Bitcoin Investment | a Buzz or a good investing opportunity

Bitcoin investment have been on the lips of many investors and professional traders for some time with mixed stories of how people invested in it and then forget about it only for the little initial bitcoin investment to then grow into huge wealth.

bitcoin investmentAnd for some people, it is yet another product of negative financial engineering that have been designed by hybrid savvy investors just to cone people out of their hard earned money.

As an accountant who has flare for investment and business technology, I have invested some time and resources into investigating the investment potentials of bitcoin. And what I found and experienced inspired me to write this post.

This article is a product of my personal opinion that is backed with experience and research as far as bitcoin investment is concerned.

Just in case you are wondering what the mechanics of bitcoins are, bitcoin is a cryptocurrency that is mined from computer processing power and this is decentralised in nature.

No central bank of any nation can control this currency unlike forex trading that is largely influenced by the action of a country or region. A good example is what happened to a major forex broker in Europe that led to the closure of its biggest branch leading to loss of investments and jobs.

The decentralized nature of bitcoin cryptocurrency makes it very attractive to not just legit businesses but also to some illegal activities.

No single government will be able to exercise significant control over the mining, circulation, spending and investment in bitcoin. But, wait a minute, not for the tax men, according to CNN, bitcoin transactions will now be taxed in the United States and this will only act as deterrent to small businesses that are accepting bitcoins as a payment method or planning to do so.

Businesses are now beginning to accept bitcoin as a form of payment. According to Coindesk.com, Microsoft and Dell became the latest big brand that started accepting bitcoin. That means you can make some money if you position yourself well enough to tap into bitcoin investment.

To answer the question of whether bitcoin investment is a good investment opportunity or yet another hype, we would briefly explore the qualities of investment. The final decision will be entirely yours to make.

MAIN QUALITIES OF GOOD INVESTMENT

This section of this article on the potential of bitcoin investment would draw your attention to qualities and features of good investments.

Safety of capital:

The golden rule of any investing activity is that the safety of your capital must be reasonably assured. In as much as there is no such thing as safe investment, one must still perform due diligence before patting ways with their wealth.

In my previous article on what is investment, I delved more into what is and what are not good investment opportunities.

Ability to earn returns:

What is the point investing if there is no prospect of you making handsome returns? The essence of the whole process of investment is for sort of profit to be made.

Bitcoin investment has real potential to make intelligent investors rich. But before you can reap from bitcoin investment, you have to learn the basics of bitcoin investment.

Availability of an exit route:

Every good investor understands the importance of having an exit strategy in an investment. Take Warren Buffet as an example, he sold all his shares in a major oil company weeks just before the oil price at the international market started taking a nosedive.

You should seriously consider looking elsewhere if there is no readily available exit route in any investment vehicle you are looking at. At the time of writing this article, selling and buying bitcoins are relatively harder compared to other investment vehicles.

You can’t just buy a bitcoin with your credit card. And for me, that is a major drawback.

Provides the investor with freedom:

Majority of passive investors make investments into a cause just to free up time for other things they love doing. Bitcoin investment when done properly does not require constant monitoring so it frees up your time for other things.

But, completely ignoring your investment is a dangerous strategy that has caused a lot of people in the investment community unimaginable hard ship and pains.

Scalability and flexibility:

Another feature of modern day investment is that rigidity and inflexibility should be at the barest minimum. You don’t expect a prospective investor to go through undue stress just to give you their money.

Investors will simply not be interested if the underlying process of an investment is not scalable and flexible.

Scalability in this context means the ability to add and reduce your stake in the investment at any given time.

Bitcoin investment so far has met this requirement but not without some concerns. It all depends on the broker you are using. You have to do your research before going with any broker. I would have loved to name the company I use but it is no my thing to make referrals.

Clearly legal:

One of the most important features of an investment is that it must be legal. There is no such thing as grey area in investment. If you have been following the news you must have been aware of some countries clamping down on bitcoin investment companies thereby causing real financial hardship to many people.

Some people think that the anonymity of bitcoin investment is an incentive for criminals to flux the cryptocurrency thereby making it too risky an investment vehicle.

 

Just before you go

My take take on bitcoin investment is that it is a game that is worth playing but, not to be played too much. After all you will not all your life savings in a stake except you have gambling problem which am sure you don’t have.

