Bitcoin has once again hit headlines with another all-time high of $2,900. The crazy up-and-up graph of Bitcoin seems unstoppable. I started buying Bitcoin after reading this Bitcoin article in the Guardian, where Bitcoin trader Huai Yang predicted that one Bitcoin will be worth one house. I have already written in more detail about why I invest in Bitcoin.
Now I want to explain how to boost your loyalty balance while making the investment, be it SPG, Avios, or another airline loyalty program. The key is having a MasterCard, VISA or Maestro card. If you want to buy Bitcoin or Ethereum, coinbase is one of the safest and easiest exchanges to use, and once you have supplied identification, you can immediately buy Bitcoin and Ethereum via your VISA, MasterCard or Maestro card from anywhere in the world.
I buy using my Lloyds Avios MasterCard and my MasterCard earns me 1 Avios for every £5 spent. This rate is not going to get me a first class flight to the US, but it does help boost my Avios balance which enables my travels. At the moment, the upward trend of Bitcoin is also helping fund my luxury travel too.
Should I Buy Bitcoin?
I am not alone in my enthusiasm for Bitcoin. According to Fortune.com, Fred Wilson, the venture capitalist known for backing Twitter and Tumblr, has made a big bet on blockchain cryptocurrencies including Bitcoin—and he thinks regular investors should buy some too.
Wilson believes that coinbase offers the equivalent of a Wall Street bank for digital currencies. Wilson said that coinbase, which is a Bitcoin, Litecoin and Ethereum brokerage, is “like J.P. Morgan or Goldman Sachs for blockchain…”.
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.”
Further to this, Gatecoin’s Menant has told CNBC that Bitcoin prices should climb beyond $3,000 this year.
Where Can I Buy Bitcoin And Ethereum?
Coinbase seems to be one of the more secure cryptocurrency brokers (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.
Is Buying Bitcoin A Risk?
Yes. Of course any investment is a risk, and can go down. Even standard currencies, including US $ and GB £, can go up and down. With the upcoming Brexit and the UK leaving the EU, I believe that the pound fall against other currencies in the shorter term. This is one of many reasons I am investing a small amount in Bitcoin; it gets my money out of UK pounds which I believe will devalue over the next 6 months.
I was always advised that you should never invest anything that you can not afford to lose. But as I have said previously; So often in life, the risk is in fact, not taking the risk. I have rolled the Bitcoin dice. Will it buy me a house? I hope so. Will it perform better than my other investments. I am betting yes.