So we all know and have heard of Bitcoin. But why is it so expensive and should we invest in Bitcoin? The answer is yes, but the real question is why. I’m going to cover all of that in this article.
Why is Bitcoin so Expensive?
A single Bitcoin is currently valued at ~7,300 US Dollars. Less than a year ago, a single Bitcoin was only worth ~250 US Dollars. The price has spiked in these past few months out of nowhere. Thanks to crypto-currency exchanges such as Coinbase and Bittrex, crypto-currencies have been easier to buy than ever. As of November 1st, Coinbase gained over 100,000 users in ~24 hours. On top of this, companies such as Amazon are speculated to also begin to accept bitcoin as payment. As websites like Amazon begin to accept Bitcoin and other crypto-currencies as form of payment, Bitcoin will become more valuable.
Bitcoin prices are based on bid and volume (meaning the supply available). You can think of this as supply and demand. As the supply goes up, the price will go down. Unless the demanded amount of Bitcoin overcomes the amount of supply that is available. Think of it as supply and demand, but instead it is based on what price it is being sold for, and the amount of supply available as well. The seller can choose the price that they want to sell the Bitcoin for. And the Bitcoin will only be sold at that price or more. Bitcoin supply is depleted by lost Bitcoin accounts as well. These Bitcoins will never be available again and will be lost forever from the total Bitcoin volume. More Bitcoin can be generated, but eventually will no longer be available to be mined or generated. When Bitcoin runs out, there is no more supply. Just the volume that is left behind, which will most likely skyrocket as the demand overcomes the supply available.
Should I Invest in Bitcoin?
The true answer is up to your own judgement. I personally will be investing my funds into Bitcoin until the price skyrockets. At which point I will be selling a share of my Bitcoin and add it to my savings account. The rest I will leave in my Coinbase account in-case it skyrockets even more.
Bitcoin is just like stocks. Except the stock itself is an investment into an online currency rather than a company or organization. I am not a financial adviser, but if I was I would advise everyone to invest in Bitcoin.
Now you know why you should invest in Bitcoin. To really know what you’re getting into, you should check out more crypto-currency articles.