When you’re an investor, it’s vital to always look for new opportunities that offer solid returns. Bitcoins are digital currency that are global, and they are becoming harder to purchase as investors are buying them up and not selling. There is a finite number of Bitcoin available, 21 million. Like gold, Bitcoin gains in value as scarcity rises. This is a secure investment, but it takes some time to learn how this digital currency works and why it is so valuable to investors.
Bitcoin is a global currency that works throughout the world. Banks can’t block them, and you can send money anywhere you want to without censorship. The internet has opened up many opportunities for investors, and Bitcoin is making business transactions possible in areas where government oversight would otherwise prohibit it. The potential for this cryptocurrency is huge, and will have a significant impact on the global economy over time. As more investors become wary of Bitcoin’s potential, prices are only going to continue to rise.
However, the price of one Bitcoin can be erratic, as the price is based simply on how much one is willing to pay for it. As scarcity rises, the price of one bitcoin is expected to rise. According to Coindesk.com, the price of one bitcoin hit a high of $4,327 September 9, 2017 and a low of $2981 on September 15, 2017. The widely fluctuating price of the bitcoin from day to day has some investors wary of the risks associated with investing in digital currency.
Bitcoin was created in 2009 so the history is relatively short, but its value sharply increased over a very short period of time. Knowing when to invest in Bitcoin is just like any other investment — you can’t always know when the right time is to invest in Bitcoin. You’ll have to do some research and determine if the price is currently at a spiked high, or has been on it’s way down for a few weeks.
The price of Bitcoin may be at a short-term low at this point, hovering around $3,500 as of September 16. The price of $3,500 is for one Bitcoin, although you can invest in less than one bitcoin at a time. This can be an excellent investment, but you have to have the backbone to be able to handle the ups and downs that bitcoin trading produces.
Bitcoin has taken a hit recently, as China announced the shutdown of local Bitcoin exchanges as of September 20. This is an effort by the Chinese government to try to regulate cryptocurrency, and the potential effects of the of the shutdown are uncertain. Some financial experts aren’t overly concerned, stating that China is a volatile market anyway, and the move will have a significant impact on cryptocurrency overall.
While regulation may be a factor that runs prices down for awhile, it is clear that Bitcoin is here to stay. Modest investors looking to make money in the market can do so by purchasing Bitcoin through a Bitcoin wallet. Coinbase is one of the more popular places to buy bitcoin online. You store your bitcoin in a secure, online wallet and can both sell and buy bitcoin through the company.
If you are nervous about investing in digital currency, you are not alone. It’s not a tangible product, but once you see how revolutionary Bitcoin is, it’s probably worth the risk. Digital currency is opening up all kinds of opportunities throughout the world. You can use Bitcoin to pay for goods or services without even giving your real name.
With Bitcoin, you can start small. Look for a time when the price appears to have stagnated or decreased in the recent past. While there are no guarantees, Bitcoin tends to take sharp rises after a period of stagnation. Look for the resting period and try to buy in during this time.
Regards,
Ethan Warrick
Editor
Wealth Authority
