The rapid increase in its price bitcoin attracts more and more small investors, with some willing to buy at current high prices why they wait to become millionaires and others believe that digital currency will have great value over time, such as gold, and therefore they will be able to leave it as a legacy to their children.
New cryptocurrency investors explain to Bloomberg why they buy it at record prices, moving close to $40,000. The 23-year-old Amber Wells from Atlanta remembers hearing about bitcoin for the first time years ago, when it was cheap, but didn't buy any at the time. «Suddenly, I heard others saying that now is millionaires»," he said, and rushed to buy it through the finance company. Square, giving $20 on a weekly basis. «I didn't do much research. All I thought was, ”Let me buy it any way I can,”» he said.
The value of bitcoin peaked at the end of 2020, when many investors began trading their shares themselves, taking advantage of the opportunity to trade without paying commission, and while average American family had more money. The stock exchanges also climbed to historically high levels.
The surge in the price of cryptocurrency in $42,000 in early January, he pushed 27-year-old Khadijah Suleman to allocate 300 dollars for buying bitcoin on January 11, when its price took a dive. He hopes that the price will fall so that he can make larger purchases. «I know it's dangerous,» he added.
Investors rush to register on Israeli-British platform
The Israeli-British investment platform eToro, reported that he had more than 530,000 new registrations the first 17 days of 2021. To date, the number of its users investing in cryptocurrencies has double compared to 2020.
The excitement surrounding cryptocurrencies has caused strong warnings from Supervisory authorities and banks. Η British monetary supervisory authority, warned this month that those who buy cryptocurrencies now «should be prepared to lose all their money,» while the UBS sounded its own alarm bell, reminding consumers that the value of bitcoin has risen very quickly and may be reduced to zero.
Last year, however, Americans could suddenly buy and sell things with bitcoin through PayPal, while Fidelity Investments created a bitcoin fund and trading platform Coinbase encryption announced its goal to proceed with public subscription with large financial companies.
«Many of my friends are starting to invest in bitcoin,» he said. 23-year-old Will Scott, from Kentucky, who works in marketing and sales. As he said, he acquired bitcoin through a sports betting site, getting a bonus for making a deposit in cryptocurrency. Scott had been betting on sports, but just at the beginning of the month, when the price of bitcoin had risen to $32,000, he acquired it for the first time with an amount of $150.
Bitcoin as an asset
Some see bitcoin as a component of a long-term strategy which can last for many generations. The Leslie Steven Dcunha from Norway, is one of those investors, who bought bitcoin last week between $40,000 and $50,000. «I hope to pass it on to my children one day. They are six now, and if something happens, it will have some value for them,» he said. Dcunha believes that bitcoin is like gold. Her father had gold and held onto it for decades, and she hopes to do the same, albeit in digital form.
However, the Rosie Hooper, specialist analyst at Quilter in London, warns against choosing bitcoin as an asset. «With increased regulatory control, access to bitcoin may become increasingly difficult. and therefore investors would benefit more if they used his money for more traditional asset purchases, which have less volatile returns and lower risk,» he said in a note.
