Is Bitcoin a Safe Investment?
To be honest, there is no safe investment. There are smart investments, and low risk investments, but the word investment always comes with some kind of risk. When thinking about investing in stocks, the first thing that comes to mind is a bank or a large company like Apple and Google. Those are companies that I would consider a smart investment. Do you have any clue why? Google and Apple have been around for many years. Yes, they have fluctuated on the stock market, but they have grown bigger and bigger each year. Each year Apple comes out with new products that help keep their stocks at a high price. Google does not need any explanation as to why it is a good investment. Now the real question is bitcoin. Is it worth taking out a few short-term loans to invest in?
You many be asking, what is bitcoin? Believe it or not, bitcoin is used all around the world. It is a cryptocurrency and the first decentralized digital currency. It is all electronic, and not regulated by the government as of now; which means there is no actual money that is printed like dollars, pounds or euros. That is the unique thing about bitcoin. People actually produce bitcoins by solving mathematical equations. A lot of people caught interest in bitcoin when they heard that no bank controls that form of money. However, that also scared some folks away. This is why we ask is bitcoin a safe investment…
Bitcoin is for the high-risk investors. If you look at a monthly, weekly or even daily chart for bitcoin; you will notice that it fluctuates 100’s of dollars per week- sometimes even per day. This can mean, big win or big loose, depending on how smart you are with your judgments. Bitcoins formality is they only ever mined 21 million bitcoins. That means, once there has been 21 million bitcoins mined, there will be no more to go around. That in my opinion makes it a good investment- risky but good.
When I first talked about this currency being decentralized, what did I mean by that? I explained to you a bit about no bank being able to control this type of digital currency, but did you know that when the network goes offline, bitcoin continues to be traded from person to person. This is where it differentiates from the stock market. Once the market is closed, the trading is done for the day. With bitcoin, you can meet with a fellow investor at two-o’clock in the morning on a Sunday if you wanted and trade half of your bitcoin. Now the real question is, how do you trade bitcoins when it’s digital? Each person has his or her own electronic bitcoin wallet, which should be treated like your own personal safe. It is important to keep your security passwords secret, because bitcoins can be stolen- especially if you took out a few short-term loans to buy your bitcoins. You then should to be extra cautious.
My final tip for you is, don’t invest what you can’t afford to lose.