Depending on who you are asking, questions about the value of bitcoins as an investment will likely differ.

Those people that have a vision of a fully – distributed future in which the lack of centralized overseer becomes key to an asset’s value will tell you that bitcoins are for sure poised to become even more valuable in the time that comes. Other people who put more value in the traditional trust afforded by banks and government institutions would likely steer you away from investing in bitcoin.

While figuring out how “good” any investment will be in the long run a guessing game, there are some tried and true ways of determining an asset’s worth. One of the simplest ways to think about bitcoin as an investment is to consider its rise against the U.S. dollar.

In recent times, bitcoin prices eclipsed $1,000 and had reached beyond $1,500.

In case you had invested in the digital currency when the worth was around $150 just a few years ago, and it was worth nothing against the dollar, you would probably also be convinced that you made a good investment.

Moreover, an underpinning concept behind bitcoin is that there will only ever be 21,000,000 tokens, meaning that it may also stay consistently valuable or increase in value relative to some other types of currency that can be printed endlessly.

Bitcoin is known for stark jumps in price, as well as for high peaks and deep valleys which would make it difficult to have confidence in the asset as a long-term money marker which can be depended on.

Tying every dime that you have to such a volatile asset would be imprudent.

One good rule to follow is never to invest more than what you would be willing to lose.

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