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If you are wondering if a digital currency like bitcoin is a wise asset group to invest your money in, this article will come in handy.
Bitcoins have been the talk of the town for the last few years. There are bitcoin investors, who became billionaires. No, bitcoins are not a get-rich-quick scheme. They are a new asset class, which offer big profits. However, the volatility in the bitcoin market scares many investors, especially the ones, who are set in their ways with traditional assets. High returns, on the other hand, attract them. So, are they worth the investment?
Without further ado, here are 5 reasons why you should invest in bitcoins.
Let’s dive in!
Bitcoin (BTC) is a digital currency that was created in 2009 by Satoshi Nakamoto. Transactions are made with no middlemen – meaning, no banks! There would be transaction fees and there is no need to give your real name.
More and more online transactions are beginning to accept Bitcoin because of the speed, anonymity, fewer limits, and lesser fees compared to other payment schemes like a credit card, online banking, and PayPal.
Bitcoins are stored in a “digital wallet” also known as Bitcoin Wallet which can exist either online or offline.
Because there is no central bank or government, people compete to “mine” bitcoins using computers to solve complex math puzzles.
Why Invest in Bitcoin (BTC)?
1. Price May Keep On Growing
Bitcoin is valued not only as a currency but also as an investment — not unlike gold or other precious metals. Since Bitcoin appeared on the market, investors have expressed widely different opinions on the cryptocurrency as a potential investment. Some found it to be an ideal opportunity, many believed it too short-lived and/or volatile, and most knew too little about it to have an opinion.
2. Great Compatibility
Using Bitcoin — including its implementation in everyday businesses — doesn’t require any specific alterations or complex systems to be put into place. The cryptocurrency’s accompanying apps and software are compatible with existing technology — smartphones and computers — meaning that no additional investment is necessary to start using Bitcoin.
3. Free from Government Interference
4. Accessibility and Ease of Use
As we are becoming increasingly used to apps and software solutions for everyday tasks and problems, we’re beginning to expect that “there’s an app for that.”
If there’s an easier, more efficient way to conduct business or complete service through the use of technology, most people will take advantage of it. And Bitcoin — although its underlying technology is highly complex — is incredibly easy to use.
5. Lack of Superior Competition
Superior is the keyword here as Bitcoin is no longer the only cryptocurrency around. Ethereum, for instance, was one of the first competitors to emerge, imitating the technology behind Bitcoin. However, for the competition to be a threat to Bitcoin, it would need to have some specific and tangible benefits.
Fiat currencies have failed because humans can’t help but print more money. There has never been a time where a deflationary alternative built on code and mathematics is needed. Bitcoin has a compelling use-case as a store of value, particularly in countries that experienced hyperinflation such as Venezuela, Zimbabwe, and Iran. Bitcoin also has a compelling use case in remittances, and greater adoption by financial institutions will help provide these services at more competitive rates.
One thing is certain: Bitcoin and digital currencies are here to stay.
The Bottom Line
As Bitcoin hits global adoption, as people try to acquire more and more of it, the opportunity to own a whole Bitcoin might become a ‘once in a lifetime opportunity.’
Granted, investing in Bitcoin comes with risks — such as forgetting your private key or leaving your BTC on an exchange that gets hacked. But most of these risks can be guarded against.