Bitcoin is clearly surging right now, with its value currently reaching $17,000 USD and is looking more and more like a sure investment. Yet it’s vital for anyone looking to invest in cryptocurrencies not to get lost in all the promises and actually stay well informed about Bitcoin’s technological progress.
Prior to considering if you should buy Bitcoin (BTC), you should know the history of the technological aspect of Bitcoin as well as what the experts believe lies ahead in its future.
With the biggest value of Bitcoin being its instant and secure P2P (peer-to-peer) payment transactions, it is now more than ever looking like it’s going to become the primary cryptocurrency in the global market, with over a 1,500% increased value in 2017 alone. Or is it? Let’s see what the finance experts have to say.
Is It a Bubble or Not?
According to the UBS Wealth Management, they are not boarding the hype train that bitcoin is ever to become a legitimate currency. Their global chief economist, Paul Donovan, highlights that cryptocurrencies are only valuable when they are accepted as currencies. Add the fact that bitcoin can’t be used for most important transactions plus that cryptocurrency supply can only rise, which makes them a bad store of value. His report further states that there’s no economic backing for the huge increase in bitcoin prices, which almost certainly means that it’s a bubble.
More Coins Means More Value
On the other hand, co-founder of FundStrat Global Advisor, Tom Lee, believes that Bitcoin will only gain in value over the next five years. He compares the Bitcoin to a social network, stating that the more engagement it gets the more it’ll grow in value. The idea behind is that the more coins are being issued, the more people will be using bitcoin as a master ledger – which basically means that bitcoin’s value is growing with the addition of more cryptocurrencies.
An Independent Cryptocurrency
Braden Perry, a partner at Kennyhertz Perry LLC, states that the world may be ready for a currency that’s decentralized and actually controlled by the people, especially since governments are known for power abuse – now more than ever. A currency without borders that’s available to anyone who can buy it might be a solution for the world we’re stepping in. However, he also states that Bitcoin may have a long journey ahead since it still requires greater adoption and more simplicity if it’s ever going to appeal to the general public.
Some Will Get Rich, Some Will Get Burned
At the moment, selling bitcoins probably seems like a great way to quickly raise a lot of money without any questions asked. Of course, some people will get rich out of it. In fact, some already are. But what about fears of being ripped-off? That’s almost as certain, state the experts, as some people will get burned while investing in cryptocurrencies.
Peter Smith of Blockchain company, which already went through the investment period with Bitcoin, is now looking to invest in Ethereum, a new cryptocurrency with a different architecture. Still, he advises people to be cautious and know what they’re doing before they actually start investing. As any leading accounting firm can tell you, you need to understand the market before you actually start investing.
While there’s certainly going to be nay-sayers when it comes to cryptocurrencies, the concept itself is almost certainly going to survive and advance in the next couple of years. And what about bitcoin? No one can tell for sure, but the fact is that even though its prices are skyrocketing at the moment – it’s still volatile and can’t be easily used for trading. The best advice anyone can give you on cryptocurrencies is to actually know why they’re gaining so much popularity. Understanding them will mean that you can make a safer decision instead of just blindly following the hype train.