Why invest in a hype that has already passed? In December 2017, bitcoin hit a record of just under $ 20,000 only to drop sharply a few months later. Since then you have heard little about the crypto coin.
But is the hype actually over or was this just a taste?
In this article, I look back at how bitcoin has performed in the past ten years, what positive and negative price signals are, how to recognize them and how to get started.
Curious about the price forecast for 2020 according to five experts? Be sure to read this article.
Is investing in bitcoin profitable?
While bitcoin was initially envisioned as a purely electronic cash system, it is clear to many investors that this technology has more to offer. You could argue that it has failed to serve as a means of payment so far.
Hardly any traders accept it, the price is too volatile, transaction costs are expensive and it is not really user-friendly.
But what does it have to offer? Bitcoin does not aspire to become a mere Paypal 2.0. If you go to countries such as China, Argentina, Chile, Venezuela or Turkey where people are struggling with high inflation or capital restrictions, you will soon notice the lesser known properties of bitcoin that have many more opportunities to offer, namely a Store-Of-Value.
The fact that bitcoin is a scarce commodity that cannot be printed, unlike classic fiat money such as the euro and dollar, provides a haven for savers who want to maintain their purchasing power.
Argentina and Venezuela are well-known examples where the government has turned on the money tap just a little too much. The more money there is in circulation, the more inflation and therefore a decrease in purchasing power will occur. There are, of course, many more variables involved, but this policy does send a powerful message that damages trust.
Besides the properties of digital gold, you can also compare it with digital cash. In other words, you are fully responsible for your money, not an intermediary like a bank.
If you have bitcoins in your possession, this is comparable to cash under your mattress. Also for sending and receiving is done without intermediaries. Transactions are irreversible and only you decide what happens with your money.
These properties are increasingly attracting interest from both small investors and large investors such as institutional investors.
Best performing investment
Is it therefore wise to invest in bitcoins? Since 2013, the digital currency has been the best-performing investment you could make.
The cryptocurrency thus outperformed technology stocks or index funds such as the S & P 500, which represents the 500 largest companies in the US. And although the price fluctuates strongly, it is always increasing.
How do you invest in bitcoins?
Actually it is quite easy to invest:
You create an account on https://mudrex.com
1. You verify your email address.
2. You provide the exchange with all necessary identification documents such as a copy of an identity card or a driver's license.
3.You verify your identity.
4.You transfer money
Afterwards, the euros will be in your account and you can decide at any time when to buy or sell.
For larger amounts, I advise you not to leave your money on an exchange, but to collect it and keep it in your own bitcoin wallet.
also read: Why is Bitcoin so popular?