Bitcoin, Should I invest?

A simple Straight answer is “Yes”. This is one of those once in a life time opportunities which can alter your life for good.  From $5 in 2012 to $15,000 in 2017 is an exponential growth which no other asset could have grown. Yet, Bitcoin is still in its early days which has huge potential to grow. It is now where large section of society is hearing about bitcoin.

Some of the big name who have invested in Bitcoin include Satoshi Nakamoto (Bitcoin mastermind), Bill Gates, The Winklevoss Twins, Mark Cuban, John Macafee and others.

Bitcoin is called by a ponzi scheme by many. I beg to differ. Usually a ponzi scheme is run by a few people or a group of small actors. However in case of Bitcoin, there is no single owner or company or a govt behind it. It’s completely open source and driven by millions of  people around the world. The main technology behind Bitcoin is called Blockchain. You can read more about it here.

There is only a limited amount of Bitcoin which can be ever created. To be precise, only 21 Million Bitcoins. To put it in perspective, there are 50 Million Americans who are millionaires. Even if each one of them wants to own a single bitcoin, there are simply not enough bitcoins to be owned. Hence each Bitcoin will be valued at an astronomical value in the near future.

Next biggest question is how much should I invest in Bitcoin? The only thumb rule which I use is, the maximum amount which I can afford to loose. DO NOT invest even a single penny more which you cannot afford to loose.

Most conservative estimates put value of Bitcoin at $100,000 by end of 2018.

 

Price of 1 BTC at the time of this posting : $ 15,370

 

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