Did you know that 15% of Americans investing in Bitcoin and other cryptocurrencies say that their investments have done better than they expected?
Bitcoin, like stocks, is a very volatile investment, but that doesn’t mean it’s a bad one.
Of those that invest in Bitcoin, some choose to go the short-term route to make quick cash and others keep their investment long-term to generate wealth.
Is investing in Bitcoin right for you? Keep reading to learn the common reasons people invest to help you decide.
1. No Third Parties
Because Bitcoin operates as a virtual currency platform, there aren’t any third parties involved. This means it’s increasingly difficult to tamper with Bitcoins.
The Bitcoin database stores every copy of a transaction that an investor is making online. Still, there is no tracking of the individuals involved.
If you use Bitcoin and own a cryptocurrency wallet, the wallet details cannot be tracked by anyone else. The number of Bitcoins you own and the transaction times are hidden.
There is an exception to the rule. If the wallet user discloses the wallet address, tracking occurs.
2. Flexibility
For traditional investment products, transferring funds or investing money is a cumbersome process. There is generally a lot of paperwork required, like proof of address, pan card, photos, and more.
When you invest in Bitcoin, there is no paperwork like this involved. Bitcoin users must create a wallet and address. There is no limit to how many addresses you can have.
3. Accessibility
Bitcoin is accessible to the masses and can be transacted using online cryptocurrency exchanges. Using an exchange is the easiest way to use and transact Bitcoin and other cryptocurrencies.
Through these exchanges, you can also sell and buy Bitcoin. Simply connect your bank account to the exchange to add money to your profile to buy cryptocurrencies.
If you make a profit or want to sell crypto before you lose money, you can easily sell your coins through the exchange. Once the transaction goes through, you can send the cash back to your bank account.
4. Advanced Technology
Bitcoin was developed with blockchain technology to eliminate the need for a middleman for transactions.
Blockchain users can make transactions with other users safely without involving central authorities and traditional banks. Because the transactions are apparel, users are able to bypass unnecessary bank fees and delays.
5. Future Growth
Advanced technologies are disrupting the traditional marketplace. The digitalization of money is expanding rapidly, so much so that businesses are accepting Bitcoin as payments.
Experts are predicting that the value of Bitcoin could reach over $100,000 in 2023. Learn more now about future predictions.
There are even a few international banks that have considered accepting Bitcoin. In Japan, for example, using Bitcoin in exchange for goods and services is widespread.
Should You Invest in Bitcoin?
When you invest in Bitcoin, you are using advanced technology that may grow in the future. Already, businesses around the world are accepting digital coins as payments for goods and services.
Anyone can access Bitcoin through an exchange and these exchanges are flexible in use. None are run by third parties.
Investing in Bitcoin comes with all of these benefits, but it’s not right for everyone. It’s up to you to decide if you want to add crypto to your investment portfolio.
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