Published on August 3rd, 2019 | by Sumit Bhowal0
Why Investing In Bitcoin Is A Good Idea
The world is increasingly and rapidly shifting towards digital transactions and the internet is the topmost medium for this. It is therefore not a surprise to see Bitcoin, a secure digital currency, gaining traction at a rapid pace. Bitcoin is open to all, creating room and exciting opportunities for millions of investors who want to delve into a new class of assets. Bitcoin is big, the market is moderately developed, but the idea of a nascent digital currency contending with much-regulated fiat currency puts financial institutions and world governments in an awkward position according to bitcoin-profit.io.
Even with its much-hailed progress and wide-reaching acceptance, lots of private entities and governments still show a serious opposition to Bitcoin. Most of this opposition stem from the belief that giving people too much freedom – something that Bitcoin does quite well – may pose a risk to the integrity of existing paper money. This seemingly hostile opinions towards Bitcoin coupled with market uncertainty makes investing in Bitcoin quite scary. No one wants to stick their neck in something that looks too fluid, no one wants to risk it – however, Bitcoin is far from that. If you’ve been confused whether to invest in Bitcoin or not, it’s all about understanding its value, demand, and trends before going all in.
For starters, Bitcoin is scarce, has value and is quite useful. Scarcity and value may sound a little familiar. They both seem like something in the realm of gold, diamonds and of course fiat money. People are attracted to commodities with value and with scarce supply. This means Bitcoin attracts a huge community of investors. Looking at gold, for example, there’s a limited supply of gold available in nature. As more and more gold is mined, it becomes gradually harder and more expensive to mine gold or even find a gold-rich mining spot in the first place. In a more general sense, the lesser the abundance of gold, the more the value attributed to it. Also, in addition to scarcity, gold does have value.
Just as gold, the same applies to Bitcoin – but in a more digital sense. Unless Bitcoin’s core protocol is changed, only 21 million Bitcoin will ever be mined – ever! Once miners have unlocked this many Bitcoins, the planet will essentially run out of a supply source. About 8 years ago, Bitcoin was barely worth a US dollar, but of course, going by the scarcity logic, there were millions of Bitcoin around to mine. A few years later, with about 80 percent of the 21 million possible units tapped out, Bitcoin is scarce and is well valued at thousands of US dollars per unit. Despite possible uncertainties and inconsistencies, the value of Bitcoin could as well keep skyrocketing as long as the market forces keep playing nice. If owning a digital commodity barely worth a dollar years ago can fetch you thousands of dollar today, this surely indicates a positive trend.
Similarly, in addition to being scarce, Bitcoin is quite useful. Of course, what’s the use of scarcity without usefulness?
Unlike most currency, Bitcoins can be sent from anywhere in the world to anywhere else in the world. And interestingly, no banks, government or financial institutions can block payments or close your account for perceived violations or as regulatory measures. In a nutshell, Bitcoin is censorship resistant money. In a time of enormous censorship and sometimes unfavorably draconian regulations, Bitcoin offers a much-needed break. Bitcoin offers great anonymity in financial transactions. Purchases are not linked to your identity and you choose to remain anonymous unless you choose not to. And then there’s the issue of taxation since there’s no third party to manage, identity or track transactions, transactions made with Bitcoins are not taxed. Bitcoin provides an enormously open and predictable monetary policy that can be verified by just about anyone. It’s possible to see when new coins are created and how many are currently in circulation. There’s also the perks of low transaction fees, something a lot of people express appreciation for.
As millions of people recognize and embrace Bitcoin for its enormous usefulness, more and more investors troupe to the sector. More investors mean more buyers and sellers, which means more money. If you understand the potential impact of Bitcoin, it makes more sense why it is a good idea to invest in Bitcoin.
Bitcoin and its underlying technology, Blockchain is growing from strength to strength. Thousands of global organizations are continuously investing in enormous financial resources, and even some national government are recently showing significant interest in it. This further works to cement the trending opinion that blockchain and cryptocurrencies like Bitcoin are indeed going to be a significant and integral part of the future global business landscape. Success stories of people who made it big in Bitcoin are just a Google search away. They invested when it was barely worth it. Most people you discuss Bitcoin investment with believe that the ship has already sailed; that the best days to invest are quite behind us. Though there’s an inkling of truth in that, the dust hasn’t yet settled on the wide-reaching Bitcoin revolution, as such more opportunities lie ahead.