Cryptocurrency has taken the digital and financial world by storm in the form of Bitcoin. What started out as an experiment back in 2008 to address the then on-going global financial crisis has now become a full-blown digital currency system. Everyone seems to be highly interested in investing and joining in with the whole Bitcoin network.

Bitcoin – the modern digital currency

Bitcoin is a form of digital currency that was popularized a few years back due to it not being controlled or issued by any governing body. Much like any other financial system, Bitcoin can be used to buy goods and services, send value and store wealth, but without needing any party’s permission. If stored properly, it cannot be hacked or seized by any government institution.

 

Advantages of transacting and investing in Bitcoin

Often considered as “Digital gold”, it possesses practically the same value as a physical gold but with the benefit of being cheaper and is easier to move around or store anywhere in the world. And a user would only need an internet connection and a private key to join the Bitcoin network and transact or mine for Bitcoins. “Hier ausprobieren” is what most would say if you’re in the fence of joining in with the Bitcoin network.

With all these benefits of transacting in Bitcoin, the question still remains. Is it a sound idea to invest in Bitcoin? If you’re in the fence of investing in Bitcoin, there is basically an important question that you should think through.

Is the current value of Bitcoin long-term?

This is probably the most pertinent question, especially when it comes to investing. Sure, Bitcoin is currently valued at a significantly high price but its long-term valuable is still unstable. Given its track history, it has plummeted and recovered over the course of just a few months, which can be too risky for as an investment for most.

The general rule is, if you think it has a 10% chance of being long-term trusted store of value, risking a portion of your portfolio is the wise decision. However, if there is only 1% chance of Bitcoin sustaining a long-term value, then do not invest.