Must I purchase Bitcoin?
Something I say is not to be used as financial advice.
That said, bitcoin is certainly worth considering.
And with bitcoin crossing the $10k threshold earlier this week, it is no surprise people feel it’s a bubble. It dropped below $1,000 in June of this year, and also has absolutely skyrocketed ever since.
Investors tend to poopoo cryptocurrency because of its very volatile markets. With volatility, however, comes significantly increased profit margins. In less-than-6-months, bitcoin has increased value by more than 1,000 %.
To a lot of it is a certain indicator of a bubble. To others, it’s a unique opportunity to make a fortune in a quick period of times.
But let’s step back for one second. Think over it with regards to economics. When you take a look at a supply and demand graph, you see that as supply increases, demand decreases. And as source decreases, demand increases.
This is generally known as an inverse relationship.
Interest is made through something called “scarcity”. Scarcity way being in supply which is short. Think about it like water in a draught. There’s little water available, and thus demand drastically increases.
On the flip side, rain during a monsoon is in intense excess. And people would like nothing to do with even more water.
These are examples you see in real life, but we should look at scarcity, in terms of crypto.
There will only actually be 21 million bitcoins mined. In the world, you will find roughly 33 million millionaires.
Even when all of many millionaires wants a whole bitcoin, it is impossible. There are simply not sufficient bitcoins to go around.
Scarcity builds demand.
Now, in the United States (and other well-off countries), men and women do not always see bitcoin as anything other than an investment. But that outlook fails to take into account those that are afflicted by financial crises.
Think of Venezuela. They are confronted with in excess of 4,000 % of inflation. Their fiat currency is fundamentally useless. As of August 2015, there were about 450 companies that will accepted bitcoin. In November 2016, there have been more than 85,000 accepting the cryptocurrency.
The stat is 12 months old, and also Venezuela is being plagued with an economic death spiral. So, the number is definitely higher.
The truth is, in excess of 100,000 miners have joined the game within the united states. Bitcoin is far more stable the Venezuela’s fiat, and so is regarded as a viable form of currency.
Dayun Zig Z1+ , we have seen bitcoin’s significance in the eyes of the well-off, & we’ve seen its value in the eyes of all those in financial crises.
So to answer your question, yes. Bitcoin is worth looking at as an investment.