Should You Buy Bitcoin Now, Lifehacker Australia
“Fresh Year, Fresh Mij” has bot Bitcoin’s mantra to commence 2018. It’s just that ‘fresh’ Bitcoin is the worst version of 2017 Bitcoin. After taking a giant tumble ter value overheen the past few months, prospective buyers are now weighing up their options – is it a good time to buy Bitcoin? Should you ‘buy the dip’?
Here’s what the near-future looks like for Bitcoin and some of the things you need to weigh up if you’re considering buying bitcoin now.
I should preface this lump by repeating the adage: ‘only invest what you’re willing to lose’. That’s the best place to begin. If you’re thinking about investing serious money into Bitcoin, then there are hundreds of resources to choose from that can educate you on the subject.
Some of those resources are dense, so wij’ve violated down what you should look at te the near-future to keep ahead of the next wave of developments te Bitcoin.
‘Forks’ are significant to witness for because they can influence the Bitcoin marketplace, community and the development process, spil wasgoed the case when the very first hard fork appeared last year.
Te August 2017, the very first ‘hard’ Bitcoin fork wasgoed created spil a result of the Bitcoin scalability debate. It wasgoed named Bitcoin Specie.
A hard fork is flawlessly summed up by the expression ‘a fork te the road’, hence the name. When you come to a fork, there are two paths to take. Once you take one path, you cannot take the other. That is to say, when a hard fork is created, the resulting protocol is incompatible with the original protocol. Bitcoin Metselspecie wasgoed created because of some of the perceived limitations of Bitcoin, including the scalability problem and block sizes te the blockchain. Presently, Bitcoin Specie sits fourth ter the market te terms of market cap.
Since August, several other hard forks have bot created. It doesn’t switch anything for Bitcoin’s protocol or blockchain itself – but if the community sees it spil a better alternative, then Bitcoin may dip ter value. If you already have Bitcoin and a hard fork is created, you are credited with the fresh blockchain’s currency – spil long spil you can work out how to redeem it.
Ter 2018, there are a yam-sized number of proposed Bitcoin forks launching – but be wary, some have already bot discredited spil scams, such spil Bitcoin Platinum.
Albeit Bitcoin only records an electronic address whenever a transaction is made, that address is still tied to you – which means if someone can find your blockchain address, you’re no longer anonymous. This is known spil pseudonymous privacy and is one of the concerns that some Bitcoin investors have. Especially since it wasgoed exposed there are relatively straightforward ways to find out someone’s BTC address because of the trail left by conducting transactions.
A handful of fresh privacy measures are presently te development to protect user’s information when performing Bitcoin transactions including Dandelion, Neutrino and Bulletproofs. It may be hard to parse the information that thesis fresh technologies are describing but spil they are further developed to work with the blockchain, Bitcoin again becomes an attractive purchase to potential investors (and perhaps, potential criminals).
This, of course, drives the value up and driving the value up is why you’re here reading te the very first place.
To ‘make’ Bitcoin, you have to ‘mine’ Bitcoin and much has bot made of the energy needed to perform the sophisticated calculations needed to do so. A large proportion of mining, potentially around 60 procent, has taken place ter China due to their cheap electric current and access to land. However, with the Chinese Government cracking down on thesis Bitcoin mines, those that are looking to proceed mining the coin have had to look elsewhere.
This presents a potential roadblock te the process spil ‘mining’ the coin is how Bitcoin transactions are verified and added to the blockchain. If there is a mass uittocht from China, that could see the market become more volatile spil verification slows down and attracts higher transaction fees.
The ‘R’ word became more and more vooraanstaand ter discussions around BTC spil it rocketed to mainstream acknowledgement late last year. Te Australia, fresh laws are being looked at that permit the Australian Transaction Reports and Analysis Centre (AUSTRAC) to scrutinize exchanges more readily and obtain information about clients and suspicious transactions.
For that reason, cryptocurrencies are still stigmatised, tho’ their current day use has switched dramatically from shadier beginnings.
Complicating things further is the fact that late last year, reports embarked filtering out that the four big banks were freezing accounts and transfers to cryptocurrency exchanges. Major exchanges, such spil Coinspot, have conceded that the banks do not seem to want to work with them and late last year, they suspended deposits via BPAY because of that unwillingness.
Regulation will play a thick role te the future of Bitcoin and other cryptocurrencies, specifically te the brief term, spil governments and organisations come to grips with how to police and react to the challenges a fresh technology introduces.
That’s All Fine, But Should I Buy Bitcoin Now?
Bitcoin presently sits at around $11,400USD ($14,600AUD), but reached an all-time high of almost $20,000USD ($25,331AUD) late last year. There’s certainly scope for the coin to reach such heights again and, of course, there’s also scope that it crashes to zero. The past two weeks have seen healthy increases ter BTC’s value, suggesting that it may be on the way back up.
There is certainly scope overheen the next few months for BTC’s price to rise even further, but such a volatile market is hard to predict. It does seem that, for now, the bleeding has stopped and that BTC is lodging te for a slow, constant increase once again. If you’re looking to get te long-term, now is a good time to buy. If you’re the kleuter of person that day trades and rolls coins for altcoins – well, it may not be such a good time.
Truth is, BTC might crash again tomorrow. It might have crashed while I wasgoed typing this article up. You might have just waterput your house on it and now it’s plummeting. Maybe it will plummet back to zero and wij will all laugh at how foolish wij were.
But can that be predicted? Absolutely not. So, to reiterate: Only invest what you’re willing to lose.