Bitcoin! Everyone is talking about it, but not everyone understands it. So, instead of talking about what bitcoin is like every other article, or speculating at what the value will be, lets break it down to what it really is...an investment. But is it a safe one?
Its obvious that by now everyone is trying to get a hand in the cookie jar, but at what point will the cookies go stale?
Bitcoin is similar to other investments. If you would of put $100 into bitcoin in 2011, you would have hundreds of millions of dollars. But what if you would of put $100 into google or disney or android? Bitcoin is still an investment with many unknown variables. Once the 21 million bitcoin are mined, what will happen to the value of the bitcoin? What will happen when federal governments want to get involved? What will happen with other crypto currencies?
Bitcoin has been at it for a few years now, and the ones that were smart/lucky enough to put money in are definitely being successful, but just because you lucked out and made money does not make you a good investor. So where do we go from here?
It's shocking to see the value of crypto currencies climbing, specially since everyone is well aware of its potential and value. Even 2 weeks ago you could of bought bit coin at around 3-5k and now its well over 16k. Lite coin itself has gone up almost 300%. So...do you invest now?
What if everyone else keeps investing and you dont put in enough?
What if you empty your savings account just to invest the money in a bubble?
What if you become one of those talked about Bitcoin billionaires?
Just like any other investment, there are risks involved, and more often than not, people know how things go when something is too good to be true.
So what should you do?
Do your due diligence, and take the investment with the risk as you see fit.
At the end of the day, that is all that this is....just on a global scale with no physical back up