Is Bitcoin (BTC) a good investment?

Bitcoin has been on a steam roll rising to highs of $19,783 in late 2017 and dropped to a low of $3,162 in December 2018 then peaked again this November to $19,838. It has since retreated to $17,929 at the time of writing this article.

A few companies have jumped on the Bitcoin Bandwagon and thereby helping the consumer sentiment and give steam to the Bulls. It seems as though the only fundamental that causes Bitcoin (BTC) to rise is the fixed supply and rising demand. According to the founder of BTC, Satoshi Nakamoto, there can only be 21 million bitcoins in circulation and in the 3rd quarter of 2020 there were 18.5 million bitcoin in circulation. So at it stands the prise of the digital fiat is left for the bulls and bears to wrestle it out. Is BTC a good investment? To be honest my answer is I dont know but personally I would stay away from it at the moment especially when it is making new highs.

As you can see from the above chart, BTC hit the 2017 highs in November 2020 and is now reversing as shown by the red December candle. The first strong support will be around $13,746 which is around a 20% drop. I would personally wait for a pull back then get in around support areas.

Bitcoin has no real fundamentals or intrinsic value which make it hard to predict its price. And without proper fundamentals you can never know the real value of an underlying asset. That bbeing said this makes hings such as gold (XAUUSD) better quality investments than BTC. By the way I have made about 20% return in November trading gold.

Happy investing!