Are you like the millions out there – confused about bitcoin. People are still not sure how to define bitcoin; is it an investment in the stocks or is it just another form of currency. According to the billionaire, Warren Buffet bitcoin is not an investment but bitcoin propagators state that Buffet doesn’t understand the technology. Irrespective of what anyone thinks, bitcoin’s popularity has not gone down and if you wish to still own it then go ahead and do it.
What is an investment?
Real estate is called an investment because it has an intrinsic value of its own which means that it has value despite any external factors that might affect its price. This investment is anything that is expected to produce more income or create a profit. Stocks are considered to be an investment because in principle you hold a portion of the company of which you have bought the shares.
Why is bitcoin not an investment?
The main reason bitcoin is not considered an investment is that it doesn’t have any intrinsic value of its own. Its value is dependent on someone willing to buy it at a price higher than what you bought. There is no specific science here; the whole game is pure speculation and hence a total waste of time and effort.
Another reason people shy away from investing in bitcoin is its volatility. While those who are aware of cryptocurrencies will agree that 30 percent fluctuation on a single day is very normal, the ignorant fear this roller coaster ride and prefer to stay away.
How much is a good investment?
But if you are bitten by the investment bug and bitcoin is your latest fancy then you must at least be safe and not sorry down the lane. The golden principle for any kind of risky investment such as the bitcoin is to invest only that much that you are comfortable losing which should ideally be only 1 or 2 % of your entire portfolio.
So, you can start off with downloading the bitcoin code, an automated trading system that helps novices enter the trading market. A word of caution before proceeding – whether it is the Bitcoin Code software or any other automated software do your research and only when satisfied that it is a genuine site part with your money. There are several scam software that con innocent people of their hard earned money in the name of un imaginable profits in no time at all.