Welcome to Lesson 12 of the Cryptocurrency series by PROP365 Academy. In this lesson, we tackle the question “Is Bitcoin a good investment?” and walk you through different ways on how to invest in Bitcoin, assess risks, and understand why investors — from everyday people to major venture capitalists — choose Bitcoin as a financial asset.
Throughout the past decade, Bitcoin has been used as a hedge against inflation, economic instability, and government overreach. For example:
These examples show why many people ask, is Bitcoin a good investment—especially during financial uncertainty.
How to Invest in Bitcoin and Make Money
There are several ways to get started:
- Buy Bitcoin directly using exchanges like Coinbase or Binance.
- Use Bitcoin funds, such as the first regulated Bitcoin fund launched in Jersey in 2014.
- Invest in Bitcoin startups or infrastructure (e.g., wallet providers, exchanges). For example, Peter Thiel’s Founders Fund backed BitPay, a Bitcoin payment processor.
- Join incubators, like the one founded in 2012 by Adam Draper to fund 100 Bitcoin-related startups.
- Bitcoin mining: This option involves using computational power to validate transactions and earn rewards in BTC.
If you're wondering how to invest in Bitcoin and make money, these methods provide a solid foundation.
Is It Safe to Invest in Bitcoin Today?
Regulatory agencies like the European Financial Authority and the U.S. Financial Industry Regulatory Authority have highlighted Bitcoin’s high-risk profile. So, is bitcoin a good investment and safe? Caution is needed.
Bitcoin is known for extreme volatility:
- In 2011, it soared from $0.30 to $32 before collapsing to $2.
- In April 2013, it hit $266 before crashing to $50.
- In November 2013, it peaked at $1,242.
- By March 2017, it exceeded the price of an ounce of gold, reaching $1,268.
Despite risks, some still believe Bitcoin is a good investment, depending on use case and timing.
Bitcoin Growth Factors and Investor Sentiment
A study in Electronic Commerce Research and Applications revealed that Bitcoin’s network value is roughly proportional to the square of its number of daily users. This supports Metcalfe’s Law, highlighting the power of network effects.
Additionally, Forbes named Bitcoin the best investment of 2013, while Bloomberg named it one of the worst in 2014—showing just how divided opinions can be when asking, is Bitcoin a good investment?
Summary
So, is Bitcoin a good investment? It depends on your risk tolerance and time horizon. Bitcoin’s high volatility may be a drawback for some, but others view it as an unmatched opportunity. Whether you're looking to buy, mine, or invest in related businesses, Bitcoin offers various entry points.Want to explore real-world trading with crypto? Try PROP365 — a prop firm offering fast payouts, unlimited trading days, and flexible challenges for Bitcoin and crypto traders alike.
