Bitcoin is a virtual currency which was initiated in 2009. It is decentralized and is not under the umbrella of any government or banking systems. With bitcoins, users have the option to conduct financial dealing which attract fees that are lower than the customary online payment methods.
Bitcoins users will find that this digital currency helpful in that it can facilitate financial transactions with nominal fees. Whether you are a regular user or new user and you’re thinking of investing in Bitcoins, you can still buy or sell Bitcoin cash from recognized exchanges.
A major advantage of conducting financial transactions with Bitcoins is that you are able to convert them into several other fiat currencies. Companies like Rubix provide an easy method whereby users can convert bitcoins into fiat currency and vice versa. You can use bitcoins to pay for goods bought from merchants, which gives credibility to the belief that this currency will become one of the major currencies used in the near future.
Let’s look the four benefits of investing in Bitcoins
When bitcoins were initially introduced to users as a digital currency the intent was that it could be used for monetary transactions, but would incur marginal fees in comparison to other types of online payment options. This however, has changed because as the market expand, it became known that there were several other uses for bitcoins.
- Bitcoins uses a blockchain technology that enable digital transactions, whereby every transaction is logged and kept for the purpose of verification so that they can be processed more based on their legitimacy. Every transaction is public record and can be viewed online thru the Blockchain website.
- Bitcoins other uses consist of digital trading of securities, insurance claims, land titles, settlement between financial institutions, document stamping, auditing, crowdfunding, customer rewards, and much more.
These Bitcoin uses are still in the primary phases of development, and will become mainstream in time. However, if one of these is successful, that will be enough to revolutionize the industry and its value will increase quickly. This means therefore that investing in BTC is a forward way of thinking and making good returns along with the benefits of easy digital transaction at minimal cost. Read https://en.m.wikipedia.org/wiki/Bitcoin_Cash for more information.
Gains vs Losses
Any possible profits in BTC will outweigh the possible losses, because some crypto-analysts are suggesting that bitcoin could eventually become an international currency in future years. What are the expectations if this really happens?
Well, it will promote global trade and according to the economics, there will be a 20,000 increase in its value. Theoretically, making each $1 value of the current BTC price, worth $20,000 over time. This however, will only become a reality if bitcoin was accepted as legal tender for trade both internationally and locally.
This is a prediction by experts who think that for every $1 purchase in bitcoins, you can receive $200 returns on your investment. Although this is only a prediction, it is still a risky investment because bitcoin is decentralized. However, its not impossible to reap these types of gain since the rewards are likely to be greater in commodities tradeoffs.
Offers Interest on Your Investment
Think Bitcoin cash, think commodity money; consequently, in holding your bitcoins you have the opportunity to invest them similar to how you use fiat money to invest in any business. Also, you can gain interest on this investment like you would with fiat money. The bottom line is, when you hold your bitcoin, you can invest them and earn interest on them as well. Furthermore, as time goes by you can benefit from increased prices on your investment.
Bitcoin trading is easy. Making a profit does not require long-term investment. You can generate short-term profit, but this will depend on the amount of funds that is being circulated within the bitcoin network. This being the case, you can invest in bitcoins and use the interest to make your day-to-day purchases such as buying groceries. This allows you direct access to your money to take care of any financial transaction you may have. All this is possible even though you invested your money.
In conclusion, it is prudent to buy Bitcoins since there is the possibility that its value and popularity will increase in the near future. Is it sensible to keep your eye on the progress of bitcoin as a good investment prospect? What do you think?