Bitcoin: To Invest Or Not To Invest?

Kendall Clark
Ditto PR’s TrendComms
2 min readDec 12, 2017

The volatility of bitcoin has a lot of people questioning the cryptocurrency market.

Bitcoin is all the rage these days. It has been causing quite a frenzy in financial markets, especially after the coin briefly topped $19,000 last Thursday before falling more than 20% to $15,000 the following day. This five digit price tag for a single coin has forced those who have shied away from the cryptocurrency mania, including myself (guilty), to start paying attention to what the heck is causing this intangible digital currency to spike so rapidly when this time last year a coin was worth $800 (to put this in perspective — a share of Apple today costs $171).

Experts caution this period of high valuation to a bubble similar to the dot-com and housing bubbles in recent years.

To more measured observers, it has all the classic signs of a rapidly inflating bubble that will inevitably burst. And not surprisingly, believers are egging on the speculation with talk of revolutions and new realities and other hype words. It’s an environment reminiscent of the first dot-com boom in the late 1990s, the housing bubble that followed in the 2000s, and, believe it or not, multiple bitcoin price surges from recent years. — Inc.

Regardless, if we are experiencing a crypto bubble or furthermore a bizarre fad, is bitcoin worth the investment? And is too late to get into the digital currency game?

According to Mad Money’s Jim Cramer, you may be better off gambling in Vegas rather than investing in bitcoin. The volatility is off-putting to a lot of curious investors but the gains are also incredibly tantalizing.

Though supply is limited to 21 million bitcoins, there are still coins to be mined. So, it’s not too late to get into the game and just like investing in fractional shares of stocks, investors can invest in a fraction of a bitcoin.

The original question of whether to invest or not in the digital currency is dependent on the risk profile of the investor and how willing they are to track the unpredictable ups and downs of the digital currency.

I’m not a financial advisor, so I won’t bore you with chatter about risk tolerance. But going back to Cramer’s comparison of investing in bitcoin to gambling in Vegas — ask yourself — am I willing to take a gamble in Vegas to potentially experience short-term gains and to learn about something interesting and new. If the answer is “yes” — give the bitcoin dice a roll. If the answer is “absolutely, not” — there are always the Apples, Googles and Teslas of the world with a familiar face behind a profitable product.

Read the complete Inc. and CNBC stories.

To invest or not to invest.

--

--