Bitcoin is a digital currency and has recently doubled in price. But before you try to buy anything, be careful.
Bitcoin is scorching hot. This digital world currently rose from $ 20,000 in December 2020 to $ 40,000 by January 10, 2021, making lots of money for investors.
But it then fell 20% and burned investors who were late for the party.
According to Fortune Magazine, Bitcoin is a bubble that has burst multiple times. Most recently in March 2020 when Bitcoin fell 60%.
CNBC’s Jim Cramer says it can be part of investments and that he owns some.
But he says play only what you can afford to lose, just like in a casino.
But what can happen to the “Doesn’t That Stink” file if a bubble bursts? Most younger investors may not remember the 1999.com bubble, when a stock with a “dotcom” ended up doubling in a matter of days.
Everything crashed in the “Dot-Com” bust and late investors lost their fortunes. The flagship was “Pets.com”
Bank of America calls Bitcoin “the mother of all bubbles”. So invest accordingly.
It is not a scam and you could make a lot of money … but you could also lose a lot of money.
Could Bitcoin double or triple again soon? Sure, but it could also plunge in like it has been several times before. So be careful and don’t waste your money.