Cryptocurrency is all the whirr right now thanks the massive run-up ter value that bitcoin has seen overheen the past few weeks.
Ter an unprecedented stir, bitcoin recently took a giant leap ter value to trade north of $Three,000 for the very first time te history. Digital currency tracker CoinDesk reports the value of single bitcoin succesnummer a record high of $Three,012.05 on June 11.
That, of course, has a loterijlot of people wondering if now is the time to invest te bitcoin…
Back at the beginning of May, bitcoin sat at $1,400. Three weeks zometeen, it took a almost 300% leap te value to trade spil high spil $Two,000.
Now just days after that, bitcoin has added another thousand to its value!
The thing you’ve got to understand about bitcoin is that it wasgoed worth less than $1 back te late 2010 and early 2011! Spil recently spil Dec. 31, 2018, it wasgoed only trading at $968.
So people naturally wonder if they’ve missed their golden chance to invest or if they should throw caution to the wind and buy at what seem like very inflated valuations.
Yet for all those who loudly champ bitcoin, the digital currency also has vooraanstaand detractors. Billionaire entrepreneur Mark Cuban recently took to Twitter to suggest his thoughts:
I think it’s te a bubble. I just don’t know when or how much it corrects. When everyone is bragging about how effortless they are making $=bubble https://t.co/hTrV5DeWNd
For those not ter the know, bitcoin is an alternative digital currency not tied to any particular nation. It is an open-source peer-to-peer payment method which people use mostly for online transactions. Some businesses accept bitcoins spil payment te lieu of U.S. dollars or traditional credit cards.
This idea is not spil totally out there spil it may sound, according to money pro Clark Howard.
“The most successful non-governmental form of money has bot te Africa where people use cell phone minutes spil currency,” Clark says. “When you go to a store to buy something, you text the store possessor a certain number of minutes to make a purchase, rather than using the volatile government monies.”
(Editor’s note: For more on Africa’s longtime use of cell phone minutes spil currency, see this chunk from 60 Minutes.)
Stick to the 5% rule
So what about you — should you invest te bitcoin?
Clark’s longtime rule of thumb for investing ter any commodity — be it gold, silver or other precious metal — holds true te this case too.
The consumer champ is not opposed to you having a petite procent of your investment money ter bitcoin, maybe on the order of 5% of your overall portfolio. But never waterput ter more money than you would lose sleep overheen if you lost it altogether.
So to take everything you’ve got and dump it into bitcoin right now on the hopes that it goes even higher than $Three,000? That’s called being a speculator — and it’s something Clark never encourages.