With the huge growth of Bitcoin since it was first made available there is no doubt at all that if you had been involved from the very beginning, then even a small amount invested could now be worth a life changing amount of money. With a lot of people having missed the boat at the beginning of the cryptocurrency boom, we’re going to take a look and answer the question is Bitcoin a good investment?

Opinions on Bitcoin

As with any type of investment there are many different opinions on it, with some people of course being all for it, and other people who will warn you to stay away from it. With the latter this will mainly be people who are more inclined to put their trust in the traditional method of having a central institution controlling it, such as a bank or a credit card company when it comes to their financial transactions. Those who are against this and prefer a decentralised option will of course steer you in the other direction.

Of course, with anything of this sort there is also an element of guessing and luck involved to a certain extent, but one thing you can do is look at the value of it compared to fiat currencies, such as the US dollar, so if you do this with Bitcoin then you will see a huge increase as it has gone from practically nothing to well into the four figures per Bitcoin in comparison to USD. So with this in mind it has been a good investment for anyone who has invested in it in the past eight or nine years.

One advantage that Bitcoin and other cryptocurrencies have in comparison to fiat is that there is a limited amount available. There are only ever going to be 21 million Bitcoins available, whereas with fiat money an endless amount can be printed. Let’s not forget what happened in Zimbabwe when the government printed too much money, resulting in hyperinflation. Because of this at one point even a trillion Zimbabwe dollars wasn’t enough to pay for a can of coke.

As well as the aforementioned reason, other reasons why people think Bitcoin is a good investment is because of the blockchain technology making it very secure. And as the popularity of cryptocurrencies grows, Bitcoin of course assumes the mantle of being the first one. There are also more and more big organisations which are starting to accept Bitcoin as payment, and also a large amount who are likely to begin accepting it in the future. As more and more begin to do this, then Bitcoin will become more valuable.

Another thing that is worth remembering when looking at the question is Bitcoin a good investment, is that it is known for having a very volatile value, so it can increase or decrease greatly in a short period of time. This can also make Bitcoin popular for day trading as people look to take advantage of this volatility.

So in answer to the question is Bitcoin a good investment, we believe the answer is yes, just remember never to invest more than you can afford to lose. Whilst some people may be put off due to the way the value can increase and decrease so suddenly, on the one hand this is good for people who want to have a go at day trading, and on the other it is also worth keeping an eye out for when the price is down as this is the best time to purchase.