Benefits of Investing in Bitcoin
There is a lot of hype going around Bitcoin at the moment. People are wondering if Bitcoin is worth investing in or not, and then there are those that consider Bitcoin to be a scam. Bitcoin might look like many other investments, but it has some features others have never been able to replicate. One of those main features being its decentralized nature.
Bitcoin was created as a response to the financial crash of 2008 as an alternative investment opportunity with transparency and decentralization as one of its main benefits. Bitcoin prices have been climbing lately due to how volatile they can be—which means people should invest now while it’s still low so they get higher returns once the Bitcoin Revolution becomes even more popular than it already is today.
Bitcoin might seem intimidating because it’s so different from what we are used to, but Bitcoin is actually quite simple. Bitcoin prices don’t depend on any intermediary party. There aren’t any banks or governments controlling Bitcoin. Bitcoin is transferred directly from person to person, which makes it easy for anyone who knows how cryptocurrency works (meaning they know about Bitcoin) to transfer money around the world without involving expensive middlemen like banks and PayPal.
Bitcoin also helps people when they need extra protection against financial instability in their country that might devalue the currency or make transferring money difficult; Bitcoin is unaffected by that because it isn’t tied down by any one government. Bitcoin is not limited in supply like physical fiat currencies like dollars, yen, euros, etc.; there will only ever be 21 million Bitcoin ever created.
The Bitcoin market is growing exponentially right now after Bitcoin has had a fantastic year of 2016. Bitcoin had climbed to $1,000 per Bitcoin in January and then went up more and reached nearly $900 by September (before dropping down again). Bitcoin’s price has been climbing over the years and experts predict that Bitcoin will be worth about $5,000 by 2020.
During this time Bitcoin will be gaining mainstream adoption worldwide; people will start using Bitcoin more for daily purchases like they do with fiat currencies today. As Bitcoin gets higher value, it becomes easier to invest in because you can get more Bitcoin for your dollar than before when Bitcoin was cheaper. People have been buying things with Bitcoin for years now, but Bitcoin is just starting to get the attention it deserves.
Many Bitcoin exchanges exist where people can buy Bitcoin from other users or even from Bitcoin ATMs around the world. Bitcoin has been growing in popularity over the last few years, so more and more Bitcoin exchanges have been popping up everywhere. This has led to increased investment opportunities for people all around the world because Bitcoin is not region-specific. Anyone with an internet connection (like that of a smartphone) can invest in Bitcoin if they know how to do it—which means everyone can benefit even if your country doesn’t recognize Bitcoin at all yet!
How To Invest In Bitcoin
The easiest way for anyone to invest in Bitcoin is by creating an account on Coinbase. Coinbase allows you to deposit fiat currency (like dollars or euros) or Bitcoin into the account and buy Bitcoin. Bitcoin prices do vary depending on which Bitcoin exchange you use, but it’s easy to find one that fits your needs—and usually, Bitcoin exchanges list Bitcoin on their platform alongside traditional currencies like USD and EUR.
You can also invest in Bitcoin by purchasing Bitcoin itself at your local bank or credit union. Most banks and credit unions that operate online allow you to purchase Bitcoin—it just depends on where you live and how big the Bitcoin community is in your location. Purchasing Bitcoin from a third-party site does come with many benefits; those include lower fees, more payment options, and of course increased convenience as long as you trust whoever you’re buying it from (which shouldn’t be a problem as Bitcoin is safe and secure).
Another way to invest in Bitcoin is through Bitcoin mining. Bitcoin mining is essentially the process of confirming Bitcoin transactions that occur all over the Bitcoin network. Whenever a Bitcoin transaction occurs, it needs to be confirmed by the entire Bitcoin community which means that any computer on the Bitcoin network tries to solve a difficult cryptography problem—and whoever solves it first gets rewarded with free Bitcoin! Since Bitcoin doesn’t have any central authority controlling it, every single computer connected to the Bitcoin network has an equal say as everyone else. This makes Bitcoin very democratic as no one person can control their own money on the Bitcoin platform—it all depends on who has more computing power, which means you need enough computers or other.