What is Bitcoin?
Created in 2009, Bitcoin followed the housing market crash of the same year. No one knows exactly who created it but it was designed to offer lower transaction fees than traditional online payment methods. As a brief introduction to Bitcoin, it is a digital currency – there are no physical Bitcoins. All of the balances are kept as a public record that everyone has access to, as well as being able to access all Bitcoin transactions. It has increased massively in popularity over recent years, which probably explains the sharp increase in value over recent months, all of this despite the fact it is not actually seen as legal tender.
Should I Invest in Bitcoin?
As with any financial investment, it is important that you do your research and work out what is best suited to you and your situation. Investments are great if they go up, but you should always be aware that you are at risk of losing your money, so take all investments seriously. It is always worth getting some financial advice or doing research online, to give you a firm idea of what you’re doing – so you can make an informed decision as to what your next investment move will be.
When you consider that Tyler and Cameron Winklevoss (who are said to have been involved in the creation of Facebook alongside Mark Zuckerberg) bough £8 million worth in 2013 and in 2017 became the first Bitcoin billionaires, you could say that many people will say it’s an investment worth making. This year, Tyler has estimated that a single Bitcoin will be worth £360,000 within the next 10 years – which if he is accurate, will mean massive returns on a 2021 buy of £25,000 per Bitcoin as the price is now.
What Are The Professionals Saying?
No one can accurately say what an investment will do – the housing market, the Stock Exchange, Bitcoin all can be affected by outside factors – and that is no denying that a global pandemic is going to have an effect on these.
That said, financial giants, Fidelity and Goldman Sachs are said to be looking into how their clients can make use of Bitcoin for their investments and even to pay for goods. City firm Ruffer Investment recently put £550million into Bitcoin and varies hedge fund managers have recently revealed that they have started to invest too.
There are even retails that have started to accept Bitcoin as a way of paying for goods – Starbucks, Nordstrom and Whole Foods just some of the bigger names that have done this.
Is Now a Good Time To Invest in Bitcoin?
As with any investment, there really isn’t a black and white answer to this – because none of us knows what the future holds. However, with Covid-19 hopefully soon under control and a world that is going to start to return to normal, financial investments of all kinds could be on the up. There are certainly some big-name investors putting their faith into Bitcoin. If you do have some money that you’re looking to invest the Bitcoin can be a fantastic place to put your money. Just make sure you do your research and explore all of the options, so you know exactly what you’re getting into before you go ahead – especially if you’re investing money that you would rather not lose. If you do decide to go for it – good luck!