If you’ve been observant, you’ll notice that digital currencies have been taking the world by storm in the last couple of years. It is not a coincidence that there have been calls for regulation of the industry as it is becoming mainstream. You might be thinking about diversifying your portfolio and you’re currently looking at other investment alternatives. Despite the volatility, investing in bitcoin could still be seen as a good idea and we’re going to highlight some of the reasons.
High Adoption Rate
Compared to other cryptocurrencies, bitcoin has the highest adoption rate. The founder was clear about what he wanted bitcoin to achieve. Even though we’re still a long way from bitcoin being accepted as a currency, the foundation has been set. The underlying technology behind cryptocurrency is what has fascinated financial institutions. There has been a rise in the use of bitcoin as a currency and the trend is likely to continue as other countries start adopting it.
Decentralized Payment System
This is one of the main reasons why bitcoin has been gaining momentum in the last couple of years. You’re completely in control of the transactions that you make. There are no banks or middle parties involved when you’re sending or receiving money. You’re provided with a wallet where you instantly deposit or withdraw money 24/7 without the transactions going through different approval processes. You can trade in the crypto market without having to ask for permission. You’re not likely to get such a level of transparency with traditional currencies.
There have been major developments ever since bitcoin was discovered. There have been improved security measures to ensure that the transactions are secure. Having a platform where you get all the latest crypto coin news source is imperative if you’re to be aware of what is happening in the market. One of the major innovations that came with bitcoin was the lighting network.
Even if you’re doing RTGS, it could take a couple of hours before the money reflects. With bitcoin, you’re able to send and receive money in real-time. This makes it easy to do business without having to worry about the cost and speed of transactions. Since the middle man is removed, you get what is sent to you almost instantly. The speed of the transaction is made possible using lighting networks. Banks have started trying to figure out how they can take advantage of the technology to improve the process of sending and receiving money.
It can Accommodate Institutional Investors
We’re already at a stage where there have been talks about bitcoin exchanges being regulated. With the approval of bitcoin ETF, it will open the field for institutional investors who have been making observations from outside the field. Such bitcoin-based securities are likely to be approved hence becoming attractive for big investors in the field.
There are not a lot of bitcoins out there. That means that the demand will only go up once people exhaust all the coins that are currently available. According to the founder of bitcoin, there are a total of 21 million bitcoins AND 17 million have already been mined. This means there are less than 5 million coins yet to be claimed at the time of writing. The value is likely to go up as the demand for the coin increases.
The Future is Here
As much as people are saying bitcoin is the currency of the future, there are businesses that have started adopting it as a means of making and receiving payment. You don’t need to be tech-savvy to know that bitcoin has been gaining mainstream attention in the last five years. Bitcoin has been at the forefront changing the way money and transactions are being done. By investing in bitcoin, you’ll not only be diversifying your portfolio but you get to be part of the future that is already happening. Skeptics will say the cryptocurrency is doomed to fail but the trends have been showing otherwise.
It is imperative that you’re doing research if you intend to invest in cryptocurrency. Bitcoin is known for volatility and a good investor can take advantage of such a market. Don’t just follow the news blindly. You’ll need to know how to separate the grain from the chaff so that you’re making informed decisions when it comes to trading. There are trading companies that specialize in bitcoin. You just have to make sure you’re doing the research before settling on any company.