Bitcoin – the cryptocurrency taking the world by storm. And for the right reasons.
There is a reason everyone is talking about the virtual currency that is not yet legal. This is because the rate of which Bitcoin is gaining value and making its investors very, very wealthy.
In December last year, Bitcoin hit a new high of $807 US on December 26.
Today – $12,725 US. And it’s still climbing as we write this.
In just under 12 months exactly, it has increased its value 10 times over. 1100 per cent almost. And three weeks alone, it’s up 100 per cent.
For those of you smart enough to invest a year ago, you would be jumping for joy today. For others, I have a feeling you are asking if it’s too late to invest.
That is something you have to decide for yourself.
When Bitcoin reached an all-time high of $7,882 US on November 8. I, like many, tuned into all the financial commentators I could find to get the answers I needed.
Is it worth investing? Am I too late? Will it go higher? What if it drops? Wait…what is bitcoin?
I will admit, I still have these questions. We all know shares and trading are a gamble every time.
But, this Bitcoin has seemed to just explode everywhere you turn, it seem to be the new darling.
The thing I’m still trying to wrap my head around is that Bitcoin is artificial. Its an artificial cryptocurrency.
How people have found Bitcoin, and continue to find and mine Bitcoin, is another question – one I’m not going to attempt to answer but you can look it up.
People treat it as a virtual currency, and some retailers – even the Old Fitzroy pub in Sydney – accept Bitcoin as payment.
Many would think Bitcoin is a sure thing – invest now before it’s too late. But what if this is just a bubble? But then again…what if it’s the new currency of the future?
Adrian Przelozny, chief executive of Independent Reserve, a Bitcoin exchange in Sydney, says more sophisticated investors are starting to stand up and take it seriously. Regulators, such as AUSTRAC and ASIC, are also taking notice.
Przelozny says “It’s becoming a more legitimate market, with more legitimate investors” (Listen here)
Ross Greenwood, the Nine Network Business and Finance Editor, has warned many times to be cautious with Bitcoin. But he does acknowledge that cryptocurrencies do have a place in the future of the world.
Greenwood says at the beginning of a new product, there is always a “supply and demand” issue.
“Massive demand, not much supply. Prices go through the roof. Regulators get involved and the place bureaucratised. As a result…there’s a massive oversupply of the product, or indeed you’ve got something go wrong and and there is real concern.” (Listen Here)
But the one thing that makes me think twice about Bitcoin – there is a finite amount. There is only 21 million Bitcoin in existence, and already 16.7 million of those are in circulation.
Isn’t that exactly the law of supply and demand? Finite amount means eventually less supply with higher prices.
As to whether it’s too late to invest – I’ll leave you with this…
If you are prepared, right now, to invest $12,725 US for one single Bitcoin. Do you think there is someone else who would do the exact same thing? Cause that is the person you are relying on to drive up the price further and further.
— Tara Moroney
Interviewed Alastair MacGibbon, Adviser to Prime Minister on Cyber Security titled ” Global ransomware attack .”