Ever since people have discovered using things as money, from seashells, pearls, to bottle caps. The system has evolved through time, as well as the technology of having printed paper bills and metal coins in order to buy something or use it for trade.
Even so, the rarity, durability and divisibility of gold made it one of the oldest forms of money that people settled on up until now. The magnificent characteristics of gold made it useful for keeping and exchanging assets with anyone in the world.
Bitcoin is often being compared to gold. it has similar features like having a limited supply, and its divisibility as you can divide one bitcoin to many pieces. The durability of it makes the system’s job easier by tracking the allocation of the coins to make sure that everything is complete.
Aside from that, it is very convenient and easy to send bitcoin to anyone, as it is almost just like sending emails to people. It is also easy to determine if the bitcoin is fake as you cannot transact with fake bitcoin. The security of the system allows people to do transactions in everyday life in a fast and secure way.
💰 Cryptocurrencies: What is bitcoin?
Bitcoin, which was launched in 2009, is the modern version of gold.
It is a type of digital money that you can store, exchange and make transactions with.
It is an opt-in currency that is monitored and controlled by its users who voluntarily agreed with the bitcoin protocols. This is unlike the national currencies that use centralized currency that is issued by banks.
Bitcoins use a decentralized system to buy, transfer or exchange. It does this while storing the value independently without the intrusion of the government or any institution.
Everyone is allowed to use bitcoin or other cryptocurrencies as it does not have a head, making it safe from corruption and other anomalies. The success and evolution of bitcoin is determined by many, from miners and nodes, to exchanges, wallet providers, and most importantly the people who have control with bitcoins.
🤔 Why do people buy bitcoin?
People buy bitcoin because of its value.
It provides low-cost means of transferring money over the internet with a clear set of rules. Together with the other digital currencies, bitcoins have been labeled as an efficient alternative to fiat money.
Bitcoin also promotes honesty. It allows the holders to have more control on their finances by keeping their money secured in the bitcoin wallet. This is completely different from the banking system that lends your hard earned money to other people.
The convenience of using bitcoins for transactions makes it popular as it does not require permission to own one as long as you will follow the protocols. Also, Bitcoin having limited pieces makes it safe from inflation that measures the reduction in your purchasing power that will result in bankruptcy. You won’t notice the difference as it happens very slowly.
Furthermore, cryptocurrencies are already making a huge impact in society by allowing low income people to access a financial system. In the near future, low income people will be able to do their banking using the crypto system with ease. If you may not know, the traditional banking system has failed a lot as some of them do not allow poor people to have access to banking and are rejected easily.
The crypto system guarantees to have lower fixed cost. This makes it available for everyone, creating an inclusive environment in the system. It will enable everyone to experience and have the benefits of having their own savings that will cause a significant change in their lives.
🧐 Is it too late to buy bitcoin?
Professionals still believe that the future ahead for cryptocurrencies is bright and flourishing. A lot of businesses are now accepting bitcoins as payments. some traders use various strategies to boost the trade volume of different cryptocurrencies like bitcoin. It has earned enough popularity and become a huge name so most likely, it will stay relevant on its path.
Despite some dips, Bitcoin’s adoption rate has been growing constantly. The year 2020 saw an incredible increase in the amount of wallets holding Bitcoins.
Only 21 million bitcoins are available for mining. around 18.5 million have already been mined, leaving less than three million in the circulation. In fact, only a small part of investors are planning to sell their bitcoins.
Meaning, many people are looking forward to long-term investment. Experts also believe that bitcoin can withstand the change as mainstream organizations have been continuously integrating bitcoin into their businesses. As we can see, even with the ongoing pandemic crisis, the value and growth of bitcoin is still steady. So the answer is no, it is not too late to buy and invest in bitcoins.
🧠 What to know before you invest in Bitcoin
Investing is great. However, having no knowledge about it will make it hard for you to understand the system which may lead to other problems.
So first, you should ask yourself why you are investing in cryptocurrency. What is your goal, and what are your plans? Thinking about this will provide you with a clear set of your goals and objectives that will lead the start of your investment. Get into the game of the industry by doing research and reading other people’s blogs about cryptocurrency to get to know the system better, allowing you to have and scan the overview.
You can also read cryptocurrency white papers and join cryptocurrency expert’s online communities to get to know about their first-hand experiences in the industry and why they came up with the idea of investing.
Just always remember that timing is key and you should not be afraid of taking risks.
🚀 Cryptocurrencies: Bottom Line
Cryptocurrency is a game changer in today’s world. It promotes an inclusive environment that aims to accommodate everyone. Also, it gives more people access to safe financial keeping and investment. It also provides low cost fees to make it affordable and convenient.
Bitcoin targets to create a significant change in the industry with its value. Providing a centralized and clean system to help more people rise even in this time of crisis.
❓ You Might Ask
- Is it the right time to buy Bitcoin?
It depends. In investing for cryptocurrencies, you do not only need to know about the basic aspects of internet surfing. In fact, you also need when and where to take risks. You’ll need quite an amount of money to invest with if you want your money to grow. There is always the instance where Bitcoin’s value may stagnate instead of grow.
- How much would I have if I invested $1000 in Bitcoin a year ago?
If you’ve invested $1000 on Bitcoin in late March 23, 2020, you would have at least $8816. That’s an 881.6% increase, which is colossal!
- How much will $100 in bitcoin be worth in 5 years?
If the same circumstances were given to the next five years as to what happened 5 years ago up until now, then $100 in bitcoin would become $13915! That’s a 139.15% increase, which can buy a lot of things that one would want.
