Even though Bitcoin price has risen rapidly during the past months and years it is still in the portfolios of very few investors. Here are five good reasons why you might want to get exposure to Bitcoin before the price is going to explode.
Referred to by some as “digital gold”, Bitcoin is one of the most controversial investment opportunities that exists today.
Over the past five years, the value of Bitcoin has skyrocketed nearly 25,000%, meaning if you had the foresight to buy and hold early, you could have earned as much as 250 times your initial investment.
That’s enough to take $10,000, and turn you into a multi-millionaire.
But many investors are still been keeping far away from Bitcoin, despite its historic rise.
To the average person, it’s all just too unfamiliar, too intimidating, and too risky.
After years of naysayers predicting that the sky will come crashing down, Bitcoin just keeps on chugging along.
Hard to believe, but the cyrpto-currency has been around for almost a decade now, and at this point it doesn’t seem to be going away.
In fact, Bitcoin’s bid as a serious investment has only matured in recent years as the digital currency has come of age.
Once rightfully considered a virtual lottery ticket, here are five reasons you may want to seriously consider investing in Bitcoin today.
Reason #1: More and More People are UsingBitcoin Every Day In its early days, Bitcoin was little more than a speculative bet for day traders hoping to turn a quick profit… That’s because as a currency, Bitcoin had very little utility aside from on the black market.
Like trying to pay your rent in Yen, buying goods with Bitcoin was just something you didn’t do.
But after years of gradual adoption, more and more people are using Bitcoin for real world transactions every day.
In January 2010, Bitcoin was averaging less than 200 transactions a day.
Today, the digital currency is used in as many as 300,000 transactions per day.
In other words, Bitcoin is no longer just a form of money in theory but has become a form of money in practice.
People are buying goods with it, just as they do with any other-another form of currency.
For long-term investors, this is great news, because after all, that’s where Bitcoin’s value exists.
So long as the adoption of Bitcoin as a currency continues to increase, its value should move in tandem.
Reason #2: More Vendors are Accepting Bitcoin There are two main reasons why Bitcoin transactions have and will likely continue to increase.
The first is a growing acceptance from legitimate vendors.
Since 2013 there have already been a number of major retailers that have taken the initiative to treat Bitcoin as a legitimate method of payment.
Notable companies now include Expedia which now accepts Bitcoin for all hotel bookings, Overstock.
Com, which began accepting Bitcoin for its products in January 2014, and Microsoft, which recently added Bitcoin as a payment option for its digital content.
Other major vendors include Dell, Subway, Newegg, TigerDirect, Tesla, PayPal, and REEDs Jewelers to name just a few.
Even the Sacramento Kings NBA franchise now accepts Bitcoin either online and at the Golden 1 Center arena.
That means NBA fans can get tickets, jerseys, hot dogs, and, yes, even beer with their Bitcoins.
Reason # 3: Volatility is Trending Down On top of an increasing number of vendors accepting Bitcoin, price volatility is trending downward – and for long-term investors, that’s a good thing.
In 2011, the 30-day volatility of Bitcoin was nearly 16%, but today it’s closer to 2.
0% on a dollar basis.
This simply means that the day to day fluctuations in the price of Bitcoin are decreasing and that the value of Bitcoin is becoming more stable.
And for a form of currency, this is incredibly important, because it means consumers’ money is more reliable.
If a loaf of bread cost $4 yesterday, $2 today, and $7 tomorrow, chances are you wouldn’t have much faith the dollar.
The same rule applies to Bitcoin: the less volatile it is, the better it will fair in the market.
Of course, Bitcoin will continue to have bouts of volatility, and is still years away from being completely stable, but at the time of this video’s production, its already on par with the Mexican Pesos and South AfricanRand.
For a ten-year-old currency, that’s not too bad.
Reason #4: Bitcoin Is a Hedge Against EconomicUncertainty For decades, if not centuries, Gold has been the go-to safe-haven in times of economic uncertainty.
When stocks go down, people buy gold.
When economies collapse, people buy gold.
But investors have increasingly turned elsewhere in recent years in the face of economic turmoil.
When Cyprus’s economy tanked in 2013, Bitcoin soared.
When China’s yuan collapsed in 2015, it happened again.
And when Brexit sent tremors through the market in 2016, Bitcoin investors had a field day, as the currency’s value exploded more than$100 in a day.
Bitcoin works as a hedge because of its disconnected from the traditional financial system.
It offers an easy way for people to exit economies that revolve around government money and bad monetary policy.
So if you’re one of the many people worried that the U.
The dollar is on it’s last legs as the Global Reserve Currency; Bitcoin isn’t bad bet.
Reason #5: Buying and Selling is Easier thanYou Think Contrary to popular belief, you don’t have to be a computer scientist to invest in Bitcoin.
Buying and selling the crypto-currency is actually pretty simple: all you need is a credit card, bank account, or PayPalto get started.
There is some easy to use platforms for trading and storing Bitcoins.
Some of the most reputable ones include Coinbase, Kraken, BitQuick and Blockchain Wallet.
Buying and selling Bitcoin today is about as easy as trading stocks.
Once you’re comfortable with whatever platform you choose, you can get started right away.
But remember, Bitcoin still carries plenty of risk and should only account for a small portion of your portfolio.
The best investors are well diversified, andBitcoin is just one place to potentially grow your wealth.
Hey hey hey. It's Ville and welcome to my blog. I am a tech enthusiast and always looking for ways to generate new income streams. At the moment Bitcoin cloud mining is one of the most promising ones and that's why I created this website. Hope you like your stay. If you want a quick start guide about making passive income with cloud mining check out this guide.
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