Bitcoin: After a difficult Christmas that saw it lose 30% of its value, bitcoin stabilized in the last week of the year. While it had started the year at $ 1,000, the virtual currency has only increased in value in recent months to cross the threshold of $ 10,000 in early December. It continued its momentum to reach more than $ 20,000 two weeks later, before therefore falling sharply. This Monday, its price is slightly below the $ 14,000 mark.
So what is bitcoin, that cryptocurrency – a virtual currency – that seems to have popped into the limelight overnight? Will it become an alternative to international currencies like the euro or the dollar one day? Who are those who invest in this currency, both tempting and dangerous? L’Echo was able to meet three of them.
The first investor we spoke to wished to remain anonymous. ” I don’t want to have my name in the article so that afterward, people will know I have money. There are so many hacks out there right now that you better take precautions. “, wanted to clarify from the outset this start-up journalist.
1. What Is The Interest Of Bitcoin For You?
For me, the sole purpose of bitcoin is to make money. It’s a bit like a speculative bubble where you wonder when it will burst. So there is always the question of: ” Do we take everything away now, do we keep a little, or do we leave everything and see what happens? “.Except for speculating, this currency is of no use to me. Now, I didn’t just invest in bitcoin, and I also built up a somewhat varied portfolio with other cryptocurrencies. Some projects seem sensible, but the problem is that blockchain technology is still in its infancy, and, suddenly, we haven’t seen anything very concrete yet.
For me, it’s just speculation on several currencies, and I say to myself: ” We’ll see how it goes .” It is indeed a bit difficult to predict, but personally, although I watch the prices daily to see how it is going, it cannot be said that I trade daily.
2. So Is Bitcoin Never Used To Buy And Sell Goods?
No. In Belgium, few people start buying bitcoins. You can buy apartments in Dubai, but it is still a niche in Belgium. Still, I feel that the currency itself is growing in popularity. More and more people are telling me that they too have invested in bitcoin, but this is still marginal.
3. What Kind Of Difficulties Have You Already Encountered With Bitcoin?
The Coin Market Cap site, which includes all crypto-currencies, allows you to have live prices and see the evolution of currencies on charts. The problem is, this site is not updated in real-time. Sometimes it is a few minutes or even an hour late. And since the prices of currencies are hyper volatile, especially that of bitcoin, this is misleading. For example, we see a currency that is rising, and we say to ourselves: ” Great, it’s time to sell, “but in fact, it has already fallen by 70%, and it’s too late. It’s very fast, it’s the principle of supply and demand, it fluctuates all the time, and it makes you crazy and addicting. This is why I avoid watching the lessons too often.
Today, I am slowly thinking of exiting the market. I invested in bitcoin two years ago with 1,000 euros. Now I have reached 30,000 euros with no problem. On the other hand, I know people who have been trading for four years and putting their money in their pockets. There it is in millions. It’s maddening to think that you can earn so much money.
4. So Your Goal Is Not To Continue Trading To Reach Millions?
This will not happen. We have to be a little realistic. I don’t believe in it. I think it’s already a feat that I’ve climbed so high. I think there will be a correction fairly quickly. I would have to get my money out, but I’m having a hard time doing it because I see it going up.
5. How Did You Get The Idea Of Investing In This Currency When It Was Still Unknown Two Years Ago?
I have friends who stumbled upon it completely by accident. They came across solar coins, and a currency focused on solar energy. Per gigawatt-hour produced by a solar panel, the user is rewarded with a solar coin. They saw it was related to bitcoin, and they started investing in it. So, I got into it too.
6. In Your Opinion, Is Bitcoin Intended For Use By Mr. And Mrs. Everyone?
No, I do not think so. People struggle with computers. It depends on each person. Today, we are moving towards technology where we pay for everything with our mobile phone, so whether it is bitcoin or something else, I think we will go towards this kind of stuff. But it might not be bitcoin, and it will be something else.
7. Let’s Imagine That I Don’t Know Anything About Bitcoin, But I Want To Start Investing In This Currency. What Should I Do Specifically?
The first thing to do is to get information on the internet. You go to Coin base and open a wallet. It is not anonymous, and you must register your identity, your bank card, etc. Then, you transfer the money from your current account to your coin base account. So, you already have your bitcoins, and after that, you can go to trading platforms to start trading with other currencies.
8. In Which Country Can Bitcoin Be Useful?
Bitcoin can be very useful in insecure countries because it is much more secure than a currency that fluctuates all the time. Bitcoin also fluctuates all the time, but when you see the example of Venezuela, the currency exploded, and people found themselves in extreme poverty.
9. Do you Think Bitcoin Has A Bright Future?
It’s 50-50. Either it crashes completely, it disappears, and it will be replaced by something else, or not. But I am more inclined towards the first solution. In addition, there are only 21 million bitcoins planned to be put into circulation, and there are already just over 17 million that have been sold. Today it is very expensive to buy bitcoin, so in my opinion, it is too late. This bubble will eventually burst, and there will be winners and a lot of losers. And it is the people who invest today who will lose everything.
There are a lot of speculators with large portfolios who can make the market fluctuate as they wish, a bit like the classic stock market but with more speculation and volatility. We can compare it to the subprime crisis in 2008.
10. Did You See Bitcoin As Another Weapon In Your Wallet To Grow Your Profits?
Yes, that’s exactly it. It’s like investing in the stock market. I bought bitcoin when it was worth $ 300. Today it is $ 15,000. Unfortunately, I have passed a lot since. I would have kept them if I had known, and I would have a lot more money. But anyway, I only won. I have recovered my stake several times. This money allows me to pay my rent and enjoy activit