Would I invest in Bitcoins. No. I might find myself using blockchain technology though. There are some that beilieve that Bitcoins could go to $100k and over very quickly; this could happen. Tulip Mania February 1637 which took the Dutch for a ride, could be a good lesson in point.
Blockchain technology clearly has massive potential whether Bitcoin survives or not. One could see the blockchain used for proof of ownership, certificates of authenticity, anti-counterfeiting, intellectual property, employment contracts, validation, etc.<!--[if !supportFootnotes]-->
Bitcoin may have pioneered the digital currencies, but there are now over 1200 cryptocurrencies available. Although Bitcoin owns 58% of the market value, it only takes one to breakthrough with a more revolutionary concept to put it under pressure.
It takes an investor with nerves of steel, or an unyielding belief in digital currency, to buy and hold Bitcoin shares.
Mining Bitcoin, and other cryptocurrencies, increases in difficulty in line with the fastest technology. Profitably mining bitcoin is challenging, particularly in locations with higher energy costs.
Bitcoin is still illiquid compared to other currencies. However, over time as more people choose to use digital currency, the number of exchanges and number of institutions accepting bitcoin is increasing liquidity.
Purchasing bitcoins can be expensive without comprehensive knowledge. Popular UK exchanges (for example bittylicious.com<!--[if !supportFootnotes]--> have been known to charge up to 8%.
In short, we like the technology and see its many applications in finance and other fields. As a currency, we would avoid it. To allocate money to it is pure speculation and we believe that the only reason why you would do it would be your faith that you can find a buyer that is prepared to pay more money than you for it - Greater Fool Theory.
This bubble will burst. I don't know when and I don't know at what price; but the technology behind it will stay.
Then comes the “air,” easy money that helps the bubble to grow bigger and bigger. Bold predictions by market gurus and talk in the mass and social media create buzz that help prices double or even quadruple in a matter of days, even hours—turning market contagion into mania. Investing in this theme reaches fever pitch, as no investor wants to be left behind.