Bitcoins are confusing. People compare them to marmite: love them or hate them. They are shrouded in mystery and uncertainty, but this is also the very thing that make them so interesting. Having a bitcoin wallet app means having an anonymous account in which you can collect a decentralized, unregulated currency. And while that may sound slightly illegal, it actually isn’t. In fact, more and more manufacturers, stores, and institutions are accepting it as a legitimate form of money. Plus, every once in a while, there is a breaking news item of the value of bitcoin surging. This makes them particularly interesting to investors.
Understanding the Bitcoin Wallet App and What It Means
The problem is that it is incredibly complex to truly understand the bitcoin wallet app. It doesn’t hold actual money, because it is appreciating much to rapidly for that. Plus, there aren’t any physical commodities, like oil or gold, to cause this value to surge. It is all down to supply and demand, and there is a real change that people will grow tired of it, leaving others with bitcoins that are useless.
But it is also a type of asset. The market for bitcoin is still relatively small. This means that, while it is a risky investment, it could potentially be a very good one. After all, all investments are risky and that is the very thing that drives them. Add to this the fact that bitcoin is innovative with its decentralized technology and blockchain database, and it starts to become clear that it is may very well be the currency of the future.
Technology is often slow to take up but, once it does, it surges. Of course, it can also come crashing back down. Remember Tandy, MITS, and Atari? But then look at Apple, Microsoft, and Intel, and you quickly see how things can go either way. At the end of the day, if you want to invest in bitcoin, you should, so long as you understand the risks. Again, however, that is the same with all investments.
The Do’s and Don’ts of Bitcoin
- Do make sure that you have a diversified portfolio. If you can afford the risk, then bitcoin is a good thing to hold.
- Do be ready to buy and hold your bitcoin. Unless there is another surge and you just so happen to pick up on it and find a buyer, it is likely that you will have to hold on to this currency for a while.
- Don’t expect to get rich quick. It is too detached and too unpredictable to create any real investment strategies yet. There are no valid market analyses about it yet, so you will be guessing at best.
- Don’t put all your eggs in one basket and use bitcoin only for your retirement portfolio.
With all new things, there is a leap of faith to be made. Bitcoin may just be that leap of faith. After all, you don’t want to find yourself regretting not going for it further down the line.