Must I invest in Bitcoin?
Anything I say is to not be utilized as financial advice.
That being said, bitcoin is absolutely worth looking at.
And with bitcoin crossing the $10k threshold earlier this week, it is no surprise folks believe it is a bubble. It dropped below $1,000 in June of this year, and has perfectly skyrocketed ever since.
Investors have a tendency to poopoo cryptocurrency due to its very volatile markets. With volatility, however, comes drastically increased profit margins. In less-than-6-months, bitcoin has increased amount of value by more than 1,000 %.
To several it’s a sure indicator of a bubble. To others, it’s a unique opportunity to create a fortune in a short period of times.
But we should step back for a second. Think over it with regards to economics. When you glance at a supply and demand graph, you see that as supply increases, demand decreases. And also as supply decreases, demand increases.
This’s called an inverse relationship.
Demand is created through something called “scarcity”. Scarcity means being in limited supply. Think over it like water in a draught. There’s little water available, and thus demand drastically increases.
Then again, rain during a monsoon is in intense excess. And people want nothing to do with more water.
These are examples you find out in real life, but let’s look at scarcity, in terms of crypto.
There will only actually be 21 million bitcoins mined. In the world, there are about 33 million millionaires.
Even when all of those millionaires wants a complete bitcoin, it’s impossible. There are simply not enough bitcoins going around.
Scarcity builds demand.
Now, in the United States (and additional well off countries), men and women don’t necessarily see bitcoin as anything other than an investment. But that outlook fails to take into account those who are affected by financial crises.
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Consider Venezuela. They are facing greater than 4,000 % of inflation. Their fiat currency is essentially worthless. As of August 2015, there were aproximatelly 450 companies that accepted bitcoin. In November 2016, there were greater than 85,000 accepting the cryptocurrency.
The stat is a year old, and Venezuela continues to be plagued with an economic death spiral. So, the number is unquestionably higher.
In fact, over 100,000 miners have joined the game in the united states. Bitcoin is far more stable the Venezuela’s fiat, and therefore is viewed as a viable form of currency.
Now, we’ve seen bitcoin’s value in the eyes of the prosperous, & we’ve seen its value in the eyes of all those in financial crises.
So to answer the question of yours, yes. Bitcoin is worth looking at as an investment.