Regardless of your position in the financial spectrum, you must have come across the term “cryptocurrency”. Over the past decade, cryptocurrencies have taken the world by storm, and have become the subject of hot discussions. A major contributor to this wide recognition is Bitcoin, which is the largest cryptocurrency in the world, by market cap.
For this reason, lots of major investors in other financial sectors have paid close attention to this digital currency and its rise to stardom. For many people, the benefits that are associated with investing in this virtual currency cannot be ignored. To explain further, this guide will look into the various reasons why Bitcoin investment is good to consider. Keep on reading!
Advantages of Investing in Bitcoin
For enthusiasts who are curious about the pros of Bitcoin investment, this section will look into these benefits:
Transparency and User Anonymity
Every Bitcoin transaction that occurs is added to the public ledger through the mining process to promote transparency in the network. The blockchain is the technology that ensures that these verified transactions cannot be tampered with by cyberattackers.
Bitcoin is also characterized by anonymity in that certain important details of a transaction are kept from the public. You are the only one that can know the number of coins you have. While the public key can be known, only you must be aware of your private keys.
In addition to this, you do not have to submit any personal details to carry out a Bitcoin transaction. Unlike traditional transactions that often require some personal information to conduct, your information can’t be leaked. This increases your privacy.
Potential for High Returns
Bitcoin is characterized by high volatility, which implies that there is always a massive swing in its price. With the use of Bitcoin Prime and other similar tools, users can take advantage of volatility to trade Bitcoin and other cryptocurrencies successfully.
Indeed, Bitcoin was valued at $975.70 in March 2017. Within nine months, it experienced a massive jump in price to $20,089 in December 2017. Then, in November 2021, it reached an all-time high of $68,000. As of the time of writing, Bitcoin is priced at just over $21,000.
While this high level of volatility might feed the doubts of most beginners, Bitcoin is not new to volatility. In fact, according to many experts, Bitcoin is destined to cross the $100,000 mark – it is not a matter of if, but when. For most seasoned investors, this represents a possibility for a high return.
Given that Bitcoin promises to be a profitable long-term investment for an increasing number of users, a large number of investors have decided to embrace it.
Liquidity and Accessibility
A great advantage of investing in Bitcoin is that there is no exception to who can invest in it. Bitcoin is not just a versatile currency, but it is accessible to all. Now, it is finding so many use cases across various fields. To many, Bitcoin is the currency for the future.
As Bitcoin experiences a massive gain in price in the long term, it acts as a store of value. Now, it requires only a few minutes to transfer among users. For this reason, there has been a rising number of places that accept Bitcoin for purchasing goods and services.
Many enthusiasts wonder if Bitcoin is a risky investment. Every financial investment comes with potential risks. Bitcoin is no exception. However, while the high volatility translates to high risk, Bitcoin promises significant profit in the long term. The global economy has been transformed by Bitcoin and other cryptocurrencies. For this reason, traditional FIAT currencies must adapt to these changes or risk disappearing.