This represents a hypothetical return of 55.9% over the past five years or an average annual return of 11.2%. If you're thinking about investing in cryptocurrency, think of it as a trip to Las Vegas, suggests Tony Robbins, a best-selling author and self-made millionaire.
Legendary investor and founder of Vanguard, Jack Bogle, told the audience at a Council on Foreign Relations event: “Avoid bitcoin like the plague.”Cryptocurrencies are having a great time right now, and none are doing better than the OG cryptocurrency: Bitcoin (BTC). Major investors, governments, economists and scientists took notice, and other entities started developing cryptocurrencies to compete with Bitcoin.
Bitcoin became a financial instrument that investors and financial institutions used to store value and generate returns. Billionaire businessman Mark Cuban and Warren Buffett, from Oracle, from Omaha, for example, have warned that the value of bitcoin is unstable. The closer Bitcoin gets to its limit, the higher its price will be, as long as demand stays the same or increases. There's nothing to back bitcoin, except the hope that you'll sell it to someone for more than what you paid for it.
Fortunately, you can buy Bitcoin in fractions, so you don't have to shell out the full value of a coin.
Bitcoin's pricefluctuations are mainly due to investors and traders betting on an ever-increasing price in anticipation of obtaining wealth. Since then, Bitcoin has become the main cryptocurrency by market capitalization and one of the most talked about financial elements in recent years. The price of Bitcoin should continue to rise as long as its popularity continues to grow and its supply cannot meet demand.
Investopedia is not responsible for and does not guarantee the accuracy or timeliness of the information contained herein. Finally, if consumers and investors believe that other currencies will prove more valuable than Bitcoin, demand will fall, taking prices with it. No investment has a guaranteed return, and Bitcoin has experienced more volatility than almost any other market. The price began to fluctuate more as uncertainty about inflation and the emergence of a new variant of COVID-19, Omicron, continued to scare investors.