Just read and understand some explanations on Bitcoin investment!
Although economists as of 2014 are still arguing, whether Bitcoin can be regarded as money, this has not prevented their being used as a medium of exchange. Bitcoin is used as a currency, with about 1,000 brick and mortar businesses willing to accept payment in Bitcoin as of November 2013 and more than 35,000 merchants online. The Bitcoin market currently suffers from volatility, limiting the ability of Bitcoin to act as a stable store of value, which is condition 2 for a currency, besides condition 3 “being a unit of account, against which value an economy is measured”. At present, this appears in furthest reach given Bitcoin’s money supply problems (disappearance of large exchangers) and finite reserves, the arbitrary cap of 21 million.
Nevertheless, Bitcoin has become a target for speculators trading Bitcoins as a speculative asset, an investment vehicle, and a network serving customers of international remittance business.
Price volatility
According to Mark T. Williams of Boston University, Bitcoin is over 7 times as volatile as gold and over 8 times as volatile as the S&P 500. The extremely volatile Bitcoin exchange rate has led people to question its ability to function as a currency. The Bitcoin Foundation contends that this is due to insufficient liquidity and claims volatility will lessen if its popularity continues to increase. Volatility has little effect on the utility of Bitcoin as a payment processing system. Volatility has damaged the ability of Bitcoin to be a store of value; it has not hampered its function as a medium of exchange. Bitcoin volatility is linked to uncertainty about its long-term value per Forbes contributor Timothy B. Lee.