Investing 100 in Bitcoin today can be an exciting but uncertain undertaking given its volatility and the ongoing debate about its value. Although Bitcoin has experienced meteoric growth, it is still a peril product, and beginners should exercise caution to ensure that they can withstand the potential ups and downs of the cryptocurrency market.
Bitcoin is the oldest and most well-known of the modern digital currencies. It is a cryptocurrency or a digital currency that is not supported by any government. This makes it very different from the US buck and carries unique perils that could make Bitcoin a good or bad investment depending on your individual investment goals.
If this is your first time getting into cryptocurrency, you may be wondering, “Can I start by investing 100 in Bitcoin?” The answer is definitely yes. However, before making your first investment, there are some things you should know about crypto.
What is Bitcoin?
Bitcoin is a digital currency that exists only on the Internet. But if you think about it, a lot of the money you have today only exists on the Internet. If you are paid with a direct deposit, you can deposit and withdraw money to your accounts without ever touching a body buck bill.
In this sense, Bitcoin offers a completely new vision of the currency, and it is also debatable for some of the features that make it so interesting (we will come to that after).
Bitcoin was created by a magical character known under the pseudonym Satoshi Nakamoto. But while Nakamoto is known as the founder of the currency, he is not controlled by one person. Instead, Bitcoin is a decentralized currency that runs on a global network of computers known as cryptocurrency miners.
Cryptocurrencies, including Bitcoin, are based on a technology called Blockchain.
Every Bitcoin transaction that has taken place is tracked in this public database. Since many computers around the world have a copy of it, this recording is extremely difficult to manipulate.
Anyone with an internet connection can participate in the cryptocurrency economy. To buy and hold Bitcoin, you can use a cryptocurrency wallet, such as that of Ledger, Trezor or MetaMask. You can also buy and hold your currency through a central exchange such as Coinbase or Gemini.
Although it is quite easy to buy Bitcoin, especially if you have already invested in the stock market, this does not mean that it is the right thing for everyone. When investing in Bitcoin and other cryptocurrencies, it is advisable not to invest more than you can afford to lose. We will take a closer look at why in the next section.
What is Bitcoin worth?
The value of a bitcoin rises and falls frequently; much of its volatility is due to the controversy surrounding the value of Bitcoin. When it was first launched, a single Bitcoin was worth only a few cents, but at its peak it was worth about 60,000. At the time of this writing, a single Bitcoin is worth about 30,000.
As you can see from these numbers, the first Bitcoin investors who weathered the ups and downs of crypto probably made a fortune. If you had bought Bitcoin for 100 when it was worth a few cents and kept it until it was worth more than 50,000 each, you could have easily made thousand of buck.
The price of Bitcoin has been extremely volatile over time. Here is a 10-year course history of the cryptocurrency tracking site CoinMarketCap.
But the controversy comes from the many critics who say that Bitcoin and other cryptocurrencies are effectively worthless. These include high-profile Wall Street CEOs, analysts and government officials. If you are right, Bitcoin will eventually fall to zero or very close to it.
If enthusiasts say that the price of Bitcoin will go “to the Moon” and others say that it will go to zero, what is its true value? At this point, unlike buying shares, it is a little difficult to say exactly what a Bitcoin is worth.