Bitcoin is the world’s first digital currency, and many people believe it will be the currency of the future.
However, plenty of skeptics claim it’s not safe enough to use yet, so if you’re thinking about investing in Bitcoin, you may be wondering what exactly makes it worth investing in in the first place.
Well, there are many reasons why investing in Bitcoin is a good idea-here are some of them.
Bitcoin as an alternative investment
The allure of Bitcoin (and other cryptocurrencies) as an investment opportunity can be difficult to resist.
It’s volatile, but that’s part of its appeal. Just like a stock, you can purchase shares and hold onto them with hopes that they appreciate over time.
But because there are so many unknowns surrounding digital currencies, you need to proceed with caution.
If your risk tolerance level is high and you’d like to invest a small amount-say $50 or less-to see what happens, go for it.
You can also use our calculator below to come up with a good estimate of how much one bitcoin will be worth in five years.
Just input a $50 investment amount and hit calculate. Then see if you’re still interested.
Bitcoin offers a Decentralized System
Bitcoin uses a decentralized system. This means there isn’t a single authority that controls it nor an organization that can shut it down.
This allows bitcoin to remain independent of any central bank or government. So why does decentralization matter when you choose where to invest your money?
It matters because centralization creates inflexibility, whereas decentralization creates adaptability.
Since 2009, when bitcoin was first introduced, its value has risen from less than one cent per coin to more than $40,000 per coin today.
If you ask yourself, should I buy bitcoin, some experts believe that when all 21 million bitcoins have been mined (decentralized), they will be worth more than $100,000 each.
Bitcoin is a great way to make money
As a society, we are constantly evolving with new forms of currency. Nowadays, we don’t make change at the cash register.
Our means of payment have evolved and have been updated several times since its inception.
We went from bartering for goods with livestock to using precious metals as forms of money to paper currencies backed by governments, and now we use online forms of currency like bitcoin.
The value of bitcoin has been on an upward trajectory; it’s not uncommon for a single coin to be priced thousands above its original price within a few months’ time frames.
While there are no guarantees that bitcoin will continue to gain value indefinitely, now may be your chance if you want to make money off cryptocurrency investing.
What are the advantages of using Bitcoin?
Security, flexibility, and privacy are just a few of its major advantages. Each transaction uses complex encryption techniques to ensure that your identity remains hidden at all times.
Virtual currency is also an excellent way to send money overseas without paying hefty exchange fees. It can be divided into smaller amounts-meaning you can spend less when making a purchase online.
Plus, unlike credit cards, there are no chargebacks with Bitcoins; if a merchant goes out of business or refuses to give you a refund for some reason, your cash isn’t tied up with a bunch of bureaucracy.
It’s also easy to quickly convert them into cash, which helps keep you from losing money due to price fluctuations.