The entry of hedge and banks into bitcoin investing has increased the popularity of cryptocurrencies.
No other asset in the financial sector history has ever offered such crazy returns. Until the crazy returns stop, the boom will continue. The stock market has become overheated, normal currencies are dying and the real estate market is turning uglier.
Where else in the world can you find an asset that can offer you returns in the excess of 100% in less than 1 year?
With all these facts at hand, it is quite clear that 2018 will see the value of bitcoins continue rising exponentially. Discussed in the article are 7 reasons why investing in bitcoins in 2018 is a wise idea.
1. Low Risk of Inflation
Within the past 100 years, one dollar has depreciated by more than 2000%. This means that having so many dollars (or any other currencies) in your bank account does not seem wise. This inflation is mainly caused by the printing of newer currencies every year. This is not the case with bitcoins.
At the end of it all, only 21 million bitcoins will ever be produced. This finite number will ensure that the supply is fixed, and this automatically increases the demand. Consequently, the value of bitcoins will continue to rise. Central banks can be manipulative, for instance, they can decide to print billions of money. The increase in the amount of paper money in circulation in the economy will immediately make your little savings to be of very little value. Since bitcoins are not regulated by any authority or organization, such manipulations can never happen.
2. Bitcoins Are Decentralized
This means that no institution, central authority or government runs this currency. Decentralization means that all transactions remain anonymous. Transacting parties in bitcoins only share their wallet address and nothing more. This ensures that the personal details of the transacting parties are never known. Decentralization also prevents governments from levying taxes on cryptocurrency transactions. Most countries do not tax gains from cryptocurrencies. This lack of taxation makes transactions very cheap as compared to traditional forms of payment. The decentralized nature of bitcoins make them immune to geopolitics and happenings in the international financial arena. The value of bitcoins is not dependent on oil prices, the dollar or even Euros.
3. Transactions Are Effected Immediately
Traditional means of payment usually take a lot of time. Let us take an example, assume that you want to send your friend some money via his bank account and it happens that he belongs to a different bank. Normally, this would take about 2 days before he is able to access the money. This results in the wastage of precious time and delays many other things. Transacting using bitcoins offers instant solutions. You are able to transfer any amount of money within seconds.
The most a transaction can take is just a few hours. This is a more effective way of making and receiving payments in business. Within a few minutes, you are able to receive or send payments using bitcoins. You do not have to go to the bank and fill out any paperwork for a transaction to be processed. As long as you have a mobile phone or a computer and internet access, you are good to go. You can transact anywhere, at any moment of the day.
4. Bitcoins are Becoming a Global Currency
Business people who have trade partners in different parts of the world often have to change their home currencies when making international payments. For instance, if you want to purchase goods from a country that is a member of the European Union, you must first convert your currencies into the Euro. This exchange of currencies is costly and forex brokers often change the currencies at a commission. It is also not convenient because some places do not have forex brokers. You must carry the money physically to the exchange bureaus for it to be exchanged to your preferred currency.
Bitcoins are global and are accepted in very many different countries. When transacting in bitcoins, you do not have to change it to any other currency. The bitcoins acceptable in Australia, for instance, will serve the same purpose in China and America without being changed. This makes bitcoin transactions cheaper and more convenient.
Have you ever tried to imagine an instance where your savings in your bank account simply disappear because your bank is collapsing or facing bankruptcy? This is not an everyday occurrence, but it happens during economic depressions. Some countries have good insurance terms against lost savings.
If you had saved a lot of money with your bank before it collapsed, chances are high that you will not be compensated the whole lost amount. What if several leading banks file bankruptcy at the same time. The state might not be able to compensate all the claims. Buying bitcoins is a way of diversifying your money. By having money in different places, you will be cushioning yourself against any major loss. Over the past few years, bitcoins have posted very good results in terms of returns on investment.
6. Unlike Bank Accounts, There are no Monthly Charges
Most banks will charge you bank account maintenance fee. You will also be charged for using their services. The amounts might be very low, though some banks charge more. Some banks will require that you must have a minimum account balance. With bitcoin wallets, this is not the case. You will not be required to pay anyone any monthly fee. You download a bitcoin wallet for free, sign up for free and store your bitcoins for free. You will only be charged a very small fee for transferring in bitcoins. If not used over long periods of time, bank accounts can become dormant. Cryptocurrency wallets do not become dormant even if you do not use them for very many years.
7. Bitcoins Have a Good Income Potential
Assuming you had bought bitcoins worth $1,000 way back in 2009, how much would you be worth today? You would definitely be a millionaire. According to analysts, the value of bitcoins will continue rising exponentially, and it is estimated that it might hit $100,000 by the year 2030. People are able to earn income by trading bitcoins. You just need to be on the lookout such that you buy low and sell high.
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