Why Everyone is Talking About Bitcoin
Why Everyone is Talking About Bitcoin
The price of bitcoin has hit a new all-time high, reaching above $73,000.
Institutional investors, who used to be a bit wary of bitcoin's rollercoaster-like price swings and regulatory unknowns, are now embracing the cryptocurrency. Eleven spot bitcoin ETF were also rolled out in January, providing a regulated option for traditional institutions or other buyers who may now feel safer investing in the cryptocurrency.
With its limited supply and immunity to government intervention, Bitcoin stands as a safeguard during times of soaring inflation, offering institutional investors a dependable store of value. They are also embracing a long-term vision, driven by the transformative potential of blockchain.
Yet, the soaring price of Bitcoin also reignites debates about its intrinsic value and utility. Critics argue that Bitcoin's price is driven primarily by speculative frenzy, detached from its fundamental value as a medium of exchange or unit of account. Meanwhile, the FCA (Financial Conduct Authority) still emphasises that "cryptoassets are high-risk and largely unregulated. Investors should be prepared to potentially lose all their invested funds."
Now, the next Bitcoin halving is expected in April 2024. These halvings happen roughly every four years until the maximum supply of 21 million bitcoins has been generated by the network. They basically slow down how fast new bitcoins are made, which could lead to price spikes if demand keeps up.
The popularity of Bitcoin isn't just about money; it also signals a major shift in the finance world, sparking debates about its potential and how it's reshaping global markets. Whether you see Bitcoin as a game-changer or just another trend, its rise marks a significant moment in the evolution of money and financial systems. We also see it as also improving financial inclusion, and helping to grow wealth and safeguard assets.
Whether you approach it with scepticism, enthusiasm, or simple curiosity, we've gathered some resources and golden rules to help you navigate the world of Bitcoin investing and make informed choices.
Resources:
Listen back to The Wallet: Crypto 101 with Ambre Soubiran
Learn more about Bitcoin
Read: Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money by Popper, Nathaniel
Watch: Women and Crypto by Vestpod With Ambre Soubiran (CEO of Kaiko)
✅ Key Rules for Starting Out in Crypto
Dive into research: Apps like Coinbase and Revolut offer handy modules to get you up to speed on the basics.
Start small: Make a small investment to test the waters. Only put in what you're comfortable losing entirely.
Spread the wealth: Diversify your investment portfolio to lower risk. While crypto can be exciting, remember it's just one small slice of the pie—not your entire financial plan.
Stay safe: Use reputable cryptocurrency exchanges for your transactions. Watch out for scams! If your holdings start growing, consider a secure hard wallet like Ledger for added protection.
Think long-term: Crypto can be a wild ride with its ups and downs. Stay focused on your goals, tune out the noise, and avoid making impulsive decisions. Keep those emotions in check.
Check the fees and don't trade too often: Trading fees can quickly add up, eating into your profits and frequent trading increases the risk of making impulsive decisions!
Stay consistent: Consider buying small amounts regularly (dollar-cost averaging) to invest steadily over time. It's a marathon, not a sprint.
