If you’ve tried stocks, forex, and options, and you’re still not satisfied with with your investment returns, it might be time to take a look at cryptocurrencies. What the heck is a cryptocurrency? You’ve probably heard of one before and never realised its classification: Bitcoin.
What Is Bitcoin?
Bitcoin is a digital currency that’s based on an advanced algorithm that attempts to control the total or absolute number of Bitcoins in existence while also creating an opportunity for speculators who want to “mine” Bitcoins.
Like the gold rush of yesteryear, this new rush is for a commodity – a virtual commodity. It’s a new class of money that has seen its ups and downs but is still alive and kicking. If you spend enough time on Google, you will probably read about the failures of the system more than you’ll read about its successes. The incident with Mt. Gox is probably the most famous, and a blemish that Bitcoin fans and supporters often shy away from.
At the same time, Bitcoin has come under fire from regulators who want to control the cryptocurrency to make it safe for everyone. So far, regulations focus on the exchanges, controlling how they operate. This provides legitimacy to a sceptical investment audience that, until recently, didn’t know what to think about investing in Bitcoin.
GABI’s Capitalisation On Bitcoin
The Global Advisors Bitcoin Investment Fund is the first regulated investment fund that invests in Bitcoin. If you’re looking for a way into this arena, this is your ticket. The fund hopes to introduce the world to a safe way to invest in Bitcoin. Rather than buy Bitcoin yourself, you can buy into a fund which will manage transactions on your behalf. It’s still unclear whether the fund will take advantage of investing in trading platforms, because investing in Bitcoins directly seems to be the most profitable avenue right now.
Problems With Bitcoin
Bitcoin isn’t without its problems. Even with current regulations, many regulators and traders still point out the obvious fact that the currency has no physical commodity backing. While exchanges are regulated, the currency itself is not, and may never be.
Forex traders, for example, benefit by working on stable, secure, platforms like the Metatrader platform, where brokers are regulated and currency exchanges are standardised. With Bitcoin, so such infrastructure exists yet. But, companies like GABI hope to change that.
If it can pull this off, it will help lead the way in making Bitcoin an accepted worldwide currency that’s used for more than just underground purchases of drugs and other illicit products and services.
How To Invest
Many experts, like James Rickards and Jeffrey Robinson, advise against getting into mining for Bitcoins, especially now that the easy pickings are gone. Instead, they recommend investing in the companies that process transactions or investing in a fund that manages the buying and selling of Bitcoin.
That way, you have a layer of protection between you and the actual Bitcoin market. It also simplifies the process of investing, as you can invest in a currency you’re familiar with, like the pound, and let professionals manage the logistics of the exchange.
Alex Fletcher has kept an eye on bitcoin investing since the early days. A passionate writer, he likes to let others know the latest currency investing news and options. You can look for his helpful posts on a variety of blog sites today.