“Bitcoin is making millionaires.”
“Bitcoin is a bubble about to burst.”
“Bitcoin is a CIA conspiracy to bring in a cashless society.”
By now you’ve probably heard it all about Bitcoin (and other crypto currencies to a lesser extent) and are wondering what to make of it – should I invest in Bitcoin or stay away from it?
We’re not going to decide for you but if there is one law of economics to remember, it’s supply and demand. Demand creates value; so as long as people want a product, it will be valuable.
Like cash and legal tender that every country uses, it’s value is based on nothing but the fact that people accept it and use it. No country’s money is based on gold anymore, that stopped decades ago.
Bitcoin has now grown into the mainstream consciousness and crypto currencies (in particular their technology and solutions they bring) are soon getting into mainstream financial institutions and transactions. This is the demand mentioned earlier, and the more people use the crypto currency the more it’s value increases. This is also why news about it is going viral.
The potential of crypto currencies is enormous and some alt-coins (Bitcoin alternatives) are even speculated to equal or replace financial giants like VISA.
What if you decided to invest in crypto?
Investing in crypto currency is a high-risk/high-reward type of investment. It is certainly possible to make massive returns, as well as massive losses.
Bitcoin is obviously the most well known of all the crypto currencies and has the highest value, while others could also have the same or better potential and are currently at a stage Bitcoin was a couple of years ago.
We won’t try to predict which of them will do best, anything could happen, but just as any other investment strategy, the same saying of “don’t put all your eggs in one basket” would still apply if you want to minimise risk. That means spreading your investment among several different crypto currencies.
Likewise, don’t count on getting rich quick, but give it time to see the overall growth among the volatility. The price of crypto currencies changes by the second.
We will writing a series of articles to help educate you about crypto currency – including how to buy and sell them with Australian dollars, how to pick the ones with the highest potential, how to grow the number of coins you have with daily compound interest, holding vs day trading, and more.