After a turbulent year, Bitcoin has set a new record. Many investors are confused: Is it worth starting? Or will the trip end suddenly?
Bitcoin Explained Simply for Dummies
Bitcoin is by far the world’s largest and most well-known cryptocurrency, and its year-end surge is breathtaking. By early 2020, it will start at approximately US$8,000 and currently exceeds US$30,000. At the same time, he even jumped the 34,000 dollar mark.
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Why is Bitcoin so popular?
Experts gave several reasons for the rapid rise in the exchange rate of Bitcoin: It is very important that the topic of digital currency has shifted to the center of investors and entrepreneurs. For example, the huge payment service PayPal wants to allow its customers to pay in digital currencies. The interest rate pandemic and the related surge in government debt have also generally increased interest in digital currencies.
The current boom may attract more curious people. Although many people jumped on the current roller coaster, participants did not adequately think about the risks and side effects of unstable asset classes.
Who is currently investing in Bitcoin?
Overall, interest in cryptocurrencies will increase significantly. Time and time again, individual reports trigger jumps. Electric car pioneer and Tesla boss Elon Musk recently caused turmoil: He asked about the possibility of converting the assets of electric car manufacturers from U.S. dollars to Bitcoin.
Although cryptocurrency has long been regarded as a niche market by professionals and gamers, it is now easier to participate. In the past, relatively complex operations were absolutely required through wallets, but special offers like Börse Stuttgart’s Bison app make it easier for ordinary private investors to get started. Those who do not need cryptocurrency but want to benefit from the performance can now make a small investment in funds deposited in Bitcoin.
However, more importantly, there is growing interest in institutions. At the same time, professional investors and even iconic figures in hedge funds are increasingly joining in-and have large amounts of capital.
How did Bitcoin perform in the first corona accident?
Like a stone. The first major financial crisis since the advent of cryptocurrencies showed that Bitcoin (usually compared to digital gold) has not become a safe haven for investors, they sold their positions. The ratio has dropped by as much as 50%. One of the main reasons: In recent years, many investors have made huge profits in cryptocurrencies. Those who lost money in the stock market in March sold Bitcoin to make money. Many investors returned later. You can find detailed background information about the spring accident here.
What if I win now?
With careful consideration and depending on your personal circumstances, it may be a good idea to include at least some bitcoin bonuses. Either spend money elsewhere or speculate that prices will eventually fall. But please note: the profits of cryptocurrencies may be taxed. However, they are still a new and complex investment, so experience, especially safety, is scarce.
Should I enter cryptocurrency now? Investing in Bitcoin is still risky. The volatility is huge and it is difficult to determine its true value.