What if I want to buy Bitcoin?

-- | 06/04/2021

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Narrator: You’re on the internet, which means you know about cryptocurrencies. And if you’ve spent even a few minutes listening to the crypto evangelists out there, I can guarantee you’ve thought about it. You want to get rich, and you think crypto’s the way to go. So let’s talk.

What if I want to buy Bitcoin?

Let’s start with the obvious. There’s nothing wrong with buying Bitcoin. Or any other cryptocurrency. But don’t try and convince yourself that it’s a sure thing.

Remember, this isn’t even the first time that Bitcoin’s been big. Back in 2017, Bitcoin hit highs of over US$19,000 ($25,000), and everyone went wild.

Sounds familiar, right?

But then, in January, it started to fall, and in one month, it went down 65% - down to US$6,000. That year, some coins lost over 90% in value. Those returns – come with massive risk.

Which isn’t to say the same thing will happen this time – but you should be aware that it could.

Kristoffer Inton: Bitcoin is a speculative asset and not a safe haven. It isn’t as liquid as cash, it has a really short history, and there isn’t widespread acceptance of crypto's functional purpose – I mean, have you tried paying crypto to buy a banana?

Plus, you could forget your password, and like that guy in San Francisco, you could lose 220 million dollars.

This report appeared on www.morningstar.com.au 2021 Morningstar Australasia Pty Limited

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