01.04.2018 - News

Buying Watches With Bitcoin

Last year was one of if not the most successful year for cryptocurrencies. Cryptocurrency is a payment method that allows individuals to transfer and distribute money electronically and anonymously online. The cryptocurrencies that have caught the most attention recently are BitcoinEthereumRippleBitcoin Cash and Litecoin

Although digital currency investors have experienced an explosion in profits over the past five years in particular, you can’t help but think, is it a safe and risk free investment? Our simple answer is no, its not risk free. But when isn’t investing risky business?

Another popular way of investing your money is through purchasing luxury timepieces. For hundreds of year’s luxury watches have been symbols of style, class and wealth, and no matter how much technology progresses, a deluxe vintage timepiece will always be desirable and hold its value. Yet, in many ways the rise of cryptocurrencies may help the luxury timepiece market, because in the near future it will become easier to buy watches online with Bitcoin and other cryptocurrencies. 

One thing you do have to consider before investing your hard-earned cash in any form of stocks, shares, or digital currencies like Bitcoin, is are you hoping for a return in the short term or long term?

Since the beginning of 2017, many of the highest-ranking cryptocurrencies like Bitcoin, Ethereum and Ripple have increased dramatically in price. For example one Bitcoin was worth around $13 in 2012, and now just over five years later, the price has risen to an astounding $15,059 (correct as of January 4, 2018 15:31 pm).

If you were to invest in a rare, discontinued or highly sought after luxury watch from the likes of Rolex and Patek Philippe, you certainly would not see a return of over $14,000 in six years like Bitcoin. However, you are almost guaranteed to see some sort of increase in value as the year’s progress.

For example, a vintage Rolex Daytona that retailed for around $600 in the 1970’s could easily be worth more than $200,000 today. Still, I am certainly not guaranteeing that a yellow gold Daytona you purchased for around £20,000 this year could be worth over £600,000 in fifty year’s time, however a substantial increase in value is certain.

So, in brief we’ve established that digital currencies like BitcoinRipple and Ethereum can sometimes have a great short-term return and has the potential to be an extremely lucrative investment, considering more and more alt-coins (alternative coins) like IOTATRON and DASH are being introduced every year. However, there’s always a risk of losing your investment, as you cannot predict the movement of the volatile cryptocurrency market.

And yet, although you may not see a short term return investing in watches, you can predict which models and brands will increase in value in the future, and so in essence you have more control over your investment! (But remember, watches and cryptocurrencies do go hand in hand. In the future credit card transactions will be in the past and buying watches with Bitcoin will become the norm). 

If you have the spare cash to invest in a desirable timepiece and you are in no rush to see a quick return, then it’s safer and more liable to invest in a luxury timepiece from the likes of Rolex or Patek Philippe. After all, it’s an investment that you can also wear and enjoy!