Bitcoin recently passed its 10th birthday, having given some owners huge gains, others enormous losses. It hasn’t been in the news so much recently due to a slump from its all-time high over $17,000 a coin a year ago to below $8,000 last February. It opens 2019 around $3,700.
So, what have investors learned in the first 10 years? Will the ride be as wild in the next decade? Will bitcoin extend its reach as an actual currency for buying meals and paying the rent? Does that matter?
“I think that, right now, those who should think about investing in cryptocurrencies should be those who have an appetite for risk,” says John Sedunov, assistant finance professor at Villanova University School of Business.
The introduction of futures trading this year may help stabilize the market by making it easier for bearish traders to place bets, he says, but he says the coin is still too risky for ordinary investors. “Retirees and those approaching retirement should avoid these currencies at all costs as the volatility is much too high.”