Tuesday, December 17, 2013

How To Get Rich - Understand the Bitcoin

Have you ever heard of the new Bitcoin currency ?

Do you think it would make a safe and secure investment ?

There are things you need to know before taking the plunge !

What Is The Bitcoin

The Bitcoin is basically a fairly new form of electronic currency that has no ties to the central bank of any country. It is being promoted as a way to eliminate foreign exchange charges when transferring funds between countries.

On the surface it is shown as a way to make purchases on line from any country without having to calculate currency conversion rates and bank charges etc. This does seem to be a very good idea for certain purchases and money transfers between countries etc. But is it safe and how much will it actually cost you in the end ?

Dangers of the Bitcoin

It seems that no one really knows who controls the Bitcoin market. Also, the value of the Bitcoin can fluctuate wildly and the reasons seem difficult to understand.

I looked at the terms and conditions of a company in my country that exchanges local currency for the Bitcoin. There were many warnings of absolutely no guarantees of any future value. Also, they could not guarantee that you would be able to buy and sell Bitcoins at any particular time. In addition, they clearly stated that you could potentially lose everything if you were to purchase Bitcoins.

I realize that legally they had to say all of these things to avoid potential legal problems. However, for me, it did not give me the warm cozy feeling that I like to have before investing my money.

What To Do  

Personally, I will not be investing in the Bitcoin any time too soon. On the surface, it seems like a great idea and sometime in the future this may indeed be the way the world will operate. But for now it is too new and not yet proven that it really works. Also, I am positive that Governments throughout the world will fight tooth and nail against the Bitcoin.

If you would like to dabble in the Bitcoin world, by all means give it a try. I would recommend however that if you do give it a try, do so on a very limited basis. Remember, this is currently a very speculative market and you could potentially lose everything.

For me, investing in the Bitcoin would be extremely speculative in nature. I prefer to invest in the many opportunities that exist that offer a history of steady growth and income. I prefer the warm cozy feeling.

Please Note : All of the above is strictly my personal opinion based on my limited research of the Bitcoin. You as a reader of this article are encouraged to do your own research on the Bitcoin and determine whether you feel it would be suitable for your circumstances.

As always, I welcome your comments and suggestions for future topics.

1 comment:

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