Is Bitcoin a good investment?
Bitcoin is becoming more and more popular, and it looks like a digital currency that will be a sustainable force for change. Some say that is just another thing that will make a handful of people very wealthy and leaves the rest of us feeling a little bewildered.
Here are a few reasons why it is still worth keeping an eye on the world’s first digital, virtual cryptocurrency.
You can use Bitcoin to pay for things you might need
One of the key success factors of Bitcoin is whether it can build enough momentum or demand that retailers and service providers make the required changes to their systems so that they can accept Bitcoin as a form of payment. Initially, there was a perception that the anonymity of Bitcoin transactions meant that it was really only those involved in illegal activities that wanted to use Bitcoin. But the Silk Road site has been closed down, and all sorts of retailers and service providers seem to be opening their doors to consumers wanting to pay with Bitcoin.
The momentum is growing.
Since the creation of the Bitcoin network, the blockchain (or general ledger) has enabled hundreds of million transactions. The first transaction was made on 12th January 2009 by Satoshi Nakamoto (the pseudonym of the group of developers who created Bitcoin).
The price of Bitcoin continues to grow, but the market is also highly volatile. Investors can earn huge profits, but they can also get huge losses.
Because of its decentralization, Bitcoin may seem like having the advantages of “offshore” investment.
Certainly, Bitcoin and blockchain technology are here to stay and evolve but always remember the golden rule: do not invest more than you afford to risk.
There are many other alternatives to Bitcoin. Ethereum is one of them. However, Bitcoin still has the largest capitalization and will always be the best cryptocurrency to invest in.