The
world’s first example of a decentralized, encrypted and distributed
currency – Bitcoin – reached an important milestone this week
when its price rose above $10,000 for the first time.
Some
people are calling for it go even higher. As Quartz reports,
a Standpoint Research analyst has called a target of $5000 for
bitcoin by 2018. This raises the question of whether ordinary
investors should put a smidgen of their savings, or even their
retirement accounts, into buying bitcoin. (Keep in mind you don’t
have to buy a whole bitcoin. Since it’s digital, you can buy a
hundred millionth of one—this tiny unit is called a
Satoshi after
bitcoin’s creator.)
3 Reasons to Buy Bitcoin
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Major investors and the financial industry is taking it seriously.
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There is only a limited amount of bitcoin.
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Some see bitcoin as the new gold
3 Reasons Not to Buy Bitcoin
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Bitcoin’s core users are still criminals and fringe figures
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Bitcoin is extremely volatile.
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Bitcoin only exists on computers
Expert opinion on Bitcoins ::
Jamie Dimon: Bitcoin is a 'fraud'
The
cryptocurrency "is a fraud,"
JPMorgan Chase CEO Jamie Dimon said at the Delivering Alpha
conference presented by CNBC and Institutional Investor. "It's
just not a real thing, eventually it will be closed."
Mark Cuban: Only invest if you're prepared to lose your money
According
to billionaire Mark Cuban,
it's OK to invest up to 10 percent of your savings in high-risk
investments, including bitcoin and ethereum. You've just "got to
pretend you've already lost your money," he told
Vanity Fair,
adding that it's like throwing "the Hail Mary."
Jim Cramer: Bitcoin is like 'Monopoly money'
Bitcoin
is a
pure gamble,
said CNBC's Jim Cramer on "Squawk
Box":
"It's kind of like Monopoly money. Obviously, there's people who
use it. If you ever say anything bad about it, there's like this
bitcoin mafia that comes after you. But it is an oddity that has
nothing to do with us" as investors.
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