Is Bitcoin meant to invest in?
Anything I say should not be taken as financial advice.
However, Bitcoin surely deserves consideration.
And with Bitcoin crossing this week’s $10k mark, it’s no wonder people think this is a bubble. In June of this year, it fell below $1,000 and has since skyrocketed completely.
Investors prefer with their very unpredictable markets to poopoo cryptocurrency. However, with uncertainty, profit margins are dramatically improved. Bitcoin’s value increased more than 1,000 percent in less than 6 months.
For many a bubble is a good symbol. It’s a rare opportunity for others to make a fortune in a short time.
But why don’t we take a second back. Taking it into account in terms of economy. You can see that as supply rises, demand decreases. When you look at an offer and demand graph. And with supply decreasing, demand is also increasing.
This is called an inverse relation.
Demand comes from something known as “scarcity” Scarcity means that there is a limited amount. Think of it in a draught like water. Very little water is available and the demand rises significantly.
In the monsoon, on the other hand, the rain is excessive. And people don’t want something with any more water at all.
There are real instances you might see in life, but in terms of cryptography we don’t look at scarcity.
Just 20,000,000 Bitcoins would be really mined. There are about 33 millionaires in the country.
It’s unlikely even if every millionaire want a whole bitcoin. Not enough bitcoins are usable to walk around.
The market is increasing in scarcity.
Today, people do not see bitcoin as anything but an investment in the United States (and other well off countries). However, the thinking of individuals affected by financial crises cannot be taken into account.
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Look at Venezuela. Look at Venezuela. They face inflation in excess of 4,000%. Basically, their fiat currency has no meaning. Since August 2015, some 450 companies have embraced Bitcoin. More than 85,000 people approved the cryptocurrency in November 2016.
The status is one year old, and Venezuela still has an economic vortex of destruction. The number is also undoubtedly higher.
More than 100,000 miners have actually entered the country. Bitcoin is much more stable in the fiat of Venezuela and is thus viewed as a viable currency.
Today, in the eyes of the wealthy, we saw bitcoin’s value, and in all financial crises we saw that value.
So, naturally, to answer your question. As an investment, Bitcoin’s worth seeing.