2017 was a very good year for bitcoins. They rose in value to reach a high of $21,000 per bitcoin. Those who had invested at the beginning of the year received abnormally high returns. The question most investors are asking themselves is whether 2018 will also be a good year for this digital currency.

With the rise in the number of digital currencies available today, why would an investor choose bitcoins over any other crypto? Is the future of bitcoins bright or they will fizzle out?

Should You Invest In Cryptocurrency?

This article, therefore, explains why investors should invest in bitcoins in 2018.

1. Multiple Applications

Bitcoins can be used in multiple applications. The blockchain technology can be used in other places. For instance, bitcoin’s blockchain technology can be utilized differently in trading securities, crowdfunding or even the transfer of titles. Used for this, bitcoins provide efficiency at a very cheaper price. Such uses are still being studied and developed by the cryptocurrency community. The potential of blockchain technology cannot be ignored. Investing in bitcoins is a good decision as you become part of those who want to change the world for the better.

2. High Stability

The price of bitcoins has been steadily rising. This digital currency has shown stability in price over the past 2 years. No other financial instrument can experience this level of stability especially during these economically unstable times. Gold, silver, copper and oil have been fluctuating over the recent past. These fluctuations can easily wipe out investors’ money. Unlike these assets and commodities, bitcoins continue to remain stable. This is because bitcoins are not affected by geopolitics or government fiscal rules. The dynamics of bitcoins are determined by the demand and supply only. Some analysts think that in 2018, bitcoins will hit a high of $60,000.

3. First Mover Advantage

This is the age of digital currencies and payments as seen by the number of people who are shunning traditional methods of payment. Bitcoin was the first digital currency to be created. It therefore enjoys the advantage that it gained popularity before any other cryptocurrency. Bitcoin has a very large presence across the globe as compared to other digital currencies like Monero, Litecoins and Ripple. With the highest market capitalization, bitcoins command about 60% of the cryptocurrency markets. This first mover advantage is seen in the goodwill that bitcoins have generated among their customers.

4. Regulations are Emerging

It’s a good thing that regulations guiding bitcoin usage are rising. Governments and financial institutions are working on a formula to regulate the use of cryptocurrencies. This means that governments are slowly waking up to the reality of bitcoins. Governments are working on laws to ensure that gains made from cryptocurrencies are being taxed. The presence of regulations mean that bitcoins will gain worldwide acceptance because of the enhanced trust by the users. Regulations will ensure that the interests of investors are taken care of. Regulation aims to offer basic protection. This eradicates the possibility of fraudsters using bitcoins for illegal activities. This means that bitcoin will continue growing within the foreseeable future.

5. First World Countries are Prepared for Blockchain Revolution

In early 2017, Japan announced that it was accepting bitcoins as a legal means of making payments. It passed laws that helped ensure that all cryptocurrency exchanges were subject to anti-money laundering legislation. Other countries such as Netherlands, Denmark, the United Kingdom, Scotland and France have very strong cryptocurrency communities that ensure that all traders act ethically when trading cryptocurrencies. In most developed countries, people prefer trading using digital currencies as opposed to fiat currencies. Leading retailers such as Amazon, PayPal, Dell and Microsoft have all expressed interests to trade with bitcoins. Even though normal currencies might not disappear soon, the acceptance of bitcoins is growing really fast. This is an assurance that it is not yet too late to get into the bitcoin craze.

6. Cashless Economy

There seems to be a persistent need of going cashless. People globally are tired of transacting using normal currencies and view bitcoins as a better alternative. Using normal currencies presents so many challenges that bitcoins and other digital currencies intend to solve. For instance, it is very inconveniencing to walk around with thousands of dollars in your wallet which can be stolen or misplaced. Transacting using bitcoins solves this issue because you do not have to physically carry your cash when you want to make a transaction. When you want to send money to a different country, for instance, if often involves some lengthy bank procedures. But with bitcoins, you can send any amount of money from your computer at the comfort of your home.

7. Easy Trading and no Manipulation

Trading bitcoins is a very simple and straight forward process as you just need a computer or a mobile phone and internet connection. Unlike normal payments where you have to visit a bank, making a purchase in bitcoins is very convenient, cheap and fast. You can send money from one country to another in just a few minutes without the need to leave your home.

Since bitcoins are not controlled by any bank or government, their supply and value is free from manipulation. Transactions done using bitcoins are irreversible and this makes the payments more credible. The absence of banks in the bitcoin network allows for transactions that are less costly and fast.

Written by MyBitcoin Team Staff

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