With the recent hype surrounding the surge in the price of Bitcoin, many first-time investors have stormed their way into the cryptocurrency market
Picture: Reuters/Dado Ruvic
Bitcoin
Is it a gamble or an investment? JEHRAN NAIDOO Jehran.Naidoo@africannewsagency. com
WITH the recent hype surrounding the surge in the price of Bitcoin, many first-time investors have stormed their way into the cryptocurrency market. There are about 4 000 cryptocurrencies, but Bitcoin accounts for the lion's share, holding more than 50% of the total market capitalisation, according to TradingView. Ethereum is second
with about 12.7% of total market cap, followed by Ripple, which holds a little under 3%. But how can you be sure whether you are investing or gambling with something as complex as a cryptocurrency? According to South African actuarial scientist Imran Lorgat, having a thorough understanding of the crypto market and how it works is paramount before committing your money to it.
“Many invest in cryptocurrencies without a solid grasp of the basics. If you are interested in buying Bitcoin, then invest time into researching how it works and the risks associated with owning Bitcoin,” Lorgat said. Lorgat has spent five years investing in Bitcoin and considers it to be a breakthrough in digital technology and a highly volatile marketplace. Investopedia describes cryptocurrencies as a form of digital
