With the 21st century requests for quick and large profits, one of the most controversial new investment vehicles has become Bitcoin, a virtual currency. It gets partial controversy because of its volatility, partly through the instability of bitcoin exchange and partly because their traceability means they are the preferred payment method for criminals.
Everything changes and after a very volatile mantra where one of the main exchanges, MTGOX, submitted for bankruptcy, the currency seems to have set a more stable pattern allowing investors to be able to take a measured view of whether it will be at risk in a currency that is technically non-existent .
Although Bitcoin becomes increasingly popular, the market is still quite small, which means that good and bad news can have disproportionate effects on prices. The long-term prospect for Bitcoin has the potential to be good, meaning it is reversed at prices stronger than the potential for long-term decreases. Most brokers suggest you consider Bitcoin medium-term investment to the long term because of its volatility. Think about it in terms of real estate. No one buys and sells a house many times a day and can have a decrease in property prices but a long-term trend for property prices usually rises. The same thing can be said for Bitcoin. While there is a significant daily trade in currencies, many Bitcoin is held as an investment as an analyst believes that the possibility of Bitcoin prices will increase long term because they become more acceptable.
Like all financial instruments, prices are influenced by supply and demand. Bitcoin is no different but what causes large fluctuations in prices has become an unusual nature of news that influences offers and demand:
• MTGOX bankruptcy, one of the biggest bitcoin exchanges
• Closure of the silk road that allegedly accepts Bitcoin for drug trafficking
• Disclosure by the US government that, despite the negative use of Bitcoin, they believe that the currency has the future
• The media also arouses interest in reporting a milestone in the currency up and down, the trumpet increases to more than $ 1000 and then falls at poor publicity.
Generally advice on investing in bitcoin is to sit and watch the market for several weeks to get a picture of how currency trades, volatility and trends. It is difficult to find rumors that have not directly affected the value, so many suggest investing in small quantities and only watch opportunities, a little such as regulating profit levels with stocks and forex, you can do the same thing on Bitcoin; It’s just a process that is a little longer and a little less automatic.
Just as any investment, the value can fall, and events such as the collapse of MTGOX and closure of the silk road, Bitcoin is negatively affected; Not only because demand is reduced but also because Bitcoin is linked with the company with urban myths. The market seems to be more regular, but it doesn’t have to be arranged, because more exchange comes online. Some exchanges will run the same way as MTGOX but others will consolidate and become stronger and more reliable. No doubt official regulations will be applied to Bitcoin at that time when volatility tends to reduce.
Bitcoin represents medium-term investment vehicles to long-term exciting and potentially profitable. It’s fun because it hasn’t been accepted into the main currency currency or investment vehicle. One thing that investors liked about Bitcoin is their belief in prospects such as gold