Should You Invest in Bitcoin?
Wondering if you should invest in Bitcoin? If you’ve been around any kid of financial news lately, you’ve no doubt heard about the meteoric rise in the world’s most well-known cryptocurrency.
And if you’re like a lot of people right about now, you’re probably wondering, “Bitcoin – yes or no?”
Should you invest? Is it a good option? And what the heck is Bitcoin anyway?
Well here’s a few things you should know about Bitcoin before you invest. Also note that this article is for information purposes only and should not be taken as any kind of financial advice.
What is Bitcoin?
Bitcoin is known as a cryptocurrency or a digital currency. It’s basically online money. Like any currency you can exchange it for other currencies (like say, buy bitcoins with US dollars or vice versa) and it fluctuates in relation to other currencies as well.
Unlike other currencies however it is decentralized, meaning there isn’t any one central bank, country or government in charge of it. And that means it’s not as susceptible to government or central bank mismanagement.
Pros of Bitcoin
#1 Easy To Send Money
Because it’s decentralized, this also means that you can send a friend Bitcoin (money) on the other side of the world in seconds without having to go through a bank intermediary (and pay the banking fees).
Unlike a credit card charge, Bitcoin transactions are not reversible. So if you send Bitcoin to the wrong address – you can’t get it back.
Also, there are a lot of tales from people who have lost their Bitcoin wallet address (through hacking, phones being stolen, virus-infected computers, etc.) and they’ve completely lost their coins. There’s no way to get them back.
For this reason, you really need to know what you’re doing and take the time to research how to buy and store your coins properly if you want to invest in Bitcoins – or any other cryptocurrency.
So those are some of the things to consider before investing in Bitcoin. Basically while Bitcoin has a lot of great things going for it – and while it has the potential to change financial transactions as we know it – there is still a lot of risk. There are a lot of unknowns out there still.
If you do decide to buy, take your time and research your options. Don’t buy from just any seller. Some of them are trustworthy and run a great business. But there are others that will overcharge you and may not even deliver your coins.
Be safe and do your research first. Find a trusted seller with a stellar reputation – there are quite a few of them out there. And remember the golden rule here – never invest more than you can afford to lose.
Bitcoin - Yes or No? Should You Invest in Bitcoin?
As readers of my blog know, I will only promote products and/or services that I myself use or invest in. I wanted to provide an update to the cloud mining contracts that I recently purchased. Cloud mining works differently than traditional mining in that you do not purchase any hardware to do the mining for you. This means you do not incur large electricity costs associated with owning your own machine. It is all done by others and you are simply buying into a pool. When I started them on May 23rd I wasn't really too sure what to expect.
Since two weeks have passed I figured I have a good amount of data and info to provide a solid report. The first contract I started was with Hashing24. They only offer Bitcoin mining. The way it works with them is you buy whatever hashing power you want (for more on that see my post "mining"). They have plans that are as low as 100 GH/s and cost as little as $18. Because they offer indefinite contracts, you pay a small daily maintenance fee of $.033 per 100 GH/s.
The calculator on their site predicts that at the current price of Ethereum ($223) I would make $2,358 off my $1,090 investment. That kind of return makes it worth the risk to me.
Again, because I am a long term investor in both Bitcoin and Ethereum, I view this as a solid opportunity to diversify your portfolio and at the same time attempt to make some passive income. Keep in mind that cryptocurrencies are extremely volatile and that can wildly impact your potential profit. Do your homework first. If you are a long term investor in cryptocurrency, this appears to be a worthwhile play.
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