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Bitcoin: Should you bite the bullet or bail out?

Bitcoin: Should you bite the bullet or bail out?
Zerbor | Dreamstime.com Dreamstime.com

In 2009, Bitcoin sold for a handful of change. Today, Bitcoin is worth around $11,000, but it’s been at nearly $18,000 and tomorrow it could be worth $5,000. We just don't know. Sounds like a gamble right? It is.

For many, it's a tempting gamble. Many people have made a lot of money investing in Bitcoin, but they've lost money too. Sounds like Vegas.

So, do you bite the bullet or bail out? My advice? Look before you leap. Understand what it is you’re about to get into. Cryptocurrency didn’t get its name by being cryptic.

How safe is cryptocurrency?

It’s called “Crypto” because it’s encrypted; each with its own digital footprint. That doesn’t mean it’s 100 percent safe. No investment is ever 100 percent guaranteed. Besides, it’s not real money as in “currency.” It doesn’t jingle in your pocket or fill up your wallet. You can’t lock it in a safe or keep it in your neighborhood bank. It doesn’t retain actual value; its value is virtual. It doesn’t follow laws of supply and demand. It’s only as valuable as people decide it is. It’s easily stolen if your computer or phone is compromised.

Bitcoin for ransom

Dishonest people will go “mining,” find Bitcoins and hijack them via computer. If you want your computer and Bitcoin restored, they may demand a ransom. Yes, Bitcoin can be held hostage. Even if it’s Fiat, meaning the government has declared it to be legal tender, it’s still not backed by a physical commodity.

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