The Bitcoin value bubble continues to make headlines; I tend to watch the speculation from the sidelines knowing that there are three things that noticeably drive investments; fear, anticipation, and the herd mentality. Bitcoin–as an investment–is incredibly risky in the traditional sense because there is no regulation, no central control, and the market is rife with volatility.
Yet, Bitcoin persists. A January 12, 2021 Business Insider (BI) article reminds that this cryptocurrency has managed to weather not one, not two, but THREE of what BI refers to as a “peak-to-trough drawdown” of more than “80% in less than 10 years”.
Is it too late to mine Bitcoin? Opinions on this may vary, and it’s up to the individual investor to decide whether or not to take the plunge but it’s good to get a temperature check of the industry to see what experienced miners and investors think might be the future.
Where are the countries that banned cryptocurrency? Bitcoin made digital history when it debuted in 2009, and since that time many international lawmakers have struggled with whether to accept or ban cryptocurrency.
Since cryptocurrency is not issued or regulated by a central authority, it is essentially the type of currency that is accepted wherever it is considered valuable. Some companies offer digital goods and services in exchange for certain types of online currency, others may even permit Bitcoin and others to be used for the purchase of tangible goods.
But not in countries where the practice of using or distributing cryptocurrency is illegal.