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What Bitcoin Should I Buy

Should You Buy Bitcoin? Ask A Different Question First

Should You Buy Bitcoin? Ask A Different Question First

Your Money |Should You Buy Bitcoin? Ask a Different Question First I received these two messages within three minutes of each other recently: Several years back I used to mine Bitcoin, and then I sold most of them off for a down payment for our house. I had 400 BTC at one point, which would be worth $6.8 million today. Needless to say, I am really depressed now. I only kept one Bitcoin. I should have kept more. My husband has invested in Bitcoin, and my son has invested in Etherium! I am debating about switching my 401(k) to Bitcoin. Everyone, including my mother, is wondering if they should buy Bitcoin or some other cryptocurrency . And since everyone is asking, there are plenty of semi-informed people providing answers. But if you try to find a solid answer to this question, you will probably just end up more confused. Answering the question means guessing where the price of Bitcoin is headed, and nobody who is being honest actually knows. So may I humbly suggest that asking if we should all buy Bitcoin is the wrong question, and that we should ask a different one instead. The question we should be asking ourselves is this: Does buying Bitcoin fit into my investment plan? In order to answer the investing plan question, it might help to clarify a few things. Investing is different from speculating or gambling. Investing is a means to an end, and that end is our collective financial goals. Beating the stock market, buying whats hot, outperforming a brother-in-law those are not financial goals. Financial goals are things like having money to send kids to college, buying a house, taking a trip or retiring someday. This is why we invest. If we start by declaring that certain important goals are the reasons we are investing, then we can move on to figuring out the investme Continue reading >>

Buying Bitcoin? Here Are The Investment Risks You Should Know About - Jan. 25, 2018

Buying Bitcoin? Here Are The Investment Risks You Should Know About - Jan. 25, 2018

It's much more important to think about how the investment will do in the future, rather than how it did in the past, he said. And it's more difficult to put a value on bitcoin's future than that of a more conventional investment. So, is it worth it to dip your toes into bitcoin? It certainly depends on your financial situation. But here are three reasons why it's generally not a good idea. 1. It's 'almost' like playing the lottery Your chances of seeing a big payout from buying bitcoin "is almost lottery ticket-like," said Grealish. You could also think of buying bitcoin the same way an angel investor thinks about investing in a start-up, he said. They hope it will be successful, but there are a ton of unknowns. Most of the time angel investors expect to lose money, but the payout is big if one actually performs as promised. "You have to be OK with losing everything," he said. Related: I'm 23. How do I start investing? 2. It's difficult to put a value on bitcoin's future Bitcoin is a currency, not a company. So there are no cash flows to analyze or financial reports to review when deciding to invest. That's one of the reasons it's more risky than buying a company's stock. Those who believe in its value are betting that it will become widely adopted as a new way money is exchanged, Grealish said. It's hard to know if that will happen. While several companies are trying to attach themselves to the bitcoin surge, the future doesn't look completely rosy. Wall Street banks have warned that trading bitcoin futures could be dangerous. And Stripe, an early advocate for bitcoin, will stop processing transactions in April because of its wild volatility. Even if cryptocurrencies prove valuable, there's a chance bitcoin won't survive and another coin will -- and you could have pi Continue reading >>

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