Should You Use Your Money For Investments In Bitcoin?
The question of the year 2018 is – Would you make use of your money to make investments in Bitcoin? Seriously, investing in Bitcoin is not a decision that you can take without being properly informed about all the potential risks involving the most coveted crypto-currency of the moment. Still, you may be tempted to start investing in Bitcoin after hearing so much about the high earnings that relate the cryptocurrency transactions held in the years 2017.
Bitcoin started the year 2017 for only U $ 1,000 and at the end of December almost, but now in the first week of January 2018 it reached the incredible U $ 17,000 US dollars. This is certainly a phenomenal trend for any kind of investment, and the most uncertain is how Bitcoin’s growth will be sustainable in the future.
So, if you have not yet bought your Bitcoin Crypto, but are seriously considering doing so, here are some pros and cons of Bitcoin investments. Of course there are some reasons why you might want to invest in Bitcoin, however, without proper precautions, getting into that sandy terrain can be very dangerous.
2 reasons to invest in Bitcoin
The reasons why the “investors” who are currently investing in Bitcoin can be summed up to two factors:
- The investor can make quick money
- The investor has money and resources to lose
But let’s be honest, the main reason why people are investing in Bitcoin is because they see in the crypto-currency a great opportunity for profit – or at least a chance to profit – or to get money fast without much effort.
In another scenario, we can see that people are approaching Bitcoin to invest like that almost buying lottery tickets, meaning they are putting their money in Bitcoin knowing that they can make a big profit but can also just see their money turn over smoke.
It is this last factor that I said that most people should consider if you are thinking of crypto-currency as an investment. Today, buying Bitcoin is highly speculative, and you should only put money that you by chance might lose.
Do not mortgage your home or buy Bitcoin with your credit card, incredible as it may sound, people are doing it, but this is financially silly. And here in Brazil – is it possible to make quick money with Bitcoin? Yes, it is definitely a global market and many people are already earning money, but it’s like the ticket I mentioned above.
No one but God knows and knows the future. So if there is anyone who knows that Bitcoin can double or triple from their current price today is Him. On the other hand, the criptomoeda could suffer such a spectacular technological shock that it would leave thousands of investors lamenting the day they heard the word “Bitcoin.”
4 reasons to avoid making investments in Bitcoin
The “cons” or disadvantages of investing in Bitcoin basically do four things:
Bitcoin is still very volatile
Bitcoin only started trading on the futures exchange in North America in early December on the CBOE. Now that the Bitcoin are trading on the stock market, volatility will certainly increase even more. If you can not bear the hikes of the almost savage prices, you might as well say “I will not invest in Bitcoin.”
Bitcoin not yet regulated
Bitcoin is not yet regulated. Never forget that fact and do not misunderstand that Bitcoin is regulated simply because it is traded on the stock market, on the contrary, this is a chance to allow investors to speculate further on Bitcoin’s future price, but this is very different to regulate Bitcoin in Brazil, are beginning to consider the idea.
Bitcoin is a very new investment
Bitcoin has started its trajectory since 2009. This makes it a very new investment alternative, it is in childhood, in relation to other types of solid investments, there are other classes of assets that have existed for decades or others until more than a century.
The thinking among Bitcoin’s owners is that even if blockchain technology continues to grow in popularity – as most people say it will – it does not guarantee Bitcoin’s survival, in addition there are other competing crypto-coins.
You are a novice investor.
The last reason you should think a lot about buying Bitcoin as an investment is if you are new to this business. As a beginner you should know just the basics of investing in Bitcoin and entering into a business as speculative as this one of crypto-currencies is extremely risky.
Anyway, whether it is an investment in Bitcoin or any other such as investing in dollars, involves risks, just to remind yourself that you have money saved in savings, you are losing money.