If your financial advisor advised you to invest in something you didn’t understand and whose value might skyrocket one day and then lose almost all its value the next day, hopefully, you would find another advisor. Yet with the rise of Bitcoin, some investors think they should get in on ‘the next big investment’. However, there are several reasons why you shouldn’t invest in this type of online currency.
What is Bitcoin?
For those who are unfamiliar with the term, here is a basic guide to help you understand the concept better:
- A type of cryptocurrency, the stock uses cryptography.
- The term can refers to the digital currency, but also the network through which people share the currency.
- As digital tokens, there is no physical stock but only comes in the form of balances.
- No government or bank issues any type of cryptocurrency.
- There is no central bank or regulator for this currency.
- Computers run the network.
Because the coins come in the form of digital tokens, you will never see, hold, touch or even visit your stock in a bank or physically. Below are some additional reasons why dealing with this currency is not a sound investment option. Instead, what you can do is to invest in real estate. For instance, you can buy offplan projects in Business Bay. Property is physical. You can see it, touch it, hold and even visit your property when needed.
There are no straightforward values
Because there is no set method for analyzing this type of cryptocurrency and others like it, it is difficult to determine their exact value. Also, its value can become volatile and changes frequently. Campbell Harvey, a Duke University professor of finance at calls this type of stock, “an extremely risky investment.”
In comparison, real estate values are steady and easy to calculate. As Dubai’s economy continues to grow, real estate values will also grow, making it easy to calculate the value of your property investment.
You don’t understand it
Very few people understand Bitcoin. Although no one will ever understand everything, when it comes to investing your money, you should stay with things you understand. Purchasing property estate is easy to understand – you spend money on a building, house or apartment.
Bitcoin is not a good investment, but it is useful
Dr Mark Mobius of Franklin Templeton recommends using Bitcoin as a currency rather than investing in it. He advises investors any form of cryptocurrency as a means of transfer. Regarding real estate, it may become more common in the next decade to buy and sell real estate with digital currency. If that day does come, you will use it as a means of paying for goods or services rather than seeing it as a form of stock or investment.
Get real with real estate
Many investors are uncomfortable paying money for something they don’t understand and will never see. For those who wish to invest in something tangible, real estate is a more practical and sound option.
Invest in Dubai real estate instead of digital currencies. To learn more about purchasing property in Dubai, contact Elite or at +97145013656. One of our representatives will contact you within 48 hours.