Is investing in Bitcoin recommended for everyone?
The answer is Yes, No, and Maybe.
Now, that wasn’t intended to confuse or scare you.
But to let you know that, the answer depends on your understanding of the technology and the risks involved in buying, HODLing (holding), and using Bitcoin.
Firstly, Bitcoin was invented as a digital form of cash.
And to be used as a means of making direct payments for goods and services like we use fiat.
But without a central third party, such as banks and other financial institutions.
However, the bitcoin price is not stable and is subject to constant and, in many cases, considerable volatility.
This has earned it the title of digital gold, as most people now prefer to buy and hold onto it with the expectation that the price will appreciate given sufficient time.
By digital gold, we mean that Bitcoin is more than just digital cash.
But it’s also a store of value and an asset class of its own, similar to gold, with the potential to make you a fortune if you buy and hold it for the long term.
The price tends to increase with a reasonable, consistent year-over-year appreciation recorded since its creation in 2009.
Since 2009, when Bitcoin was invented and launched to the world, the premier cryptocurrency has grown by more than 9,000,000% — a growth level that was never before seen in the history of humanity.
What Makes the Price of Bitcoin Rise or Fall?
The simple answer is demand and supply.
However, I must tell you that some level of price manipulation by wealthy investors (called whales) is present as they try to increase their wealth by pushing prices up and crashing them to buy back at lower rates; this process can be repeated over and over again whenever it favors them.
Like any other fiat currency or physical item – the more people want it, use it, or demand it, the more valuable it becomes, and vice versa.
The investment appeal of Bitcoin is based on the premise that the cryptocurrency will become a popular, widely accepted means of making direct payments for goods and services globally.
Thus, with the increased demand and usage comes an increase in its price per unit.
Given that supply is fixed, the number of potential users — the world population — is exponentially higher.
So, is Investing in Bitcoin Right for You?
If you believe that Bitcoin technology will be successful, just like the internet itself, and that most of the world will eventually adopt cryptocurrency, Bitcoin is a good investment.
However, if you don’t believe in the future of cryptocurrency or the financial freedom that Bitcoin proposes, it will become a reality. Bitcoin will likely fail, and all investors will burn in hell for being so wrong.
If you have the money you can afford to lose without losing your life, investing in Bitcoin and cryptocurrency might be a good idea.
You should risk losing something if it is just another mega Ponzi scheme and then miss out entirely if Bitcoin becomes the center of the world’s finance.
Your children, grandchildren, and great-grandchildren may not forgive you for such an expensive miss.
No one can categorically tell you what the outcome of your Bitcoin investment will be.
You will either win big or lose significant.
I would rather be adventurous than overly anxious.
Click or tap to read 3 Reasons Bitcoin is your best bet against the recession.
Over to you. Do you think investing in Bitcoin and cryptocurrencies generally is a good idea? — Why or why not? — Share with us in the comments section below.