What is Bitcoin? Bitcoin is a form of digital payment method that can be used to purchase tangible goods. Some call it a currency others say it's not a real currency. Investors like the Oracle of Omaha Warren Buffet suggests that Bitcoin is a mirage. Warren says that Bitcoin has no intrinsic value. In other words, when investors stop investing in Bitcoin Will Bitcoin still retain its values. Bitcoin costs nothing and there are no profits being made from the Bitcoin. That suggests that when investors stop investing then the Bitcoin will lose its value and no streamlined profits would be made. The Bitcoin being volatile means its value is always changing. Bitcoin does not have real value. It’s true that Bitcoin reached a price of $15,000 dollars per coin but that is because a lot of investors are moving in from fear of missing out.
On the same note the value of the Bitcoin has been known to plummet quite a bit. At one point the Bitcoin reached an all-time high of $19,000 dollars but plummeted back to $15,000 dollars this suggests that Bitcoin value can sink faster than its value can increase. In Warren Buffet case, he is correct when he says that Bitcoin is a mirage. Mark Cuban an entrepreneur suggests investing on Bitcoin with a small value in mind around 10% percent and to pretend is not there because it’s a high-risk investment. At a 10% investment, you don’t risk losing a lot if the value of Bitcoin plummets to unprecedented levels.
Corporations like Microsoft, IBM, and Google are investing in digital currency technology instead of the Currency itself. These corporations are investing in the block chain technology. This type of investment is smarter since block chain technology is the precursor to digital currency. Many want to regulate digital currency because is cheap and convenient. This can provide banking solutions to third world countries. Think of the block chain technology as the match and the Bitcoin as the byproduct the fire. Which has more value? You guessed it the match. In this case the block chain technology. In the future, there might be a more efficient form of crypto currency than Bitcoin.
This suggests that Bitcoin is currently in a bubble waiting to pop. Investors would be bailing out and the currency would lose its value with no streamlined profits. Should you invest in Bitcoin is up to you but remember that what is driving the value of Bitcoin is fear of missing out. Meaning once the investors stop investing in Bitcoin then the value of Bitcoin will drop. Bitcoin is a high-risk investment and anything good should be obtained long-term instead of short-term. Many investors go bankrupt with short-term investments. As for me, I would rather miss out on investing in bitcoin and invest in the technology behind the Bitcoin the block chain technology.