Bitcoin has recently gone from something that only a select few people were aware of to a bit of a buzzword in the world today. Bitcoin is a cryptocurrency that has been around since 2009. When it was first introduced, the price was less than $1 per Bitcoin – today, it’s worth tens of thousands of dollars, and the current price point is expected to grow even further. The rise of Bitcoin has also paved the way for several different cryptocurrencies in the market from Ethereum to Dogecoin. Today, Bitcoin has become an asset with a huge potential for growth and it’s no surprise that an increasing number of people are investing in it. Here are some of the most compelling reasons to invest in Bitcoin.
Despite the price of Bitcoin reaching a high, and it’s expected to grow further, the good news is that you don’t have to buy one Bitcoin for tens of thousands of dollars unless you want to. You can purchase a small fraction of a Bitcoin for just a few dollars when starting out if you want to get used to the idea of investing in cryptocurrency without risking too much money. This has made Bitcoin and other cryptocurrencies more accessible to everybody – you can easily start out by investing in an amount that you’re comfortable with and work your way up to investing more as you learn.
While Bitcoin ETFs were blocked on the grounds that the Bitcoin market is easy to manipulate and that some exchanges are unregulated, the good news is that there are similar products to consider if you are interested in a Bitcoin ETF. Closed-end funds are the most popular option, such as ‘The Bitcoin Fund’ by 3iQ which is listed on the Toronto Stock Exchange. The main difference between this fund and a Bitcoin ETF is that the fund represents shares in a pool of money that is actively investing in Bitcoin, while on the other hand, a Bitcoin ETF would be Bitcoin that is owned by the ETF. This Wealthsimple Bitcoin ETF information page has more advice and facts if you are interested in learning more about why Bitcoin ETFs have been blocked and the similar products available. Wealthsimple also offers advice, tips and guides to help you get started with investing in Bitcoin.
The Growth of Cryptocurrency
By 2030, Forbes estimates that Bitcoin is expected to reach a value of $500k, which will boost its price by a massive 5000%. While there are several reasons why some experts doubt that Bitcoin will grow by so much over the next decade, even the more sceptical analysts will agree that the growth of Bitcoin is on an upward trajectory. With more and more people interested in investing in digital currencies, the growth of crypto in general in on the rise, and there are more options available to choose from. Those who invest in Bitcoin right now can be almost sure of a return on their investment in the future.
Open to Anyone
Back when it was first introduced, it was only really possible for the most tech-savvy of people to make money from investing in Bitcoin. In the early days, to invest in Bitcoin you would have had to learn how to program your own crypto wallet. But all that has changed, and Bitcoin is now open to everybody – regardless of your technological expertise. All you need to know is how to use a website or app, with various user-friendly options that anybody can use with just a few clicks. Just about anybody can get started with investing in Bitcoin as long as you have a reliable internet connection and a suitable connected device. All you need to do is join a reputable and trustworthy cryptocurrency exchange that offers the option to purchase Bitcoin and other cryptocurrencies for fiat currency such as dollars.
The Downfall of Cash
Many experts believe that paper currency is going to be obsolete sooner than we think. Already, the past year with the COVID-19 pandemic has led to more and more people making digital payments in order to reduce the risk of disease spreading through cash notes that have been handled by different people. Cashless payments have become a more and more important part of life for both businesses and consumers, with options like contactless cards and smartphone payment wallets becoming mainstream. Since money is rapidly moving to a digital form, it’s not surprising for many to hear that we might not have that much time left until cash becomes completely obsolete or incredibly rare. The next step after replacing cash with digital payment options may well be a transition to 100% digital currencies.
Since cryptocurrency is decentralised, it’s impossible for anybody to take away your digital property – unlike fiat currencies, which are controlled by banks and other financial institutions. While it might not happen very often, if you have ever opened a bank account, you will have signed a contract to agree that the bank is able to decline service for any reason that they might see fit. Cryptocurrency is an ideal alternative, since there are no situations possible where you might end up being unable to access your funds or blocked from using them.
While they are not yet as mainstream as card and cash payments, more and more businesses are beginning to open their doors to customers who want to pay using cryptocurrencies. In Canada and around the world, there’s a growing number of businesses that are allowing consumers to make payments directly with cryptocurrency, suggesting that the transition to a world where cryptocurrency is the main payment method for the goods and services that we all need is not as far away as you might imagine.
Cryptocurrency is a very secure option for making online transactions due to the fact that you can often remain completely anonymous when making a payment in Bitcoin or another cryptocurrency. Today, data breaches and theft of consumer data is on the rise, and cybersecurity is struggling to keep up in a world that is becoming more and more heavily reliant on online transactions and cashless payments. Cryptocurrency payments, on the other hand, could provide a solution to this problem. This is because it relies on science and math rather than human IT professionals to secure your financial information. Blockchain, a rapidly growing list of records referred to as blocks that are linked and secured through cryptography, prevents transactions from being forged and provides additional security by informing everybody across the network whenever a transaction is completed.
Another reason why some people are gravitating towards Bitcoin and other cryptocurrencies is the additional privacy that it provides. Owning a cryptocurrency wallet will create an ID in the blockchain, and your account contains both a public and a private key to act as your credentials. Since they are not connected to your real-life ID, this provides you with the option to remain anonymous when making transactions. Even though public networks display all transactions, the information that is included should never be able to be linked back to your personal information. The only time you will be asked to provide identification is when signing up for a regulated cryptocurrency exchange, which will require a copy of your ID for anti-terrorism and anti-money-laundering purposes. If you don’t want to provide this, consider peer-to-peer exchanges where you can trade Bitcoin and other cryptocurrencies completely anonymously.
If you know that you want to start investing but aren’t sure what to invest in, the flexibility of Bitcoin and other cryptocurrencies makes them an ideal choice. Cryptocurrencies have a high liquidity level, meaning that you can easily make transactions in seconds without having to wait around for the demand to match your offer. In addition, unlike other investment options like the stock market, the cryptocurrency market is open around the clock, allowing you to trade at any time that you like.
Invest Before It’s Too Late
Finally, investing in cryptocurrency might be set to change in the future. This is because, until now, there has been no transparent regulation of the crypto market, which has deterred individual investors with large amounts of money to invest, who need to have a clear legal framework in place to get started. However, the increasing popularity of cryptocurrency has led governments around the world to start creating those regulatory frameworks and legislations that will give big investors the go-ahead. Once these regulations are in place, the big investors are not going to wait around, which will significantly increase the price of many cryptocurrencies. This is going to result in massive returns for those who have already invested in crypto – but on the other hand, it’ll feel like a massive missed opportunity for anybody who is late to the game.
Whether you have already made some investments elsewhere and want to use Bitcoin and other cryptocurrencies to diverse your portfolio, or are a beginner investor looking to jump on the Bitcoin bandwagon, there are plenty of great reasons to get started right away.