Bitcoins are a decentralized form of currency that does not involve any banks or governments and was first introduced in 2009. Bitcoins are becoming increasingly popular, more so since only a small fee is levied on bitcoin transactions. Is it worth investing in bitcoins?
1. Investing in bitcoins offers stability
Over the last 3 years, bitcoins have experienced financial stability. Investor-trust in this currency has gone higher as a result of this. Large increases in currency price have always come before a period of stability, and this is one of the most stable periods that the currency is experiencing. Price volatility has been on the decline. During the stable period, there are very many times when bitcoin prices have been more stable than gold, the Japanese Yen and even the US Stock Index.
2. Instability of the Global Economy
We are experiencing periods of global economy instability. However, the value of bitcoins has no direct correlation with national currencies or the stock market. In fact, cryptocurrencies will benefit a great deal following the collapse of the conventional economy. As a result of unsustainable debt structure in 2008, the world economy collapsed. It is worth noting that debt has actually increased. This means that the world is heading to periods of more debt. Consequently, another economic collapse might be imminent. Due to the scarcity and nature of bitcoins, this is the only sure way of guarding oneself against economic uncertainties in the years to come.
Also Read : How Does Bitcoin Work
3. The number of bitcoins being produced is reducing drastically
As of July 2017, the amount of bitcoins that are being created per day was halved from 3600 to 1800 as per the fixed bitcoin protocol rules. These rules will apply for the next four years. Halving is expected to happen every four years. This means that as time goes, the value of bitcoins will tremendously increase due to its limited supply. Scarcity of bitcoins makes this cryptocurrency very valuable.
4. Going cashless will be a goldmine for cryptocurrencies
In some parts of Europe and America, there is an increasing need to get rid of cash in transactions. More developed countries are diverting to digital payment methods. In the years to come, handling cash payments will be very minimal. This means that attempts to make transactions cashless will increase the demand for bitcoins. There are plans, for instance, to abolish the 500 Euro bill. This is just the beginning. Bitcoins will be highly adopted because of their simple, easy and private way of settling debt.
5. Bitcoin usage is gaining popularity all over the world
There is a global increase in cryptocurrency transactions. More and more goods and services are being purchased or sold using bitcoins. For instance, multiple Tesla cars in Finland have been purchased using bitcoins. Across all the continents, there is an increasing demand for bitcoins. In China, cryptocurrencies are the most efficient way of moving money out of the country. This increasing demand for bitcoins means that cryptocurrencies are gaining strength.
In summary, investing in bitcoins in 2017 is a good move for any prospective investor who wants to reap big in the future. The value and popularity of cryptocurrencies is increasing. Do not be left behind as this is a great investment opportunity.