There is no doubt that some of the richest people in the world today are bitcoin investors. Billionaires such as Richard Branson, founders of e-Bay, PayPal and Yahoo have all invested in bitcoins. Whereas financial success is determined by different factors, there is no doubt that bitcoins are slowly gaining popularity as a currency. Bitcoins have more advantages than any other currency because they are not subject to challenges such as inflation. Discussed in the article are 5 reasons why this is the best time to buy goods.
1) Interest from Institutional Investors:
A recent report by Fortune states that “Bitcoin could be on the verge of breaking through as a mainstream currency. At least that’s the goal of a startup that is soon to be launched by one of the most powerful players on Wall Street, with backing from some of America’s leading companies…
The Intercontinental Exchange—the trading colossus that owns the New York Stock Exchange and other global marketplaces—announced that it is forming a new company called Bakkt. The new venture, which is expected to launch in November, will offer a federally regulated market for Bitcoin. With the creation of Bakkt, ICE aims to transform Bitcoin into a trusted global currency with broad usage.”
2) Stability of the Price of Bitcoins
As a financial instrument, the price of bitcoins has been stable with an upward trajectory. There is increased trust in this digital currency due to its stability. Just like any other financial instrument, bitcoins have been experiencing highs and lows. The decreased volatility makes it a perfect replacement for the fiat currencies. In fact, in 2017, bitcoins were more stable than gold, Japanese Yen and even the US Stock Index. This is a strong indicator that the future of bitcoins is bright.
3) Instability of the Global Economy
At the moment, the world is facing unstable economic times. Despite this, the value of bitcoins has been on an upward trajectory. This is because bitcoins are not affected by national currencies or stock markets. In fact, the collapse of traditional investment options might be a good thing for bitcoins. The collapse of the world economy in 2008 was caused by unsustainable debt structures. This means that in the years to come, we must brace ourselves for a worse collapse because debt has increased more than it was in 2008. The more the traditional economy suffers, the better it will be for bitcoins.
4) Reduced Creation
Beginning July 2017, the amount of bitcoins being created daily was halved from 3600 coins to 1800 coins. This is a rule that activates every four years and is a fixed protocol rule. This only means that bitcoins will be more scarce in the years to come. Since there is no regulatory body tasked with controlling the creation of bitcoins, the protocols set out guide the mining process. The total number of bitcoins that will ever be produced are 21 million upon which there will be no further supply. As of December 2017, only 15.5 million bitcoins had been mined. The scarcity of bitcoins makes them a very good investment venture.
5) Historic Price Graphs are Very Tempting
The price graph of bitcoins has been on an upward trend for a very long time. During its inception in 2009, a bitcoin was worth a few cents, in December 2014, it was worth $200, in January 2017, it was worth $700 and by December 2017, it was worth $11,000. This shows an upward inclining graph. Statistical analysis point that within the next 10 years, a single bitcoin will be worth more than $100,000. This shows that bitcoins will continue to appreciate in value and this investment opportunity should not be missed.
6) There are Plans to Get Rid of Paper Currencies
There are very many organizations that want to get rid of paper money. Developed countries are gradually drifting to digital payments. This is because dealing with paper money is very inconveniencing, complicated and insecure. For instance, if you want to transfer $10,000 from China to Australia, you must involve banks. The process is very time consuming and high transaction fees are charged. Bitcoins offer a simpler, cheaper and safer method of making payments. With just the click of a button, one is able to send any amount of money to anybody anywhere on earth. The transaction fee charged is very little. This only proves that bitcoins are headed for better times.