What If I Want to Buy Bitcoin?

Massive returns come with massive risk!

Ruth Saldanha 17 February, 2021 | 4:41PM
Facebook Twitter LinkedIn

 

 

Narrator: You’re on the internet, which means you know about cryptocurrencies. And if you’ve spent even a few minutes listening to the crypto evangelists out there, I can guarantee you’ve thought about it. You want to get rich, and you think crypto’s the way to go. So let’s talk.

What if I want to buy Bitcoin?

Let’s start with the obvious. There’s nothing wrong with buying Bitcoin. Or any other cryptocurrency. But don’t try and convince yourself that it’s a sure thing.

Remember, this isn’t even the first time that Bitcoin’s been big. Back in 2017, Bitcoin hit highs of over 19,000 dollars, and everyone went wild.

Sounds familiar, right?

But then, in January, it started to fall, and in one month, it went down 65% - down to 6,000. That year, some coins lost over 90% in value. Those returns – come with massive risk.

Which isn’t to say the same thing will happen this time – but you should be aware that it could.

Kristoffer Inton: Bitcoin is a speculative asset and not a safe haven. It isn’t as liquid as cash, it has a really short history, and there isn’t widespread acceptance of crypto as a functional purpose – I mean, have you tried paying crypto to buy a banana?

Plus, you could forget your password, and like that guy in San Francisco, you could lose 220 million dollars.

Want More Actionable Content In Your Inbox?

Sign Up For Our Newsletter Here

Facebook Twitter LinkedIn

About Author

Ruth Saldanha

Ruth Saldanha  is Senior Editor at Morningstar.ca. Follow her on Twitter @KarishmaRuth.

 
 
 

© Copyright 2022 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy