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Should I invest in Bitcoins?

Bitcoin digital chipShould I invest in Bitcoins? that is a good question that I want to cover in this article.

You may remember back in late 2017, when Bitcoin went up to high levels and then shot back down again. Cryptocurrency has been around for many years, but its only the past year or so that more and more people are finding about it. It is said to be an alternative to putting your money into banks, digital currency so to speak. But whether it will ever be a common place currency or not, I could not say.

Many banks and the current Bank of England Governor Mark Carney advises people to not invest into Bitcoin, simply because of how up and down it can be, even more volatile than stocks and shares. Now when I invested in 2017, it was just too late, I had made a £50 profit and all of a sudden it had dropped when it was said that the other currency Ethureum was a better and secure alternative. I had lost money, which was disappointing and it hit home just how really risky investing in bitcoin is. If you had invested in 2013, you would be very well off, if you had sold in late 2017 in the biggest boom ever, in its short history. It has not reached those high levels since then, although in the future you never know what may happen.

Fair enough if you want to invest a little money, having your eggs in more than one basket is a good idea. It could be a possibility that bitcoin may rise again, but don’t put money in that you cannot afford to lose. Keep researching and make a considered decision, if you want to invest. I am actually still signed up to coinbase, one of the popular sites where you can invest in digital currencies. This year they have now enabled deposits and withdrawals for UK bank accounts which is good.

So what exactly is bitcoin?

Technology called Blockchain is used, where everything can be seen by the public, which are the transactions. Computers communicate with each other to create the digital bitcoins. They can be paid for using real money and sold to pay for products/services that accept them. There is a process called mining, which creates the bitcoins, this can take various amounts of time, depending on the performance of your computer.

Bitcoins are stored in digital wallets, but you have to be careful because these can be deleted or they can be stolen. Once they are deleted or you can’t remember the password to the wallet, then they are gone forever. The great thing is that unlike the stock market in the UK, bitcoin and crypto markets are open all the time 24/7.

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History of Bitcoins

Bitcoin was first used in early 2009 and invented by a man called Satoshi Nakamoto. He wanted to bring out a digital currency that could one day replace our modern day coins and note currency. Where it would be more secure and couldn’t be forged. It wouldn’t require personal details to be handed over to banks. He saw bitcoin as a future currency fitting in with the digital age. But it has had mixed results from the very first transaction in January 2009.

In 2010, the cryptocurrency actually had a value associated with it. The famous first sale was completed, exchanging an incredible 10,000 bitcoins for two yummy pizzas. I bet he wishes he hadn’t of sold them, because at last years prices they would have been worth over a whopping $100 million.

2011 saw others trying to jump on the bandwagon and create other digital currencies like Namecoin and Litecoin, these are meant to be improved versions of Bitcoin. There are currently over a thousand others now in the competition.

2013 saw a big increase to $1000 per bitcoin, but it soon came right back down to earth to $300. Investors lost large amounts of money.

At the beginning of 2014, saw a large theft of Bitcoins from a bitcoin exchange called Mt.Gox. An incredible 850,000 coins were gone just like that and sadly have never been recovered. Because there were only a certain number of bitcoins in the whole world, this amount accounted for 10 per cent. There is still an investigation on the matter and at the time the coins were worth $450 million and last year would have been billions of dollars more in the boom. There is no doubt that Bitcoins became a big target for scams, because it was designed with no control in place.

2016 was almost Ethureums year, as it almost overtook Bitcoin. There are actually websites where you could invest in them. But Ethereum was eventually banned in China.

2017 saw a fantastic record-breaking year for Bitcoin, as it was beginning to be accepted more in the modern day world, with companies accepting them as payment for products/services. This obviously gave a massive rocket in value for cryptocurruncies in general from $11 billion to a massive $300 billion. Banks like Barclays and HSBC were very interested in working with Bitcoin.

Later on last year saw big drops in value of Bitcoin and it spooked many people investing in them. There are concerns over countries banning them because of them being not so secure and maybe other cryptos like Ethereum being better. It did recover and into 2018 it hasn’t got anywhere near the heights of 2017, currently at over 4000 dollars per bitcoin. The highest was December last year at $13,320 per bitcoin, so there has been large decreases this year but considering people thought bitcoin and cryptocurrencies in general wouldn’t take off, it still is high.

To conclude

Its talked about as a bubble, but who knows where bitcoin and cryptocurrencies are going in the future, way up or down. But take the time and research to decide with caution in mind, when looking to invest, it may have had its time. Maybe investing a little money is the sensible thing to do, because of the risk. It would be great if Bitcoin did go way up, but I would be wary investing large amounts even then.

