Your parents may have told you to buy gold when it looked as though the government was getting a bit shaky. Now, investors also have digital currencies such as Bitcoin and you can even move money around without needing to go into the bank.
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Will Bitcoin be a Safe Investment or Always a Gamble?
On the other hand, are digital forms of money really safe to use when turmoil may be soon underway? It might be easier for someone to get to their computer than to the nearest branch of their bank, but you can’t always assume that your online bank transactions will have much weight if there was a major crisis.
Get the facts from a financial advisor who has earned his or her master of finance online when choosing how to make investments in digital currencies.
1) Looking at The Value of Bitcoin
For a long time, Bitcoin was a great buy because it just kept going up, and up, and up in value. In the last year, however, there’s been a couple of dips that have made investors break out into a cold sweat just before the value of Bitcoin went up again.
Investors don’t need an online finance masters degree to watch the value of Bitcoin go up or down, but consider this digital currency’s total worth to be like stock. In the early 2000’s, Google stocks kept increasing until they finally hit a ceiling and leveled out. There were a lot of people who bought Google stock when it was valued at over $2,000 a share, and those investors are the ones who lost valuable money on their trades.
2) What About Bitcoin Competitors?
There’s Ethereum, a company that’s younger than Bitcoin so it has a lot of investors scrambling to make it the newest and most popular digital form of currency. Then you have Dash, which is another digital currency that’s just a bit seedier than the average person feels comfortable trading in.
Either way, digital currency users have options and they don’t necessarily need to use Bitcoin if they don’t want to. Find an exchange service and you can take money from your bank account to turn it into a fraction of a Bitcoin, or another digital form of currency.
3) How Will You Get Your Money When You Need It?
Bitcoin can be used various places online but it isn’t as universal as, say, PayPal. In everyday life, there’s a chance that you can use Bitcoin to purchase a cup of coffee, a book, or a meal if you live in a major city. Otherwise, it’s going to take a little bit of time to cash out your Bitcoin when you really want to convert it into cash.
Consider how many other people are going to be in a panic attempting to trade in all of their saved Bitcoins for paper money if something catastrophic were to happen.
If you buy Bitcoin now it will likely be more valuable a month or even a year from now. There’s not a guarantee that it will retain its value or even be redeemable indefinitely, so be certain that you have done your homework on cryptocurrency before you invest. Just like other investments, diversify and spread the wealth. 🙂