You have probably heard some of the hype about Bitcoin in the last year or two. This digital currency has gained a tremendous amount of value recently, making many new millionaires in the process. On the other hand, there is a lot of controversy around Bitcoin’s long-term prospects.
If you aren’t a professional investor, should you try to buy some Bitcoin? Is this is a good opportunity to invest, or is it a dangerous bubble? This article will help you to come to a smart and safe conclusion on these questions.
You should consult a qualified financial professional before you make any final decisions with your money.
With that said, this quick guide is designed to help you figure out what is going on with Bitcoin. You will learn how to measure the hype and how to decide if this investment makes sense for you.
We’ve got some advice for you if you think you’re getting money all wrong. But stay here if you’d like to know if Bitcoin is worth investing for your future
Bitcoin Hype
There are a lot of good and bad things about Bitcoin. It’s hard to tell what is true and what is fake due to the amount of noise happening in this space.
Some people say ridiculous things about Bitcoin. They say that it will replace all money and replace the government entirely. You want to avoid these extreme people. Instead look for balanced, emotionally calm reporting that considers all sides of the issue.
There are a few reputable news sources to consider for this kind of coverage. Coindesk is one great website that focuses exclusively on cryptocurrency. In the broader news space, The Wall Street Journal provides robust coverage on Bitcoin fairly often.
Whatever news source you choose, reevaluate it often. If anybody seems to be selling you something, be suspicious. Your goal is to learn as much as you can, but not to be sold an ideology.
If you have a technical background, you could look at some of the primary source documents of Bitcoin too. Search for the “Satoshi Bitcoin White Paper” to see the original pitch for Bitcoin. You can also lookup blog posts by influential author Nick Szabo for some long-form essays about what Bitcoin is and how it functions in our society.
Should You Put Your Money In Bitcoin?
Bitcoin is a very high-risk investment. You could invest in it if you are willing to accept the high risk in exchange for the chance at some big returns.
Some of the world’s most optimistic influencers think that Bitcoin could be worth a million dollars per coin by 2020. This is a radical claim. Other people think it will collapse and become worth $0. They compare it to the tech bubble of the late ’90s and other financial disasters.
It’s up to you to decide for yourself if Bitcoin is a smart investment. As always, you should only invest money you can afford to lose. Be careful and when in doubt, play it safe with your money.
Use the Long-Term Strategy
The most important thing about Bitcoin is to focus on the long term. Many books have been written about the importance of long-term investing. You could read William Bernstein’s book The Four Pillars of Investing for more information on this subject.
Rest assured that many financial experts are trading digital currencies back and forth all day. If you try to make a quick profit, they will take your money. Don’t let this happen to you.
Instead, any investments you make should be for the long-term. Learn as much as you can and, if it seems smart, put aside a small part of your portfolio for the high-risk investment of Bitcoin.
That’s all you have to do to take advantage of the Bitcoin opportunity. It’s a simple way to take part in this exciting wave of new financial technology. No matter what happens, be responsible and try not to let your investment add any stress to your life. Good luck and may you stay safe in your quest to earn money from investing.
