Why is Bitcoin so Big?

byGaryBordeaux

29 followers

8 years ago

If you are an investor interested in Bitcoin, you might be feeling overwhelmed with both excitement and FOMO, mixed with a dose of confusion. What is this Bitcoin thing and is it really legitimate? How did it get so big? Knowing how to proceed with Bitcoin and whether or not to invest in it is dependent on you understanding how the world's biggest cryptocurrency rose to stardom and what it means for you:

Genesis

Bitcoin was created in 2009 by a person named Satoshi Nakamoto (a fake name). It has still not been publicly revealed who this mysterious creator is, but one thing is for certain: the digital currency they created has changed the world and the way finance will be done in the future.

Bitcoin was originally created as a peer-peer system for people to transfer money without needing a central bank. It saw modest success until 2017 when its value went from $1,000 USD per Bitcoin to $17,000 USD. This major increase in value caught the attention of investors and financial institutions everywhere. It got big because it made people big money, many of whom became instant millionaires and even billionaires.

What It Means For Investors

The implications for investors is massive. That isn't to say you should call your financial advisor or broker right now and tell them to create a put spread strategy on Bitcoin baskets on the market. Rather, it means that it has opened a whole new ballgame with respect to digital currencies.

As more and more of these currencies come onto the market, there will be opportunities to grow your wealth in big ways overnight, just like Bitcoin did for countless people. However, the key is going to be in your ability to watch the trends:

Timing the Market

Savvy investors will understand all of the trends they are dealing with before putting a penny into cryptos. This is because they can certainly act like a bubble. Bitcoin went up with major gains almost overnight and in a few months after that it fell drastically. This up and down nature of cryptos means you should only buy low and sell high and avoid big drop offs in price.

Professional Involvement

While you can open up a wallet, which is akin to an online bank account without the fees, you should let the investment professionals help you find the best way to invest if you are going to do it. The last thing you want is to be holding a handful of air when you thought you had Bitcoins from the market. Verifying transactions can be faked, and therefore you should have an additional trust layer that helps you determine who is real and who is posing.

Being Open Minded

Bitcoin go so big because many people jumped into at the same time. Those who got in early, on the ground floor, won the most of the proceeds. However, those who waited too long lost money or barely broke even. Don't make the mistake of being closed off to new opportunities. By understanding how Bitcoin grew so quickly you can make smart choices about how to leverage the next upswing.

While Bitcoin rose to fame fairly quickly, its value dropped almost as quickly overnight. This seems to be a bubble or even a roller coaster. If you're looking for a solid, safe and long term investment, then Bitcoin is not for you. However, if you want to take a chance on something that could blow up again, it is worth consulting your financial experts who you trust on how to get in the game and how much to put on the line. Keep in mind that your timing is just as important as your investment amount, so don't jump in to quickly. Do your research based on the facts above and make a decision you can live with, whether Bitcoin blossoms again or implodes.