HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

Is Bitcoin a Good Investment?


Questions about the value of bitcoins as an investment will likely differ depending on who you ask. Those with a vision of a fully-distributed future in which the lack of a centralized overseer becomes key to an asset’s value will tell you that, yes, bitcoins are poised to become only more valuable in the future. Others who put more value in the traditional trust afforded by banks and government institutions would likely steer you away from bitcoins as an investment.

While determining how “good” any investment will be is ultimately a guessing game, there are some tried and true ways to determine an asset’s worth. One of the simplest ways to think about bitcoin as an investment is to consider its rise against the U.S. dollar. Recently, bitcoin prices eclipsed $1,000 and have reached beyond $1,500. If you had invested in the digital currency when its worth was still hovering around $150 just a few years ago, or when it was first introduced in 2009 and worth nothing against the dollar, you would probably be convinced that it made for a good investment.

Furthermore, an underpinning concept behind Bitcoin is that there will only ever be 21,000,000 tokens, meaning that it may stay consistently valuable or increase in value relative to other types of currency which can be printed endlessly. Other reasons that the asset seems like a good investment include its growing popularity, network effects, security, immutability and status as the first ever in a growing world of digital currencies.

That being said, there is at least one significant argument for limiting bitcoins to a small portion of your portfolio at the most. Bitcoin is known for stark jumps in price, high peaks and deep valleys that would make it difficult to have confidence in the asset as a long-term money maker that can be depended on. Tying every dime you have to such a volatile asset would be imprudent. A good rule to follow is never to invest more than what you would be willing to lose.

#source


RELATED

How to Trade Gold: A Comprehensive Guide

Gold has long been a highly prised precious metal, known for its lustrous appearance, unique properties, and historical use as a form of currency. While many global currencies...

Forex Trade Ideas: Start Learning About Forex

If you have just started trading, then you must have started getting acquainted with the basics of trading forex and online forex trading techniques. The more you learn, the more you will understand...

Why do people use MetaTrader 4?

MetaTrader 4 is a powerful tool for traders of all levels. Find out why so many people rely on it to power their trading success...

The Evolution of Copy Trading: A Comprehensive Guide

The financial markets, long regarded as an arena reserved for seasoned professionals, have been democratized by technological advancements. At the forefront of this revolution is copy trading...

What Are Market Trends?

Have you ever wondered what a market trend is and how to spot it? If so, this article is what you need. A market trend refers to the general direction in which a particular market or asset moves over time...

Five things about Forex every trader needs to know

OctaFX have prepared an essential guide for traders beginning their Forex journey, followed by a workshop by the professional trader and coach Cikgu Danie...

Why forex traders lose money?

In the era of high technologies and financial prosperity, many people dream to earn more and do less. Many of them are qualified specialists. They are ready...

Forex Trading Myths

In this article, we’ll look at some of the most common myths associated with forex trading. Forex trading involves the buying and selling of currencies in a decentralised market...

The Art Of Trading: Mastering Tools, Strategies, and Risk Management in the 2024 Financial Markets

In the ever-evolving realm of financial trading, 2024 presents traders with an extensive array of tools and platforms, each offering unique features and capabilities...

Deep Dive into the Dynamics of Forex Currency Pair Volatility

In the dynamic ecosystem of the Forex market, volatility reigns supreme. By grasping the nature and triggers of currency pair volatility, investors unlock the potential to navigate the market strategically...

Weekend trading

The forex market typically operates 24 hours a day, five days a week, from Monday to Friday. However, some brokers offer the option of weekend trading...

How to Avoid Overtrading

In Forex, when traders start excessively buying and selling currency while disregarding their strategy, they are "overtrading". Overtrading is dangerous as it often happens when traders get caught up...

Six Habits of Successful Investors

You won’t make a fortune at the snap of your fingers unless you’ve won the lottery or received an inheritance. Wealth should be the result of a systematic approach...

Mastering Bond Trading in 2023: Strategies and Insights

Bonds, often known as fixed income securities, remain a fundamental financial instrument for both governments and corporations, allowing them to raise capital for various projects and operations...

How to Start Trading from Home

The unprecedented COVID-19 pandemic practically confined people worldwide in their homes. But technology helped many people navigate the "new norm", or at least cope with it...

Mastering Risk Management: Techniques for CFD Trading

Read this article to discover practical risk management techniques for successful CFD trading. Learn about setting stop-loss orders, position sizing, risk-reward ratios, and more...

Understanding Lot Sizes: Balancing Risks and Rewards in Forex Trading

The trading arena operates in a complex ecosystem that is constantly balancing between potential gains and inherent risks. At the core of this delicate equilibrium is the crucial concept of lot sizes...

What Is Margin Trading And How Does It Work?

Investors trading in the financial market commonly face issues with equity, which creates difficulties in conducting operations with currency pairs and other assets. This lack of equity is primarily due...

What Makes Bitcoin Valuable?

The digital currency Bitcoin has a dedicated following, regularly makes headlines and inspires countless investors to consider making...

What is a Decentralized Autonomous Organization (DAO)?

Decentralized autonomous organizations (DAOs) are a relatively new and innovative concept in the world of blockchain and cryptocurrency. DAOs can be thought of as a form of decentralized organization...

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.