Many people who first heard of Bitcoin and the cryptocurrencies that followed a few years ago probably thought they would be nothing more than a flash in the pan, a failed idea. However, despite some of the losses that Bitcoin has experienced, this cryptocurrency is doing far better than many people have expected. Those who believed in Bitcoin have seen their belief rewarded in late 2017, as the value of the currency has soared to all-time highs. This is especially impressive given the fact that it dropped by about 9% in early October when there were fears that regulators would start to provide more oversight for the currency.
How Much Did Bitcoin Rise?
In the first part of October of 2017, the value of Bitcoin was around $5,000. However, by Sunday, December 17, the value of a single Bitcoin had risen to an amazing $19,783.06, and then dropped to a still very impressive $19,500. Keep in mind that at the beginning of 2017, the value of a single coin was less than $1,000. Those who had been mining and keeping their Bitcoins during that time were well-rewarded with this sharp increase in value. This increase in value helped other cryptocurrencies, such as Ethereum and Bitcoin Cash rise in value, as well, although not by as much as Bitcoin’s increase.
What is it that helped with this increase in value? Experts believe that the boost is likely to have come from the fact that on December 10, Bitcoin futures trading started on the Cboe Futures Exchange. Within a day, when Bitcoin opened at $15,000, it closed with a 23.6% increase to $18,545.
How Do Other Investors Feel About the Rise?
Many people who were late to the game are still unsure of what they should make of Bitcoin. Some simply have no idea how Bitcoins work, and many of the traditionalists are not willing to learn. Others, particularly those who do not like the idea of Bitcoin, continue to say that it is in a bubble and that the bubble will eventually burst. They are naysayers who believe that Bitcoin has no real value basis since it is not something that truly exists, as gold and silver do.
However, there are also others out there in the financial field who feel that Bitcoin could make for a good investment, and that it should at least be considered. They believe that this sort of investment would be a good choice for those who tend to have a higher risk tolerance that other investors, and those who want to add it as a portion of their investment portfolio. While there is a risk, there is also the potential for great reward.
Getting into Bitcoin Mining
Since Bitcoin is doing so well currently, it makes many people wonder whether they should become a Bitcoin miner. While it is possible for just about anyone to start getting into mining for Bitcoin, it is important to keep several things in mind. First, it will take an investment to get the right equipment and to have it set up, so you can start mining. For the best quality setups, it can cost thousands, so there is going to be the initial investment that you will have to cover. While Bitcoin has the potential to be a fantastic way to earn a profit, make sure you are ready for it and you know how to make the most out of it.
Of course, there is now also the option of investing in Bitcoin futures, which is a simpler method of investing that many people are more familiar with. They understand the idea of futures, and they don’t have to deal with technology. This is a good choice for those who do not want to worry about setting up a mining rig and figuring out all of the technical aspects of Bitcoins. With the easier method of investing, it is certainly possible that there will be more people who start to get into Bitcoin, even if they do not fully understand how it all works. It is likely that many more people are going to start investing in Bitcoin in this manner.
Some people are flocking to Bitcoin investments right now, because they feel that the wave is going to keep going and that Bitcoin could continue to rise. However, it is important to remember that all investments will carry with it an element of risk. At the time of this writing, for example, the value of Bitcoin is $14,859.97. This is close to $5,000 less than what it was at its highest point. Investors may want to watch the value a bit more before they start to make this type of futures investment. Of course, if the value were to go back up again soon, those who waited would be upset that they missed out on a great opportunity.
However, it could still be a good option to consider mining. The investment for getting a mining device and getting set up is typically several thousand dollars, although it could be lower depending on the Crypto ASIC machines you are using. You can run these machines at home, or you could go through a colocation service if you prefer. Many find that having a colocation hosting provider for their machines is far more convenient. In fact, with some of the colocation companies, they can take care of setting the machine up and getting you started, as well.
How Long Will the Highs Last?
Unfortunately, it is impossible to tell exactly what is going to happen with Bitcoin and the other cryptocurrencies on the market, just as it is impossible to predict with 100% accuracy what will happen with any market. Myriad factors could push the value higher or lower. It is therefore important to make sure you are keeping abreast of these changes if you are going to invest, and that you are willing to take the risks, as you would with similar types of investments.