Reasons to Invest in Bitcoin?
Bitcoin is a term that most people are unaware of. So Reason To Invest In Bitcoin? It is a form of digital currency also known as a cryptocurrency. It was developed as an open source software by an individual or group of individuals using an alias ”Satoshi Nakamoto”. The software was developed in 2009. So, in essence, it is a form of digital currency which has no bank intermediary trading in it, and it is very different from the physical forms of currency we are used to.
Bitcoin makes use of encryption to ensure security and regulates usage and generation of new coins. It makes use of a technology called blockchain to record each of its transactions. It is like a public ledger which records all transactions till date. It does not disclose any personal records but displays financial transactions for the public to view. Today’s financial transactions happen mostly through intermediaries, like banks, payment gateways, payment networks. Bitcoin can through its systems get rid of the intermediaries and bring down transaction costs.
Let Us Review Some Of The Reasons To Invest In Bitcoin
1. Emergence Of Bitcoin As An Investment
Bitcoin is viewed today as a serious form of investments with many high net-worth individuals investing heavily into the system. Large financial multi-national firms are also taking an active interest in developing blockchain and Bitcoin-related systems. The appreciating value of Bitcoin is making it a very good investment.
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2. Undervaluation of Bitcoin
Like Gold, Bitcoin is also scarce, it is divisible and it cannot be counterfeit, but it is better than Gold in terms of utility. The Increase in Gold prices makes the usage of Gold unattractive for making jewellery or industrial use, but Bitcoin can be used for financial transactions and as a ledger.
3. Positive Government Approach
While most Governments have not yet taken a stand, and are watching cautiously, they have not rejected or banned the idea altogether. Countries like the USA and the European Union have taken a positive approach by providing concessions on the trading of Bitcoin.
4. First Come First Serve
Bitcoin is not the only player in the market, there are other similar companies trying to introduce the same concept. But it does have an advantage of being the pioneer and having a better valuation and client base than other companies. Its experience in the field makes it a relatively safer investment than the other currencies.
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5. Price of Bitcoin Steadily Increasing
More people are transacting with Bitcoin daily, which is driving up the prices of Bitcoin and making it a better investment opportunity.
6. Usage of Bitcoin in Businesses
Bitcoin is used by many businesses today. The general forecast is that in the near future, many businesses would use it to conduct their business transactions. This, in turn, may drive up the demand and the value of Bitcoin.
7. Control of Bitcoin Supply
The number of Bitcoin is limited to 21 million. The currency generation shall cease after the number has been achieved. A Limited amount of Bitcoin ensures that the currency can maintain good value.
For now, Bitcoin seems like a deep pool of water that you marvel at but are apprehensive of entering. This is true of change and every new technology or system that comes into place and gains popularity. It is slowly gaining popularity among people and also might very soon get the necessary recognition from Governments. These are definitely new waters and only time can tell if Bitcoin is worth every penny.