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One of the many questions young people ask themselves today is whether to buy a new car or invest in Bitcoin. There are plenty of reasons to defend either option, albeit it is rather evident one could potentially return value, whereas the other will only cost money. Depending on one’s personal circumstances, either option is more than solid, albeit Bitcoin has a slight lead.
If the Need for a new car Arises….
Then there is no real point in investing in Bitcoin. To be more specific, if one needs a new car soon for their work, school, or other engagements, it should take priority over everything else. After all, that would be the smart thing to do, unless one wants to challenge fate by using a car which might fall apart at any given moment, the best option is to steer away from Bitcoin.
However, if one is looking to get the most bang for the buck in terms of obtaining a new car “in the near future”, there is an option to invest in Bitcoin. More specifically, many people firmly believe the value of BTC will hit a new all-time high for the year over the course of this summer. How high that value will go, is difficult to determine. For now, the high point sits near $14,000, thus there is still a near $3,000 gap to overcome in the weeks and months ahead.
Both Tools can Make Money…
Then the choice can still be split down the middle. Some people who are looking for a job will need to own a car to go to and from work every day. By actively owning a car, they can then begin to make money in a very traditional way” by having their wages paid. It will cost money to make money, but that principle applies to Bitcoin as well. However, having a car does not automatically equal getting a job, especially not in this day and age.
However, those who want to make money in a passive way may prefer Bitcoin over getting a new car for their job or other engagements. With the fluctuating value of the world’s leading cryptocurrency, there is a chance to make money almost every single day. At the same time, there is a genuine chance to lose money as well, thus balancing the risks and opportunities becomes rather precarious.
Neither Stops Costing Money in the end
On paper, one would think a car will only cost more money as time progresses. There is the initial cost of obtaining a vehicle, combined with paying for gas, taxes, insurance, and so forth. When big maintenance needs to happen, the costs can pile up very quickly. Additionally, a bought vehicle will depreciate in value from day one, which is another factor to take into account at all times.
When it comes to Bitcoin, it hardly ever ends after the initial investment required to purchase some BTC. If the markets head south, many traders like to engage in a strategy known as “cost averaging down”. They keep buying BTC at lower prices to bring down the average investment cost of their holdings. It is a solid strategy, albeit one that will also require additional funds to be poured into this volatile market. Additionally, there is never a guarantee Bitcoin will appreciate in value again, thus there is no foolproof way to make money.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.