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Do you want to invest in Bitcoin to earn money over the long term, but you don’t know the details for the decision?
In this article, you’ll learn the pros and cons of investing in Bitcoin so you can make a carefully considered choice.
To make a smart investment it’s important to analyze the situation carefully – it will help you make the right financial bet with your money. However, keep in mind that you can never be sure that making an investment in cryptocurrency will pay off. It is always a gamble so keep that in mind when parting with your money.
The History of Bitcoin
Bitcoin is a cryptocurrency that is known as the peer-to-peer system of financial money transfer. It’s based on a paper by Satoshi Nakamoto and there are a lot of questions about the anonymous creator.
Since the inception of Bitcoin, many more cryptocurrencies have surfaced, which means there is a lot of competition.
However, as you will read in the following section it’s still the single most popular cryptocurrency.
The Advantages of Investing in Bitcoin
Do you want to invest in Bitcoin, but need a bit more convincing so you don’t have regrets down the line?
Here are the top advantages that you might not know about:
- It has potential: Bitcoin as an investment has a lot of upside. Some analysts say that bitcoin will have a value of millions in the future, which might only be a decade away. Therefore, you will get a huge return on your investment, and that the reason to invest while it still hasn’t skyrocketed.
- Scam-free: the blockchain technology that Bitcoin uses means that scams are virtually impossible. The currency is unlikely to crash because of scams, which means it’s one of the secure investments to make.
- Low transaction fees: Bitcoin is a currency that has a lot of benefits for the consumer and one of them is low transaction fees. Bank transfers can cost a lot of money and banks have become comfortable with that, because people don’t have an alternative. However, with cryptocurrency worldwide, transfers can now be done with tiny transaction fees. This benefit means the currency will be attractive for a long time to come.
- No third parties: the lack of third parties means that Bitcoin can look after itself without third parties potentially crashing the entire system with bad decisions. It means investors can expect Bitcoin to be around for decades unless a competing system is created.
These are the top advantages of Bitcoin, but you should also know about a few drawbacks.
The first is that there are many other cryptocurrencies trying to overtake Bitcoin. Thus far they are not successful, but that could change in the future. Furthermore, Bitcoin is a volatile bet, because it is prone to huge swings. It’s a smart idea to invest in Bitcoin because of the upside, but you need to have a diverse portfolio to avoid putting all your eggs in one basket.
Bitcoin Applications
As investors, it’s your job to find out about the applications of Bitcoin so you can better understand what it does. It will help you decide if Bitcoin is a great investment opportunity. Bitcoin can be used around the world for secure transactions. Unfortunately, scammers take advantage of the anonymity that comes with the transactions.
Bitcoin is also a fast way of processing transfers, which means you don’t have to worry about lengthy bank transfers that can take many business days. At the end of the day, it is still in its infancy, but you can look at it as a payment method of the Internet age that we live in. Whether you pay for your groceries, a house or any service with BTC (or any cryptocurrency) depends on the seller accepting such form of payment.
On the forefront of such acceptance has been the gambling industry. Online casinos have been expanding all over the world in the last decade thanks to the growing importance of the Internet, but also thanks to easing regulations in particular markets around Europe, Asia and the Americas. Due to the dynamic and highly competitive nature of the industry, casinos have been trying to lure players in by improving their offerings. Such improvements have been not only the sheer number and quality of games but also the payment methods that they accept.
There are many cases of online casinos that start accepting cryptocurrency (mainly BTC) as a deposit method. Some of them allow players from the Philippines, too. You can look at such BTC casinos here.
Final Thoughts
The Bitcoin information in this article just a short introduction to the subject. There are great debates between governments, institutions, hedge funds, entrepreneurs, and individual investors whether cryptocurrencies and BTC are good investments for the future or not. The space is volatile, but promising, nevertheless.
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