The Biggest Misunderstanding About Bitcoin!

Bitcoin’s amazing performance this year has turned the heads and captured the attention of scores of investors wanting a piece of the action. I don’t blame them. As of this writing, Bitcoin is up over 1013% for the year! One year ago, Bitcoin’s price was $740.85. Today, Bitcoin sits at $8,249.24 per coin. This remarkable run has many people thinking they are priced out of ever owning or investing in Bitcoin because it’s too expensive. That’s simply not true!

This article addresses the biggest misunderstanding about Bitcoin – the belief that you must buy the entire coin! Let’s be honest. $8,000 is a serious chunk of change for us ordinary human beings. That means the average person would easily be priced out if the whole coin had to be purchased. Luckily, you don’t have to buy an entire coin to start investing in Bitcoin.

Bitcoin Can Be Purchased in Fractions

Bitcoin is a digital currency, not a stock. This means that it can be purchased in parts, or fractions. Here’s an example:

If Sarah has $200 and wants to purchase Bitcoin (which is $8,000 in this example for simplicity) she can buy 2.5% of one coin, or 0.025 Bitcoin. Here are the numbers:

Amount to Invest: $200
Current Price per Bitcoin: $8,000
$200/$8,000 per coin = 0.025 Bitcoin (or 2.5% of a Bitcoin)

This is how Sarah’s investment grows as Bitcoin grows:

Let’s say Bitcoin grows to $12,000 per coin after three months. This means that Sarah’s ownership of 0.025 Bitcoin is now worth $300.

$12,000 per coin x 0.025 Bitcoin = $300

Sarah’s initial investment of $200 has grown to $300 in three months! If she sold her position (amount of Bitcoin owned) at this point, she would earn $100 in profit!

Conclusion

There’s no reason to be confused about being priced out of Bitcoin any longer, since it’s possible to purchase it in parts, or fractions. An investor could begin with any amount of money available to them! As Bitcoin grows in value, so does the value of their position. If you’ve been wanting to try your hand at Bitcoin and cryptocurrencies but felt you were priced out, now you know that price isn’t holding you back!