Read This Before You Go Anywhere Near This Popular Currency
Bitcoin is taking speculators for a ride.
Bitcoin is a digital currency that was created in 2009. Unlike paper currencies, Bitcoin isn’t controlled by a government or central bank—it’s governed by a peer-to-peer network.
In the beginning, few people took Bitcoin seriously. But it’s become very popular with investors in recent years. That’s partly because more and more people are losing faith in the paper money system.
The business community is also embracing the digital currency like never before. More than 100,000 businesses around the world, including Amazon, eBay, and Target, now accept bitcoins as payment.
• In 2015, Bitcoin’s price surged 40%…
It was the year’s top-performing currency.
Last year, Bitcoin surged another 120%. It was the year’s best-performing currency once again.
Until recently, it looked like the digital currency was headed for a three-peat.
• Bitcoin’s price surged 20% over the first four days of 2017…
Last week, it topped $1,000 for the first time since 2013. And it got within $13 of its all-time high.
Frantic buying by the Chinese fueled the recent rally. Yahoo! Finance reported last Thursday:
The yuan fell 6% against the US dollar in the past year, hitting its lowest point since 2008. China’s foreign exchange reserves are expected to keep shrinking in 2017. It’s clear that as a result, many Chinese investors have turned to bitcoin: trading activity of bitcoin in the yuan is up more than 60% in the past 30 days, according to bitcoinity charts. More than 90% of all bitcoin activity globally, in fact, is coming from China.
In other words, Chinese folks loaded up on bitcoins because they’re worried about the money in their wallet losing value. They’re not alone, either.
• Venezuela’s currency, the bolívar, is in free fall…
According to CNNMoney, it lost 55% of its value in November.
Today, prices for everyday goods and services in Venezuela are more than doubling every month. Storekeepers in the country are now weighing out piles of cash rather than counting the money.
In India, locals are worried that there could be a national bank run. That’s when everyone tries to pull money out of the banking system at once.
Not to mention that central banks in Europe and Japan are still trying to stimulate their economies through easy-money monetary policies. As we’ve explained many times, these radical measures could end up destroying the very currencies these central banks are supposed to protect.
• In short, people have plenty of reasons to be worried about the money in their wallet…
That’s why the price of Bitcoin shot through the roof recently. But many of these folks had no clue how volatile this digital currency could be.