SHOULD I INVEST IN BITCOIN?
A better question is, should I speculate in Bitcoin?
If you bought P5,000 ($100) worth of Bitcoin in the year 2011, you would have owned 100 Bitcoin and you can sell it now in an instant at around P55 Million ($1M).
Bitcoin has a good chance to stay here for us and be the future of our currency. It definitely has a place in your portfolio if you're a risk-taker.
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.
It is a good idea to buy and hold Bitcoin if you have a spare fund since it has a very good probability to continue its price appreciation over the years like gold, or should we say Digital Gold?
In today's technology, Bitcoin works more like "online banking" where you can view your money online and create a transaction, transfer money, and pay your bills online without using real or fiat money in hand.
Your Bitcoin is stored on your digital wallet using blockchain technology. The only difference and advantage of Bitcoin vs the traditional currency―it is a "peer to peer" 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.
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
In its history, Bitcoin's price has always been very volatile 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 at a dollar-cost averaging, it's safer and more stable during wild downswings.
Things to consider
Choose carefully your Bitcoin broker. There are many fake Bitcoin brokers out there that have bad intentions for 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.