Thank you for reading my article, please feel free to leave a comment below and I will reply back as soon as possible.

Sources: https://www.statista.com/statistics/326707/bitcoin-price-index/

https://www.forbes.com/sites/bernardmarr/2017/12/06/a-short-history-of-bitcoin-and-crypto-currency-everyone-should-read/

https://www.coindesk.com/information/what-is-bitcoin

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16 thoughts on “Should I invest in Bitcoins?”

  1. So with bitcoin, its a sketchy way to make money still, unless you are mining. This takes a higher level of skill, as my Brother does it but I find it a bit difficult to understand what he is talking about. I do find it a bit useful to get some advise from him though, because that’s what you need is a good person to get personal help from. Overall though the bitcoin does not interest me, only as a very high risk investment. Nothing safe within itself. 

    1. Hello Andrew,

      Yes mining is said to be complex. Bitcoin is a high risk investment and my mind changed about it last year when I had lost money, how sharp the fall was from the big rise. I have got a little money in bitcoin though, just in case it shoots up suddenly. 

      Best Wishes

      Eden

  2. Im not going to lie Bitcoin has intrigued me but Im still not going to lie when I say I would be way too scared to get involved in something in my opinion that is way too volatile.

    I know a few people made a lot of money but I think that value is way gone.

    Im okay with taking chances but Im going to stick to chances that wont cost so much.

    Thank you for writing this article.

    1. Hello Dale,

      I think Bitcoin will always be volatile and I wish I had invested money into it five years ago, but I hadn’t even heard of it then. 

      Thank you

      Eden

  3. Hi Eden, you have done very well with your site!! It is easy to navigate and your content is an easy read, not to complicated. There is great information and the article on WA is in depth and clear, I am enjoying WA so far and it has definitely been a god send to me when it comes to creating a successful website!! Keep up the good work!! Cheers!!

  4. I have a colleague at work who invested in Bitcoin – only 1 or 2 I think. But he was very involved in tracking it’s movement in the value and it did seem very volatile. Thank you for your article explaining more about such a new and abstract from of currency. 

  5. To be honest with you, I’ve always been intrigued by cryptocurrencies since their inception, but by the time I had researched them and understood enough and it was popular enough, It had busted just like the dot com bubble of the early 2000’s.  

    The main reason I did not invest is that I did not understand it.  The technical jargon they use like blockchain and mining kind of kept me away until it was too late.  It could have been a great a opportunity just like those 2 pizzas that were sold for 10,000 bitcoins!  Wow!

    I believe (now this is my humble opinion) that if someone invests in Bitcoins, it has to be for the long run and keep them until you have gained what you were looking for.  Do you agree?

    1. Yes I do agree that it is good to invest in Bitcoins for the long run, but if they suddenly shot up, I probably would withdraw in case of going sharply down, because of how volatile they are.

  6. It’s certainly unpredictable and risky! I have a friend whose partner invested $10k into bitcoin a few years ago, not sure exactly when, and their investment was worth over $70 at one point, unfortunately though, they didn’t cash in on that and ended up pulling out when it was at $30k. Big mistake there!

    1. Your friends partner still made a very good profit, but yes very annoying when it was up to $70,000. Its about pulling out at the right time, which can be difficult and even more so when Bitcoin can be so volatile, suddenly shooting down. I just have a feeling that Bitcoin isn’t finished yet and there may well be another big increase in the near future. 

      Best Wishes

      Eden

  7. I think people need to think very carefully and do a ton of research on crypto in general before considering investing in Bitcoin. It has always been extremely volatile and will likely always be volatile. I feel bad for the people who invested in Bitcoin while it was skyrocketing in price before losing a ton of value. This was within the last year and a half I believe. 

    1. It is very important for someone who is new to investing in bitcoin, to do research. I think a lot of people probably wished they had invested many years ago and then sold in late 2017. 

      Best Wishes

      Eden 

  8. I don’t think you should invest in bitcoins if you are starting your online journey to making money. Too risky.

    As you mentioned in your article it goes up and down and is not wise for a beginner to do this kind of thing.

    There are plenty of other ways to start making online(safely) so it’s wise to begin by doing one of them.

    1. Yes Bitcoins are risky to invest in, especially for beginners. But if it goes dramatically up again, then people would make a nice profit. But it would be too risky putting in a large amount of money, I think beginners can still invest, making sure to research and just putting in a little amount of money. 

      My favoured way of trying to earn an online income, is of course affiliate marketing and creating a blogging website, with the help of Wealthy Affiliate

      Thank you for your comment.

      Best Wishes

      Eden

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