Pros and Cons of BITCOIN Investment: My Thoughts on Bitcoin

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In this video, you’ll discover the pros and cons of BITCOIN investment as I candidly share my thoughts on Bitcoin.

Is there a Bitcoin crash coming? Could it be that Bitcoin is a self fulfilling bubble? What is Bitcoin used for? What is Bitcoin backed by? What is the difference between Bitcoin and cryptocurrency?

You hear stories of teenagers becoming millionaires and more Bitcoin mainstream adoption with publicly traded companies like PayPal and Tesla announcing that they’re putting some of their assets in Bitcoin or going to start accepting Bitcoin as payment.

And while the price of Bitcoin has been super volatile, overall, no other conventional financial asset has come close to its explosive rate of growth.

Now, let’s dive into the pros and cons of Bitcoin investment!

What is Bitcoin backed by? The main thing that gives Bitcoin its value is people’s belief that it’s worth something.

How are these digital tokens that some anonymous person invented out of thin air worth anything?

And how come THESE particular tokens are worth something while hundreds of other crypto tokens have failed?

Because people believe they are. What is Bitcoin backed by? Our faith that it’s worth something.

And that’s not that different than a lot of other traditional currencies!

So what is bitcoin used for? Some people invest in Bitcoin as a hedge against inflation. This is a popular Bitcoin investment strategy 2021.

Because Bitcoin is designed to maintain its value by limiting the number of bitcoins in existence.

And actually the supply will go DOWN because one of the downsides to Bitcoin when looking at the pros and cons of bitcoin investment is that if you lose your private key, which is what gives you access to your bitcoins, there’s no way to recover that money.

Last I checked, an estimated 30% of all bitcoins have been lost so far.

Make sure you know how to buy and store bitcoin safely, because you can’t get it back!

Plus, I expect to see more and more government regulation come into play over time.

But the biggest problem I see when weighing the pros and cons of Bitcoin investment is price volatility.

Bitcoin can go up really fast, but it can go down really fast, too.

This roller coaster ride can feel really intense so you have to be honest with yourself about how that’s going to impact you emotionally.

Because the price swings so much, this means that Bitcoin isn’t effective for doing the job it was originally intended for, which was to facilitate small transactions between individual people.

So even though it’s called a crypto-currency, it acts more like an investment vehicle like a stock.

So is Bitcoin a good investment for beginners? Does Bitcoin make sense as an investment in general?

Personally, I wouldn’t put a bunch of money that you can’t afford to lose into Bitcoin.

On the other hand, I see some big upsides, when weighing the pros and cons of Bitcoin investment, too:

It’s getting easier and more convenient to invest in Bitcoin all the time as we see more Bitcoin mainstream adoption. Now, there are all kinds of websites and apps you can use and more traditional financial institutions are working on making it possible to trade Bitcoin.

The biggest upside I see is that we’re getting more and more Bitcoin mainstream adoption with more companies accepting Bitcoin as a form of payment and / or holding some of their assets in Bitcoin.

This contributes to the positive feedback loop of Bitcoin gaining in value because more and more people agree that it has value, which is important when considering the pros and cons of Bitcoin investment.

Despite some of the downsides, especially the price volatility and highly speculative nature of Bitcoin as an investment, after weighing the pros and cons of Bitcoin investment, I think it makes sense to keep a small percentage of my portfolio, like 1-5% into Bitcoin (or maybe split that between Bitcoin and Ethereum) as a hedge against inflation and for the growth potential.

My favorite exchange for Bitcoin right now is BlockFi since they actually pay you up to 8.6% interest on your cryptocurrency. You can get up to $250 WORTH OF BITCOIN when you set up an account here:

NOTE: Penelope Jane Smith will receive an affiliate commission or referral bonus from some of the links and other products that appear in this video. Penelope Jane Smith is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.