Although the concept of cryptocurrency goes back many years, Bitcoin was the first project that turned this dream into a reality. Bitcoin’s white paper, released in 2008, is considered the birth date of this famous crypto asset now known to almost everyone.
But alas, many people still wonder if Bitcoin is a project is worth backing or not. The chances are that if you are on this page, you may also be wondering.
In this Bitcoin review, we will look into the pros and cons of this cryptocurrency, the different options available to you to invest in this asset and the reasons that may push you to get Bitcoin. Finally, we will see if it is still profitable to buy BTC or if it may be better to consider investing in a different cryptocurrency.
To invest in Bitcoin, you have to go through what is called an exchange. This is a buying platform where you can buy BTC with fiat money (pounds, dollars, etc.). While there are other ways to get digital assets (see our purchase guide), this is the option we recommend for beginners.
It is important to get your BTC from a reliable exchange. If not, the risk of getting ripped off is far too great and you risk losing your investment. Even though risky platforms are slowly disappearing, there are still many dishonest actors to be wary of.
To help you, we’ve selected a small list of reliable exchanges where you can get bitcoin securely. If you are a beginner and do not have the ability to analyse for yourself the trustworthiness and reliability of different platforms, we recommend that you register only on one of the sites we mention above.
There are many reasons to invest in BTC. It is obviously not possible to list them all here, but we will give you the most important ones.
First of all, Bitcoin is a pioneer, establishing itself as a new asset class for all investors. Although this digital currency had at first the reputation of being used by criminals only, now this image has all but disappeared – even institutional actors are beginning to trust it.
For some people, Bitcoin is considered digital gold and represents the future, as its number is limited to 21 million and it is increasingly difficult to obtain it over time because of the diminishing mining rewards that are cut in half every four years. Moreover, unlike traditional gold, it is relatively easy to handle BTC and trade with it. Of course, it’s a little complicated when you’re just starting out, but once you master the intricacies, everything becomes quite simple to understand.
Bitcoin also helps diversify your investment portfolio and, at the same time, your risk. We never recommend that anyone put all their eggs in one basket and your investment in BTC should only be part of your portfolio.
There are many advantages to Bitcoin. Here is a list of the items that are generally most appreciated by investors:
What are the drawbacks of Bitcoin?
All the same, Bitcoin does not only have advantages. There are also some drawbacks that need to be mentioned in order to be totally objective:
Since the creation of the BTC, we have heard regularly from investors who say that it is too late to invest in Bitcoin because of its high price. A tale as old as time.
In its short history, Bitcoin has experienced several bubbles, which have each time burst, causing its price to crash before returning to a new high. However, bitcoin has consistently set higher lows, meaning its value has only increased over time.
However, it is increasingly unlikely that you will be able to have the same return on investment as someone who purchased Bitcoin for a few cents when it first became possible to trade this digital currency. It is impossible to get those returns as the size of the global economy is not large enough to allow for them.
However, due to its rarity, increasing adoption among the general public and by merchants, bitcoin getting misplaced or burned, its constant technological evolution, etc., it is clear that the value of Bitcoin should continue to appreciate over time.
If you want a huge return on investment, you can also look at the so-called altcoins, that is, all cryptocurrencies that aren’t BTC. With a lot of analysis, and a bit of luck, you may be able to find the gold nugget of tomorrow, which will see its value 100x or even 1,000x, something that now seems unlikely with Bitcoin.
Now is the time to conclude and give you our opinion on Bitcoin. As you have seen from our article, you should always weigh the pros and cons before you think about investing in something. Generally, nothing is ever black or white, the reality lies between these two extremes.
In our opinion, Bitcoin is by far the safest crypto asset you can invest in. While its volatility may seem significant, it is nothing compared to what other, lower cap digital currencies may experience.
However, don’t expect to make huge returns on investment by investing in BTC. In our view, it is too late for that. However, we believe that this digital asset still has a lot of room for improvement and in the long run, an investment in BTC will be much more profitable than gold.
Also, be careful not to put all your eggs in one basket. An investment portfolio should be as diversified as possible and Bitcoin should be only a part of it. In addition, you may also consider buying other digital assets so you don’t just focus on BTC.
If you want to invest in Bitcoin, we advise you not to sign up on any random buying platform. There are still too many scams in the sector and we recommend you only register on one of the exchanges you can find at the beginning of the article. These are reliable platforms that we have tested and you should not encounter any problems using them.
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J'ai découvert le monde des cryptomonnaies en janvier 2018. Arrivé au pire moment pour investir, je n'ai depuis lors jamais cessé de me former et partage désormais mes connaissances afin de faciliter l'adoption des cryptos.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
|BITCOIN (BTCUSD) ₿||$29,497.75||-5.74%|
|ETHEREUM (ETHUSD) Ξ||$1,999.29||-6.71%|
|IMM. US (REIT)||$2,502.91||-0.44%|
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