Bitcoin Set to hit ₦1.84 Mln ($5000), & 3 reasons why you Should Invest or Stay Away from Bitcoin?

The blue chip brokerage house Fidelity has allowed its customers to generate their own Bitcoin accounts, further accelerating Bitcoin’s bull run. The price tag on the digital currency hit the ₦ 1.472 Mln ($4000)-mark this week following anointment by the mainstream media of the currency as a brand new asset class.

Other Bitcoin projections

Other industry players and experts are predicting a better future for Bitcoin. Based on an analyst from Standpoint Research, the purchase price of the virtual currency can reach the ₦1.84 Mln ($5,000)-mark by 2018.

These rosy predictions about Bitcoin create the question on whether ordinary investors should invest part of their savings, as well as their retirement accounts, into the cryptocurrency.

Why invest or not to invest in Bitcoin

To greatly help the normal investors in deciding whether they’ll invest their hard-earned money into the digital currency, listed below are three reasons to invest or not to buy the cryptocurrency.

3 reasons to invest in Bitcoin

• It’s gaining mainstream credibility as industry players ponder over it as the brand new gold – Bitcoin has lots of the same qualities as gold, whose value isn’t controlled by governments.

• Many investors and finance industry experts are intent on the promise of Bitcoin – A big quantity of mainstream investors and entrepreneurs already consider Bitcoin and other cryptocurrencies as the best asset class.

• There’s a limited level of Bitcoin – You can find only 21 million Bitcoin tokens to be mined and no new tokens will be until after 2040. This makes Bitcoin a deflationary currency whose value increases naturally with time.

3 reasons not to invest in Bitcoin

• Bitcoin only exists on computers – Cryptocurrencies like Bitcoin are only a bit of code on the Internet and they’re thus intangible. However, the money into your bank-account also only exists as number on a computer.

• Bitcoin is quite volatile – In the 10 years it’s existed, Bitcoin has been susceptible to major bubbles and painful crashes.

• Many Bitcoin users are shadowy figures – Regardless of the belief by many that Bitcoin could replace cash in the foreseeable future, the digital currency can be noted for purchasing drugs and paying extortion fees on the Internet.

Exercise caution

Those people who are trying to hop on should make sure to invest for the future, and to never invest a lot more than they can afford to lose. At this time, cryptocurrency continues to climb and it seems like there’s no way to lose. That type of thinking is incredibly dangerous and prospective investors should exercise caution, what they chose.