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Should I Invest In BitCoin?

Summary

What is BitCoin?

Controversial?

Positives.

Negatives.

Final Thoughts.

BitCoin is a digital currency that can be used online with websites and vendors that accept BitCoin. This is not supported by any country's bank or government. BitCoin can be used for various goods and services. BitCoin was created in 2009 by an unknown person and became a new found currency. Since created, there has been multiple controversies over the currency due to lack of regulation and fear of the unknown.

BitCoins were created so that a bank or a “middle man” could be cut out and you could then have complete control over your money. Once you obtain a BitCoin, they go into your virtual wallet located on the web or on your cellular device. BitCoins look like golden coins and vary in value due to its price in the stockmarket. They are tracked in a log called blockchain that logs all transactions to prevent fraud from within.

BitCoin is considered disputable due to its history. They are considered controversial because there is no way for the government or the banks to regulate the money. Since it is virtual, it enables banks and governments to police this. There is also only 21 million BitCoins allowed so in time there is a cap that it will reach. The criminal activity present in the past has given a bad name for BitCoins. Mt Gox a bitcoin exchange agency that was caught hiding currency and filed for bankruptcy. They then claimed they were hacked and their BitCoins were stolen. This is just one of the many fraudulent attacks on BitCoin. Also, many criminals would buy this currency in millions of dollars in BitCoins which would then skyrocket the price and they could move their money from the government.

BitCoin is a very popular item which is now currently reaching in on $8,000 dollars per coin. Aside from the criminal activity, there are indeed many pros to investing in BitCoin. You can send BitCoin to anyone in the world all through the power of the internet. It arrives extremely fast and is very secure just like cash. This is faster than sending a money order or using a bank to send funds. It is anonymous, meaning nobody knows who you are on BitCoin. You create your own wallet on your own computer without having to give out any personal information. You can create unlimited amounts of wallets. No authority has the right to track your money, oversee transactions, or have the right to take away or “confiscate” your virtual currency. Your wallet can also be taken offline at anytime. You can sell your BitCoin to any trading company and also through many websites. This is one of the fastest growing stocks out right now and with this spectacular technology there is great potential to make your investment worthwhile.

On the other hand, BitCoin also receives a lot of hatred due to lack of regulation. This is within good reason since there are many cons to investing in BitCoin. For example, BitCoin is not real money and depends entirely on the stock market. You can not physically hold your money and it is constantly changing in value every second. It is based on math equations and how willing people are to invest and trade in this currency. This makes is unreliable which can be a risky investment. With the amount constantly changing, it can deeply affect you if you solely rely on this to purchase things. For example, with “real currency” you know how much you have at all times if you need to save for something. With digital currency, the amount varies every second of the day which could cause you to get into a financial predicament. These wallets are also not insured, making it very risky. BitCoin could promote the sale of drugs, guns, and other illegal products on the web. These downfalls have restricted the efforts of people to become heavily involved and reliant on BitCoin.

Should you invest in Bitcoin? As stated, there are plenty of pros and cons that could influence your decision. BitCoin is a rapidly growing stock reaching numbers people have not seen before. At the moment, investing in BitCoin seems to have much potential because it is projected to continue to grow. Many experts predict a stock market crash in the future, but for the next few months it is tracked to progress. In conclusion, there is great risk involved, but that's with anything you do. Yes, your money is constantly changing in price at all times of the day and seems “unsecured” but the risk is worth the investment. BitCoin has raised 480% in this current year and is expected to prosper. Personally, I would recommend investing in BitCoin while it still has a positive future. I would not want to miss out on this opportunity and I would suggest involving yourself in BitCoin as the opportunity is still present.

-Dillon Deckert

FIN 325