The Bitcoin revolution
Bitcoin, a crypto-currency that has taken the world by storm, has been an investment that keeps on getting better. Ever since its inception in 2009, Bitcoin—for those who could understand its complex mechanisms—has revolutionised modern cyber currency.
Whilst experiencing shaky ground before it entered mainstream conciseness circa 2009/10, the era of Bitcoin is now upon us. 2017 has been a bumper year for those trading in the currency, with its price doubling in a month, and has recorded growth of 180% since the start of the year. To monetise this significant growth, the end of 2016 saw one Bitcoin trading for £730, which at the time was an unprecedented high—however, this has now been dwarfed by the new heights the currency has reached in May 2017, growing 180% in 5 months to reach a staggering £2,050.
It seems that Bitcoin’s incredibly complex internal infrastructure is exactly why the virtual currency has proved a hit with investors—as the Daily Mail understands, “to ensure the system has value, no more than 21 million Bitcoin can ever be created, so values can fluctuate wildly depending on supply and demand”. This investment strategy of peaks and troughs may not appeal to everyone, especially risk-adverse investors, but for those brave enough to take the plunge Bitcoin has certainly paid off spades.
Global news outlet Reuters reports that those who purchased $100 (£77) of Bitcoin at the price of 0.003 cent price 2010 would now be sitting on more than $73 MILLION (equivalent to a mammoth £56m). That’s a huge 72.7 million per cent—equivalent to an average growth of 10.3 million per cent every year from in the 7 years from 2010.
Naturally some of the first adapters of this new virtual currency in its formative years were those from China and Japan, with cyber security worker Chris Sedgwick stating the reason that they “are keen to move their money outside of the capital controls of their government”. However, even the experts admit that investing in Bitcoin—whilst can be incredibly fruitful—is not without its risks. Volatile in the extreme, by its very nature when Bitcoin is up it skyrockets, but when it’s down it plummets, costing people thousands. To add insult to injury, during these frequent and oftentimes drastic troughs, Bitcoin is not backed by any regulatory body, meaning that investors are not protected by facets like the Financial Services Compensation Scheme.
For those brave enough to put their money where their mouth is and invest in Bitcoin, this can be a very lucrative venture. Most people would prefer to trade in physical currency and assets, but for those willing to embrace the virtual, the possibilities can be endless. Just look at those early adopters of the currency, now millionaires…all from a little investment of £77.
Are you brave enough to join the Bitcoin boom?