I have put this off for, as long as possible. So, here it is; my blog about BitCoins.
More and more people ask me about BitCoin all the time.
This cryptocurrency was created in August 2010 with an initial value of six cents per coin. By mid-December of 2017 each coin had a value of over seventeen thousand dollars. Yet, in January of 2018 it had dropped to under fifteen thousand. I think it’s somewhat ironic that the Bitcoin emerged less than ten years after the last speculative market crash occurred in 2001 when the Nasdaq fell by over fifty percent.
Here’s what you need to know.
Bitcoins are not real money and they are not backed by any government.
You need to carefully investigate the seller of Bitcoin, to know what recourse you might have if something goes wrong.
Compare fees and costs associated with its purchase and the terms for redemption.
Again, Bitcoins are not real coins. The “bit” is floating around in cyberspace in a virtual wallet. So, unlike a traditional bank you may need to be fearful of your bitcoins being stolen out of those virtual wallets.
Bitcoin values fluctuate enormously and can move up or down by thousands of dollars in just one day.
Bitcoin investing is highly speculative, since the value isn’t related to any economic or financial parameters.
Remember too, that Bitcoins are unregulated, so they’re fertile ground for scams and fraud.
What I find interesting is that the fewer assets a person has, the more they are curious about Bitcoin. The more assets a person has, the less they seem interested, at all. Perhaps that says something, in and of itself.
