Bitcoin has become a bit of a sensation in recent years. 2017 saw it rise in value more than 1,000%. Towards the end of the year it reached a meteoric value of $19,000 per coin before slumping slightly at end the year to around $17,000 per coin. For many years, gold has been a much preferred form of investment, but the appearance of bitcoin has peeked plenty of investor interest.
What is Bitcoin?
Bitcoin is a new form of currency that was created in 2009. The creator of this ‘cryptocurrency’ is unknown, but they used the alias of Satosho Nakamoto. No middlemen are involved, which is one feature that makes it so appealing. No banks are involved at all. Bitcoin can be used to pay for services and products but it has also become a very popular form of investment. Over the years since its creation there have been investors who have made thousands trading it.
How to get a Bitcoin
There are a number of ways to get hold of bitcoins. One is through a ‘bitcoin exchange’. This type of marketplace allows customers to buy or sell bitcoins and to pay for them using different currencies. It is possible to send bitcoins to other people using mobile apps or a computer. This system works much the same way as sending cash digitally. One other way is to ‘mine’ for bitcoins. You don’t need a shovel and pan. You will, however, need to solve very simplex maths puzzles using a bank of computers. Once you have your bitcoins they can be stored in a digital wallet. Much like a virtual bank account, without the bank.
Gold vs Bitcoin – Which is the Better Investment?
Gold has always been a popular way to invest, but it looks like bitcoin may be trying to topple it from its position. There are, however, a number of features of bitcoin that make it not such a good investment. Firstly, it lacks stability and is therefore not a reliable form of investment. Especially when compared with gold. Bitcoin doesn’t produce anything either. The price it earns is all down to what people are willing to pay for it. If people decide they don’t want to pay its current price it will tumble. Bitcoin is a big bet on the belief that something will happen. Not the best premise to base an investment on.
Gold is a very safe place to invest your hard-earned cash, and has been for a number of years. For the latest prices Indigo Precious Metals can help.