Web Statistics Are Bitcoins a Good Investment? - 4 Reasons They Are

Monday, 29 August 2016

Are Bitcoins a Good Investment? - 4 Reasons They Are

Are Bitcoins a Good Investment? - 4 Reasons They Are

Since the end of 2015 the price of Bitcoin has steadily risen. As a result venture capitalists started pouring more money into the Bitcoin than they ever had before. Its really interesting because in an era when gold is not performing quite like many hoped and expected it to, Bitcoin is quickly turning into a safe haven for investments. 

If you have been on the fence about whether or not investing in Bitcoin is a good idea, here are four reasons you may want to jump on board. 

Reason #1 – There Is A Fixed Supply 

The one thing that will ensure the long term value of the Bitcoin is its fixed supply. Once 21 million Bitcoin have been released no new coins will be created. Experts expect this number to be reached by 2140. According to Chris Burniske of ARK Investment, the predictable growth of the Bitcoin and its fixed supply will make it a far more superior value than fiat currencies over the next several years. 

Reason #2 – Bitcoin Is Being Adopted For Various Practical Applications 

As Bitcoin becomes more ingrained in society, both businesses and individuals will need to own their fair share of it in order to function. As Bitcoin becomes the go to currency for transactions all over the world, demand will drive the price up which means now is the perfect time to invest in it. 

#3 – It Is The Number One Digital Currency 

While there are other digital currencies available, none can compete with the Bitcoin. At least not now or in the near future. Bitcoin has the largest market capitalization of any other digital currency. All the top digital currency wallets use Bitcoin. There are also several apps such as Abra and Circle that use Bitcoin for the sole purpose of transferring money. Bitcoins security and liquidity properties make it a very difficult digital currency to dethrone. 

#4 – Bitcoin Is Currently Being Undervalued 

When you compare Bitcoin to Gold you will see it is being undervalued. Just like gold, Bitcoin is also limited in supply and cannot be counterfeited. However, there is one thing that gives it an edge over gold and that's its utilitarian value. While gold is great for making jewelry and various other industrial production processes, when the price increases it is no longer as useful. 

Bitcoin on the other hand becomes more useful as more people will start to use it to transfer money and make financial transactions. 

Whether or not you should invest in Bitcoin will depend on your investment goals and the amount of risk you are willing to take. As with all investments, you should only invest what you can afford to lose. 


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