Should I Buy Bitcoin In 2020? (Plus: Luno Review)

Invest in Bitcoin with:

Luno ► https://www.luno.com

(Use code Y5SZ8B to get RM25 once you buy RM250 worth of Bitcoin)

eToro ► https://etoro.tw/2V5cVUY

(The first 10 people who sign up with this link get $50 USD FREE when they deposit the minimum amount)

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Should you buy bitcoin in 2020? Let's find out!

Are people buying into this cryptocurrency in belief of its potential or could it be advice from friends?

Young people tend to be easily influenced by peers. The availability of knowledge on the internet is so vast that we could easily do our own research and come up with our standpoint on Bitcoin.

We've noticed that views on Bitcoin are either way too bullish in that they’ll go up to a million bucks, or way too bearish saying they’ll be worth nothing. It’s not good reading up too much on these as they only tell one side of the story.

So, we’re gonna break down the arguments from both sides and come up with our conclusion & recommendation!

Let’s start off with...

1:31 What is Bitcoin?

Bitcoin was made to become a digital currency, not backed by any other fiat currency we currently have (USD, MYR, etc).

What this means is we can’t exchange our Bitcoin for a fixed amount of Malaysian Ringgit, you’ll get what others are willing to pay for it.

The purpose of Bitcoin was to be a decentralized currency, meaning it isn’t controlled by a central bank or government.

During the Global Financial Crisis and the more recent pandemic, governments had to pump out money to their citizens to prevent a massive economic downturn.

The problem with this is that the printing of money devalues it. The more USD there is circulating in the market, the less valuable it is. This makes us all poorer.

The only way to add more Bitcoin is to mine it, and the supply is limited.

4:24 What Is Bitcoin Mining?

As a digital currency, Bitcoin can be used to make transactions in the purchase of goods & services.

Every time a transaction is made, it needs to be verified and recorded so everyone can see the “money” flow. They audit these transactions and ensure everything is transparent.

To verify a transaction, miners have to solve complex puzzles done by their computers. In truth, “solving” this puzzle is guesswork and only the first miner to do so will be rewarded with new Bitcoin.

Mining Bitcoin can be very expensive to operate so not everyone tries it out. The new supply of Bitcoin is limited and controlled. No one can simply come up and print new Bitcoin, thus preventing massive inflation.

5:43 Pros of investing in Bitcoin

7:24 Cons of investing in Bitcoin

9:30 Our take on Bitcoin

11:10 How to buy Bitcoin

If you’re an eToro user, the platform is so diverse in its assets that it allows for the purchase of Bitcoin. It’ll give you great convenience in managing your entire investment portfolio.

11:32 Luno Review

Luno not only allows users to invest in Bitcoin, it’s actually a wallet that lets you transact in.

This means that we’re the rightful owner of the Bitcoin we buy. We can use it to send Bitcoin to friends, or even to pay for services if the business accepts it.

On the other hand, eToro does not allow you to transact in Bitcoin and you’re not the owner of the cryptocurrency.

We’d personally much rather own the actual assets ourselves. It’s also dedicated to cryptocurrency and has a large following with good reviews.

Is Luno safe? Luno is probably as safe as it gets when buying cryptocurrency.

We own it as an asset and together with cash in our account, it’s being held in a trustee account that can be recovered should anything happen to them.

They’re also regulated by the Securities Commission Malaysia and is the first cryptocurrency exchange to get the approval in Malaysia.

Currently, Luno has no fees for those setting a limit order on purchasing, meaning you set a price you want to buy at and will wait for it. If you want to buy the Bitcoin immediately, Luno charges a 0.2% fee which is not too bad.

The platform is also rather simple to use, so that’s a big plus!

The main thing we didn’t like is that the only way to deposit money was to make a bank transfer which is not the most convenient.

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