In 2017, people are doing whatever they can to invest and diversify their income. One of the most popular ways of investing involves betting on currency and options. This is especially true in the FOREX market, a market that allows investors to bet on commodities like gold, silver, and various world currencies.
While a lot of the aforementioned strategies were popular in the 20th and early 21st century, there have been a lot of revolutionary changes. One of the most revolutionary of these changes was the advent of Bitcoin, an online cryptocurrency that allows users to anonymous invest in the currency and increase their principal.
Through its young history, Bitcoin has seen a lot of different fluctuations in terms of prices and value, but overall, it’s a great investment option for people that are interested in getting some extra income. In terms of investing, it is one of the more volatile products. Remember, investing in a currency can be a risky idea, whether it’s Bitcoin or something else. Even still, there are lot of reasons why you should definitely consider investing in Bitcoin, and inversely, why you should consider avoiding an investment in Bitcoin.
Why You Should
One of the best ways to protect your overall cashflow is by investing in a different currency. This is especially true with Bitcoin. When you invest in Bitcoin, you’re basically converting some of your cash into a digitized, permanently secure currency. Unlike cash or something else, Bitcoin will not fall if the centralized banks fall.
Remember, our currency is backed by nothing more than the Federal Reserve, but if you invest in Bitcoin, you’re preserving the value of your currency for a long, long time. Aside from preserving your income, Bitcoin is also a great way to make money.
Since its inception, despite some dives, Bitcoin has been very steady in its value. In fact, its value has actually increased, so if you had invested in Bitcoin, you could very well be a very wealthy person. Without question, this might be the best reason for investing in Bitcoin.
Why You Shouldn’t
While there are a lot of great things about Bitcoin, there are a lot of bad things about it as well. Unfortunately, Bitcoin is not very popular with many vendors. By converting cash into Bitcoin, you’re making it very difficult to buy a lot of different products.
Another problem with Bitcoin is the cost of Bitcoins. Bitcoins are very expensive, and although they are still worth investing in for those with more capital, for most citizens, they are simply way too expensive to acquire.
Aside from expense and lack of popularity, another problem with Bitcoin is the perceived volatility. We don’t really know what controls the Bitcoin market as much of it is very mysterious and no well established. Bitcoin could very easily crash, and if it does, all of your money would be lost.
Unlike your bank account Bitcoins are not FDIC backed, but overall, investing in Bitcoin is ultimately a personal decision that would require careful judgment on the part of the investor.