The answer to whether it is worth your time to invest in Bitcoin will vary quite a lot depending who you might ask. If you pose the question to those who accept new technologies as answers to old problems, they will offer a resounding yes. These are the people who look forward to a future without a centralized monetary system and the freedom and business it can bring. On the other hand, there are those who put their trust in traditional and centralized systems run by big banks and controlled by institutions appointed by governments. These are the people who will advise you against investing in bitcoins. Determining the quality of virtually any investment you might make seems to boil down to a game of guessing, but there are still some steps you can take to truly establish the worth of an asset. A simple way of seeing Bitcoin in terms of an investment is to take a look at its value in comparison with the dollar.
Bitcoin prices have skyrocketed this year; it looks like it will close 2017 worth close to $15,000 and it was only worth a quarter of that price a few months ago. If you had the foresight, like a few of us did, to invest in Bitcoin a few years ago, you would be a firm believer by now that it’s more than a good investment. More importantly, you would be a millionaire. An important part of Bitcoin is that there is a limited supply of tokens; there can only be 21 million of them. This means that it will probably keep a stable value or see its value increase in relation to fiat currencies which are subject to endless printing and abuse in the wrong hands.
Other reason for Bitcoin being a good investment lay in the fact that it’s slowly becoming a household name. More and more people are taking interest in digital currencies and their first contact with them is through Bitcoin. it also offers good security, it’s immutable, and, of course, it is considered and recognized as a leader in the market of cryptocurrencies. With everything said, there is one important argument against making Bitcoin a large portion of your investment portfolio. The cryptocurrency is by now famous for its volatile price. Just recently, its value dipped 30% in the large single-day correction. This is why it is hard to be confident when investing in Bitcoin and depend on it when expecting to earn money over a longer period of time.
Putting every penny into an unstable asset wouldn’t be a move we would advise anyone to make. However, putting all your eggs in one basket is not a good approach whichever asset you choose to invest in, not just Bitcoin. There’s a rule of thumb here which is applicable to all investments: never spend more than you are willing to lose at any time.