For starters, a bitcoin is a cryptocurrency or a form of digital money that was introduced in 2008. No one really knows who invented this program, but a certain Satoshi Nakamoto is believed to be the programmer behind this revolutionary currency. In 2009, bitcoin was launched as an open-source software, which means anyone can use it for whatever purpose one has. People produce the bitcoins, but no one is actually controlling the system.
Bitcoin is also used as an electronic payment system. Unlike PayPal and Payza that have fixed values on a daily basis and transfer fees, the value of bitcoin fluctuates every now and then within a day, giving you a much better price without spending so much on money transfer charges.
As I checked the Bitcoin Price Index in CoinDesk, the price of one bitcoin in US dollars was at $912.68. After a few days, it went up to $1167.97. There will be times when the prices go down, but the changes happen within a short period of time. CoinDesk also provides prices in other currencies, including Chinese Yuan, Euros, and British Pounds.
Because of its volatility, internet marketers consider bitcoin as an ideal investment for 2017. But aside from its fluctuations, here are five more factors that will definitely make you want to invest in bitcoins this year.
Significant rise in bitcoin value
Considering that the value of bitcoins usually fluctuates so many times in one day, it is already a strong indication that the value will continue to increase significantly. But as what I previously said, bitcoins also decrease in value, so there is no guarantee as to when the continuous rise is going to happen. As such, bitcoins isn’t ideal for investors who wish to get their returns immediately. They work well on medium- and long-term investments.
“So if you’re a business that’s paying employees or paying suppliers in Bitcoin, you may not own a lot of Bitcoin, but you’re going to own some of it,” said Barry, Digital Currency Group CEO and founder.
“As people want to move money around the world, they’re going to be moving in and out of bitcoin quickly but they’re still going to own it for some period of time… the size of that working capital requirement will grow as the global economy grows.”
Increase of bitcoin users
Apart from the possibilities of significant increase, bitcoins have also attracted a number of users since its inception. Apparently, they work effectively well in countries where currencies are highly volatile like Argentina and Brazil. Not only that, nations such as Indonesia, Philippines, and Russia, where banking and credit card systems have not grown outstandingly, but people currently own and use smartphones to purchase bitcoins, are using this digital currency for practical reasons, including online payments, micro-transaction, and remittances.
Furthermore, Xapo CEO Wences Casares revealed in a Forbes articles that bitcoin users based in the US and other first world countries use bitcoins as investments and not in any form of online transactions. However, users in emerging countries buy bitcoins to transact online payments most of the time.
“The customers we have in emerging markets use Bitcoin almost exclusively for payments, and they are high, high volume transactors,” Casares said. “They are using the debit card six times a week.”
Easy to use and obtain; Cheap transaction fees
Perhaps, one of the best things about bitcoins is that you can use this currency to purchase items without revealing your identity. In addition to that, you can make international payments conveniently and at cheap transaction prices due to the fact that bitcoins are not regulated by any anyone or any country. You don’t have to pay for credit card fees as well.
People invest in bitcoins because their value isn’t fixed, and they can go as high as $1,000 per bitcoin. If you want to
invest in bitcoins, then you need to buy, at least, one bitcoin first. Don’t worry. Obtaining bitcoins is as easy as how you use them. You can purchase the currency through different methods. You can use PayPal for the transaction or use your own bank to make the purchase.
Another way to obtain bitcoins is mining or participating in competitions to earn the currency. In this setup, people solve math puzzles, and when they get the correct answers, they receive 25 bitcoins. Sounds easy, right? Don’t get too excited just yet. These math problems are complex and require deep analysis, so you better get those math juices out competition is also high. Don’t expect to win the bitcoins easily. And according to CNN Money, the process of mining is how bitcoins are made.
Mobility and security
In simplest terms, it is fast, simple and straightforward to send and receive bitcoins, whatever currency you use. You can do transactions using a computer, smartphone, or a tablet. And although there is no regulating body that manages the system, the transaction security in bitcoins is extremely high. As a matter of fact, a decentralized network, which is a fraud-proof at the same time, is supporting and protecting the program from any form of scam and fraudulence.
“And this is exactly why the financial market itself can no longer look away and disregard Bitcoin, based on the performance that this cryptocurrency has presented,” said Diogo Costa, one of the authors in Tech.Co. “This is so true that there already exist funds created specifically for those who want to invest in bitcoins, such as GBTC.”
Government’s positive outlook on bitcoins
Despite having no official regulators, government bodies, in the US for example, don’t try to interfere with the bitcoin operations. And the good news is that the government is positive and actively supporting the usage of cryptocurrency. Moreover, companies that buy and sell bitcoins are funded well and have a legal team, which deals with any type issue related to bitcoins.
“It doesn’t mean it will be a clear and easy road, but I’m cautiously optimistic given that the more developed financial markets all seem to be embracing the technology,” Silbert said.
I have been earning online and doing some investments since 2013 – that’s almost four years – and I knew nothing about Bitcoins until it was introduced to me in 2015. My clients used to send their payments through PayPal, but a lot was being taken by PayPal as fees.
With bitcoins, I easily receive my pay, and I can transfer and get my money within the day. That’s how easy and fast bitcoins are. The value is also much better, and I don’t pay much for the transaction fees. Need I say more? If you still have second thoughts about investing in bitcoins, then you can try and find out for yourself.