- After a long indecision, Bitcoin was able to find the strength in himself and for 2 months of 2017 to update the historical maximum, almost reaching the $ 1300 mark. USA. After the January fall to 780 dollars. Only optimists believed the United States in Bitcoin. Nevertheless, the course was able to rewrite the historical maximum.
How can investing in Bitcoin be profitable? What is the growth driver? What other cryptocurrencies may be interesting? Read on!
Is bitcoin investment a reasonable risk or speculation?
Supporters of investments in Bitcoin call the following factors of growth:
- the growing influence of Bitcoin in electronic payment systems and the strengthening of cryptocurrency as a means of payment;
- increased attention to bitcoin miners;
- leading technology companies’ interest in blockchain technology and gradual withdrawal from cash.
According to analysts, investment in Bitcoin for 1-3 years can bring up to 100%, but in fact, the prospects for cryptocurrency are not so bright. First, more than 85% of transactions with Bitcoin fall on China, where its turnover is subject to a series of restrictions. It is with the tightening of control over financial flows in the PRC that the January exchange rate has been linked from 800 to 1050. But the Chinese impetus has already won back. Secondly, the role of Bitcoin is growing too slowly to talk about a serious breakthrough of quotations.
- Conclusion: in the long run, investment in Bitcoin can roll back to the old support levels – up to 700-800 dollars. USA. So far, the course is more speculative than economically justified, but you can earn on intraday speculation.
And a few words about other, so-called cryptocurrencies. Recently, such projects as OneCoin, E-Dinar, Ethereum, Litecoin are actively promoted. If the last two projects are a technological platform and an analogue of Bitcoin, then the first two projects are HYIP projects, that is, MLM pyramids.
Cryptocurrency is a currency that is issued electronically, but which can serve as the equivalent of an exchange. Today, only Bitcoin in Japan is equated with fiat money and in a number of other countries recognized as a financial asset. Only Bitcoin accept payment for a number of online stores.
- Important! Only Bitcoin investments have relative reliability. All other tools, called cryptocurrencies, may be HYIPs (pyramids), where the risk of losing money is about 99%.
Summary. Do I invest money in Bitcoin? We would recommend to wait. At the time of reaching a new maximum, traders chose to roll positions, not believing in the growth dynamics. So far, over a week Bitcoin is slowly but surely going down and economic drivers are not so strong as to raise cryptocurrency. Therefore, we would not recommend to consider investing in Bitcoin as a long-term strategy. For short-term tactics, it makes sense to wait for a pullback and buy a cryptocurrency on a U-turn with a horizon of 1270-1290.