Today we’re talking about bitcoin is it a good investment and should you invest in bitcoin today.
Bitcoin is one of thousands of cryptocurrencies it was launched in 2009 by an unknown group, known only as Satoshi Nakamoto today Bitcoin has a market cap of over £400 billion so it’s the most successful cryptocurrency by far. There will only ever be 21 million Bitcoins in circulation and so far around 18 and a half million of these bitcoins have already been mined back in 2010 you could have bought a Bitcoin for only 10p but today a single Bitcoin will set you back around £23,500 that means that if you’d invested just £100 in bitcoin 11 years ago
it would now be worth almost 29 million pounds. So you can imagine why people like me and the team here at Cryptovimto get so excited about investing in cryptocurrencies. But is it worth investing in bitcoin today or is it too late? Have you missed the boat?
I’m gonna start by talking about 3 disadvantages of investing in bitcoin and then move on to talk about 3 advantages.
The first disadvantage of investing in Bitcoin is that it produces no income. Most companies pay a dividend to their shareholders and if you own bonds you get a regular coupon payment. In this respect bitcoin is similar to gold. It’s more of a speculation than an investment. You’re buying it hoping that someone else in the future will pay more for it than you did.
The 2nd disadvantage of investing in Bitcoin is that it’s extremely volatile and unpredictable. The price of a bitcoin can vary hugely, even in a single day. For comparison over the last 50 years the U.K market has been behind however, the U.S. stock market has had an annual standard deviation. A monthly return of around £15.66 and gold’s was £20 over the same time period but bitcoin is on another level. The price of a Bitcoin could change by more than £1000 in just a few minutes. In 2018 when the crypto bubble popped. The price of a bitcoin fell from around £16000 in January to around £3500 In December.
The 3rd disadvantage of investing in bitcoin is that there is virtually no regulation or protection. Your bitcoins are not regulated by the
FCA or protected by the FSCS. This means that if you lose your cold wallet or keys or your hot wallet is hacked then your Bitcoins are gone forever and you won’t be able to get them back. Hackers are constantly trying to steal Bitcoins from online crypto exchanges such as Coinbase so this is a real problem.
Let’s move on to talk about some of the advantages of investing in Bitcoin.
The first advantage of investing in Bitcoin is that you have the potential to make huge profits and let’s be honest this is the main reason why most people buy bitcoins. I’ve already mentioned how a £100 of Bitcoin in 2010 would now be worth around £28 million and there’s an element of hoping that this will happen again, but will it happen no one really knows. One thing I would say is that it’s definitely a dangerous idea to go all in on bitcoin as an investment. Just look at 2018 as an example of what can happen.
The 2nd advantage of investing in Bitcoin is that it has a low correlation with the stock market. If you’re looking to diversify your
portfolio across different asset classes, then it makes sense to include at least some cryptocurrencies in your portfolio. The idea being, if  there was a stock market crash, then the bitcoin price might rally although, it could quite as easily crash with the stock market. We don’t really have enough historical data to fully understand the relationship between Bitcoin and other asset classes.
The 3rd advantage of Bitcoin is that theoretically, it can be used as a hedge against inflation or hyperinflation. Again, this is where Bitcoin shares some similarities with gold and this is one of the reasons why people call bitcoin digital gold. The supply of fiat currencies like the
Pound or the Euro can be increased by printing money. When governments print money it causes inflation and devalues your cash, but like gold the supply of Bitcoin can’t be artificially increased it has to be mined and when I say mined, I mean digital mining using computers as opposed to physical mining using diggers and trucks. This means that unlike fiat currencies, there’s a limited supply of Bitcoin and theoretically it’s not affected by inflation. Personally I keep a very small portion of my portfolio in Bitcoin. All in all Bitcoin is always a good investment, however, when to invest in it is the question many would like answered. I guess you could say the U.K. or the world isn’t just ready for it yet.
Have you managed to cop some Bitcoin for yourself? If so, welcome to the Cryptovimto universe! As always guys! Peace out!

“I told my frineds and family about bitcoin but they didn’t belive me when i said it’s the future!”