A customer uses a Bitcoin automated teller machine (ATM) in a kiosk in Barcelona, Spain on Tuesday, February 23, 2021.
Angel Garcia | Bloomberg | Getty Images
Bitcoin was originally designed to be like digital cash, but its real world use case has evolved since its inception. Investors are primarily buying it now as a speculative investment.
The price was at $ 37,100 on Friday afternoon and struggled to recover to its May highs after Tesla CEO Elon Musk started moving crypto markets and sending Bitcoin down. The cryptocurrency is the largest by market cap, according to Coin Metrics, which is $ 693 billion as of Friday.
Historically, the demand for Bitcoin has been mostly driven by retail investors, but that narrative changed late last year when large investors and institutions began to rethink their positions. Bitcoin has always suffered from reputational problems that are difficult for it to shake, largely due to its novelty and therefore the lack of data or history to underpin its raison d’etre.
If you’ve got caught up in the confusion and misinformation surrounding Bitcoin, here are the top things to focus on when considering Bitcoin for your portfolio.