Bitcoin is the hottest trend which taps on the value of blockchain technology. You may likely to read the news about its roller coaster price. Look at the current price, 1 bitcoin is to S$16,563.52. What do you think where it will go further in the next 1 to 2 years?
What Is Exactly Bitcoin?
Bitcoin is a digital currency founded by a Japanese called Satoshi Nakamoto. It is the first decentralized ledger currency and with the highest market capitalization. It is also not being not backed by any country’s central bank or government.
Investors speculate this crypto-currency like commodities and making it the hottest “Gold Rush” in the last 2 years until now. If the merchant or vendor accepts bitcoin as payment, they can be used to trade for goods or services.
What About Blockchain?
The blockchain is a log of all transactions that were ever verified on the distributed network. Such list of transactions are called distributed ledgers that is shared among a number of computers instead of a central server.
Does Bitcoin Worth Investing Now?
Frankly speaking, i had missed the boat in investing it since i started to do online research late 2016. To confess, i almost jumped into buying some at USD1,000. In about just a year towards the end of 2017, it shooted up to 1600 per percent like a rocket. But i don’t feel regretted for not jumping into this hot wagon. When people only care about its price to go up and not worry about the down, I am worried. To me, this is just another a hype which taps on the coolest technology in the last five years, i.e. Blockchain.
The local news which reported three bitcoin ATM machines were no longer operating due to the account closure of the companies that provide cryptocurrency services by the local banks. Now uncles and aunties at the street are also looking into investing it. What on earth is this? The only thing I can say is SPECULATION AND GREED.
Is Bitcoin Investing Safe?
If you understand blockchain, the technology itself does makes it difficult to hack the information because bits and pieces of information are distributed and linked to one and another. But what about the bitcoin exchange which allows people to trade bitcoins? This is a real burning question that we as investors should be aware of.
You might think that your digital wallet is secured but look around what happen to some of the bitcoin exchanges?
Look at what happen to Korea Bitcoin exchange called Youbit. Youbit filed bankruptcy in Dec 2017 after been hit twice by hackers and lost 25% of their client holdings in the second attack.
Another bitcoin marketplace called Nicehash had lost USD70 million worth of bitcoin in the same month of Dec 2017 like Youbit. And these hacker news on bitcoin exchanges and digital wallets are happened regularly. So what is the definition of safe investments? Only when it does not happen to your investments yet. Or perhaps when MAS starts to make official announcements to regulate it but without banning it.
Can Bitcoin Be Valued?
The last thing i would associate bitcoin investing is value investing. How to value bitcoin when it is not the exclusive crypto-currency being used under blockchain technology. Blockchain is also a technology enabler for many other crypto-currencies such as Ethereum which has better features than bitcoin such as a smart contracts. Ethereum allows the users to create digital tokens to present virtual shares, assets and memberships and etc whereas bitcoin can’t.
When its price is sky rocketing high, how is it possible or practical to use it to buy things online?
What will happen if there is a sharp fluctuation in price and there is a trading delay? It is either a price that is significantly higher or lower than when you sent your money. The cost of sending it may be high.
There are also many questions spinning on my head. The list can just go on…..And the affirmative answer from top investors like Warren Buffett and Jack Ma is a “No”.
Watch The 2 Videos First Before You Invest In Bitcoins
No to Warren Buffet
No to Jack Ma
Perhaps you may like to vote if you are into it or not.
Will You Invest Bitcoin?