SHOULD I INVEST IN BITCOIN?
A better question is, should I speculate in Bitcoin?
If you bought 5,000 Pesos worth of Bitcoin in the year 2011 you would have owned 100 Bitcoin and you can sell it now in an instant at around 55 Million Pesos.
Bitcoin actually has a good chance to stay here for us and be the future of our currency, making it extremely interesting to speculate or if you are a risk-taker, sure! You can invest.
What exactly is Bitcoin in a few sentences?
If the currency of the United States is USD, the Philippines is PHP and Japan is JPY, Bitcoin is BTC. Yes, Bitcoin is also a currency but classified as a world currency, it is open for everyone but unlike the currency of any other country where money can be printed according to the supply and demand - Bitcoin is created by Satoshi Nakamoto to only 21 million Bitcoins. Nobody can add, nobody can deduct, Meaning it is like gold - there is only so much of it. That is why it is a good idea to buy and hold Bitcoin if you have a spare fund because it has a good chance to continue its price appreciation over the years like gold. In today's technology, you can now use Bitcoin to pay your credit cards, cellphone loads and utility bills.
Unlike the traditional money where you can touch the bills and coins, Bitcoin is a digital currency. Imagine our online banking, you can see your money online and transact, transfer money and pay online without your real money in hand, it is pretty much the same for Bitcoin. Your Bitcoin is stored on your digital wallet using the blockchain technology. The only difference and advantage of Bitcoin vs the traditional currency - it is an "owner to owner" transaction and it does not need a central bank, Bitcoin is designed to appreciate in value because it is only limited, unlike the traditional currency that never stops depreciating. In short, Bitcoin is like a combination of gold, stocks, and currency in one.
Risk of Bitcoin
- There are cryptocurrencies out there coming out one by one imitating Bitcoin and it will be a possible competitor.
- Hacking
- Not yet widely accepted
- Very volatile that may result in some losses on your capital
Reminder
Bitcoin's price has always been very volatile in history and it is expected to be the same for the upcoming years. If you decide to buy and hold Bitcoins it is suggested that you do it on a peso cost averaging to be more safer and stable in wild up and downswings.
Things to consider
Choose carefully your Bitcoin broker. There are many fake Bitcoin brokers out there that have bad intentions to the client's fund. Make sure to do your research first before jumping in.
Lollipop money has tested many different brokers out there and compare which has the best trading platform, customer service, and most importantly the broker's credibility. If you need a referral on the broker we are using, just click our link and you will be redirected there for account opening. It is simple, free and easy plus you will also earn P50.00 as a welcome gift!
