Should You Invest In Bitcoins? Here Are The Top Reasons For And Against


The world’s first example of a decentralized, encrypted and distributed currency – Bitcoin – reached an important milestone this week when its price rose above $10,000 for the first time.

This makes news headlines, which go on to make more people aware of the existence of Bitcoin and the hundreds of other crypto-currencies which have since emerged. Many of them will undoubtedly be wondering if they have missed the boat. However, if you believe the many “Bitcoin evangelists” out there, Bitcoin is only just getting started. An investment, they say, even at this stage, could prove hugely profitable in years to come. And to be fair, they have been right so far.


Full disclosure from the outset – as I am not a financial advisor I will stop short of answering yes or no to the question I asked in the title. Instead I would like to give you information which I hope you will find useful when making your own decision.

What do experts say?

If you ask established authority figures within the financial system – for example Deutsche Bank chief strategist Ulrich Stephan – “should we invest in Bitcoin?” then the answer is generally an emphatic “no”. It’s high volatility, lack of obvious use other than as a vehicle for investment, and the bubble-like behaviour of its value are usually cited as flashing red “danger” signs. And logically, one would expect these people to know what they are talking about.

However, another line of thought goes that if you had taken their advice to give Bitcoin investments a wide berth seven years ago, they have literally cost you millions of dollars in missed opportunity. So why should you listen to them? The performance of Bitcoin as an investment speaks for itself – this year it has far outperformed any other asset or stock index you might have chosen to invest money in.

In fact, hardcore Bitcoin aficionados will take things a step further and claim that financial establishment figures have deeply vested interests in talking down Bitcoin. After all, the very existence of the underlying technology – blockchain–represents an, at the best, highly disruptive, and at worst, existential, threat to their business model, according to many.

Source: Forbes


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