Should You Invest in Bitcoin Now?

Editor’s note: Our in-house crypto expert Chris Curl has now launched his Million Dollar Crypto Club. I encourage all of you to tune in and put yourself in position to learn and profit from what looks to be the emergence of a new asset class that will be minting new fortunes for the next several years.

— Gerardo  

Should You Invest in Bitcoin Now?

Should You Invest in Bitcoin Now?

I have never personally allocated a single dollar to cryptocurrencies, instead choosing to stick to my knitting with hard assets like real estate, resource stocks, and gold. 

So when investing veterans like Paul Tudor Jones start talking about owning both gold and Bitcoin — I start listening! 

Problem is, like I said, I’ve never invested in Bitcoin. So where to start? 

What better place than with our in-house crypto expert Mr. Chris Curl of Crypto Cycle.

I went to Chris’ Crypto Cycle service for some guidance. The same Chris Curl my friend and business partner Nick Hodge and I gave $50,000 (real dollars) to allocate to the crypto space for Chris’ Million Dollar Crypto Club which is now available to you. 

As with everything, I always aim to keep it simple. What is Bitcoin? How do I invest in it? What are the pros and cons of Bitcoin, etc.?

Bitcoin is a digital currency that is not controlled by a bank or institution (decentralized). Bitcoin is sent from one person to another on the Bitcoin network. Transactions are confirmed through cryptography and put in a public ledger called the blockchain. 

According to Chris, Bitcoin was invented in 2008 during the height of the financial crisis by an unknown person or group going by the name Satoshi Nakamoto. Bitcoin began when its implementation (the code that runs Bitcoin) was released as open-source software in 2009.

Bitcoin is created as a reward for mining. It can be exchanged for other currencies, products, and services. More and more merchants and financial institutions are embracing Bitcoin as an acceptable form of payment. 

And as I mentioned, the Paul Tudor Jones’s of the world are even coming around to the idea of Bitcoin being a permanent staple of the financial future.

How to Invest in Bitcoin

To answer that question, we have to understand what the blockchain is and a brief overview of how it works. Simply, the blockchain is a public book or ledger that records Bitcoin transactions. The blockchain is maintained by a network of nodes that run Bitcoin software. Transactions are broadcast to this network using various applications.

There are a few different ways to invest in Bitcoin. One way is to buy Bitcoin directly from an exchange. There are many different exchanges available, and even platforms like PayPal now offer the opportunity to buy and store Bitcoin.

To buy Bitcoin from an exchange, you will need to create an account and deposit funds. Once your account is funded, you can buy Bitcoin by placing a buy order… just like we did through Chris’s service.

Another way to invest in Bitcoin is to buy a Bitcoin ETF. A Bitcoin ETF is a type of investment fund that tracks the price of Bitcoin. Much like a mining ETF, Bitcoin ETFs are traded on exchanges, just like stocks.

To buy a Bitcoin ETF, you will need to open an account with a brokerage firm that offers Bitcoin ETFs. Once your account is open, you can place a buy order for the ETF.

3 Reasons to Invest in Bitcoin Now

The most compelling reason for me personally to look into investing in Bitcoin is the scarcity and decentralization Bitcoin provides. The scarcity is important as Bitcoin is considered, by far, the safest and most stable of all the cryptocurrencies out there. It’s also the one that will likely clear all of the regulatory hurdles.

Secondly, Bitcoin has no central authority. There is no central server and no central storage. In a world where individual privacy is waning, that, to me, is an attractive quality.

The final reason why Bitcoin may make sense right now, even for a novice like myself, is a more tangible catalyst: the halving.

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All Bitcoins have been created through this type of transaction.

The Bitcoin protocol specifies that the reward for adding a block will be reduced by half every 210,000 blocks (approximately every four years). 

Eventually, the reward will round down to zero. Once it does, people who keep track of Bitcoin will only get paid by transaction fees. There will effectively be no more Bitcoins left to mine.  

It’s estimated that the cap on total Bitcoins that can ever be mined is 21 million.

bitcoin halving chart

The last three Bitcoin halvings occurred in 2012, 2016, and 2020. The first Bitcoin halving, or Bitcoin split, occurred in 2012 when the reward for mining a block was reduced from 50 to 25 BTC. 

The halving event in 2016 reduced incentives to 12.5 BTC for each block mined. And as of May 11, 2020, each new block mined only generates 6.25 new BTC. 

The next Bitcoin halving is expected to take place in April 2024, and the system will continue until roughly 2140 when all Bitcoin will have been mined.

3 Reasons NOT to Invest in Bitcoin Now

Those who follow my work know I love to play a little devil’s advocate. For me, it’s a great way to intelligently hit the pause button before making, really, any kind of important decision.

With that being said, and despite the many bullish indicators we’ve been covering, here are three potential negatives to consider before making an investment decision on Bitcoin. 

First, Bitcoin is not legal tender in most countries so, in many instances, you will not be able to use it to pay for goods or services.

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Secondly, Bitcoin is not backed by any government or financial institution so there is no guarantee of its value.

And finally, Bitcoin is a digital asset, meaning it is not as tangible as other investments such as stocks or bonds.

Looking ahead, you’ll definitely want a crypto expert on your side — whether, ultimately, you decide to invest in Bitcoin or not — to help navigate the oftentimes murky waters of the cryptosphere. 

Luckily, Mr. Curl has now launched his Million Dollar Crypto Club where he’ll be strategically allocating that aforementioned $50K into select cryptos with real-time buy-hold-sell signals you can follow. 

If you ask me… this is THE #1 WAY to get acclimated to the profitable world of crypto speculation. See you all there!

Gerardo Del Real

Gerardo Del Real
Editor, Daily Profit Cycle