5 Strong Reasons Why You Should Invest In Bitcoin and How It Works
In the past few years, the value of Bitcoin has increased four-fold. Does this mean that it’s now the right time to put your money in it?
Well, Bitcoin is a blockchain based cryptocurrency that’s anonymous, decentralized, and global. Just recently, it made headlines when its price increased to an all-time high of about $4000.
This was almost four times increase as compared to its price a few months ago. If you had $1000 worth of Bitcoin in April 2017, you’d now be worth $4000. This is, therefore, the perfect time to invest in Bitcoin. Although it has recently undergone an unpredictable period, it still provides one of the most lucrative investment opportunities.
How Bitcoin Works
The technology that makes cryptocurrencies work is normally referred to as the blockchain. Bitcoin works in such a way that when you send it to someone the transaction made is verified by all computers all over the world.
Until recently, it was hard to move something digitally without being altered or copied in the process. For instance, anytime you send someone an email, you retain a copy and send the original, if this was to happen with money then there would be a huge problem.
Just like money that has intermediaries such as banks, and companies such as PayPal, Bitcoin also has an Intermediary that ensures the transactions goes on smoothly.
Here Are Some Of The Key Reasons Why You Should Invest In Bitcoin
1. The Market For Bitcoin Is Currently Very High
The global market for cryptocurrencies such as Bitcoin is currently very high. Some nations such as United States, China, Korea, Japan and even Brazil have very big Bitcoin economies in the world.
Its demand is even greater in upcoming economies like as Indonesia, India, South America, and the Philippines. For these new economies, Bitcoin is one of the best alternatives. During economic uncertainties, Bitcoin can protect them against getting into any economic crises. Bitcoin is, therefore, currently being seen as a store value. In Africa, nations such as Nigeria, South Africa, and Kenya have joined the Bitcoin trading markets.
2. It’s Low Cost And Easy To Invest In
Investing in Bitcoin with the aim that the prices will increase in future is just as easy as purchasing Bitcoin from online exchanges. As compared to other transactions, Bitcoin transactions are subject to a few regulatory measures which make them a headache free and fast.
The exchange fee required is also very much minimum. In fact, it’s about 0.2% of the actual value of the transaction. This is very low as compared to some of the banks which charge around 3% of the whole transaction. If you want to speculate, then Bitcoin offers the best option.
3. There Is Need To Do Away With Paper Currency
In the recent past, there has been an increase in mobile and digital payments. This means the paper money is slowly being phased away. Skrill and PayPal are some of the most recent methods of transacting online.
Since there is no single organization that owns it, Bitcoin is decentralized. Apart from being cheap to transact with, Bitcoin is faster to use. In the past 8 years, it’s been embraced worldwide as more and more people accept it as a method of payment. Due to this, it’s very clear that it has caught the attention of many people thereby making it one of the best currencies to invest in.
4. Bitcoin Image Is Gradually But Steadily Improving
In the past, the use of Bitcoins was associated with criminal activities. This is because it was anonymous hence someone could easily send money without revealing his true identity.
It’s due to this that some people viewed it as being a digital currency that’s meant for the criminal world. This has gradually changed and it’s now one of the most accepted currencies in the world today. Retailers, investors and other reputable institutions are now actively involved in Bitcoin trading. This means that very soon it might replace the paper money.
5. Instability Favors Bitcoin
Traditionally, political unrest does not favor stock market whose value depends on companies that relies on stable financial institutions, government services, and dependable workforce. As compared to the stock market, unrest is very good for Bitcoin.
As a matter of fact, there is even some evidence that recent political unrest that occurred in Asia contributed a lot to Bitcoin’s increase in price. If you think that there would be more instability for traditional banks then Bitcoin might be the best option to invest in.
Overall, those are some of the reasons why you should invest in Bitcoin. However, before putting your money on any cryptocurrencies, you need to do some research and understand how they work. This will help you understand where the price is headed to.