There has been a lot of activity going on with Bitcoin this past few days. I started writing this article on March 5th and never had the chance to polish it. Due to the high activity lately, I want to publish it and do edits as they go along. Below is an awesome video explaining BitCoin. I’m still learning about the currency.
Lately you may have heard a lot of talk about Bitcoin. Bitcoin is a decentralized digital currency. This means that there is no institution or country controlling the value of exchange of the currency. Since January, the value of Bitcoin has had a 500% increase and there no end in sight.
The thought that went through, to get conceive the currency, is a work of a genius(es). Definitely someone that understands technology and economy.
The real winners are the early adopters of the currency. Where some of them were hoarding large amounts of Bitcoins when they were roughly less than a dollar per Bitcoin, some have thousands of Bitcoins and with its increase in value, they are safely becoming millionaires.
We are having a Bitcoin gold rush. Investors are being attracted to the promise of a low investment, high return.
There is the fear that the currency is just a bubble that will sooner or later will burst.
My advice is for you to invest on Bitcoin. If you believe in technology and in the future, you should consider it. More vendors are using the currency. The key for success to the currency is that is used for tangible goods. The more is exchanged, the better the value of the currency. Technology is creating tools for ease of exchange, this should be an indicator that Bitcoin is here to stay, and the value to keep rising. Be aware of the sudden spikes in value, they can go up or they can go down, it’s a realtime market, and it’s as fast as information is transmitted on the Internet.
My advice if you decide to invest on Bitcoin is: 1) Invest the money that you have available to invest or that can afford. 2) Don’t get excited. Bitcoins can go up really fast, and they can go down 2 times faster. 3) When it crashes, you should buy 4) Set value goals. I would either do it by a fixed amount (when it reaches $500 a Bitcoin) or by a percentage of growth from the amount that you bought it for (I want to sell it when a 100% increase in value happens). 5) Disperse your coins. Bitcoin services are constantly attacked, either by hackers or by people trying to buy. Some may try to steal your Bitcoins. I recommend having a local wallet with at least half or more of your coins, and use services like Blockchain, to a portion of the rest of your Bitcoins.
To help Bitcoin, exchange Bitcoins and buy goods with them. The more people do this, the healthier the currency gets. To help yourself, set a Bitcoin savings and practice patience. Bitcoin is expected to increase to $100,000 to $1,000,000(!!) per Bitcoin within the next 10 years. If you do the math using todays Bitcoin value, you can see how much profit you can potentially make.