ROLE OF CUSTOMERS IN SMALL BUSINESS SURVIVAL

ROLE OF CUSTOMERS IN SMALL BUSINESS SURVIVAL

The roles of customers in small business survival is what you do not hear so often but this should be discussed more often as the survival of any small business is hugely hinged on the roles played by customers. Customers should be a cheap way of … [Continue reading]

SMALL BUSINESS BLOGGER OUTREACH STRATEGY

small business blogger outreach strategy

Small business blogger outreach strategy is one of the google age marketing activities that every modern small business must proactively engage in if they are to be ahead of the ever intense small business competition. In this post, I will be … [Continue reading]

Small Business Accountants | When Should Entrepreneurs Hire A Finance Professional?

small business accountant

Small business accountants are no doubt very important to the success of an enterprise that is just starting up but they are not cheap to acquire. There are many reasons why a small business should hire an accountant during the early stages of … [Continue reading]

Advantages and Disadvantages of a Mission Statement

missions statement

The advantages and disadvantages of a mission statement must be known by small business owners that are either just starting up or have been running a small business for a while- just like every other things in life you ask; what is in it for me? Not … [Continue reading]

Small Businesses Competition | How to Compete in this Modern Days

Small Business Competition

COMPETING THE RIGHT WAY Small business competition is not all about price war and price cutting the supermarkets do in the UK. It is a lot more than that. The recent Tesco saga could have been avoided if excessive price war was not over … [Continue reading]

Investment Appraisal Risk Management Strategy| Tools, Techniques and Methods

Investment Appraisal Risk Management

Investment appraisal risk management strategy are those proven methods of evaluating risk and uncertainty that are associated to investing. Most investments or projects fail to see the light of the day because of the fact management has either … [Continue reading]

Factors to Consider Before Extending Business Loans to Entrepreneurs

factors to consider before loan

This blog post on the factors to consider before giving business loans to entrepreneurs is prepared to answer a question that was asked on the comment box of a previous article on financing challenges faced by small businesses. We now have … [Continue reading]

Small Business Benchmarking Process and Methodology | a Simple Approach

benchmark 1382050-m

Definition and Meaning of Benchmark Benchmarking is a classic performance measurement tool used to compare similar businesses under similar circumstances with the aim of measuring up with the best performing company. This does not necessarily mean … [Continue reading]

Nine (9) Tested and Trusted Business Lessons to Learn from Royal Families

kingdom854353-m

Have you ever wondered how kings and queens run their kingdoms? There are kingdoms that have been around for a very long time. This really got me thinking as I understand that the difficulty involved in managing people and resources is not the … [Continue reading]

Role of Accountants in Enterprise Software Acquisition

Implementation of ERP System 1361061-m

Companies of all sizes and shape now rely on Enterprise resource planning systems to be competitive, profitable, compliant, attractive, and trendy. The implementation of an enterprise resource planning is a complex long term project that requires … [Continue reading]

Evergreen investment and financial risk management strategies

Evergreen Investment Management

Evergreen investment and financial management strategies are those logical, tested and proven ways of managing your investments and business as whole. The good thing with evergreen investment and financial risk management is that you can easily apply … [Continue reading]

10 signs and symptoms you should invest in new business information technology

cash register

When it comes to investing in business information technology, it is very important that decisions are made based on business reality rather than impulse as we see on many occasions. This article provides heads-up on signs that may indicate that … [Continue reading]

Critical Skills of Next Generation Accountants

hybrid accountant

If you have been following accounting as a profession, you would have noticed a pattern that has been developing in the skill set that is required of a next generation accountant. One of the critical success factors of the next generation … [Continue reading]

Make Money or Make Accounting Career, choose a Path to your Destiny

money or accounting job

For many people with accounting skills and knowledge, following an accounting career path that leads to professionalism for example becoming a member of ACCA, CPA or CIMA is their life long goal but the spiralling number of accountants that are … [Continue reading]

Small Business Due Diligence | Professional Accountant Perspective

due diligence

Small business due diligence is a sort of investigation done by a professional on behalf of potential business owners before they sign a contract that will subsequently lead to change in ownership but after the buyer and seller has already agreed on … [Continue reading]

Pitfalls | Common mistakes made by small business accountants

pitfalls

Small businesses change accountants at will just as we change our clothes. The only difference is that we change our clothes because we have to but small business owners change their service providers such as small business accountants whenever they … [Continue reading]

Vocabulary of accountpreneurs that I did not learn in my MBA and accountancy classes

old accounting degree curricular

I don’t remember being taught any vocabulary of the accountpreneur during my study of accounting and MBA. The curricula of most accountancy courses are as rusty as the image in this article.   As a dedicated student that never missed a … [Continue reading]

Importance of credit checks and background checks to small businesses

credit check

Credit checks and background checks by small businesses are components of overall business strategy that is often neglected by many SMEs. This is due to the fact that most DIY entrepreneurs don’t really grasp the importance of credit and background … [Continue reading]

Discover How to Make Money as Accountants in the Information Age

making money as an accountnt

Accountants spend thousands of Pounds on formal education and professional accounting qualifications only to be begging for jobs at the end of the day. This should not be the case if you are equipped with both the technical and soft skills of a … [Continue reading]

Is Big Data Driving Your Business Forward or Is It Too Heavy That It Slows Things Down?

Big Data

The importance and significance of big data in this digitalized business world has been generally agreed upon by business leaders and strategists. We are now in a new phase of big data life cycle which is what I call the shaking off stage. The big … [Continue reading]

Copy Guarded by IamShekhar's WP-CopyGuard.