Is Investing in BitCoin a Good Idea ?
With a bit of information about Bitcoin, you can start to see why people are investing their money this direction. Think about it in terms of gold, only it isn’t tangible gold bars. Instead, it is the gold of the internet where the majority of buying and selling takes place.
The key to all of it is that consumers believe in the value of Bitcoin. As more consumers use it, that value is going to increase. Since it is an open source type of software, there is no central control in place. This means it isn’t controlled by greedy bankers or by corrupt politicians. Many people love the idea of it being a free entity that they can use and that also encourages the growth of it.
The economy has been shaky for quite some time both in terms of the USD and the Euro. Consumers have stopped putting all their faith in these types of tender, especially when it comes to investing. Some people have had issued with the government seizing their assets.
Bitcoin is free from such problems, and so it is like having your very own bank. The freedom that comes with this is something that many people are content with. They don’t like the idea of putting their money into various accounts that are overseen by the government in all direction.
It is believed that Bitcoins are going to increase in value over time. Just like gold coins that you could have as part of a coin collection. However, there is no risk that someone can steal your Bitcoins. They are tagged, tracked, and they have a digital signature associated with them. Each coin has a permanent history attached to it.
It can take your computer 2 or 3 days to mine successfully for a Bitcoin and to solve the 64 digit encryption before another computer does. If so, then you just earned the value of that Bitcoin. When they are new, the value ranges from $.10 to $.20 USD.
With Bitcoins, many consumers feel that they have more control over how they compile their personal wealth. They are upset over retirement scams, Ponzi schemes, and even fraud within banks and the government. They are also tired of 3rd party charges for a middleman involved in such transactions.
With Bitcoins, the control of a person’s wealth is in their own hands. They see the value in this type of investment. They find it exciting and they enjoy not having a middleman in the mix of it that gets a piece of their funding.
Bitcoin is an accept currency in all countries. There are also no processing fees to worry about. If you send or receive funds often, you already know that those processing fees can really add up quickly.
Since Bitcoins can be exchanged for another type of currency in open markets, it can be a wise way to invest and to make money. By exchanging for currency that you can buy for less than the currency you got them in, you can see how the differences can add up in your favor!
The concept of currency exchanges that take place through online transactions isn’t new at all. However, the idea of using Bitcoins for such transactions adds a completely new element to such equations that many people had never thought about.
When it comes to investing with Bitcoins or actually obtaining them to allow them to be in your investment portfolio, take your time to get the facts. There are some bad investments in any realm, and that includes this one. You also have to be well aware that there is risk with any type of investing, including those that fall under the umbrella of Bitcoins.
Gathering accurate data, finding projections, and only investing money you can do without are all part of the process. Don’t feel like you should put all your eggs in one basket with Bitcoins (or any other type of investment for that matter). Investing this way though is one more way for you to diversify.
With a diverse portfolio of investments, you have more of a safety net. You may experience some losses here and there. However, with the diverse layout of where your funds are at, there is also the opportunity for you to have gains in other areas that will counteract those losses.
There are concepts in the works right now to help launch Bitcoin as an exchange traded fund. If this occurs, Bitcoins are going to be harder to come by due to the increased value of them. Those that have invested in them before the launch will make a generous profit. Those that scramble to get on board later in the game won’t have that same value due to the higher cost of purchasing the Bitcoins.
Only about 25% of investors out there are familiar enough with Bitcoins right now to even consider investing in them. When you compare that to other forms of investments, it does provide those that are ready to move forward with a great deal to benefit from.
A high number of that 25% know about Bitcoins but they are still sitting on the fence with it. They haven’t invested yet and they may be waiting until they know it is a better outcome for sure. Of course if you aren’t willing to take some risk then you aren’t going to get the best return from any investment.
The true value of Bitcoins can be hard to calculate, and that is what holds many people back from investing in them. The value is determined by the power of those that believe in what it offers, not the actual amount of payments that are involved in it. Understanding this difference is important.
Disclaimer: Please refer to our disclaimer and seek your own financial advisors on any investments. All information here is intended for educational purposes only.