Forget the Bitcoin price! I’d invest £10k to make a million like this

The price of a Bitcoin has been sinking since peaking just above $12,000 in June. But there was a particularly stomach-churning drop of more than 10% just over a week ago when the Chinese authorities launched a salvo of words attacking cryptocurrencies, according to Reuters and other reporters.

Back off Bitcoin, citizens!

At one point, Bitcoin found itself below $7,000 again. So, what did China say? The situation before its recent comments is that although crypto trading hadn’t been banned, the country ordered its banks to stop working with Bitcoin exchanges in 2017. But the Rhetoric ratcheted up a few days ago with the People’s Bank of China warning it will crack down hard on Bitcoin and cryptocurrency trading in the country.

The Shanghai-based central bank also warned people not to muddle up the country’s enthusiasm for blockchain technology with Bitcoin and cryptocurrencies. Indeed, last month, China’s president, Xi Jinping, reportedly said that the country should “seize the opportunity” of blockchain technology. And it seems that many traders in the country took that as an endorsement for cryptocurrency, which it wasn’t. Blockchain is good for other stuff too.

I think this is big news because China has a population north of 1.4bn and by many accounts a culture that embraces gambling. My guess is that participation in cryptocurrency speculation has been rife in China and if that market cools off, we could see further plunges in the price of Bitcoin and other cryptocurrencies in the months ahead.

Steer clear of speculative stocks

So, with £10k to invest, I’d steer clear of Bitcoin right now. Instead, I’d aim to make a million by investing in shares listed on the stock market. And £10k is a great amount to start with if you are new to investing. It’s enough cash with which to make a big difference over an investing lifetime if you can latch on to a strategy that gets the process of compounding really motoring. And it’s a small enough…

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