Fidelity Bluechip Trading allowed its customers to create their own bitcoin accounts, which accelerated the bitcoin’s uptrend. The price of this digital currency exceeded $ 4,000 this week to become the headline of one of the world’s economic media again.
Different predictions about bitcoin
Other entrepreneurs and industry experts also predict a bright future for Bitcoin, according to Standpoint Research, the price of this virtual currency could reach $ 5,000 by 2018.
These fascinating predictions on Bitcoin raise the question of whether ordinary investors should spend part of their savings or even their retirement accounts on Bitcoin.
Should or Shouldn’t Invest in Bitcoin?
To help ordinary investors decide whether or not to invest their precious money in Bitcoin, here are three key pointers in moving forward or not.
Three reasons to invest in Bitcoin
- This currency is gaining popularity among various industries and is a kind of new gold in the industry – Bitcoin has many similarities to gold, except that its value is not controlled by the government.
- Many investors and financial and economic experts are confident about the promises of Bitcoin. Many major investors and entrepreneurs have already recognized Bitcoin and other digital currencies as legal assets.
- There will be only a limited number of bitcoins – there are only 21 million bitcoins to mine and there will definitely be no more bitcoins mined by 2140. This makes bitcoin an anti-inflation currency, the amount of which naturally increases over time.
Three reasons not to invest in Bitcoin:
- Bitcoin is only available on computers – digital currencies like Bitcoin are just a code on the Internet so they are invisible. Of course, money in ordinary bank accounts is only available as a number on computers.
- Bitcoin is highly volatile – over the past ten years, Bitcoin has been prone to huge price bubbles and painful crashes.
- Many bitcoin users are pseudo – despite many experts believing that bitcoin can replace cash in the future, it is also a tool for extortion and fraud.
Those looking to climb should remember that if investing for a long time can lead to a loss of profit. Right now, the digital currency is still rising and there seems to be no way to stop it. This kind of thinking is a bit risky, and prospective investors need to be careful.