As of 27thApril 2018, one Bitcoin is worth at least $8300. In its short history, this digital currency has seen its fair share of fluctuations. Many have seen their Bitcoin investment soar in value. Some of the lucky people from as low as $1. Many are now asking whether it is time to make a Bitcoin investment.
The following are 5 compelling reasons for making a Bitcoin investment
The global economy is quite volatile. A collapse in a major world currency is all it takes to damage the economy of other nations. A good example is the global economic crunch of 2008. What most people don’t realize is that debt has increased drastically since 2008. This means another collapse is likely looming. Bitcoin is not connected to the fiat currency and this makes it largely immune from such a collapse. This is a good time to diversify your investments to help mitigate against losing everything if the global economy collapses again.
Need for cashless transactions
Developed countries are trying to replace paper fiat money with plastic and electronic money. Even developing countries are moving to mobile money as opposed to using cash. As this trend continues, Bitcoin will be ideally placed in meeting the demand for a new form of digital payment. Any attempts at replacing cash transactions will increase the demand for Bitcoin. This is turn will make a Bitcoin investment even more compelling.
The linking of the Bitcoin blockchain to the sidechains will make it easier for the execution of smarter contracts, than those offered by Ethereum. A sidechain is a mechanism that allows digital assets in a blockchain to be securely used by another blockchain. Most merchants who accept Bitcoin will love the addition of smart contracts that are smarter than the ones offered by other digital currencies. This development will therefore likely cause the value of Bitcoin to appreciate.
The initial resistance that governments and companies had towards Bitcoin is slowly fading. There is generally a wider acceptance of digital currencies than previously. People are finding all sorts of uses of Bitcoin including buying property, moving funds and even processing business payments. Bitcoin is slowly becoming a defacto medium of exchange.
Amidst all the misinformation that often abounds, the demand for Bitcoin continues to rise steadily. Interestingly, this demand is also growing steadily in developing countries. Bitcoin has carved out a niche as an alternative to FIAT and a good reason to make a Bitcoin investment.
It is always a good idea to study the trends of anything you are investing in. The Bitcoin investment trend reveals a currency has been on the rise from inception. The same analysts who predicted the incredible rise of Bitcoin in 2017 now believe it will reach the $100,000 mark in 2018. If this is true, then the time to invest in Bitcoin is now.