Future of the Cryptocurrency
It is very hard to predict where this currency will be in two or five years. At the start of 2017, it reached over $1000 in value for one Bitcoin, which rose to over $2000 in May, and it still holds that value in July. There’s no telling whether this value will remain as high, or plummet unexpectedly.
However, as more and more businesses recognize and accept Bitcoins as a valid payment option, this currency gains credibility. With credibility comes more stability, so many experts expect that we are entering a more stable Bitcoin phase.
All in all, Bitcoins seem like they’re here to stay, so why not dip your finger in the action? That being said, do not invest all of your money into this somewhat unstable market. The more money you have invested into it, the harder you will be hit when the value of the currency drops.
Some companies worldwide are taking risks in dealing with the volatility – like Singapore’s Silver Bullion, which has started accepting payment in this currency as indicated by their payment options page here https://www.silverbullion.com.sg/AboutPayments.aspx#payment-bitcoin – but global adoption of crypto-payment is yet to be seen.