Back in 2017,Bitcoin made headlines when it posted all-time highs. Driven by young savvy investors, the meteoric rise of cryptocurrency has made a media hype and has drawn fresh investments into it.
Although the following year was not as exciting, the crypto market continued to attract new investors. In fact, despite a lackluster 2018, the digital economy has grown at an exponential rate. Cryptocurrency adoption has nearly doubled even on a bear market, according to the
But despite its huge success, many people are still wondering why others continue to invest in Bitcoin.
Some say that the entire craze is just a bandwagon effect that will wane eventually or just a bubble that will pop soon. However, the sustained growth of the market only shows that the crypto craze is much more than a bubble.
There are many reasons why people invest in Bitcoin. Every investor or trader has their own motivation for putting money into Bitcoin. Let’s check out the top 10 reasons why they join the crypto bandwagon.
Generally, the crypto market can be very volatile and erratic. Prices of digital coins can go up or down at any moment. But compared with other digital currencies, Bitcoin is relatively more stable. This minimizes your risk while also retaining optimum opportunities for traders to gain huge profits.
Unlike other investment tools, the lack of regulatory oversights makes Bitcoin trading hassle-free and faster. If you want to begin trading, you canbuy bitcoin instantly on any of the crypto exchanges using your desktop or mobile device.
Bitcoin charges minimal transaction fees – usually around 0.2% of the trade value. This is significantly lower than banking transactions or stock trading fees that range from 3% to 5%.
No Third Parties
Bitcoin utilizes the blockchain technology, an entirely peer-to-peer network. It is not controlled by any party or regulator. The records of transactions are replicated and stored across a peer-to-peer network. This makes tampering of data impossible. The only way Bitcoin can get to the hands of somebody else is through an authenticated transaction. Furthermore, since the government doesn’t have control over your digital assets, they cannot freeze or take them away. This means Bitcoin owners have absolute freedom over their wealth.
Bitcoin is done digitally. Unlike conventional investment vehicles, crypto assets don’t require any form of paperwork. Investors and traders simply need to register in any of the Bitcoin exchanges to begin buying Bitcoins. You don’t even need to useonline calculators to estimate charge rates as they are automatically displayed in your screen.
Digital Transactions Going Mainstream
As the world veers towards the digital space and becomes completely paperless, Bitcoin is in the perfect position to replace fiat currency. In recent years, we’ve seen how mobile and digital payments have slowly replaced paper money. As consumers continue to embrace e-commerce, the need for a reliable, secure, cheap, and faster payment option becomes a necessity. Bitcoin is a well-established and trusted digital coin that can be the best alternative.
Bitcoin is increasingly gaining acceptance from governments across the world. Back in the days, financial regulators are wary about the viability of Bitcoin. But recently, we’ve seen banks and regulators exploring how digital coins can be adopted as a legal method of payment.
Although Bitcoin has shown a marked slowdown in 2018, the general forecast is positive. Analysts expect the value of the digital currency to grow tremendously in the coming years as the potential of blockchain technology becomes realized. Bitcoin investors are also very optimistic about the track of the digital currency.
The global demand for Bitcoin is also growing. Countries such as the United States, Japan, China, South Korea, and Brazil have the largest Bitcoin economies. Bitcoin trading is also experiencing a surge in emerging economies, such as the Philippines, India, and Indonesia. Bolivia and Venezuela are also hoping to ride on Bitcoin to cushion the effects of economic crises in their territories.
Due to the complete anonymity that Bitcoin provides, it has been associated with criminal activities in the past. It allowed individuals to send money to recipients without disclosing their identity. Some find this suspicious and a reason to tag Bitcoin as the currency of the black market.
Bitcoin is slowly veering away from this reputation. In fact, Bitcoin is now a widely accepted and reputable form of digital currency. With this new reputation, investors are now more ready to put in their money into Bitcoin.