Yes, No and Maybe.
Now, that wasn’t intended to confuse or scare you but to let you know that the answer depends on your understanding of the technology and the risks involved in buying, holding and using bitcoin
Without wasting any time let’s gets answering the above question –shall we?
Firstly bitcoin was invented as a digital form of cash and to be used as means of making direct payments for goods and services –in the same manner, we use fiat but without the need for any central third party such as banks and other financial institutions.
However, the price of bitcoin is not stable and is subject to regular, considerable volatility which has earned it the title of digital gold as most people buy and hold onto it with the expectation that the price will appreciate given sufficient time.
By digital gold, we mean that Bitcoin is more than just digital cash but it’s also a store of value similar to gold and with the potential to make you a fortune if you just buy and hold it for long-term.
The price tends to increase over time with a reasonable consistent year over year appreciation. Since 2009 when it was invented and launched to the world, the premier cryptocurrency has grown by more than 9,000,000% –a growth level that was never before seen in the history of mankind.
What Makes the Price of Bitcoin Rise or Fall?
The simple answer is demand and supply. However, I must tell you that some level of price manipulation by the rich investors (called whales) is present as they try to increase their wealth by pushing prices up and crashing it in order to buy back at lower rates and this process can be repeated over and over again whenever it favors them.
Just like any other fiat currency or item – the more people want it, use it or demand for it, the more valuable it becomes and vice versa.
The investment appeal of Bitcoin is based on the premise that the cryptocurrency will become a popular, widely accepted means of making direct payment for goods and services globally and thus with the increased demand and usage comes an increase in its price per unit, given that supply is fixed and while the number of potential users (the world population) is exponentially higher.
So Should You Invest in Bitcoin?
If you believe that the technology will be successful as the internet and that most of the world will eventually adopt cryptocurrency and decentralized finance will be the future of finance, then yes, bitcoin is a good investment.
However, if you don’t believe in the future of cryptocurrency or the financial freedom that bitcoin proposes will become a reality, then bitcoin will most likely fail and all investors will burn in hell for being so wrong.
If you have money that you can afford to lose without losing your life, it might be a good idea to have some form of investment in bitcoin. It is better you risk losing something if the whole thing turns out to be just another mega Ponzi scheme than to miss out entirely if bitcoin becomes the center of the world’s finance.
Your children, grandchildren, and great-grandchildren may not forgive you for such an expensive miss.
No one can categorically tell you what the outcome of your investment in bitcoin will be. You will either win big or lose big.
Personally I will rather err being adventurous than overly anxious.
