Bitcoin is highly volatile and is as likely to reach all-time highs as it is to collapse. However, that doesn’t mean that now is a bad time to invest. If you agree with those predictions, now might be a good time to get into bitcoin.
Bitcoin
‘s overwhelming performance as a currency and investment has attracted traditional and institutional investors alike.
During bull markets, long-term Bitcoin holders accumulate supply in anticipation of a major price increase. However, he predicts that bitcoin will outperform gold in the long run, largely due to the attraction of millennials and Silicon Valley to the cryptocurrency scene. JPMorgan Chase analysts believe that Bitcoin’s digital gold narrative is taking capital from precious metals. There are also funds that have some exposure to bitcoin, as well as traditional assets such as stocks and bonds.
Many cryptocurrencies such as Bitcoin and Ethereum are launched with high targets, which can be achieved on long-term horizons. This opened up investment in Bitcoin to millions of users who previously didn’t have the confidence or skills to get Bitcoin, but can now buy it through a familiar interface. The supply of bitcoins is capped at just under 21 million coins, while currencies controlled by central banks can be printed at the will of politicians. The color bands follow a logarithmic regression (introduced by Bitcointalk user trolololo in 201), but are otherwise completely arbitrary and without any scientific basis.
Once you have your Bitcoin, you can buy a Ledger Nano to store that Bitcoin offline and away from any hacker. With institutions adding Bitcoin to their balance sheets and El Salvador making Bitcoin officially legal tender, it looks like Bitcoin will be the future of the currency, or at least an accepted store of value. Bitcoin is a digital asset that works like a normal currency, but without banks making a cut on every transaction. If you have funds in your PayPal account that you would like to use to buy Bitcoin right away, you’ll be pleased to know that both Coinbase and eToro allow funding of PayPal accounts, as detailed in my guide to buying cryptocurrency with PayPal.
Towards the end of the article, I will again discuss some of the ways you can make money with Bitcoin.
