Is Bitcoin a Good Investment?
Many people who have heard about the digital currency known as bitcoins are curious as to if it is a good investment. In the world of investments there are many ways to say that a good investment opportunity is a bad one, so it can be hard to say which is best. However, in terms of a digital currency, it has some distinct qualities that make it stand out from other investments. For instance, most traditional investments like stocks and bonds have high fees that make them difficult to afford for long-term gains. With bitcoins, the fees you pay are nearly non-existent because the value increases with the volume of buying and selling.
Another thing that makes investing in bitcoins a good investment is that it is a peer-to-peer digital asset. Transactions are made between two parties, not through a central authority. Unlike paper money, the virtual money that is in circulation in the world today does not need to be backed by physical assets that can be lost or stolen. The only thing you can lose with a transaction with bitcoins is your computer’s resources. This is not true with most other forms of transactions, since there is no third party involved.
One characteristic of a good investment opportunity is that it has a high degree of volatility. Volatility is how much change can be gained or lost in a single transaction compared to the amount of change spent on buying and selling. There was a moment in time when the price of one tenth of a bitcoin was worth one billion dollars. Today, the price has increased to over seven billion dollars and continues to climb. Plus with many companies giving guidance on how to buy bitcoin it has become a relatively easy investment to make.
The reason that many investors are choosing to invest in this digital asset is because they can track it and see how it evolves with time. This ability to track changes makes it a good investment because you can use it to pick out trends. The biggest trend we see right now is for more transactions to take place on the exchanges. If this trend continues, then we will soon have something new to talk about!
It will be interesting to see what happens next. Right now, many exchanges are experimenting with different types of programs that facilitate micropayment transactions. Some countries have already begun the usage of a Bitcoin ATM, if you may have noticed. If such programs become popular, then we could see an increase in the everyday usage of this ledger. We may even see more adoption of colored coins like the emerald. Either way, we cannot ignore the potential use of the bitcoin protocol in the future.
So is the internet ready for another big investment wave? At the very least, this latest experiment in social finance looks promising. Get started today! Spend a week or two getting familiar with the technology and how you can start your own private market for cryptosurfers. Then you can get started on your own venture as a trader or a publisher.