The question of whether or not bitcoin is a feasible economic tool may not have a straight answer, because many factors come into play, for instance, your financial philosophies, psychological needs, and your understanding of digital currencies.
But if you asked me, I’d say that the Bitcoin (ledger system) is not only an outrageous digital animal but also the pioneer of future currencies. Maybe the bitcoin (currency) will not stick around for long, but its supporting technology is gonna change the world. I believe that government-backed fiat currency has no place in the future.
In that sense, we are living in a fortunate era, because we are witnessing the infancy of what’s gonna rule us in the future. Well, the bitcoin is not an infant anymore, because it has lived through crippling attacks, is gaining wide acceptance, and boasts of a sizable market cap. Litecoins, altcoins, ethers and the rest may be lumped together as infants, though.
Reasons why you should invest in bitcoins
- It’s the first worldwide currency.
Imagine a currency that equalizes all its users no matter where they are stationed on the planet. Transactions are fast because of a leveled playing ground. The ease of payment opens up borders and online stores increase their reach.
- Growth potential
The bitcoin economy has not reached its full potential. In that sense, if you ride the wave early, you stand to gain more. A few years ago, a bitcoin traded for measly $10, but at present, a bitcoin goes for $1000. Industry analysts anticipate an exponential growth curve in bitcoin prices. The bitcoin supply algorithm is the major grounds on that forecast. More bitcoins have already been created than they will ever be. Total units will be capped at 21M BTC.
Assuming that bitcoins will gain mass appeal in the future, their shortage will cause their value to rocket, so much that even Satoshis will be worth a fortune!
- The utility factor
Bitcoins are digital assets. That alone frees them from many challenges faced by other value assets like fiat currency and gold and silver.
Digital assets have 100% convenience score.
For instance, moving large amounts is effortless, and the same cannot be said of dollars or gold or silver. Digital assets also help you seem invisible. In bureaucracies, loss of privacy is characteristic; governments and other undisclosed external parties work in cahoots with banks to gain access to customers’ financial records.
Also, digital assets, unlike tangible value assets, are free from wear and tear and going by the high scores of wallet security, burglary too.
- Eliminate third parties from your finances
For the longest time, banks have not existed to serve us, but rather, we have existed to serve them. How about a change? Digital currencies don’t require third parties, for instance, banks, to facilitate either transaction or provide storage. You could do that on your own.
Not to sound like a conspiracy theorist, but fiat currency is apparently infinite, i.e. if we let it be. The big players in the banking world create money out of thin air and assign it value and throw a limited amount to the world so we can scramble for it whereas they would print any amounts they’d want for their use!
Isn’t it shocking to learn that there are human beings who have such entitlements as pushing a few buttons to create their choice amount of money in an instant? They don’t have to work for money like you. It makes you wonder whether they are every bit as human as you are or they are quite something else; what, gods?
Makes sense! We have gods walking on earth, just as they did at the dawn of our race, except now they look like humans.
If we all took up digital currencies, it would guarantee us one thing; all of the mankind would work for their wealth.
- More merchants and investors are noticing bitcoin
What else would be a powerful indicator that bitcoin is here for the long haul than investors taking to it? Online stores, both small and large, have incorporated the bitcoin payment option. With the big players taking the lead, the interest in bitcoin is soon gonna fan through the masses, and boom!
- Extremely Low Devaluation Risk
The only fear bitcoin peers may have is on government ban, beyond that; everything else can be fought off. But many times you have heard about certain fiat currencies, mostly in 2nd and 3rd world countries, losing value and becoming weak against top currencies like the dollar and Sterling Pound. The factors that cause the devaluation of a currency are mostly political. Now bitcoins are free of this challenge because the system itself is decentralized and no scripted politics could tamper with the Bitcoin system. If the value of bitcoin can stabilize, then it would become such a high flying value asset, with a higher market cap than even gold and silver.
- Low number of users
Although the popularity of bitcoins is on the rise, the total peer count is still relatively small, considering world’s population. This means it’s easier to gain more BTC’s at present than it will be at a later time (assuming the popularity will keep soaring). As an early starter, you are better positioned to become an authority figure and gain affiliate earnings from your referrals.
- Best transactions terms
The Bitcoin system is unalterable. Once a transaction goes down, there’s no taking it back. A block is added to the common ledger bearing the basics of that transaction. If you look at most online stores, you’ll notice they have a money-back guarantee, and I can imagine as a seller that would be pretty inconveniencing. Bitcoin transactions provide efficiency to both buyers and sellers.
- High liquidity
Many legitimate exchanges have come up, and in consequence, low liquidity has become a thing of the past. You should sign up for many exchanges so that you may have a large pool of both buyers and sellers to browse through. At all times, there needs to be an adequate number of buyers and sellers, or the market is going to crash.
- Impossible to counterfeit
How many horror stories have you heard about gold scams and money laundering? When it comes to bitcoins, there’s no one smart enough to hack the system, and produce bitcoin clones. I’m not saying that the whole digital currency space is safe. I’m saying that the Blockchain technology is literally impenetrable. The major way a hacker could steal your bitcoins is by hacking into your wallet.
- Cheap transaction fees
The Blockchain fees levied on transactions are very small. You can’t compare with what banks charge for something as simple as a check or bank statement, and you deal with attitudes too. Is it only me, or does anybody else think that banks disrespect their customers? What with lumping us together in stuffy halls, as though we are illicit brew drinkers, and holding back their pens by tying them with non-attachable strings?
I have a lot of faith in bitcoins, or at least, in the digital currency. You should join me for these simple reasons:
- Bitcoin has a massive growth potential
- The transactions are speedy
- Third parties are eliminated
- Capital gains
- Wallets are stable and secure
- Small transaction fees
- Scarce – guarded against inflation
These two bitcoin exchanges are the best: