Is Investing in Bitcoin a Good Idea?

Is Investing in Bitcoin a Good Idea?

If you want to invest in Bitcoin you need to have the right intentions in mind. It serves as an investment for many people, but is it right of you and your specific investing preferences? Take a look at some of the characteristics of Bitcoin as an investment possibility.

Play at The Best Bitcoin Gambling site
Casino Read review Bonus Play
investing in bitcoins CloudBet Up to 5BTC Play now!
investing in bitcoins FortuneJack 100% deposit Play now!
investing in bitcoins mBit Casino Up to 1BTC Play now!
Check out other Bitcoin casinos!

How Stable is a Bitcoin Investment?

To invest in Bitcoins is to take a risk on the stability of the currency. So far, it is a very young currency, having only started in 2009 and gained momentum in 2013. It has proved to be quite volatile in this time, experiencing a few highly valued peaks, with sharp drops in value afterwards.

Since January of 2015, it seems that the currency is finding some more solid ground. It has been steadily increasing in value without many drops and has not experienced any dramatic changes in value.

What Makes Bitcoin a Good or Bad Investment?

Bitcoin is a useful currency that many people put a lot of trust in. It’s been incentivized to continue being anonymous, yet transparent. It’s almost completely fraud-proof, there are much lower transaction fees imposed on even international transactions, and the virtual currency is gaining traction in financial markets around the world.

investing in bitcoinSome discouraging signs, however, have come up during Bitcoin’s recent years. Though some countries are fully supportive of the currency, others have either completely banned or otherwise restricted its use. Financial advisors in the EU and US are not necessarily supportive of the virtual currency, though they don’t outright discourage people from using it.

Bitcoin’s price variations in the past could also be discouraging to any investors, but only when you think about potential long term investments in the currency. It may be worth it to hold only a chunk of Bitcoins for a long time, but it might also be better to treat Bitcoin as a speculative investment for more short term purchases.

Demand for Bitcoins has been steadily increasing since 2013’s collapse, leading some to predict that the price value of the Bitcoin will continue to rise without suffering another collapse as before.

What Type of Investor Should Try to Invest Bitcoin?

Investors looking for a low risk investment should stay away from Bitcoins. This currency is too volatile and has too long a history of sudden, rapid changes in price, that a low risk investor will not want anything to do with it.

However, if you have a higher tolerance for risk in your investments and you are interested in the potential this currency has for reaching a very high value, Bitcoin might be a great option. You can buy a few Bitcoins and hold onto them, in the hopes that they will become much more valuable later on, or you can treat them as a speculative investment and practice short term margin trading for the best benefits.

Bitcoins are not good for retirement investments nor for school funds. They are better for individuals who are not relying too heavily on getting the money back, in case the investment goes sour after a few years.

Want to learn more? Read out other articles!


Read more: