Why Some Money Experts Believe In Bitcoin And Others Don’t

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Exciting, mysterious and very volatile, Bitcoin is hard to ignore after the decade it just had. The cryptocurrency has destroyed the stock market, real estate market, precious metals and other popular investments since its emergence in 2009, scams and increased heat from regulators. Is Bitcoin a Good Investment or a Dangerous Speculative Bubble? GOBankingRates asked the experts about both sides of the digital coin.

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Pros: It has many advantages over regular currency

Privacy is Bitcoin’s greatest advantage over traditional financial transactions. That, together with its loose regulations and exchange rate advantages, makes it a medium of exchange whose popularity is not diminishing.

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“Bitcoin is definitely a good investment,” said James Page, technical writer and chief executive officer for cryptocurrencies Crypto head. “First of all, Bitcoin payments are not only inexpensive, but you also don’t lose money on exchange rates like you would with a regular currency. Another benefit is that it is not regulated by any central authority or bank, which gives Bitcoin users and miners all power. Investors now desperately need privacy amid the volatility of security, and Bitcoin as a secured market makes it a top choice for investment. “

Disadvantage: It is complex, unfamiliar and has a steep learning curve

Albert Einstein is quoted as saying: “If you can’t explain it to a six-year-old, you don’t understand it yourself.” Do you know someone who could explain cryptocurrency to a 6-year-old? The concept of a currency that is not supported by a government or financial institution is completely alien to most, as is the technology used to develop it, the way it is “mined” and the market forces that drive it give it its worth. Expect to work in the research and education department if you want to be a competent investor.

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“It is important to understand how Bitcoin works before investing any money,” said Linda Chavez, founder and CEO of Finder for senior life insurance. “Bitcoin is still in its infancy and it may take a few months to understand the real impact Bitcoin can have on the world. Take some time to understand bitcoin, how it works, how to secure bitcoins, and how bitcoin differs from fiat money. “

Pros: Bitcoin has outdone itself and is moving into the mainstream

After 10 years of results, one thing is certain – it’s hard to argue with Bitcoin’s success.

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“Without a doubt, Bitcoin was the investment of the decade, outperforming the stock market, real estate and precious metals,” said Rob Zel, founder of the crypto exchange bitni.com. “It might even turn out to be the investment of the century. Bitcoin continuing to work depends on continued mainstream adoption – it must be used in order for it to have any value. PayPal’s recent introduction of Bitcoin is a huge step forward in enabling millions of sellers to accept crypto, and that announcement was likely a factor in the recent price rally. If these trends continue, the price of Bitcoin will likely continue to rise. “

Downside: It can be a volatile, seedy investment

For mainstream investors, cryptocurrency offers neither the stability nor the familiarity of traditional investments like stocks or gold.

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“Because of its volatility, lack of regulation in global markets and the potential to be disrupted, it has its flaws that cannot be ignored,” said Ian Khan, director of the documentary “Blockchain City” on Amazon Prime. “For risk-tolerant investors, however, it could be an interesting asset class to look at.”

Conclusion: The profit potential is obvious, but the jury is still pending. Kick lightly.

Braden vine is the former COO of Paxful, one of the world’s largest peer-to-peer crypto marketplaces, and a former employee of Bridgewater Associates, the world’s largest hedge fund. He sums it up aptly by describing Bitcoin as a unit in change with potential and pitfalls.

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“Bitcoin, a cryptocurrency based on blockchain technology, is a new way to operationalize the functioning of the financial system that has proven to be a viable store of wealth in our digital world,” said Weinstock. “Right now, it’s acting like a volatile, high-risk asset with a profile similar to alternative asset classes – but it can work like money to facilitate payments that can bring billions of dollars into the financial system without a bank account around the world. In this respect, it is cheaper, faster and safer than other means of payment. Bitcoin itself is also protected from inflation as the supply is limited. I believe Bitcoin is a good investment that has a place as a minority position – less than 5% – of a broader, balanced portfolio strategy to be held over the long term. “

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Last updated: May 11, 2021

This article originally appeared on GOBankingRates.com: Why Some Money Experts Believe In Bitcoin And Others Don’t

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