With the 21st century demand for fast and wholesale profits, one of the most controversial new investment vehicles has been Bitcoins, virtual currency. He has won a controversy in part because of his volatility, in part thanks to the instability […]
With the 21st century demand for fast and wholesale profits, one of the most controversial new investment vehicles has been Bitcoins, virtual currency. He has won a controversy in part because of his volatility, in part thanks to the instability of Bitcoins exchanges and partly because their traceability has meant that they were a preferred method of payment for criminals.
Things change and after a particularly volatile spell in which one of the main exchanges, MTGOX, deposited for bankruptcy, the currency seems to have settled in a more stable motive allowing investors to be able to take a measured idea of knowing. We must risk their money. in a currency that technically does not exist.
Although Bitcoins are becoming more and more popular, the market is still small enough, which means good and bad news can have a disproportionate effect on the price. The long-term prospects for Bitcoins are potentially good, which means that rising price is stronger than the potential of a long-term decline. Most brokers recommend that you consider Bitcoin a long-term investment due to its volatility. Think about it in terms of real estate. No one is buying and does not sell homes several times a day and there may be significant declines in real estate prices, but the long-term trend of real estate prices is usually in place. The same can be called for Bitcoins. Although there is a significant daily business of the currency, many Bitcoins are held as investments that analysts believe that it is likely that the price of Bitcoins will increase in the long run because they become more widely accepted.
As with all financial instruments, prices are influenced by supply and demand. Bitcoins are not different but what caused great price fluctuations was the unusual nature of the news that influenced the supply and demand:
• The bankruptcy of MTGOX, one of the biggest Bitcoin exchanges
• The closure of the Silk Road that would have accepted Bitcoins for drug negotiations
• Disclosure by the US government that, despite the negative uses of Bitcoins, they thought the currency had a future
• The media has also attracted interests by reporting steps in the climb and fall of the currency, deceiving the increase of more than $ 1,000 and its subsequent complaint about bad publicity.
Generally, tips on investing in Bitcoins are sitting and watching the market for a few weeks to get an idea of how commercial currency, volatility and tendencies. It is difficult to find the rumor that did not instantly affect the value, so suggesting to invest a small quantity and simply looking at opportunities, a bit like fixing, taking profit levels with actions and forex, You can do the same on Bitcoins; It’s just a little longer and a little less automated process.
As with any investment, the value may fall and events such as the collapse of MTGOX and the closure of the silk road, have negatively affected Bitcoins; Not only because the demand has been reduced but also because Bitcoins were falsely related to businesses by urban myth. The market seems to become more regular, but not necessarily regulated, because more exchanges come online. Some of the exchanges will go in the same way as MTGOX, but others will be consolidated and become stronger and more reliable. There is no doubt that the official regulations will be applied to Bitcoins in due course, during which volatility may reduce.