Bitcoin Set to hit $5000, & 3 reasons why you Should You Invest or Stay Away from Bitcoin?

The blue chip brokerage house Fidelity has allowed its customers to generate their very own Bitcoin accounts, further accelerating Bitcoin's bull run. The buying price of the digital currency hit the $4000-mark this week following a anointment by the mainstream media of the currency as a brand new asset class.

Other Bitcoin projections

Other industry players and experts are predicting a happier future for Bitcoin. According to an analyst from Standpoint Research, the purchase price of the virtual currency can reach ₦1.84 Mln ($5,000)-mark by 2018.

These rosy predictions about Bitcoin create the question on whether ordinary investors should invest part of their savings, as well as their retirement accounts, in to the cryptocurrency.

Why invest or not to invest in Bitcoin

To simply help the normal investors in deciding whether they'll invest their hard-earned money into the digital currency, listed here are three reasons to invest or not to buy the cryptocurrency.

Three reasons to invest in Bitcoin

• It's gaining mainstream credibility as industry players contemplate it as the brand new gold – Bitcoin has lots of the same qualities of gold, whose value isn't controlled by governments.
• Many investors and finance industry experts are seriously interested in the promise of Bitcoin – A big amount of mainstream investors and entrepreneurs already consider Bitcoin and other cryptocurrencies as the best asset class.
• There's just a limited number of Bitcoin – You can find only 21 million Bitcoin tokens to be mined and no new tokens will be until after 2040. This makes Bitcoin a deflationary currency whose value increases naturally with time.

Three reasons not to invest in Bitcoin

• Bitcoin only exists on computers – Cryptocurrencies like Bitcoin are simply a bit of code on the Internet and they're thus intangible. However, the money in to your bank-account also only exists as number on a computer.
• Bitcoin is quite volatile – In the 10 years it's existed, Bitcoin has been vulnerable to major bubbles and painful crashes.
• Many Bitcoin users are shadowy figures – Inspite of the belief by many that Bitcoin could replace cash later on, the digital currency can be noted for purchasing drugs and paying extortion fees on the Internet.

Exercise caution

Those who find themselves seeking to hop on should make sure to invest for the long run, and to never invest a lot more than they are able to lose. At this time, cryptocurrency continues to climb and it seems like there's no method to lose. That type of thinking is very dangerous and prospective investors should exercise caution, what they chose.