Bitcoins – Are They a Good Investment?

bitcoinBitcoins are a virtual currency that was developed in 2009. Users would set up their computers to solve complex mathematical algorithms to ‘mine’ Bitcoins. In the early days since its launch 7 years ago it was much easier to mine the coins and one early adopter managed to gain 7,500 Bitcoins in a single week.

At their peak value 7,500 Bitcoins would be worth approximately $8 million AUD, however when spring cleaning his house, this poor soul threw out his hard disk containing the bitcoins along with the key to use them. So there is a garbage tip in the UK that could make someone a millionaire if they find it one day, if it’s not completely destroyed.

This highlights one of the flaws of Bitcoins. It is possible to have some type of hardware failure, where you can lose all your coins if you don’t have sufficient backups. Read More…