The obvious question in everyone’s mind who has stumbled unto Bitcoin in recent time is whether it is still worth it investing in Bitcoin. This post highlights why it is not too late to start investing in Bitcoin even in 2017. If you are new to Bitcoin, these articles will get you started.
Currently the world most popular digital currency is valued at over $2800. This value climbed to record highs of almost $3000 this June. Last June, one Bitcoin was worth only $450. This 666% growth in just under a year is by no means a sudden trend.
Since its inception in 2008, Bitcoins’s value has been steadily increasing for nearly a decade. However, people are yet to be be fully convinced that investing in Bitcoin is a viable business venture. Majority of the skepticism is backed by the various setbacks both past and present that have plagued the world’s flagship cryptocurrency.
The Mt.Gox incident a few years back is still fresh in the minds of early investors coupled with the volatility of the Bitcoin and cryptocurrency markets which is currently 26 times more volatile than the S&P 500. Further more, the fact that Bitcoin is not backed by a precious metal, bank or under any government control like conventional currencies but largely regulated by sentiments have several speculators predicting doom.
However, investing in Bitcoin is surely a worthwhile endeavor as there are several clear advantages in a market structure like the cryptocurrency market. So if you are willing to shoulder the risks, you should focus on these positives;
Bitcoin is experiencing an incredible growth. Amidst all the negative speculations about it, Bitcoin value is rising rapidly. In February of this year, Bitcoin value surpassed that of gold and the margin is widening even more. One ounce (troy) of gold is currently worth $1261. If you happened to invest meagerly in Bitcoin in 2011, you would have seen very massive returns now just 6 years on. For instance, if you invested $200 in Bitcoin 2011, your investment would be worth $1.2 million as at May 2017.
Another reason you should invest in Bitcoin is the fact that Bitcoin supply is limited. There can only be 21 million Bitcoins and it is likely that every Bitcoin will be distributed by the year 2040. Each year, the number of Bitcoin slated for circulation is halved and the mining difficulty is increased. This complex algorithm helps maintain the scarcity thereby pushing up the value. Analyst believe the Bitcoin price will hit $100,000 in a couple of years from now.
Finally Bitcoin adoption as a legal tender by some governments (Japan) and acceptance by regulators as legitimate way of investing further cements the potential of the digital gold to become mainstream asset. This will only consolidate the upward rise in value going forward.
I have been in the Cryptocurrency ecosystem for about three years. My passion for this niche of financial tech space inspires me to share with you all I can in the world of Cryptocurrency, Blockchain and financial technology.