If you are considering investing in bitcoin, consider these risks first
A customer uses a bitcoin automated teller machine (ATM) at a kiosk in Barcelona, Spain on Tuesday, February 23, 2021.
Angel Garcia | Bloomberg | Getty Images
Bitcoin was originally created to be like digital money, but its actual use case has evolved since its inception. More than anything, investors are now buying it as a speculative investment.
The price stood at $ 37,100 on Friday afternoon and struggled to rebound to its May highs after Tesla CEO Elon Musk began to shift crypto markets, pushing bitcoin down. The cryptocurrency is the largest in terms of market capitalization, which stood at $ 693 billion on Friday, according to Coin Metrics.
Historically, demand for bitcoin has been driven largely by retail investors, but that narrative changed late last year as large investors and institutions began to reconsider their positions on it. Bitcoin has always and continues to suffer from reputation issues that are difficult to shake, mainly due to its novelty and therefore the lack of data or history to support its raison d’être.
If you are caught up in the confusion and misinformation surrounding bitcoin, here are the key things to focus on if you are considering bitcoin for your wallet.