As of mid-December 2017, Bitcoin reached beyond $16,000 which is astounding, and for some people who got into Bitcoin in the early days, they may be millionaires at this point.
While it can be exciting to follow the rise of Bitcoin, there is also a lot of speculation that it’s just one more bubble waiting to burst, and this leaves people wondering whether or not it’s too late to invest in Bitcoin or other cryptocurrencies.
The following are some things to think about with Bitcoin and whether or not it’s a good investment decision for you.
Is It A Bubble?
There is a lot of back and forth debate as to whether the Bitcoin craze is a bubble or here to stay. It’s not uncommon to have a lot of big names in the financial and investment worlds saying it’s bubble full of opportunities for scams and fraud, but on the other end of that, it has made a lot of people rich.
It’s really difficult to know if Bitcoin will keep going up, or if it’s poised to drop in a big way.
Is going short or long better right now? We don’t know that either.
With a lot of investments, there are cycles of up and down periods, and you know that even if something goes down for a while, it will inevitably go back up. As far as Bitcoin, we just don’t know, which is why it’s such a gamble.
There is the potential that within a few years Bitcoin could completely disappear, but at the same time, there’s the possibility it could become one of the biggest things to hit the financial industry and the markets.
If you’re considering whether or not now is a good time to invest in Bitcoin, there are some ETFs that are close to becoming available.
There are bitcoin-based ETFs currently waiting for the approval status from the SEC, and this could create new opportunities for investors who have been unsure up to this point.
This is especially good news for people who worry that the typical method of trading Bitcoin which requires setting up a digital wallet, is too burdensome.
What Are Your Investment Needs?
It’s not just macro factors that should weigh into your decision as to whether or not you should invest in Bitcoin.
You also need to think about your individual investment needs.
Bitcoin is incredibly volatile, and there’s no debating that fact. It’s not a good part of a conservative investment strategy, so if you’re nearing retirement or you’re in retirement, you may want to avoid it.
If you have a longer-term investment window, maybe you do want to find ways to incorporate higher levels of risk and return in your portfolio, so Bitcoin could be a route worth exploring.
Finally, something else to think about if you’re weighing Bitcoin investment opportunities to keep in mind that this isn’t the only cryptocurrency out there. There are other cryptocurrencies that are starting to take up larger portions of market share, so if you want to get in on the ground level of something, you might do some research.