Recently, a friend of mine suggested that I follow his investment path and invest in Bitcoins. It’s not an easy decision to make – Bitcoin is a relatively new-age concept and understanding how it works is not simple.
From a pure investment perspective, it works similarly to stocks… you buy at a certain price and the worth of one bitcoin will go up or down. At that point, you can decide to sell or keep the bitcoins (or tiny fractions of it, most likely) in your investment “wallet”. If you focus only on this and ignore all the aspects regarding ‘mining’ for bitcoins and the techno-jumbo behind how they work, you won’t get confused.
Much like with the stock market, outside influences also affect the value of bitcoins. For example, back in December 2013, the People’s Bank of China decreed that Chinese merchants cannot accept Bitcoin legally. They also forbade banks and payment processors from converting Bitcoin into yuan. The immediate effect? The price of Bitcoin fell significantly!
On the other hand, if you take a look at the massive increase in worth of one Bitcoin since it’s creation, it’s very promising. In 2013 alone, the worth went up from $13.36 at the start of the year to $1125 on November. Some investors became millionaires. YEAH. That’s crazy!
The price went down since then, but it’s still a huge increase since its worth at the beginning of last year. What makes it even more promising is the fact that more virtual currencies of this type have popped up since then… it’s indicative of a new trend in finance and an interesting study on whether national currencies will one day completely lose their value.
So at this point, I’m definitely considering investing in bitcoins over regular stocks. It seems like a higher risk and higher gain situation.
Since the value is changing in real time, 24-7, without any breaks (unlike the stock market which closes down during non-office hours and weekends), I’ll have a better ability to closely follow my profit or loss. There’s a great, new resource on the site Alfa Cashier Cashier that I’ve already bookmarked in my browser: https://www.alfacashier.com/crypto-rates
It shows me the value of my transactions in real currency, so I can understand whether the bitcoin has gone up in down or value easily. It’s also a live exchange rate tracker so it’s updating at every moment, even when you’re on the page. A necessary resource for such a volatile and fluctuating market like e-currency! Plus, you can go back in time to evaluate the overall trend. (The worth just went down about a dollar since I wrote this paragraph! Insane.)
Actually, I think I may use them as my go-to company for exchanging my Paypal dollars and euros into bitcoins. Now… to evaluate when I want to invest.
Here we go!! I’m excited.
Do you have any experience with Bitcoins? Anything I should know before investing? Let me know below!
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