Bitcoin: A bad or good investment?
Bitcoin, as we all know is the world leading cryptocurrency, with just Ethereum and Litecoin coming below. With the high selling rate and popularity, we’ve encountered multiple questions from people like should I invest in bitcoin or I should just find where else to put my money? But, with the unfixed rate of crypto-coins, it is wise to know about the dangers or profit of investing in cryptocurrencies, especially bitcoin. In this article, I’ll talk about everything you need to know about bitcoin including; the total units and how it affects the future of a coin, the current price, and the initial starting price, list of investors (companies) and the roles they play in bitcoin rates. Lastly, I’ll talk about mining.
The total units of a crypto-coin determine the rate of its fall and rise. Take, for instance, a coin like Dogecoin. It has well over $2billion units in circulation, and this is one of the primary cause of its extra low cost, even after 4years in the market. The total amount of a coin does determine the increase or decrease in its rate. For Bitcoin, the overall unit is just a little bit over 16million in circulation, thus making it an excellent investment if this is to be considered.
It would be interesting to know that at the first invention and public use of bitcoin in 2007, that it primary had no initial value. Its surprising to understand that a coin which costs more than 24 karat gold was once used for donations. When it was first sold, bitcoin was worth over $0.03 per unit; this is nothing compared to what it is today. So, you can agree with me that bitcoin has increased considerably significant in the last few years. It is also essential for you to know that the current price range of bitcoin is between $11,000 to $14,000 per unit as of now.
Bitcoin has a good number of investors, comprising of both companies and individuals. Here, I’ll give some examples of these investors.
- Barry Silbert: CEO of Digital Currency Group.
- Blythe Masters
- Dan Morehead
- The Winklevoss: Known for making their first billion dollars from bitcoin.
- Michael Novogratz.
But one might ask how investors would affect your choice of putting some cash into bitcoin. Simple; they set the price (well lets say indirectly). With the absence of a fixed rate and a price regulatory body, investors are critical in your investing into bitcoin.
Increase rate and chart.
The ate of the rise and fall of bitcoin is something you should spend time thinking about before jumping into the business, or refraining from it. Bitcoin is popularly known for its unstable rate and the way price goes in the chart is not something that would be simply understood by a beginner. Given below is a chart of bitcoin but without much details.
You can agree with me that bitcoin has considerably increased in the last few years. Going from $0.03 per unit to over $12,000 per coin in 11 years is no joke. But, did the price just steadily the increase, or there were some drops. Given below is a some of the events that have happened with bitcoin.
On March 2010, bitcoin was initially sold for a price of $0.003, but there was hardly anyone buying. In July 2010, this rate grew by 900%. In 2013, one BTC hit $266, making it the number one cryptocurrency in the market. On January 2017, bitcoin hit a price range of $800 to $1000. On September of that same 2017, bitcoin hit a price of $5000 per unit, making it extremely costly. It would have been a shock for investors when they heard that just 12 days into the same month of September, the price dropped by up to 60%, thus finally hitting $2000 per coin. December proved to be the month of the highest rate, with bitcoin costing a whopping $17,000! That same month, it dropped to $13,000 per unit.
So, trying to invest in bitcoin is something that you need t consider very well before diving into it, or turning your back away from.
Before you proceed, you should know ask and answer these questions sincerely;
- Would you be able to bear it if bitcoinwere to become priceless eventually? (cost becomes zero)
- Do you have other investments that can help you if the market eventually crashes?
So, you might be asking; is bitcoin a good investment? For most people, investing in Bitcoin is an excellent idea, but try to remember that as it is not handled by any government or regulatory body, then the probability of your money increasing is not one. Thus, if you plan to invest in Bitcoin, it is best you use some spare cash, knowing that if it does not return, you can continue living well.