What Would Happen If You Invest $100 Into Bitcoin Today?
Bitcoin is the world’s first and most popular cryptocurrency. It can be difficult to get started with crypto investing if you are unfamiliar with the fundamental concepts. Investing in cryptocurrency can be risky, as traders are constantly concerned about volatility. Cryptocurrency prices fluctuate rapidly, so although it can be profitable, investors can also lose a lot of money.
Just because of the so-called fear of missing out, (FOMO) several people are considering investing in Bitcoin or another cryptocurrency. You may all heard about early Bitcoin investors who made a fortune. Prior to actually investing in an asset, though, you must have a fundamental grasp of what you are getting into.
As a result, most people considering becoming crypto investors are wondering whether they should attempt Bitcoin right now. To put it another way, if I invest $100 into Bitcoin today, will I make a profit in a few months? So, let us take a closer look at it.
What Is Bitcoin?
You definitely heard the term Bitcoin, what exactly is it? So, Bitcoin is the most widely used and significant cryptocurrency. BTC was launched in 2009, and the cryptocurrency’s worth was almost nil at the time. However, in the last decade, its value has skyrocketed, and early investors are profited greatly. Bitcoin offers a variety of benefits to its users, including privacy, minimal transaction fees, real cross-border payments that are not influenced by politics, and etc. It transformed the financial world and paved the way for the creation and growth of the cryptocurrency sector and market.
Bitcoin can be purchased through a trustworthy cryptocurrency exchange. After you have made your purchase, you can put it in a digital wallet in which only you will have access to the private keys that will allow you to get your BTC coins anytime you wish to sell them. Private keys are made up of 64 digits and are used to protect your BTC money.
The blockchain, a decentralized ledger system, is used to create, distribute, trade, and store this virtual currency, while payments are made via peer-to-peer technology. Bitcoins depend on the computing power of huge unnamed private worldwide computer networks to maintain and update the blockchain. Bitcoin will most probably become a mainstream currency as more organizations officially adopt it. The more Bitcoin enthusiasts there are, the more likely it is that Bitcoin’s price will stabilize.
What Makes Bitcoin So Valuable?
Governments do not give value to Bitcoin unlike fiat currencies, and it is not extensively utilized in retail (not yet). It does, however, have use cases, and its underlying technology, blockchain, is presently transforming a variety of industries. Bitcoin can be used as a means of exchange and a store of value, just like every other currency, but these aren’t its primary use cases right now. Bitcoin’s value is largely determined by how much people are willing to pay for it, and it is influenced by its limited supply and rising demand. As a result, predicting Bitcoin’s price can be difficult, and the currency’s value is heavily influenced by market sentiment.
The majority of Bitcoin supporters feel that it is the financial sector’s future. Unlike conventional financial systems, Bitcoin allows for speedier and less expensive transactions. Despite the volatility in the crypto market, Bitcoin has managed to endure any instability due to growing demand and interest from individuals who see it as a better store of value.
Is It Possible To Become Wealthy By Investing $100 In Bitcoin?
Basically, it all depends on how much Bitcoin will increase in the future and also when you want to sell it. If you invested $100 in Bitcoin a few weeks ago, when it was approximately $42K, it would have to rise to over $417 million before you could profit $1 million on the sale. There is, however, a second option to get wealthy by investing as little as $100 in Bitcoin on a daily basis, much like you would with your savings account.
Bitcoin’s popularity is growing by the day, with firms like PayPal, Visa, and MasterCard adopting the cryptocurrency. Growing adoption has a beneficial effect on price rise. Simply stated, Bitcoin is regarded as a high-risk investment with the potential for significant losses. However, high volatility digital assets have a high probability of providing significant profits.
Is It Possible To Lose Money Investing In Bitcoin?
Yes. Investing in cryptocurrency is a high-risk investment. Volatility has the potential to produce big gains or losses. When day trading, if you sell your BTC position at the wrong time, you may lose all or part of your initial investment or some part of it. If you keep your investment for a long period, the market may crash for unforeseeable causes, sending the BTC price plummeting. You may be obliged to sell for less than what you paid for it, resulting in losses.
There are also other dangers, such as being a hacker’s victim. Your Bitcoin holdings could vanish in an instant if a hacker gets access to your wallet. As Bitcoin transactions are irreversible, it’s unlikely that you will be able to reclaim your stolen digital currencies. There are also numerous scams to be found. You may be promised a large reward from an investment in some instances. To participate, the scammer states that all you have to do is send BTC to a certain wallet address. If you fall for it, you might never see your ‘investment’ or the promised profit again.
Bitcoin was the first cryptocurrency to be created, and it has since grown to become the most valuable in terms of market value. Despite occasional price fluctuations, Bitcoin’s value is expected to rise over the next few years. The price of bitcoin has been steadily increasing in 2022, so if you invest $100 in bitcoin today, you will profit handsomely in the future. Finally, whether you can acquire a hundred Bitcoins now or later relies on how you feel about this coin and cryptocurrency in particular, as well as its future potential. Please keep in mind that the information contained in this article is not intended to be financial advice. So, best of luck on your crypto adventure.