Everybody is aware of the recent huge gains in the Bitcoin price. It doubled in 2016 and rocketed 1,325% in 2017. With the price under $14,000, now is a good time to enter the Bitcoin market.
Bitcoin haters point to these steep gains as proof that it’s a dangerous bubble. Most of these critics will tell you only fools invest in cryptocurrencies and the last fool in will be the biggest loser.
But if you use a smart strategy, buying Bitcoin now makes sense for almost everyone.
The short answer to why buying Bitcoin is a good idea, including for those who despise it, is even a small investment has the potential to deliver extraordinary returns.
Bitcoin is without question a high-risk investment, but the ability to multiply your initial stake many times over makes it a risk worth taking.
There are risks involved here: hacking, regulation, bankrupt or crashing exchanges, scandal, conflict between miners and users, and other concerns. An event that would cause confidence to collapse in these currencies and in these markets would drag down the coin prices dramatically.
We are now seeing a much larger collective firepower of mainstream hedge funds, family offices and Billionaires starting to come in to the crypto market. This will very easily turn into a stampede for the entrance.
Many “experts” are calling for a Bitcoin target price of $75,000 for 2018 which represents a gain of more than 435%.
Bitcoin has a strong chance of becoming a global reserve currency, which would add another $2.8 trillion to $8.5 trillion of value. Long term, these catalysts could drive the Bitcoin price to a range between $260,000 and $800,000.
Do not dump everything you own and go all in on Bitcoin, and don’t use money needed for other purposes, such as your child’s college fund.
And most definitely do not risk capital you don’t have. So no borrowing to buy Bitcoin, either. The best rule of thumb is to risk only what you can afford to lose.
Remember the Wall Street adage: Pigs get fat, hogs get slaughtered.
It’s also worth mentioning that, unlike stocks, you don’t have to buy whole bitcoins. As a digital currency, Bitcoin is divisible down to eight decimal places. You can buy any dollar amount you want.