Bitcoin is like that song Lao Bengs love and belt out enthusiastically at karaoke joints nationwide, 爱拼才会赢. 有时起 有时落. Sometimes up, sometimes down. It has surpassed USD15,000 for the first time since 2017. The value of Bitcoin exploded by 30% in the past month alone! Those are not gains you dismissively flick a booger at from your long left pinky nail.
I started investing in Bitcoin earlier this year and an acquaintance commented that doing so is little more than gambling coz there is no inherent value in Bitcoin. Limpeh begs to differ. Not that there’s anything wrong with a controlled speculative punt every now and then. The reason the statement irks me is coz it’s fundamentally wrong.
Sure, you can’t use Bitcoin to pay Makcik Kiah when you buy your morning nasi lemak. Ah Seng at the local “foot reflexology” center would frown if you suggest using Bitcoin to pay for their hedonistic offerings. But Bitcoin has an established rate of exchange to fiat currencies like USD and MYR so it has real, tangible value.
Investors who have Bitcoin or other cryptocurrencies in their portfolio have outperformed investors who don’t. This is true for hedge funds too. Except for the glove sector in Bursa, very few investment vehicles have offered exceptional returns in this dismal year.
What caused the recent spike in Bitcoin’s value?
The biggest reason is Paypal. Paypal announced that Bitcoin will be supported on their ecosystem in 2021! This bit of news has pushed Bitcoin to stratospheric heights. There’s FINALLY a valid real-world use for Bitcoin. You’ll soon be able to transact with Bitcoin on any and all merchants that accept PayPal – first in the US and later all around the world.
Cryptocurrencies are finally mainstream!
If you want to invest in Bitcoin, there’s no better time. It’s going to appreciate in value now that it has mainstream support and a platform for easy, real-world transactions. Some analysts are looking at USD20,000 in the medium term. That’s a 30% upside!
As for me, I’ll continue to consistently put some money every month into Bitcoin. I use both eToro and Luno, but recommend the latter. Fees wise, they’re both similar after you consider eToro’s currency conversion and USD5 withdrawal fee and Luno is much easier for Malaysians to use and transact with.
Diversify your portfolio, financial gangsters!
Invest in Bitcoin via Luno to diversify your portfolio and ride the cryptocurrency rocket ship! We both get RM25 free Bitcoin when you sign-up via my referral link and buy RM250 in Bitcoin. That’s an instant 10% return!
