As most would be aware by now, bitcoin is a cryptocurrency and a digital payment system that is increasingly being accepted by merchants and vendors worldwide. Apart from the stratospheric price gain (to the extent of 400 percent previously in a single year), there are many other reasons that make the case for investing in bitcoins. Supporters of bitcoin articulate that it is the currency of the future and thus will only increase in valuation, helped to a big extent by the increasing trend of using digital currency in developing countries with large populations, primarily India and China. We elaborate about the pros associated with investing in bitcoins.
Low historical volatility
Since the bitcoin network came into existence in the year 2009, the value of bitcoins has for major part only increased with each passing year. High volatility, as is the case with many other investment modes, notably equities, has never been the issue with bitcoins. This is majorly due to the bitcoin network being free from people or organisations with ulterior motives. Since the price of bitcoins is determined purely by market forces (demand and supply in laymen terms ), bitcoins do not suffer from high volatility.
Profit making opportunity
Many people around the world now see bitcoins as a huge profit making opportunity. These people include the who’s who of the global financial sector. Moreover, when global financial behemoths are bullish on bitcoins, it’s sure to create a ripple effect that will result in more and more people investing in bitcoins. This unprecedented demand for bitcoins will further drive their valuation upwards. Another interesting fact to note here is that the number of influential individuals or organisations bullish on bitcoins is consistently increasing. People who invest in bitcoins now have an opportunity to make profits that are simply unheard of in the financial sector.
Bullish on bitcoins
As mentioned above, many global financial firms are very bullish on bitcoins and predict them to be the currency of future. Predictions for bitcoins are,
- By 2022, the value of 1 bitcoin would be 25000 U.S $, up from around 8100 $ today, an exponential increase
- Bitcoins will enjoy global acceptance as a digital currency and payment platform, with most merchants and vendors accepting it in the near future
- Owing to the market cap of cryptocurrency growing to an estimated 147.4 billion $, large institutional investors have also begun to accept bitcoins as an investment option, further driving their growth
- Many investors wanting to diversify their portfolio are investing in bitcoins. This trend is expected to increase further in the coming years
Predictions above clearly indicate the future is pretty bullish for bitcoins. Simply put, bitcoins today are the most feasible investment, certain to give high returns in the coming years. Invest as soon as possible