Bitcoin is the world’s most valuable cryptocurrency. Bitcoin was invented by an unknown developer under the pseudonym Satoshi Nakamoto five years ago. Bitcoin has started to show its potential for growth over the last few months. Bitcoin increased from $950 in late 2016 to more than $4000 after less than six months. There are many successful bitcoin traders in the world that are taking help from bitprimegold for their successful trading.
Since Bitcoin’s creation, many investors have been wondering if Bitcoin is a good investment option. The time to invest in Bitcoin would be now because of two main reasons: Bitcoin adoption is growing fast, and it still remains relatively cheap compared with other cryptocurrencies.
Advantages of Bitcoin
People are becoming conscious of the advantages of using Bitcoin as an alternative currency. The transparency of records on a blockchain basis makes Bitcoin transparent; money users can access their transaction history at any time. Therefore Bitcoin is a transparent and secure currency. Bitcoin can be sent or spent anywhere in the world, so Bitcoin enables users to do business across borders quickly and cheaply.
People also worry about Bitcoin’s volatility. Bitcoin is still considered a relatively volatile investment because of high price fluctuations. This caused Bitcoin to face troubles such as high transaction fees and slow confirmation times. However, Bitcoin’s volatility has fallen rapidly over time as more and more people start using Bitcoins worldwide, thus reducing the availability of those who want to sell Bitcoins for fiat currencies (e.g., Dollars, Euros). So it is not right to believe that Bitcoin will always remain an unstable investment which could hurt its long-term outlook.
The second reason why you should invest now in Bitcoin would be Bitcoin’s more than 1400 percent return over the last five years. Bitcoin has proven to be one of the best investments in recent years, growing at a very fast rate. Bitcoin was $960 at the beginning of 2016, while it was already worth more than $4000 in early 2017. Meanwhile, gold prices have remained relatively flat over the last two years, while stocks have increased only 7 percent per year on average since 2010.
If you are still hesitant or unsure about investing in Bitcoin, here are a few things that might help convince you:
- Bitcoin’s volatility is decreasing rapidly, thus attracting many investors
- Bitcoin trades with no commissions and nearly instantaneously anywhere in the world, which makes Bitcoin for long-term investment diversification.
- Bitcoin has properties similar to gold. Thus, Bitcoin could be an alternative investment for people who hold gold or diversify their portfolios.
Don’t miss your chance! Bitcoin’s price is predicted to rise sharply in the coming years; this would be the best time to invest in Bitcoin.
Bitcoin is an interesting asset to many Bitcoin enthusiasts; however, Bitcoin was introduced in 2009 after the global financial crisis. Bitcoin is controversial because Bitcoin was founded on the idea that Bitcoin would be used for one-day transactions, and Bitcoin has never been used for everyday transactions. But Bitcoin is designed to be a currency? So this question needs to be answered.
Bitcoin can help solve some of the issues of international money transfers – which are expensive, time-consuming, and open to theft or scams. Bitcoin transactions are not reversible by anyone except you, so they are also safer than traditional payment methods. Bitcoin works more like real money when it comes to taxes, too; if you buy something in Bitcoin, then sell your Bitcoin at a higher price, you need to pay tax on the profits. Bitcoin is not yet widely accepted, so Bitcoin needs to be converted into traditional currencies using Bitcoin exchanges before it can be used for everyday transactions.
Bitcoin is different from many other assets because Bitcoin’s value is constantly changing, making Bitcoin extremely risky – especially if you are just starting out with Bitcoin investing. So should you buy Bitcoin now or wait?
Conclusion: When should I Invest in Bitcoin?
The answer depends on your appetite for risk, but there are three things that suggest that Bitcoin may have bottomed out already, and one of them is good news for those who want to invest in Bitcoin now, while the others are bad news for those who are thinking about buying Bitcoin today. First, China has banned its financial institutions from using Bitcoin, which was driving the price down, but Bitcoin is still traded on Bitcoin exchanges. Bitcoin mining is also quite profitable in China, so Bitcoin isn’t dead yet.
Two, Bitcoin’s creation rate was cut by half last year, and Bitcoin miners are rewarded with new Bitcoin for the Bitcoin they mine. This means that less Bitcoin will be available at any given time, which goes some way to explaining why Bitcoin has risen to $1.