Chapter 3: Why You Should Be Investing In Bitcoin

It is no longer news that those who invested early in Bitcoin are reaping from the value it has amassed.

It is estimated that between the years 2011 to 2012, Bitcoin value increased by 300% and between August 2013 till November 2014, it increased above 400%.

However, just recently, it has been down to around 34%. Investors and venture capital firms continue to see the need to bet on the cryptocurrency.

The simplest way to invest in Bitcoin is to buy some. Buying Bitcoin all around the world is simple. In the U.S. for instance, the most popular avenues to buy and sell Bitcoin are coinBase, bitstamp and Local Bitcoins. Some of these avenues have links that connect a local bank account which enable easy transactions to be made.

There is also a local website which links buyers and sellers to provide a good deal offline. With these, you can be assured that the profit you have after one-year investment in Bitcoin will be great.

What Cryptocurrency Should You Invest In?

According to reports from FORBES, there is huge hype surrounding Bitcoin, cryptocurrency and the Blockchain technologies rivaling the dotcom bubble.

A lot of printed money is being converted into the digital currency, and this trend doesn’t seem to be slowing down anytime soon. The price of Bitcoin in the crypto market is far more valuable than other cryptocurrencies.

The popularity of Bitcoin over all other digital currencies has created more value and market for its usage.

The most famous sites that use Bitcoin as a medium of exchange are:

  • com
  • Microsoft
  • Reddit
  • Pirate Bay
  • Virgin Galactic
  • Namecheap
  • Wikipedia
  • com
  • com

The crypto market today has attracted more money from other capital markets because of the popularity of the Bitcoin. A forex and stock market trader will find it easier to make money on the crypto market than all other volatile markets with very low return on Investment.

Bitcoin being the leading digital currency is a certain crypto market to venture into.

Bitcoin Advantages

Bitcoin has a lot of benefits when compared to the printed money like the dollar and Euros. Below are the best benefits it has:

  1. Interruptions by third-party do not exits

One of the most widely known benefits of the Bitcoin is that interruptions by banks, governments, and other financial intermediaries have no effect on Bitcoin transactions.

The system exists as a peer to peer network, this creates a great degree of freedom to transact on a daily basis.

  1. Payment ease

Users of Bitcoin can pay for their transactions made online with ease. Anywhere there is internet access in the world, users can carry out transactions. Purchasers never have to go to the bank or store to buy items. Also, the users’ accounts information is not a necessity to carry out a particular transaction.

  1. Very low transaction fees

As stated earlier, due to non-intermediary between the buyer and sellers of products, transaction fees have been kept at the barest minimum. This will prove very useful to travelers and other major foreign exchangers.

Unlike the standard transfer system which involves a great of deal of fees and exchange cost, Bitcoin transactions only cost very low amounts.

  1. No taxation

Taxes levied by governments and other financial institutions are clearly averted since no intermediary is involved. This is because all the viable ways to implement taxation of Bitcoin which would have had a great impact on the transactions made are all eliminated.

  1. Speed of Transaction

Transfer of Bitcoin over the internet is very fast; this quickly eliminates the inconvenience caused by authorization of the transaction made. The wait periods for every transaction is eliminated.

  1. Bitcoin cannot be stolen

Owners of Bitcoin have a unique Blockchain address peculiar to them. These addresses can only be changed by their owners alone. No one can steal Bitcoin unless they have access to the user’s computer, and then send the Bitcoin to their own Blockchain address.

  1. No tracking

There are no way transactions made can be traced by other unauthorized persons unless the user publicizes their addresses. Therefore, there is a great privacy allotted to every unique address.

Should You Worry About Investing In Bitcoin?

Bitcoin is the first decentralized digital currency. This lack of control by central authorities is the primary reason governments, and other financial authorities are worried about the crypto world.

To understand this fear, it is important to know about governments and the conventionally printed currencies.

The term used to describe the conventionally printed currencies issued by the government is FIAT. Fiat currencies have unique value issued by the government. The fiat currencies are not backed up by tangible assets.

This simply means that you cannot exchange fiat currency with tangible assets such as gold or silver from the governments that issue them. You can only do so with other entities that possess those assets.

Control of fiat currencies matters to the government because they use the central banks to issue or destroy money through what is known as ‘Monetary policy’ to create economic influence.

Governments also control the transfer of fiat currency enabling them to track currency movement. This defines who make profits from such currency movements and the levied taxes. It also helps trace criminal activities involving money laundering.

The government also uses fiscal policy to control money in circulation in an effort to stimulate investment and spending, generate jobs and to a greater extent avoid inflation and recession.

If Bitcoin and other digital currencies become well adopted, governments fear that the banking systems all over the world would become irrelevant and possibly extinct. Many workers would be laid off from their jobs and taxes, and the revenue the governments often gain from the banking industry would be no more.

Untraceable illicit transactions involving crime such as terrorism, money laundering, drug trafficking, prostitution, tax evasion and other subversive activity would increase.

Since digital currency cannot be held, it’s vital for users to have good storage ability. A computer is the means of storing Bitcoin, and if the users don’t have a good antivirus and backup system, they could lose their money.

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