More nations are finding themselves in a financial crisis. Even amongst one another, various countries are fighting a financial war to stay on top. Banks are resorting to printing more fiat currency, and this only makes the poor poorer and the rich wealthier. Bitcoin holds the promise of an escape from the monopolistic financial game and gives holders a better option to safeguard their money. We take a look at the top five reasons to buy Bitcoin.
What is Bitcoin?
Bitcoin is a digital currency that works on a peer-to-peer basis. Bitcoin is built on an open-source Blockchain technology that gives it the ability to be an psuedonymous ledger that is decentralized and secure. This means that all finalized transactions are made public but do not fret while your personal information is hidden and kept secret. Only your public address is visible. By doing so, the blockchain ensures your safety and security.
Bitcoin was introduced to the world in 2009 by Satoshi Nakamoto who remains anonymous until this very day. Now, altcoins, or alternative coins, are walking hand-in-hand with Bitcoin which has become the golden standard of the crypto world. Investors are therefore spoiled by choice when it comes to investment options as they can buy both Bitcoin and altcoins.
The top ten altcoins at the moment are Ethereum, Bitcoin Cash, IOTA, Ripple, Litecoin, Dash, Bitcoin Gold, Monero and Cardano. The total market capitalization for all cryptocurrencies is $422 billion. This is a relatively low figure compared to Apple’s $900 billion, but it still speaks about the volumes of trust the cryptocurrencies have gained from the public.
There are numerous benefits of investing in Bitcoin and altcoins. If you want to send money to another country, for example, it costs next to nothing when doing it through the Bitcoin network and it is an almost instant transaction. There is a small transaction fee associated with Bitcoin, and using it is currently tax-free.
Top 5 reasons to invest in Bitcoin
Reason 1 – Blockchain tech is taking over the world
As previously stated, Bitcoin is built on a Blockchain, the technology that is going to change the world. It has been well said that Blockchain is the second greatest invention after the Internet. Even the industry giants like Google, Microsoft and IBM are looking into this revolutionary technology and exploring options for its implementation.
Trading and holding Bitcoin is but one element of the crypto world. The price of Bitcoin may fluctuate and continues to reach record highs, but the true value of Bitcoin and altcoins lies within its Blockchain technology and how it can best be utilized in a person’s everyday life.
Blockchain tech is truly revolutionary as it not only cuts out unnecessary costs associated with working with a third party but also gives power back to the people. The second after Bitcoin is Ethereum, which owes its success to its smart contracts. They allow users to securely store contracts and other valuable information on the blockchain. The tech can then also make payments and keep record of transactions that cannot be tampered with.
Reason 2 – Saves money and time
Sending money overseas can take up to a week. Then you still have to give the reason for the transfer, i.e. it is a gift. Costs associated with transferring money internationally are exponentially high. Bitcoin takes the hassle out of the process.
All you have to do is buy Bitcoin, get the wallet address of the recipient and transfer the required amount. The recipients, on their side, can then have access to the funds in Bitcoin in a nick of time, and no explanation is needed. There is no such thing as bank or public holidays in the crypto world, so you are not hindered by this to work with Bitcoin.
Reason 3 – Decentralized, decentralized, decentralized!
This is a concept that is baffling many people around the globe. How can people govern themselves without the interference of government departments or oversight institutions? It is true that no one controls Bitcoin, and it is free for all market to invest and trade in.
Reason 4 – Fantastic gains!
2017 has been a phenomenal year for Bitcoin. In January, the price of one Bitcoin was under $1,000. In December, it is soaring above $15,000. This follows the activation of SegWit, which saw a hard fork and split of the network, so those who held Bitcoin during the fork were rewarded with free Bitcoin Cash. During the second quarter of 2017, Bitcoin holders were rewarded with plenty more free coins such as Bitcoin Gold and Bitcoin Diamond. Analysts are predicting that the price of Bitcoin could be well above $40,000 by the end of 2018.
In the event that the Bitcoin price goes down, one can rest assured that in general the price of altcoins will do the opposite. Day traders move funds between Bitcoin and altcoins. If Bitcoin is doing badly, then they will pump altcoins. Either way, one can make money in this industry.
Reason 5 – Bitcoin is becoming legal
Despite being under close attention of industry leaders, Bitcoin also enjoys positive attitude that comes from the advanced countries and their governments. This year has become a breakthrough for Bitcoin in terms of legal recognition.
In April 2017, one of the most forward-thinking countries, Japan, passed a law that defines Bitcoin as a payment instrument and imposes regulations on cryptocurrency exchanges. This measure helps Bitcoin to earn more trust from the public and achieve a sustainable position in the global market.
However, Japan is not the only country that awarded a legal status to Bitcoin. Among “cryptocurrency-friendly” nations are the USA, Canada, and a number of EU countries. Here, Bitcoin is regarded as a commodity or an asset and appears regulated by law.
Important questions to ask yourself
Remember that the crypto world is very unpredictable and unstable. Before you invest, ask yourself how much you are willing to lose. It is important to buy low and sell high. Buying a coin when it has reached its all time high will not necessarily make you any more money as it can only go down from here. Best way to ensure you will see a return on investment is to wait for the price to come down before you buy.
You will soon enough come to the realization that the media plays an enormous role in whether a coin’s price goes up or is dumped. It is important to keep an eye on reputable news channels so that, in the event that there is bad news about a Cryptocurrency you hold, you can be prepared.
It is equally important to secure your investment by either storing your Bitcoin in a software or hardware wallet. If you are keeping your funds on exchanges, be sure to activate the two-factor authentication function. It is one of the surest ways to safeguard your precious Bitcoin.
In the recent week, there have been numerous discussions if it is wise to just hold Bitcoin and withdraw from altcoins? These follow the significant increase in the price of Bitcoin and altcoins going down. So, only you can answer the question whether you want to be rich in Bitcoin or in fiat.