What is all this Bitcoin stuff we keep hearing about?

This article is by cryptocurrency firm Evai 2020

Does Bitcoin and cryptocurrency in general make any difference? The short answer TODAY is no!

Bitcoin at today’s price is not a place to invest all your hard-earned money. It’s too volatile and the outlook is too uncertain. It’s too much of an unknown quantity to seriously make it a major part of your investment portfolio. That said it does not mean it should be ignored!

Blockchain technology will become a bigger and bigger part of business and daily life in the future. Some early adopters will make a fortune whilst others will lose their stake. Like the dotcom boom of the late 1990s, most of those dotcoms amounted to nothing but a few became the Amazons and eBays of today! Discernment is therefore the key – and that’s where EVAI 2020 comes in. More about EVAI later.

Back in about 2010 a young relative of mine invested his £400 Christmas money into Bitcoin. I tried to persuade him otherwise, to perhaps buy a BMX bike that he would really enjoy as a 13 year old boy but he wouldn’t take the advice of an adult and instead blew the money on a bunch of bitcoins – or so I thought. Ten years on, that young lad became a multi-millionaire.

Either, that young lad saw something I couldn’t get my head around, or he was very lucky. As he has gone on to spawn other very successful business ventures, I guess he was just smart. So now I sit up and listen to what he says about the future of blockchain technology – The ‘fourth industrial revolution’ we discussed in last week’s article.

Bitcoin may or may not have a future. At $8,106 per coin at the time of writing, it’s a big investment that could go either way. So how do you get exposure to such potentially life changing opportunities without risking too much.

  • The first golden rule is – never invest more than you can afford to lose – speaks for itself.
  • The second rule is, look at the risk/reward ratio – The risk? – If I buy 1 bitcoin, I could lose $8,106 if it comes to nothing – The reward? – What is the potential upside multiple?
  • Finally, “All that glisters is not Gold”, therefore, be discerning.

On the final point, in modern crypto parlance, look at the “Use Case” i.e. The business model. This is where we come back to EVAI 2020! Most of these so called Fourth Industrial Revolution businesses will likely amount to nothing.

Under the direction of Professor Andros Gregoriou, a leading academic in the finance world, EVAI 2020 are developing a ratings system that will provide clarity to potential investors in any asset class. Such an unbiased, standardised, universal ratings system is not currently available but is very much needed in this complex world of competing investment opportunities.

Visit www.evai2020.com to find out more or email support@evai2020.com to ask questions

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