Is Bitcoin A Good Investment?
Questions about the value of bitcoin as an investment will likely differ depending on who you ask.
with a vision of a fully-distributed future in which the lack of a
centralized overseer becomes key to an asset’s value will tell you that,
yes, bitcoins are poised to become only more valuable in the future.
Others who put more value in the traditional trust afforded by banks and government institutions would likely steer you away from bitcoins as an investment.
While determining how “good” any investment will be
is ultimately a guessing game, there are some tried and true ways to
determine an asset’s worth. One of the simplest ways to think about
bitcoin as an investment is to consider its rise against the U.S.
Recently In 2020, bitcoin prices eclipsed $10,000 and have reached beyond $19,000. If you had invested in the digital currency when its worth was still hovering around $150 just a few years ago, or when it was first introduced in 2009 and worth nothing against the dollar, you would probably be convinced that it made for a good investment.
Furthermore, an underpinning concept behind Bitcoin is that there will
only ever be ~21,000,000 bitcoin, meaning that it may stay consistently
valuable or increase in value relative to other types of currency which
can be printed endlessly.
Other reasons that the asset seems like a good investment include its growing popularity, network effects, security, immutability and status as the first ever in a growing world of digital currencies.