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Tuesday, September 12, 2017

Is Bitcoin a Good or Bad Investment?


The globalization of the Internet and technological advances has allowed the emergence of an plenty of digital forms of exchanges. In 2009, Bitcoin,  crypto news which is nothing more than a digital currency, burst onto the Internet.

Since its inception, many controversies have arisen around it, especially since this currency does not have the backing of a central government or emitter, so for many, it is something that has no value. However, those betting on Bitcoin between 2010 and 2011 made millions of dollars, which has made the question, Bitcoin, a good or bad investment? To get an answer to this, you have to take into account a number of aspects, and this is what we will do in this post.

What is Bitcoin?

Put simply, it is a digital currency for the exchange of goods and services. Its value is generally quoted in dollars and varies according to the fluctuation of its market. This currency is decentralized, so it does not have a central emitter; however, it is considered efficient and safe.

How does it work?

Bitcoin is generated through a free code program that solves complex algorithms through a process known as mine. But this is just the way this coin is generated.

When it comes to investing, they are usually acquired through buying on the stock exchanges or to other people. Making transactions with Bitcoin is very simple, you just have to share the address of your wallet or portfolio with whom you are going to enhance the operations.

Where do I keep the Bitcoin?

For the protection of the Bitcoin, it is necessary for users to have a special wallet or virtual wallet for this coin that is obtained on the official Bitcoin website and that will allow you to install the software on your personal computer, telephone or other mobile devices.

When you complete this process, you get a unique address for you, it's something like having an email. This address creates digital signatures and verifies identity for access to the portfolio.

Now that you know a little more about what Bitcoin is all about, I can tell you that you can also use this digital currency to make investments, and for this, we must bear in mind that Bitcoin turns out to be a very volatile and therefore dangerous asset.

Its history since it emerged, in 2009, shows this. Its tendency since that period has been to have percentages of historical ups and downs, no other currency has been as extreme as Bitcoin.

However, in the last three years, it has maintained a relative stability maintaining between 20 and 10% of ups and downs, its current price fluctuates between 700 and 710 $.

Laws also: invest in shares with Bitcoin

Some experts in the field predict that the upward trend will continue and is an excellent investment option, while others think otherwise, even expect their collapse to be as great as that suffered in 2001 when their value became little more than two dollars.

Bitcoin's popularity in investing has increased considerably in recent years, especially since it has maintained a fluctuation that has allowed those who have bet on it to make quite interesting gains. Currently, Bitcoin is used to invest in trading and the stock exchange which gives it solidity in the market, in addition, is a good source for leverage and profit in investments. However, the recommendation is that when you think about investing using this digital currency, you are prudent, as in everything, what means losses, is risky.

Negative forecasts

For many experts, the moment to succeed investing in this digital currency has passed, and are based on two important points to ensure this. The first is that to make a profit with this type of investment, its value would have to be between 2 and 20 $ and have a stratospheric rise as happened years ago, which could happen due to Bitcoin's history, but its recovery would not be as good as before too. Bitcoin has become so popular that it is very unlikely that this will happen.

Historical fluctuation of Bitcoin

The Bitcoin appeared in 2009 its ups and downs can not be compared with that of any other currency.

In 2010 its minimum value was $ 0.39 and despite that, it had a decrease of 51% to $ 0.19. For the year, their rise surprised everyone by valuing 28.90% and then falling again to 2%, which represented a loss of 93%, which was considered the worst investment of that year.

Between the years 2012 and 2013, its variation had a similar behaviour increasing up to 695% and then losing 71% of its price. In 2014, its rise broke all the records of the market when reaching a cost of 1,147 $ for each digital currency.

Since then its ups and downs have fluctuated between 10 and 30% of its cost and has been declining until this last month stands at $ 702

How to invest with Bitcoin?

However, after seeing both forecasts, you can continue considering or taking into account Bitcoin as a good way to make a profit. For example, looking at their fluctuations over the last few months, you have these options to get good dividends:

Trading or online investment: The strong presence of Bitcoin in the stock market is used by Brokers or suppliers to offer spreads up to 1%, achieving that the derivatives come to contribute in 1 and 3%, which would yield a profit between 0.3 and 0.6% if we then trade it at a brokerage house, of course, depending on the market variation at that time.

Minar Bitcoin: This is not properly investing with Bitcoin if you do not get the currency through mining that, of course, generates profits. Minimizing Bitcoin requires a computer, as complex math formulas need to be solved to create blocks of this digital currency.

ATMs: With these ATMs you can either buy or sell Bitcoin, allowing them to be cash. The transactions carried out in these ATMs charge fees for each transaction.

Traditional investment: It's about buying Bitcoin and waiting for its market value to increase to sell and thus make a profit. Social networks are an excellent way to do this type of operations and the best thing is that you do not need intermediaries so you save the payment of commissions.

After taking into consideration all of the above, determining whether Bitcoin is a good or bad investment can be seen as a faith issue or what kind of investment you want to make. If you want the traditional way, buy and sell, I recommend that you be very attentive to the daily quotes of this currency and its market. A strong fall can be anticipated, as well as a rise, so constantly studying the market is the best.


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