Bitcoin

bitcoin
bitcoin
bitcoin

Invest in Bitcoin

Bitcoin is a cryptocurrency, this means it is a form of private money. A private money is not controlled by the state directly. There are 1000s of cryptocurrencies, Bitcoin is the first one.

SWOT Analysis

Strengths:

  • Bitcoin has a limited supply of coins, unlike other FIAT currencies.
  • You do not need to buy one bitcoin; you can buy any fraction of bitcoin.
  • Companies like Bitcoin.de offer a relatively safe environment where to buy Bitcoin.
  • Bitcoin could act as a haven similar to gold in an economic or currency crisis
  • If you own Bitcoin, you will not be at risk from bail-ins or bailouts.


Weaknesses:

  • Bitcoin is unsafe when left on exchanges.
  • The price of bitcoin fluctuates, although it has done less so in 2016
  • Bitcoin price can experience shocks, for example, the price of Bitcoin dropped $100 when an exchange was hacked.

Opportunities:

  • Bitcoin’s value is based on its functionality. The more functionality is added, the more valuable it becomes.
  • Some state that all other cryptocurrencies are ideas which eventually will be implemented in Bitcoin
  • The EU has recently stated that it will create a bitcoin register of users. This will make Bitcoin ecology a cleaner place to do business.

Threats:

  • The governance of Bitcoin has faced problems recently because the miners do not agree among themselves on the way forward. Most mining is concentrated in China.
  • Spain recently (October 2016) stated that it would tax Bitcoin mining.
  • Other CryptoCurrencies might replace bitcoin. Recently Monero has seen a huge rise in its value.
  • Requires electricity to function, unlike gold.

How to invest in Bitcoin:

You can buy your first bitcoin here: