Is Bitcoin Suitable as a Long-Term Investment?

Dear Reader,

Bitcoin especially, but also other cryptocurrencies have become a legitimate and popular investment vehicles for many private investors and institutions even.

How suitable is Bitcoin for a long-term investment, which I would define as an investment with a holding period of more than 2 years?

I think if one uses the buy and hold strategy for Bitcoin one has to be prepared to live through significant volatility or downside risk. Only recently, in the space of two months Bitcoin's price fell approximately 50 % from its recent peak.

In the long run, two years from now, however, Bitcoin prospects seem very bright. Bitcoin saves people time, effort and money by facilitating currency remittances, storing and increasing value and providing a unit of account for wealth. If governments do not outlaw Bitcoin due to some reason, Bitcoin's utility seems destined to make the cryptocurrency ubiquitous.

If one buys and holds Bitcoin for longer periods of time active risk management is key. Bitcoin is quite volatile. And yes, Bitcoin does hold intrinsic value and this value is due to the fact that it is used a means of payment and payments infrastructure.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".

Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich