Week 4, Fadhil's Blog #1 - Investing In Bubbly Wobbly Richy BitCoin!?


Hey guys back with my blog again haha! by the way, have you ever heard of Cryptocurrency!? nope? yeah? if you haven't you surely living under the cave or ignorant towards today's financial trends of making people rich quick and out of nowhere which going to be my blogging diary topic today. However, you probably must heard of Bitcoin right!? the coins that you buy via online without having it physically that now is worth more than £10,000 without any certain reason which once were worth only £0.8 in 2011. Can you imagine buying lots bitcoin back then when it was nothing? or imagine that much money to buy 1 piece of coin in 2018 that is still questioned in terms of its legality and usage to buy things that you want. A bit history of Bitcoin, it is a cryptocurrency and worldwide payment system It is the first decentralised digital currency Instead of trust being mediated by a bank or other centralised financial institution, transactions take place directly between users, peer to peer. So basically, nowadays, Bitcoin can be exchange into multi currency such as USD or GBP which most of people will do in order for them to cash-out the money they invest in.

 Why in today's financial trend, Bitcoin is so hot and highly demanded!? the answer is quite obvious for everyone including who doesn't really understand finance, it's easy to be rich and quick in matter of days or even a night just by trading them. 

 However, financial experts nowadays, expect Bitcoin to be very risky and can possibly make a lot of individuals bankrupt due to their investment. Furthermore, the experts also call it as a "bubbly" and "wobbly" due to the fact that the price of it increased very high and unexpected in a very short period of time with an enormous risk of losing all the money that you invest to Bitcoin just in a quick glance. Basically, A bubble is an economic cycle characterised by rapid escalation of asset prices followed by a contraction. It is created by a surge in asset prices unwarranted by the fundamentals of the asset and driven by sparks of market behaviour. When no more investors are willing to buy due to the expensive price that not much people can afford, a massive selloff occurs, causing the bubble to deflate. This bubble as experts say is a very dangerous thing to have since if many people like.... I mean millions create and feel this economic bubble, it can cause worldwide financial destruction that can affect a country into bankruptcy.

 So the real question for everyone including me is, does Bitcoin really worth the risk taking of investing considerable amount of money after some nations ban and financial experts says it takes too much risk? For myself, I probably say yes!!! Why? The answer is because you can get a lot of money from it. BUT, there is a one thing that we need to consider it first. If I want to invest in Bitcoin, it is surely only for a long-term investment rather than short-term/trading that comes with lots of risk. For instance if you invest £20,000 in 2018 and leave it out until 2022 or so without trading it, it may earned a significant amount of money due to the fact that I believe that cryptocurrency will be the main currency for the future and nowadays is only the beginning of its legacy.

 OH AND BY THE WAY, do you know the popular story in 2018 of 50 Cents, a rapper, mistakenly accepts 700 Bitcoin in 2011 for his album purchases and he forgot it until in 2018 Bitcoin become a trend and hype!? Now his bitcoin worth around $7.7 millions which is very AMAZING for such a mistake.

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