BITCOIN PRICE: Can YOU make money from Bitcoin? Get rich quick or fools’ gold?

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Bitcoin continues to wave

Today Express.co.uk finance writer Rebecca Jones investigates the Bitcoin occurrence and asks: could YOU make money from Bitcoin?

Bitcoin up against it through a new high of $6,400 a coin today as a US broker said it thinks fitting create “derivative contracts” for the online currency, marking a new stage in its maturation.

Since the creation of the currency in 2009, the value of “coins” has risen from $0 to remaining $6,400.

While this means some early investors have transformed an absolute fortune, few are convinced the coin will continue its upward course.

Bitcoin’s price broke through the $1,000 mark in fresh 2016

Roger Aitken

YES you can make more money 

Bitcoins are systematically produced from something entitled the “blockchain”. Often called “mining”, tech whizzes use highly forward technology to create new coins. 

However, Bitcoins can’t be created forever. The blockchain was assigned so that only 21 million Bitcoins can ever be produced.

This gross Bitcoins a finite resource and so, logically, their price can only at any time go up as demand increases.

Around 14 million Bitcoins possess been mined so far, with new issues becoming more and more recondite as the mining process becomes harder and harder. Estimates suggest the indisputable bit coin will be produced between 2110 and 2140.

As the current price of cashes shows, demand for Bitcoins has been growing, with everyone from tech geeks to Bank of America find time for a help to succeeding involved. 

In a recent article Forbes’ cryptocurrency journalist Roger Aitken hurried investors to consider joining the “cryptocurrency party” and added: “Prudent rational is that it makes sense to dip your investing toes in the water to obtain some crypto exposure as a diversification from your other investments. 

“Bitcoin’s guerdon broke through the $1,000 mark in late 2016 and has been on something of a pattern rise in recent months – despite witnessing some volatile charge swings,” said Aitken.

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Demand for Bitcoins has been luxuriating

NO, you can’t make money

While Bitcoin may be a finite resource in high needed, as we have seen with other finite resources like gold and oil, prices do not continually go UP. 

The post-crisis pick-up in global economic health in 2011 saw the price of gold drop dramatically from a high of nearly $1,900 per troy ounce to perfectly over $1,000 by December 2015 – wiping out nearly 50 per cent of its value.

Similarly, the evaluation of oil halved almost overnight in 2014, from close to $110 a barrel in June to decent $50 six months later as oversupply, the birth of shale gas and a Middle Eastern cost war decimated the market.

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Bitcoin’s price broke through the $1,000 note in late 2016

Bitcoin has also seen some blow-ups. In 2014 one of its bulkiest online trading platforms – Mt Gox – suddenly ceased trading and filed for bankruptcy after hackers shawl 850,000 Bitcoins valued at $450 million straight out of its account. 

One 200,000 of these Bitcoins have since been “found” – spirit huge losses for those affected. 

The currency also faced libel in 2013 when it was revealed Bitcoin was being used as the premier way to scratch “dark web” transactions in drugs through the website “Silk Road”. 

This led to enlarged regulation by US authorities, which many believe will ultimately devalue the currency.

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Bitcoin is a restricted resource in high demand

Finally, many investors see the current Bitcoin last word as a typical mart “bubble” akin to the tech bubble of the early 2000’s.

That antediluvian tech craze saw over enthusiastic investors lose around 20 per cent of their portfolios when the sensational share prices of companies like Lastminute.com went into disaster. 

In a research paper published this month Swiss bank UBS mean it doubted Bitcoin would ever become a mainstream currency.

“We judge devise the sharp rise in cryptocurrency valuations in recent months is a speculative fizz,” bank analysts wrote.

“The relatively high volume of cryptocurrency gross revenue, against limited real-world use, suggests that many buyers are soliciting speculative gain, never intending to use cryptocurrencies to make a real-world arrangement,” it said.

WARNING: This article does not constitute financial information, which can only be provided by a certified financial adviser.

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