Bitcoin is a peer-to-peer network and digital currency first introduced in 2009. It is decentralized and independent of any government or banking authorities. Among other benefits, bitcoin allows users the option to make financial transactions at lower fees than the traditional online payment mechanisms.
As a user, bitcoins are helpful in facilitating financial transactions with minimal fees. Available to both regular and new users looking to invest in Bitcoin, all users are able to buy or sell Bitcoin from established Bitcoin exchanges. Since bitcoins can be converted into a number of different fiat currencies, companies such as Wirex offer users a seamless method of converting your bitcoins into fiat money, and vice versa. Bitcoins enable you to make transactions to merchants for goods purchases, which makes it an enticing opportunity to those who believe Bitcoin has a bright future.
Offers Several Uses
Initially, users were introduced to bitcoins as a digital currency to carry out routine financial transactions with minimal charges, when compared to other forms of online payment sources. However, since then, it has emerged that there is a vast array of other uses for bitcoins that users have come to learn as the market began maturing. Bitcoin utilizes blockchain technology to facilitate digital transactions, where all transactions are recorded and held for the verification purposes to process them further based on their validity. All transactions are public ledger and viewable online through the Blockchain website. Other activities that can be done through the bitcoins include digital trading of securities; for land titles and other property; for insurance claims; as a payment rail for remittances; for settlement between financial institutions; for document stamping and auditing, for customer rewards and crowdfunding, and much more.
Each of these Bitcoin uses is still in the early stages of development, and so they might take time to become mainstream. However, the success in even one of these transactions may be significant enough to induce a big revolution in the industry and will rapidly increase in value. So, it is worth investing in BTC, and it will give you good returns in the long run along with the starting benefits of having smooth digital financial transactions at a low price.
Read also: Understanding Bitcoin & What To Do With It
Expected Gains Are More Than Expected Losses
The potential gain in BTC is more than the potential loss; and this is because several crypto-analysts have speculated that bitcoin could become a global currency in the future though it is very hypothetical. If this becomes reality, then it will stimulate international trade all around the world. In turn, economists have speculated that the price would hike to 20,000 times its value, which will make each $1 worth of current BTC would (hypothetically) be worth $20,000 in the future. However, this will only happen if bitcoin was recognized as legal tender for both international and domestic trade. This forecast is one made by experts who believe that investing in bitcoin will deliver a $200 return for each dollar you invest. Though this is just a prediction and it still remains a relatively risky investment owing to its decentralized nature, it is not impossible to expect these kinds of profits because the rewards are expected to be higher when trading commodities.
Provides Interest On Your Investment
Bitcoin is considered as commodity money, so when you hold bitcoins, you can invest them in the same way you might invest in a business with fiat money. Like fiat currency, you’ll generate interest on this investment as well, so holding some Bitcoins can allow you to invest them and earn interest on the same. Moreover, you can receive good returns at increased prices on your investment too as time elapses.
With Bitcoins, you are not required to tie your money up in long-term plans to make a profit and you can make a profit in a short space of time depending on how much money is being transferred through the Bitcoin network. As such, you can simply invest in them and use the interest generated for your daily transactions like purchasing groceries, which means you get instant access to your money for your financial transactions even though it’s invested.
In short, buying Bitcoins in 2017 will appear to be a good move for some as it is likely to further increase in value and popularity, so it’s worth keeping an eye on its development throughout the year for a great investment opportunity.