- What Are The Risks of Investing in Bitcoin?
This is a type of investment in which you must be careful and very disciplined.
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JPMorgan bank recently stated that Bitcoin may in the long run reach a price of $146,000, competing with gold as an alternative currency.
Over the last 10 years, Bitcoin has had a compound annual growth rate of almost 200% per year. Outperforming virtually any type of investment. The future of the currency is promising, but one must focus on the long term.
This is an asset that has high volatility, it is common for corrections of 30% and even 80% to occur on the price.
You can invest today, and in a few weeks, the price may fall 40%. This is a high-risk asset, and in the short term, anything can happen.
Do you remember what happened in October 2017?… the price of bitcoin fell from almost $20,000 to below $4,000 in January 2019, losing 80% of its value.
This kind of correction can happen again, one needs to focus on the long term.
Within 5 to 10 years, I believe the currency can reach the market value of gold, which is $10 trillion, reaching a price of $500,000.
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But is past profitability alone enough for the decision to invest in Bitcoin?
This is a type of investment in which you must be careful and very disciplined. Most investors sell after any price rise and after any loss, the emotions of fear and greed prevail. But few hold their investment for long. Those who bought 1 Bitcoin in October 2013 at $150 and waited, today have $60,000.
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This is a long-term investment, there will be numerous price corrections, justified by moments of euphoria and fear. But in the long run, I believe the price will go up.
- Date of publication:
- Thu, 04/22/2021 - 22:20
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