People have turned their focus to bitcoins
Nowadays, people are looking for ways to make profits quickly, and that’s why they have turned their focus to bitcoins, although some have termed it as a controversial investment. Bitcoin, also known as virtual currency, is unpredictable since there is no stability in its exchanges, and it is not easy to trace.
Nevertheless, there have been changes, and the currency has stabilized after a particular period of instability. This helps the investors to make their minds on whether to risk their money into a currency that no longer exists.
Volatility
Even though there has been a rise in the popularity of bitcoin over the last few years, the market has remained small, which is an indication that minor changes can impact profoundly on its price. There is no doubt that the value of this currency is going to appreciate instead of depreciating in the long run. A significant number of investment brokers are encouraging people to invest in Bitcoin as a medium to long-term investment due to its short-term volatility. Bitcoin and real estate investment are alike. The prices of the properties, especially the real estate, tend to go up with time, and this is the same with Bitcoin.
Value Influencers
Just like any other financial matter, the price of Bitcoin is determined by the powers of demand and supply. Bitcoins are no exception, but they have been impacted by the following news that has led to a significant change in its demand and supply:
The bankruptcy of MtGox which is one of the largest Bitcoin exchanges
The closure of the Silk Road, which used to accept bitcoin for trading drugs
The government backing that the bitcoin will flourish in the future, despite having some negative uses
The media reporting which has stirred up interest.
If you are looking forward to investing in Bitcoin, the best thing to do is first to study the market for a few weeks to months to establish the currency trading patterns and how volatile it is. It’s not easy to find news that does not impact on its value; most people recommend investing in small amounts and then keep an eye on opportunities like using profits to add up shares.
Just like any other investment, the value of Bitcoin can decline, and some factors such as the shutdown of MtGox and closure of Silk Road impacted negatively on Bitcoin. This was a result of a decrease in demand and the myth that the Bitcoins were in partnership with these companies. Nowadays, there has been consistency in the market for Bitcoins though it is yet to be regulated since there are more exchanges available. Not all the exchanges will be fruitful in the long run, but some will be successful via consolidating and turning strong and becoming reliable. There is a belief that at some point, there will be an official regulation on Bitcoin, which will stabilize its market and reduce its volatility.
Bitcoins are a profitable long-term investment. Not many people have an idea about what bitcoin is and does not feature in the list of top currencies. Most investors, both new and existing, are excited about the future and potential of Bitcoin.