Few things have caused a bigger stir among currency investors over the past decade than Bitcoin.
But what is it, and what should you know if you are looking to buy Bitcoin in Sydney? Let’s take a look.
What Is Bitcoin?
First, let’s get the big question out of the way – what is Bitcoin, exactly, and how does it work?
Bitcoin is a cryptocurrency. It is used by those online who declare it to have value to them and thus are willing to use it for an exchange of goods and services. If that sounds like how “regular” money works, that’s because it is – with the huge caveat that Bitcoin is not attached to any one government or organisation but is rather individually supported by those who use it.
That means it doesn’t have the security and backing established nations and banks can lend their currencies.
On the other hand, however, it gives users a lot more freedom when it comes to using their currency however they wish, and it is especially good for handling international trade without the messiness of exchange rates and bank middlemen. This is a huge upside for many users. It also allows for a great deal of currency flipping and other financial advancement possibilities.
It’s a gamble, like any investment, but Bitcoin is certainly one of the preferred investment gambles among younger investors looking to capitalise on the cryptocurrency craze. If it takes hold long-term, getting in on the ground floor can be hugely beneficial.
As with any form of monetary investment, there are always a few risks. Being such a new currency, and one not internationally used by governments at that, Bitcoin’s future can be a bit hazy. Maybe it’s a fad, and maybe it’s the future. But after all, that’s the case with many investment opportunities.
Given recent legal entanglements regarding Bitcoin’s use in Silk Road, you do want to be sure that you only buy and exchange Bitcoin with users and sellers whom you absolutely trust.
So, with all that said, what’s the right approach when it comes to Bitcoin? Well, that’s really going to depend on you. If you have money that you can safely spare for a little bit of financial experimentation that has the potential for a large upside in the future, then investing in cryptocurrencies such as Bitcoin can be a worthwhile move.
That said, you’ll want to be mindful of the risks outlined above. This doesn’t mean that you necessarily have to be dissuaded against investing, but rather that you should go about doing so in a safe, informed way, and that includes knowing the potential risks and thus how to avoid them, enabling you to make the most of your investment.
Take a read and see for yourself whether bold Bitcoin investments are right for you.