You Need to Know Bitcoin Smashed $16,000 While You Were Sleeping

Some believe this is the time to add Bitcoin to your portfolio

Photo by Andrea Piacquadio from Pexels

This thing called Bitcoin quietly passed $16,000 while a few months ago the price was $4,000. Did you know Bitcoin created several millionaires and billionaires in the past decade? While you see people become rich investing in stocks and real estate, Bitcoin opened a door for others to dramatically change their life.

You won’t understand Bitcoin in one sitting. I wouldn’t wait too long because the price continues to rise and some believe the price could reach $20,000 in a month. This would surpass the previous high Bitcoin reached in December 2017.

Bitcoin is based on the idea of scarcity which helps drive the price. You can compare Bitcoin to the price of gold. The price of gold is based on scarcity.

There are articles online, videos on YouTube, a Netflix documentary called Banking on Bitcoin, and others. It’s time to learn as much as you can about Bitcoin as well as cryptocurrencies. This one article unfortunately won’t teach you everything you need to know about Bitcoin.

Many countries are working on creating their own currency based on digital currencies. Bitcoin is a form of digital currencies. This continues to get mentioned in the US government. The following video will give you a quick introduction to Bitcoin.

Do you need to be a programmer or engineer to understand Bitcoin?

At its core, Bitcoin is a smart currency, designed by very forward engineers. It eliminates the need for banks, gets rid of credit card fees, currency exchange fees, and reduces the need for lawyers in transitions al good things.

Peter Diamandis

Honestly, you don’t need to be a programmer or engineer to understand Bitcoin. I am neither of the two and far from the most knowledgeable person to explain the intricacies of this digital currency. I can tell you, Bitcoin was created as a currency that doesn’t rely on the trust and faith of any government.

Bitcoin was created in 2009 even though the idea of this digital currency had circulated for years. There are many smart people who can explain Bitcoin to you. If you want to make money from Bitcoin, then you may want to listen.

Bitcoin can make you money as any other investment can. The difference is, you need to be patient but also ready to sell. The price of Bitcoin could easily crash before you know it. This is what happened in 2018 as the price of Bitcoin fell.

Understand that Bitcoin is not a regulated currency so you cannot complain to your government if you lost money. Some financial institutions have recommended people should invest in Bitcoin but the number varies depending on who you talk to. A few smart people will tell you to stay away from Bitcoin but I believe they say that because they can’t understand the new currency.

  • A Kiplinger’s article recommended to invest in what you can afford to lose.
  • Brian Estes of Off the Chain Capital believes now is the time to invest in Bitcoin.
  • Anthony Denier, CEO of WeBull, believes everyone should own a portion of Bitcoin to help diversify their portfolio.
  • Investor and Bitcoin millionaire Grant Sabiter recommends people not buy Bitcoin since no one can price this asset. Grant invested $5,000 in Bitcoin when it was trading for $72.
  • Chris Hogan recommends people to invest in cryptocurrencies only if they are out of debt and have an emergency fund. Chris believes cryptocurrencies are an easy way to lose your money.

See these other articles for more on cryptocurrencies:

Are you invested in cryptocurrencies?

Note: The writer owns Bitcoin and other cryptocurrencies.

Tom Handy is a top writer on Medium, former Quora writer, and father of two kids. He retired from the Army and sits on several non-profit boards. You can find him on Twitter @tomhandy1.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.

You Need to Know Bitcoin Smashed $16,000 While You Were Sleeping was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.

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