In any investment there is always a risk to consider. But how you go about your investment is a different story. Bitcoin is the "IN" thing, but is it worth investing in? While risk is a foremost consideration in anything that has to do with financial investments, the most important factor to consider before venturing into anything is, STABILITY. This basic factor will help you to determine if the risk is worth investing in.
A quick look at Bitcoin, what is it? It is a type of digital currency already considered by some as, "the future of money", otherwise known as crypto currency worldwide, as well as a system for digital payments. Although, regarded as decentralized because this digital currency works in the absence of a single administrator or a central repository, as compared to how the banking system works. It was founded and introduced as open-source software in 2009, by an unidentified person or a group who go by the name of Satoshi Nakamoto. It's a peer-to-peer system wherein which the transactions are directly between users without any mediator, duly verified via network nodes and recorded in something called a “blockchain” which is a publicly distributed ledger.
Is it smart to invest in Bitcoin? You can answer that question after you research and learn about this crypto currency, weigh the pros and cons, and the best way to go about it. A paramount consideration is to not invest beyond what you are willing to risk losing. There are a few platforms for Bitcoin investments that you may try, and here is an overview on whether there is potential and/or setbacks.
To start with, Bitcoin had already proven its viability in the market eight years after it started its business, when it was reported in 2017 that it had hit the $1000 mark, and it keeps growing. Unlike a company or stock, Bitcoin is a type of currency, so that means to say, when investing in Bitcoin, you are purchasing the currency.
By investing in Bitcoin, you can buy it and hold on to it by transferring it into a highly secure virtual wallet for safekeeping. Buying and Holding the Bitcoin until the value appreciates, is the most common way to invest in this currency. In doing so, beware of scams. Make sure to only buy from reputable exchanges.
Next, you may consider Trading in Bitcoin. Trading means you buy bitcoins at their lowest cost and then sell them back at a higher price in a quick time interval. Please know that the Bitcoin trading market has big and experienced investors who may just be waiting for beginners to give away their investments. The key here is to learn about Bitcoin and Trading before playing in the Bitcoin trading arena.
Third, you can go into Bitcoin Mining. Now, honestly, Bitcoin Mining will require you to buy expensive mining equipment in order to get the most profitability out of mining bitcoins. Overtime, Bitcoin Mining has proven its success and large returns if done on a large scale as well. This will entail money, time and effort, which makes it less appealing compared to the prior two.
Also, there is a sub-category of Bitcoin Mining called Cloud Mining. This is when websites call upon you via affiliate links, ads or referrals indicating that you can mine bitcoins via their internet sites. The majority of these are scams, or if they aren't scams, they are the type that will just lure you into bad investment.
Lastly, you will also encounter invitations to invest in on Bitcoin Companies. They will commit to double or triple your bitcoins, as well as give you assurance on huge interests daily and several other sketchy investment schemes. Again, Bitcoin is a currency, not a company or a stock. Rule of thumb, if it is too good to be true, it is probably not true.
In general, investing in Bitcoin has potential. It all depends on how you approach it. While you weigh your options, here is a parting word from Chief Community Officer and Co-Founder, Miguel Cuneta, of Satoshi Citadel Industries, on his interview regarding bitcoins with ANC's On the Money: "I would liken it to the internet back in the 90s. Back then, the internet is so new people were afraid of it… Now, everybody has the internet, we don’t go online anymore, we live online."