Is it worth investing in Bitcoin for the long haul? Learn about the cryptocurrency and what makes it stand out as a potential lucrative investment in 2018.
Three Things You Should Know About Investing In Bitcoin For 2018 & Beyond
From an investment standpoint, Bitcoin provides an interesting option. The cryptocurrency is still a bit of a question mark in the financial sector and looks to remain that way for the foreseeable future. Even still, Bitcoin is a highly traded stock and has risen in value quite drastically over the years. This post will cover the essential information required before you invest in the leading cryptocurrency.
Bitcoin Is Unregulated
Part of what makes Bitcoin so intriguing is the fact that it is not backed or regulated by a singular government or financial institution. This creates incentives for users because it means that any Bitcoin transaction will be conducted without being subject to additional fees or conversion rates. The currency operates on an open-source platform that utilizes blockchain technology to record its transactions. The blockchain serves as a public ledger that stores Bitcoin transaction information.
Inversely, some believe that Bitcoin’s decentralized status could lead to its downfall in the future. Since it is not a fiat currency or based on something of value like gold, some see Bitcoin as something of fickle value. All currency forms are worth what people perceive them to be, but Bitcoin’s lack of a formal structure leads some to doubt its stability.
Bitcoin Is Popular
Bitcoin has grown in popularity and usability since its introduction back in 2009. There are more Bitcoin-friendly options than ever, whether with online retailers that accept it outright or through exchange services. One industry that has seen a drastic spike in usability is online gambling. Many online gambling sites not only accept Bitcoin, but encourage its use due to the speed of the transactions. Online gamblers prefer it because of its lack of regulation and for its security and speediness. Some good examples of where you can legally use Bitcoin for gambling can be found here: http://www.legalbitcoingambling.com/.
The cryptocurrency’s popularity has also reflected in its value. Currently, Bitcoin is worth roughly $2,700 a coin. This percentage valuation has increased exponentially since Bitcoin hit the market. In June 2017, the digital currency hit an all-time high near $3,000. This showcases how Bitcoin has grown in usability across different markets and points towards a sustainable future. While its value fluctuates as does gold or any other tradeable commodity, Bitcoin appears strong enough to continue its momentum.
Bitcoin’s Technology Is Applicable
Despite some doubts from certain parties, one aspect of Bitcoin has emerged as a point of interest—its blockchain. As previously mentioned, the blockchain effectively serves as a public ledger that tracks Bitcoin transactions. Each transaction is recorded in a “block” and once a particular block is full it is added to the end of the “chain”. Bitcoin miners then verify the transaction information, which includes the time and amount of each transaction, not the personal information of the parties involved.
Analysts see the potential of the blockchain system as a means for facilitating financial transactions in the future. The system is fast, secure and streamlined enough to complete the transaction with less parties involved. A universal blockchain system would shut out payment processors and other third-party entities. What does this mean for investing in Bitcoin? Well, if the blockchain system is picked up and applied more universally, it is likely Bitcoin will be picked up with it. In any case, more Bitcoin transactions will help build data regarding the blockchain—more transactions equals more value.
All in all, the cryptocurrency looks to be a sound investment. Investments have an inherent sense of instability, at least the more lucrative ones tend to, so Bitcoin’s decentralized platform should not deter you.
P.S. Looking for some helpful resources to help you get started with Bitcoin? Check out our resources page for more cool stuff.