Bitcoin is currently the world’s most famous and popular virtual currency. As of July 2010, a single Bitcoin was worth 4 cents. Today, one Bitcoin is worth more than $50,000. Although Bitcoin’s value has been fluctuating over the years, it’s slowly stabilizing. And the meteoric rise of Bitcoin’s price has made many people equate it to digital gold. But some people are skeptical to invest in Bitcoin. On the other hand, some people see Bitcoin as one of their serious investments. To others, Bitcoin is a hedge for any diversified investor.
Bitcoin as a Modern Investment
The value of this cryptocurrency has increased tremendously within a short time. However, Bitcoin has also exhibited high volatility. People that bought Bitcoin at 4 cents may have sold it at $1000 to make millions from their investments. However, people that bought Bitcoin at the wrong time also made severe losses. The massive swing in Bitcoin price is not suitable for the fainthearted investors.
Essentially, the future Bitcoin’s value is the most crucial factor to consider. Some experts estimate that Bitcoin’s value will increase to $400 billion from $6.8 billion today. And this is more than 50-fold the upside potential of Bitcoin.
But, these are estimates. And they assume that Bitcoin’s popularity will continue to grow, and people will eventually accept the cryptocurrency as a method of sending and receiving value. What’s more, some experts assume that people will invest in Bitcoin to store value. And these assumptions are based on the increasing number of people using platforms like the Bitcoin Era to buy and sell this cryptocurrency. With such an option, you only need a trading App like wealth matrix to purchase and sell Bitcoin at any time.
Additionally, Bitcoin is likely to achieve mainstream success. That’s because it’s becoming one of the digital payment methods with global acceptance. People are using this cryptocurrency to pay for services and goods locally and online. And because it’s a form of value storage, some people see it as digital gold.
Revolutionary Technology
Many people find Bitcoin interesting because of its technology that makes it revolutionary. No government or even a central authority like a bank issues or controls Bitcoin. It’s also not subject to political or election crises. This cryptocurrency uses blockchain technology. Blockchain refers to a decentralized ledger that records every Bitcoin transaction. And many experts see this technology as a true breakthrough. That’s because it enables people to complete transactions instantly without paying fees to third parties.
It’s not a surprise that large companies are also accepting or investing in Bitcoin. Ironically, some people think this development is too innovative for the good of Bitcoin. As such, they believe it will be another blueprint for future innovation in the financial sector. On the other hand, some people hold the view that this digital currency is here to stay. Thus, the earlier people accept it, the better.
Bitcoin as the Hedge
Some people think Bitcoin compares to gold. As such, they see it as the haven for storing value during troubled times. To them, Bitcoin is more than a speculation realm. Since monetary policies do not affect Bitcoin, people can use it to store value when governments issue unfriendly regulations. Similarly, people can keep monetary value in Bitcoin during the economic or financial crisis. Bitcoin is almost immune to stock market changes and can, therefore, protect investors during a crash.
Final Thoughts
Whether to invest your hard-earned money in Bitcoin or not is up to you. Unlike traditional or conventional assets, Bitcoin is immune to the effects of monetary policies, break-ins, and fires. Criminals can’t ask you to surrender your Bitcoin on the street. However, criminals can hack into your Bitcoin wallet or exchange and steal your Bitcoin. Therefore, exercise caution if you opt to invest in Bitcoin.
Bitcoin stock photo by Nana Boliyani/Shutterstock
