Since 2009, Bitcoin has been in the mainstream and to date, the cryptocurrency has been gaining mainstream attention to the financial investors. With good reason, too—the price of a single bitcoin grew from under $1,000 at the beginning of 2017 to almost $20,000 by the end of the year. Finally, if you are looking to improve your trading skills at profit-builder.org, don’t think twice, start today!
In January 2018, though, Bitcoin crashed and lost over half its value within days. While it has since recovered from this dip and reached new highs, if you invested in Bitcoin when it was on top you probably feel pretty nervous about whether or not your investment will pan out as planned.
Why Bitcoin Is A Good Investment Despite Its Volatility
- The #1 Cryptocurrency Is Here to Stay
Bitcoin is the original cryptocurrency, and it has the longest track record of success. It is the most widely-accepted cryptocurrency, with millions of merchants worldwide now accepting it. Moreover, Bitcoin is incredibly secure, with state-of-the-art cryptography protecting your coins.
Besides this, Bitcoin is private, with transactions between wallets being completely anonymous. Despite its volatility, Bitcoin has shown incredible growth since its inception in 2009, and experts believe this trend will continue.
- Adoption is Increasing Rapidly
While the volatility of Bitcoin may give some investors pause, it’s important to remember that adoption is increasing rapidly. According to a recent report by PwC, 43 percent of respondents said they would invest in cryptocurrency over the next 12 months. That’s up from just nine percent last year.
According to Harvard Business Review, Blockchain technology, which underlies most cryptocurrencies, could become one of the most important technologies for businesses over the coming years. The report goes on to say that it has huge potential as a tool for financial services companies but could also be applied more broadly across many other industries, including healthcare and retail.
- Incentives Are Built In
There are a few key reasons why bitcoin is still a good investment despite its volatility. First, the rewards for miners continue to increase as more bitcoins are mined. Second, the underlying blockchain technology is still being developed and improved upon. Third, the number of people using bitcoin continues to grow.
- No One Knows What the Future Holds
It is for sure no one can predict the future in Bitcoin investment. Even though it’s been around for a while, it’s still a relatively new technology and no one knows exactly how it will develop. That being said, there are plenty of reasons to believe that Bitcoin will continue to grow in popularity and value. Here are five of them:
- Major businesses accept Bitcoin as their preferred payment method these days, resulting in the both increasing demand and supply for the currency.
- More people are becoming aware of Bitcoin and its potential uses. As more people learn about the currency, its popularity will continue to grow.
- There are some restrictions on how many Bitcoins can be mined, which means that there will eventually be a cap on how many Bitcoins exist. The limited supply of currency should increase its value over time.
- The anonymity of Bitcoin transactions has led to a number of illegal purchases and activities, but it’s also allowed for some legal uses that wouldn’t be possible with other currencies.
- If a major financial collapse were to occur, there are few things that are more likely to survive than cryptocurrencies. In other words, it’s possible that cryptocurrencies could be used as legal tender if traditional currencies become valueless. Even if you don’t think that’s likely to happen any time soon, there’s still good reason to believe that cryptocurrency will do well over time.
While the volatility of Bitcoin can be off-putting to some investors, there are several reasons why it can still be a wise investment. For one, the cryptocurrency is still in its early stages of development, which means there is potential for substantial growth. Additionally, Bitcoin has a limited supply and increasing demand, which could lead to price appreciation.
Moreover, it is becoming more widely accepted by businesses and individuals, which could further drive up its price.