Bitcoin has been a bit of a buzzword recently, but it has actually been around since 2009. Over a decade ago when Bitcoin was first introduced, the price of one Bitcoin was less than US$1. But today, Bitcoin is worth around US$13,000, and that’s not the highest price point it has reached. There aren’t very many assets available these days with as much potential for growth as this booming cryptocurrency. If you’ve heard a lot of good things and are considering investing in Bitcoin for yourself, here are some of the best reasons to take the plunge.
You Can Start Small
Although the price of big cryptocurrencies such as Bitcoin reaches tens of thousands of dollars, the good news is that you do not have to make a large investment in order to get your hands on some. You can invest any amount of fiat currency in most cryptocurrencies. Bitcoin is divisible, meaning that you can easily purchase a small fraction of the coin rather than the whole thing. You could even buy a 100,000,000th of Bitcoin which costs roughly around $10USD. This makes it an ideal option for those who are just getting started and want to test the waters with little risk at the beginning. You can start out with a sum that you are comfortable with and then invest more as your knowledge and experience grows.
Cryptocurrency is Growing
According to Forbes, by 2030, Bitcoin is expected to reach a value of $500,000, giving it a price boost of 5000%. Although there are many reasons to doubt that it might grow that much in less than a decade from now, even the more cautious and skeptical financial analysts can’t deny that Bitcoin’s growth is on an upward trend. Cryptocurrency in general is getting bigger and bigger as more people start to invest in these digital currencies, and it becomes more widespread. If you purchase Bitcoin now, you can expect potential returns in the upcoming years for sure.
For more information on getting started, check out this article on how to buy Bitcoin from Wealthsimple. Wealthsimple offers a huge range of useful advice on various different types of investments. They will talk you through all the basics of getting started with buying Bitcoin including choosing a Bitcoin exchange, how to store your cryptocurrency and more.
Anyone Can Invest
Just a few years ago, only people who were seriously technologically savvy could invest in cryptocurrency. Back then, you had to know how to program to launch a crypto wallet, but the good news is that today, all you need to know is how to use a website and make online payments. The entry barriers for purchasing cryptocurrency are changing and getting lower, meaning that just about anybody is able to purchase digital coins as long as they have access to the internet and a suitable device. To purchase Bitcoin, all you need to do is sign up for a reputable cryptocurrency exchange where you can purchase digital currencies for fiat currency – e.g., Canadian dollars. There are various software and cloud options that you can use to easily transfer the Bitcoin that you purchase from the exchange into a private digital wallet.
Cryptocurrency is decentralized, meaning that it’s physically impossible to take away your digital property. This is in contrast to banks and many other financial institutions, which actually control your cash. Although this doesn’t happen often, the contract that you sign when you open a bank account gives the bank the right to decline service if they see fit. On the other hand, cryptocurrency is a great alternative, since you know that there is no possible situation where you may not be able to access or use it in some way. It provides you with an independent portfolio that does not have any connections to traditional finance.
Liquidity is that factor that determines how easy it is to purchase or sell a specific asset. High liquidity means that you can make transactions in mere seconds, while low liquidity often means that it takes longer while you wait for the demand to match up with your offer. The good news is that the liquidity of a cryptocurrency is high; you can easily trade on online exchanges and in mobile wallets, managing dynamic portfolios quickly. And, unlike traditional stock markets, the crypto market is open around the clock, giving you more freedom when it comes to the times that you would like to trade.
Opening a cryptocurrency wallet creates an ID in the blockchain. Your account will contain a private and public key, which act as your cryptocurrency credentials. And they are highly private since they are not connected to your ID in real life, especially if you decide to trade a privacy coin. Although public networks will display all transactions openly, this shouldn’t be an issue in terms of privacy since only certain details are displayed that will never include real-world personal information. Although the majority of cryptocurrency exchanges will request that you provide them with a copy of your photographic ID to verify your identity for anti-money laundering and counter-terrorism financing purposes before signing up for the exchange, you can be sure that this information will be kept secure if you opt for a reputable exchange with strong security. And, if you are concerned about giving any of your private information away at all, there are options that you can use to purchase Bitcoin completely anonymously, including some Bitcoin ATMs and paying in cash at peer-to-peer exchanges.
Paper Currency is Becoming Obsolete
Already, we are seeing people move away from paper currency and preferring to choose digital payment options like contactless cards and online payments when making purchases. Over the past year, cashless payments have become even more important for businesses and customers as part of measures to slow the spread of the COVID-19 global pandemic. With the advent of money becoming mostly digital, it is likely that we do not have much time left before paper currency becomes completely obsolete, or incredibly rare. Some experts suggest that after that, the next step would involve getting rid of physical money forms altogether and transition into a 100% digital currency, which cryptocurrency is the first iteration of.
It’s More Secure
Along with adding more privacy, cryptocurrency can also be a more secure option for making transactions online. Data breaches and data thefts are becoming more and more commonplace in the news these days, and cybersecurity is one of the biggest flaws in a world that is becoming more and more reliant on cashless systems and online transactions. However, cryptocurrency might be the answer that we need. Since the whole system is based on cryptographic security, it means that instead of relying on banks and human IT professionals to secure your banking details and cash, cryptocurrency relies on math and science. Blockchain is a list of records called blocks, which are continuously growing, and connected and secured using cryptography in order to achieve this. It relies on a proof of work system where transactions are set and unchangeable once they are confirmed in the blockchain, which prevents transactions from being forged. In addition, another layer of security is added since everybody across the network is notified when a transaction is completed. Finally, another factor that makes this system more secure is that individual coin funds are stored in a public key cryptography system, where only the owner of the private key is able to send cryptocurrency.
It Might Be Too Late Sooner Than You Think
Until now, the cryptocurrency industry has lacked transparent regulation. As a result, this has acted as a deterrent for institutional investors who require a clear legal framework to go ahead since they operate with large amounts of money that require clear legislation and government guidelines. However, with cryptocurrency becoming more and more popular, governments around the world are beginning to create the recommended regulatory frameworks and legislations. And, once there are concrete laws in place regarding cryptocurrency, these large investors are likely to join the game, causing the prices of many cryptocurrencies to skyrocket. For those who have already bought into cryptocurrencies such as Bitcoin, it’s going to result in huge returns. However, if you haven’t already invested in Bitcoin or other cryptocurrencies since then, you might find that it makes it much harder for you to get started.
Cryptocurrency is seeing more popularity than ever before, and many predict that eventually, it might be the main form of currency for people around the world. There would be several benefits to this including added security and a lower risk of inflation since cryptocurrency is a global currency that does not depend on government policy and many investors believe that compared with fiat currencies, it has a lower falling risk.
Whether you’re an experienced investor looking to diversify your portfolio with Bitcoin or are considering investing for the first time and are interested in cryptocurrencies, there are definitely plenty of reasons to take your chance now.