Should You Invest in Bitcoin in 2018?

bitcoin

A new year is quickly approaching and with that comes new financial goals for many of us.

You’ve likely been hearing a lot about Bitcoin and cryptocurrency in general, and the value of Bitcoin has gone up exponentially this year. At the start of December 2017 Bitcoin went past $12,000 for the first time, and then shortly after that, it crossed $16,000. As of the first week of December, Bitcoin had a market value exceeding $272 billion.

So, should you invest in Bitcoin in 2018? What should you consider before doing so?

The following are some things to consider if you’re weighing a Bitcoin investment for the new year.

Prepare for Volatility

While you hear a lot of the alluring ups that Bitcoin experiences, there are plenty of downsides as well.

If you’re thinking about adding digital currency to your investment portfolio in 2018, it’s important to prepare yourself for these downsides.

Just as an example, in November 2017 there was a period of five days where Bitcoin’s value went down a staggering 25% because of rumors of the effects a faster digital currency, Bitcoin Cash, would have on Bitcoin itself.

What Do Financial and Investment Leaders Think?

A lot of key financial figures including Jamie Dimon warn investors that Bitcoin is not the real deal and that it will come crashing down sooner or later. Some people even go so far as to say Bitcoin is primarily fraud with a lot of scenarios looking like Ponzi schemes included in the mix.

Does this mean you shouldn’t invest?

Not necessarily because this isn’t a sentiment all financial gurus share, but the consensus is generally that investing in Bitcoin is a very big risk similar to gambling.

While Bitcoin investments are risky and much like taking a trip to a casino, a lot of people do like to have some high-risk elements included in their portfolio, so this may be appealing to them.

The Pros

So while Bitcoin does have a PR problem in mainstream media circles, in particular, are there real pros?

The answer is yes.

A few of the primary benefits of investing in Bitcoin include the liquidity it brings, as well as how easy to is to set up an account and start trading for the most part.

There’s also a lot of uncertainty throughout the world, and people are seemingly constantly on edge about an impending market crash, even when each day it seems like markets close on record highs. There are also concerns about the Federal Reserve, and many countries around the world are suffering from local currencies that have been decimated.

Bitcoin can seem very appealing in the face of all these situations.

The Cons

While we’ve already covered some of the possible cons of investing in Bitcoin, there are a few others.

First, Bitcoin isn’t something you can touch or hold. It’s essentially mathematical algorithms, and this can be a tough pill for some investors to swallow.

As was discussed above, Bitcoin is also very volatile. Just as much as it can quickly rise, it can go down as well. This is in comparison to traditional currencies, which typically show much less dramatic movement.

Finally, Bitcoin isn’t the only option in terms of cryptocurrencies, so as other options enter the marketplace, it could lead to a decline in the value of Bitcoin.  

0 Comments

  • Donald McNary

    January 25, 2018 - 4:08 pm

    http://www.liviacoins.com is the only place where you can safely sell your bitcoins and get paid in a short time.

  • Simone

    March 30, 2018 - 8:00 am

    Thanks for the head-start Although am still weighing my options

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