This is only the beginning. You don’t expect a horse to become a world champion racer straight from the womb. It takes time, training, and a fair bit of luck. The same is true of bitcoin and blockchain technology. But just because a horse may not be a world champion just quite yet, it doesn’t mean you shouldn’t bet on that horse in the long run. If you see potential in that horse, and are willing to wait it out for the long run, go ahead, bet on that horse. One day, it might just take over the world, and if it does, you might just win big.
Another possible attempt at investing in bitcoin's value without buying bitcoins is with bitcoin futures. Bitcoin futures allow you to essentially bet on the cryptocurrency's value in the future; if you think the price of bitcoin will go up in the future, you could buy a futures contract. Should your instinct be right, and the price goes up when the contract expires, you're owed an equal amount to the gains. Notable places that offer bitcoin futures contract are the Chicago Board Options Exchange, or CBOE, and financial market CME Group.
The price of bitcoin cratered about 80%, falling all the way to about $200, before stabilizing at that price for much of 2014 and 2015. Litecoin, on the other hand, fell from over $45 to about $1, and consequently lost over 97.5% of its value. PPC and NMC suffered so badly that I didn’t even bother to calculate how much I had lost, because it was basically everything.
Bitcoin is a digital currency, also known as a cryptocurrency, and is created or mined when people solve complex math puzzles online. These bitcoins are then stored in a digital wallet that exists on the cloud or the user’s computer. Because bitcoins are not housed in bank accounts, brokerage, or futures accounts, they are not insured by the FDIC or SIPC.
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