Is Bitcoin worth it? Its price has gone up lately, which attracts many wannabe investors. You heard stories of rags-to-riches due to the value changes. You wonder if you could become the next success story.
Ask anybody about Bitcoin, and they will likely now some basic data about it. Everybody has heard of it and wants a piece of crypto. Given the attention it receives, it’s hard to avoid the key question: is Bitcoin a good investment?
What Is A Good Investment?
Can you 100X your money with crypto? Yes, it can happen. But good investment? Different story.
The world’s best investors make decisions based on some factors:
- Assimetric Relation: You don’t invest unless you can yield enough returns. That’s 5x, 10x, or more, which requires long-term thinking.
- Truncated Downside: Warren Buffet’s rule is to never lose money. You should either lose small or win big. You don’t ignore the downside just because the opportunity is attractive.
- Growth: Apart from demand, is the asset price backed up with a real value? Otherwise, it’s speculation.
- Reliability: How long has it existed? A ten-year history doesn’t make something reliable. If the currency is volatile, then it hasn’t passed enough time to spot any patterns.
Is Bitcoin a good investment? If you compare with these conditions, you get mixed results.
On the one hand, Bitcoin is good. You can multiply your money, and it’s an upcoming trend. It bases on real technology that makes commerce more useful. On the other hand, prices change too much, which is why world-class investors disregard it in general.
Bitcoin Returns: To Buy Or Not To Buy?
Bitcoin may not be the best investment today. But it doesn’t mean it could become soon. If we compare Bitcoin with other altcoins, three features make it special.
- It’s the least volatile cryptocurrency among thousands of coins.
- Since its inception in 2011, it has become accessible worldwide.
- The new tech trends are consistently increasing its real value.
How Much Could Bitcoin Be Worth In The Future?
Do you know what makes Bitcoin attractive? Anonimous transactions and no regulation. That attracts millions of “investors.”
Now, you may think that, as it becomes more valuable, it may reach the level of global currencies, such as the Euro, Pound, or Dollar. However, if Bitcoin ever reaches that point, it will be different from what we know today.
Governments need to get to an agreement to make crypto an official currency. That’s why Bitcoin may change its regulation and privacy terms.
The economist Will Hutton says. “Bitcoin may be a bubble, but the technology behind it could change the world.”
Blockchain is a real thing, and it’s here to stay. But today, the Bitcoin charts reflect more speculation that real value. That requires you to time the crypto-market, which is not for everybody. If you stay for the long term, however, things change.
It’s a matter of time tech advancements increase its worth. As for global currencies, Bitcoin prices need to stabilize to become an official currency.
Good investment? The answer is yes. The key is to get in the game early and stay there despite the ups-and-downs. Rather than losing, you will regret not having joined sooner.