Bitcoin has seen new highs in recent days, crossing over the $1,000 mark on some exchanges for the first time since 2013. This is certainly exciting news for Bitcoin investors everywhere, but why invest now? What are the factors that make Bitcoin a good investment right this moment?
There are several reasons why Bitcoin is a good short-to-medium-term investment. The most immediate of these is technological advances. Bitcoin was created as an alternative to fiat currencies which are controlled by central banks who can use them as they see fit to boost their economies or smooth out financial bumps on the road ahead. Instead of depending on politicians and bankers, Bitcoin depends only on its code which cannot be changed or altered without community consensus, something that Bitcoin has in spades. Bitcoin’s governance model makes it virtually impossible for politicians to intervene.
Bitcoin’s technological advances have been spearheaded by Bitcoin Core contributors, a group of 100 or so individuals from all over the world who make Bitcoin function as originally intended and work tirelessly to avoid outside interference. The development community within Bitcoin is what actually makes it a good investment right now because Bitcoin’s code can only become stronger with time as it matures and more developers contribute their time and talents to building its future.
That brings us to Bitcoin volatility. Bitcoin was created out of a desire for decentralization free from political interference, but this initially made Bitcoin very volatile as early adopters bid up the price looking for quick profits. As Bitcoin’s user base has grown, Bitcoin’s volatility has dropped significantly. Bitcoin now seems far less daily price movement than it did in its early days as the Bitcoin market matures and Bitcoin becomes more stable. Bitcoin is still somewhat volatile compared to fiat currencies, but Bitcoin also has far greater potential for growth.
As Bitcoin’s user base continues to grow, Bitcoin will continue to become more stable even if its price remains higher than it was before. That brings us another reason why Bitcoin is a good buy right now: there are simply more users of Bitcoin all the time! With each passing day, new people are learning about Bitcoin and getting involved. More users mean that Bitcoin’s price will stabilize further as demand exceeds supply.
Finally, Bitcoin has several years of history behind it. Bitcoin is now 6 years old and has already survived many diverse challenges. Bitcoin’s future is still extremely uncertain, but Bitcoin has proved to be resilient against attacks that would have killed other cryptocurrencies. Bitcoin’s network is resistant to the 51% attack because it costs so much in computing power to pull off (and even if you could do it, Bitcoin’s price would likely jump skyrocket in response which negates the purpose anyway).
Bitcoin also has a strong track record for security because each Bitcoin transaction uses digital signatures created by private keys. This means that only someone who knows your private key can spend your Bitcoins; not malware, not an insecure website, no but you! Furthermore, users are strongly advised to store their Bitcoin offline in a Bitcoin wallet where they hold the private keys themselves. Bitcoin is certainly not risk-free, but Bitcoin is more secure than most other cryptocurrencies and Bitcoin has proven this many times over already.
Bitcoin’s price is currently at $42,000 USD per Bitcoin. What do you think Bitcoin will be worth next year? How about five years from now? Even if Bitcoin doesn’t work out as an investment, it can still be used for cheap remittance and purchases of goods and services with the convenience of instant international transfers without needing to worry about high transaction fees or exchange rates! The value of Bitcoin in dollars is irrelevant: it only matters in relation to how much BTC you own.
Conclusion
Bitcoin is a digital currency that was created out of a desire for decentralization free from political interference. Bitcoin’s technological advances have been spearheaded by Bitcoin Core contributors, a group of 100 or so individuals from all over the world who make Bitcoin function as originally intended and work tirelessly to avoid outside interference. As Bitcoin’s user base has grown, Bitcoin’s volatility has dropped significantly. Bitcoin now sees far less daily price movement than it did in its early days as the Bitcoin market matures and Bitcoin becomes more stable. With each passing day, new people are learning about Bitcoin and getting involved. More users means that Bitcoin’s price will stabilize further as demand exceeds supply. Finally, Bitcoin has several years of history behind it and has already survived many diverse challenges. Its