Is Bitcoin a Good Investment?
A collective insanity has sprouted around bitcoin over the last decade. It’s hard to predict whether this cryptocurrency will eventually prove to be a great investment or just a passing storm.
That thrill of riches or ruin leaves some investors wary, but others want to chase the chance for profits from a bitcoin investment.
Simply Put: Is Investing in Bitcoin Risky?
Similar to any speculative investment, buying bitcoin carries some well-known risks: The price could drop precipitously and a single online hacking or crashed hard drive incident can wipe out your stash of bitcoin with no recourse.
Bitcoin has seen dramatic run-ups in price followed by some painful crashes but has consistently retained a significant portion of its previous gains every time it plummets. Since its inception, Bitcoin was the 1st digital asset to beget the current ecosystem of cryptos.
For quite a while, it grew an underground following of investors who saw its future as a possible replacement to the physical monetary system.
The decision to invest in bitcoin comes down to your appetite for risk.
Advantages of Bitcoin Investments
The overwhelming performance of bitcoin — as a currency and investment — has attracted traditional and institutional investors alike. Bitcoin as an investment tool provides you with the following advantages over traditional investments.
