No, Don’t Buy Bitcoin

No, you shouldn’t buy Bitcoin, or any cryptocurrency for that matter. Bitcoin took off in 2017 and reached upwards of $20,000 per coin. Within months, the coin is now trading near the $8000 level. Since January, Bitcoin has dropped around 50% in value. At the same time, stocks have been up 2% since January, even after the recent correction. Investing in something as vulnerable as Bitcoin is extremely dangerous, especially since Bitcoin has no backing. With stocks, shares in companies provide backing for each stock. Fiat currency has the backing of large governments and is recognized worldwide. Bitcoin, however, has nothing behind it. The only thing giving Bitcoin value is the users. If no one bought or used Bitcoin, it would be worthless. Soon, that may be true. Recently, many governments have or announced an intent to ban cryptocurrency use in their countries. Many major trading firms have been banned in countries such as China and South Korea. Bitcoin is falling because there’s no tangible use behind it.

Yes, I like Bitcoin, and I like the idea of a blockchain. But not for currency, not yet. Blockchain technology has huge potential, but it hasn’t been implemented into casual life. Bitcoin, running on the blockchain, just isn’t a good investment right now.

About Holden

Holden is the creator of holdencasey.com. He is the lead editor and consistently writes about politics and finance. He often writes unbiasedly, but occasionally provides a liberal viewpoint in his work.
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