It was not awfully long ago, that you would struggle to buy a coffee with a Bitcoin. Now Bitcoin is valued at well over $2,000, is it time to cash out and spend one of your coins on your next vacation, or would you be well advised to buy even more of this fluctuating digital currency?
Bitcoin is, for now, a gold rush. In 1 month it has doubled in value. The eternal conundrum is to work out when an investment, or in this case a bitcoin, has topped out. After all, a high will inevitably be followed by a fall (won’t it?). Certainly Bitcoin has dropped slightly this week, but with interest growing and investors seeing $500 turn into $1000, or $5,000 turn into $10,000, this latest gold rush still seems utterly appealing.
Can I Spend My Bitcoin On A Vacation?
If you feel that the Bitcoin is close to a high, or if you want to cash-out a coin or two and book that dream vacation, why not! If you want inspiration, these are my favourite hotels in the world. You can book these hotels and flights through expedia that accepts Bitcoin. Other retailers that accept Bitcoin include overstock, for pretty much everything you need, from laptops and television sets to furnishings for your house, and eat from foodler that will deliver takeaways to your house in return for Bitcoin.
Of course, the converse argument is that if a Bitcoin was worth around $500 a year ago, who is to say that the Bitcoin you spend on your $2,800 expedia.com vacation today, might be worth $11,400 a year from now.. which would afford an even more luxurious trip.
Right now, Bitcoin is double the value of gold and the bubble is still growing. If you have nerve for a rollercoaster, and can afford to loose whatever you invest, this gold rush is hugely appealing.
What Do The Experts Say?
Wilson’s Union Square Ventures has backed several blockchain companies, and the VC has also personally bought cryptocurrencies including Bitcoin and Ethereum as well as a bit of Litecoin, representing “some small percentage of my net worth,” he said in Fortune.com.
“If I were a trader, a stock trader or hedge fund person, I might think of having 5% of my assets in something like this,” Wilson added. “It’s still early days; I don’t think you want to go all in on it, but I think you want to be in it.”
Others suggest investing 1% of your net worth, as the potential to make your fortune is huge and most people can afford to loose this amount. The consensus is that Bitcoin has as much as a 20% chance of failing, in which case investors could loose their entire investment, but if it does not, one Bitcoin today may well be worth a house in the future.
I am not fearless investor but I am still adding to my investment (when coinbase lets me). But 1% of my net worth? I am not so sure….
How do I get a slice of the Bitcoin action
Coinbase seems to be one of the more secure cryptocurrency brokers offering decent prices (in my opinion). If you open an account with coinbase, make sure you set it up using a coinbase referral link like mine. Once you buy or sell $100 USD (£76) of digital currency or more, you will get $10 USD (£7) of free Bitcoin (as will your referrer, which on the link above would be me). You can then help to grow the coinbase community and your own portfolio by referring your own friends with your own referral code.
Some people think one Bitcoin will eventually be worth a house. Certainly the way things are going, this doesn’t seem out of the realm of possibility. If you are thinking of taking the plunge, I have written a more in-depth piece on what a Bitcoin is and why various traders recommend investing.
Should you spend one of your Bitcoins on a vacation?
If you have hundreds why not. If it does continue to rise, no-one needs 100 houses. Life is short, Bitcoin is a risk, so yes, why not enjoy it. If however, like me, you are late to the Bitcoin gold rush, then it might be wise to buy and hold onto a few Bitcoins for the longer term just in case it becomes the success that some believe it will be. What’s the old saying. You’ve got to be in it to win it..
Please Note: The views provided in this article are my own. Our blog posts do not offer investment advice and nothing in them should be construed as investment advice. You should always carry out your own independent research before making any investment decision.
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