Ask a Fool: Is Bitcoin a Smart Investment Now?
It's easy to see why people might want to jump into bitcoin (BTCUSD). The digital currency just set an all-time high above $19,000 on Thursday, and subsequently plunged by more than $4,000. Even after the drop, bitcoin is up more than 1,500% in 2017.
However, it's important not to confuse investing with speculating, which buying bitcoin definitely is. An investment is intended to gradually grow in value over time, while speculating is closer to gambling -- that is, betting that the price of something could go up, while it's also highly likely that you'll lose money. Bitcoin's extreme volatility shows us just how speculative it is.
To be fair, there's a valid argument to be made that bitcoin will eventually be worth much more than it is today, and could even get to the million-dollar level that some experts are predicting.
Source: Fool.com
