Here are five reasons to invest in Bitcoin. Generally, the term investment is associated with buying something with a view of generating a return. Either income or growth of capital. This is still true for many people investing in Bitcoin and other cryptocurrencies.
As a pure investment Bitcoin is not for the faint hearted. It’s volatile and has seen some dramatic swings in value both up and down. Is it a stable investment? It hasn’t been historically – if you do invest don’t be surprised to see your portfolio value move quickly. In either direction. People have made and lost fortunes.
However, some people invest for reasons other than pure financial gain or a return. Perhaps they believe in the change that cryptocurrencies and blockchain technology are bringing to the world. In this case, investors may see the investment more as a way of helping a new idea take hold.
So, it’s worth remembering that cryptocurrencies are changing the way the world does business and a lot of investors support this change.
Here are five reasons to invest in Bitcoin.
It’s a pioneer
It was the first and the biggest, and when it launched it was revolutionary. It was also launched during a banking crisis. When the first Bitcoin block was mined (January 2009) it embedded some text quoting a recent headline in the Times newspaper “Chancellor on brink of second bailout for banks”. This reference to the global banking crises engulfing the world pointed out the risks and instability existing at the time in the banking system. Many cryptocurrency enthusiasts believe traditional banking systems could fail to be replaced by the new world of crypto.
It represents freedom
It’s decentralised and, therefore, free of the banking system. Just consider how much information you share with your bank when you make a credit card transaction. It’s an extraordinary amount and it enables banks and central banks to build up an accurate picture of what you are doing and when. Of course, for many people this isn’t a problem but if all this information is being gathered and used shouldn’t you be asked or given the opportunity to provide or sell that information?
It’s the most popular cryptocurrency
Bitcoin remains the most traded, talked about and valuable cryptocurrency. It is the biggest in terms of market capitalisation. In fact, if you look at the Top 10 cryptocurrencies Bitcoin is more than half the value of the biggest cryptocurrencies on its own.
It’s the most widely accepted cryptocurrency
Cryptocurrencies are increasingly becoming more mainstream. In fact, there are probably more ways of spending cryptocurrencies than you think. As Bitcoin is the most popular it’s the most useable and transaction fees are small compared to traditional payment methods.
It’s the future
At its very genesis Bitcoin referenced the global banking crises. A decade later trust in traditional markets is low. Trust in politicians is low. Trust in the state is low. What better alternative than a low-cost digital currency without central governmental control? It could also help the millions of people globally that cannot access traditional banking services. Inclusivity is trying to solve this very problem using blockchain to help the world’s unbanked people.
If you enjoyed our article detailing five reasons to invest in Bitcoin then make sure you check out some of our cryptocurrency guides.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.