As of October 2017, 1 Bitcoin equals 5925.00 US Dollar though its soaring all time high there’s a single question that runs through everyone’s mind is it worth to invest in bitcoin right now. Before jumping into the answer let us know something about bitcoin.
Bitcoin is a digital currency, which means there are no actual coins or paper money representing it. It was invented by a person or group using the alias Satoshi Nakamoto, and released as open-source software in 2009, and exists completely electronically. Bitcoin has reached all new heights in recent times, attracting the interest of investors and non-investors alike.
Unlike the currency of a country which is regulated by a government, no one controls Bitcoin. Likewise, there are no Bitcoin banks. Bitcoins are stored in a digital wallet on the user’s computer or in the cloud. Some of the companies accepting bitcoin include: Amazon, Subway, Victorias Secret, Fiverr, Zappos, Tesla Motors Home Depot, Sears, Kmart, Expedia.Now there are lot more bitcoin wallets,exchanges,financial services compared to past but only some of them are secure.
Bitcoin uses blockchain technology to record its transactions. Essentially, the blockchain is a publicly distributed ledger for certain financial transactions. It is currently mostly used for bitcoin, but many believe it could be used in a wide variety of financial applications in the future. The blockchain records information like the time and amount of each transaction, but it does not store any personal information on the parties involved.
Blockchain technology radically changed the way financial transactions are facilitated. The benefits of this system are that it is transparent, secure, and streamlined, so that there are less parties involved in facilitating each and every transaction.
The dream of bitcoin based on blockchain technology is to be free of inherent costs of exchanging currency for goods.
Throughout its history, Bitcoin has generally increased in value at a very fast pace, followed by a slow, steady downfall until it stabilizes. If you invest now you would have 10 x magnifications in less than 1 year. The reasons why there will be such magnification are listed below:
- The attitude of most government regulation toward digital currencies has been, on the whole, cautiously positive.
- Philippines have accepted Bitcoin as a mean of Remittance; Argentina’s primary remittance mode is Bitcoin.
- Latin America is turning towards Bitcoin
- Bitcoin and Litecoin are going to be integrated, making it easier for
- Bitcoin is working on improving the transaction speeds.
The common sense tells us that we shouldn’t put all eggs in one basket, so bitcoin — and other cryptocurrencies for that matter — is one of the baskets to think about, and it is arguably the most potent basket to anyone’s portfolio.
Here are the few reasons why you must invest in Bitcoin:
- It is decentralized, backed by the rock-solid blockchain technology. A protocol is set to automatically half the volume of bitcoins that can be mined every four years. So there will be new bitcoins on the market, there won’t be a ton of them, making sure that the law of supply and demand keeps ticking to the benefit of bitcoin owners.
- They are a valuable asset and only 21 million of them will ever come into the world—and most of them are already here. As those familiar with bitcoin know, the number of coins created by the mining process drops by half every few years. Right now, around 80% of all bitcoins are already mined and no new ones will appear after the year 2040. This scarcity could continue to drive up demand.
- Bitcoin is a safe haven when economic challenges are around – eg with Brexit it rose 15%, with general economic uncertainty its role as a safe haven will become increasingly important. For Countries with less monetary stability, Bitcoin seems to be an attractive option removed from these risks of government and currency collapse. Global chaos is generally seen as beneficial to Bitcoin’s price.
- Bitcoin is the new gold it’s like to the precious metal because it is an asset whose value is not controlled by governments. Even if a country is ravaged by war or its profligate central bank prints too much money, the value of gold (unlike the national currency) will remain. Bitcoin has many of the same quality.
- Bitcoin has a first-mover advantage among the other digital currencies. Though Bitcoin faces competition from other digital currencies, at the moment, it seems unlikely to be dethroned.
- The underlying technology blockchain has proven its worth and is now used by major corporations. So there is value behind bitcoin.
- Bitcoin is by far the most accepted cryptocurrency in the world. It is like a U.S. dollar of cryptocurrencies. You can use it to buy into Ethereum and Litecoin markets; when there is an ICO (Initial Coin Offering) — which is the IPO (Initial Public Offering) for cryptocurrencies — you typically need bitcoins to buy in.
- Aside from small and medium sized businesses, major corporations also allow users to pay with bitcoins, including Amazon, Microsoft, Dell, Expedia, Time Inc, and many others.
Bill Gates in an interview said “Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient.”
Ok now, if you are thinking to buy Bitcoin you need to follow a few secure steps:
- Bitcoins should only be kept in wallets that you control.
- After buying Bitcoins make sure to move them into your own personal wallet and never leave them at the exchange.
- Never invest more than you can
- Use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, try a paper wallet.
- Make sure to buy Bitcoins only from exchanges that have proven their reputation.
Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. But you will need to get expensive mining equipment a lot of electricity. So, Buying a Bitcoin is more cost effective than buying mining equipment.
It’s not just a matter of should you invest, but also a matter of how to invest. Analysts found that in future a lot of money flows into the digital currencies and Leading Experts are saying that Bitcoin Will soar above $25,000 in 5 Years.So it’s good to invest in a bitcoin even at this time but I recommend you to buy a bitcoin instead of mining and don’t forget to use a hardware wallet.