Investing In Bitcoin, Why Is Bitcoin So Profitable?
Since its conception in 2008, Bitcoin has grown in value every single year. It was hovering around the $1,000 mark in January 2017, going on an amazing run to around $20,000 in December before dropping slightly in 2018.
Nevertheless, conventional and professional investors across the globe are predicting similar growth in the next few years.
So, the big question is: when will the majority get on board?
Why is Bitcoin so profitable?
Bitcoin’s value continues to grow because demand for it does too. Its supply will be capped at 21 million coins. Basic laws of economics confirm that an asset’s value will grow when demand outpaces supply.
The reason demand grows is that Bitcoin has so many advantages over fiat currency.
Bitcoin is decentralized which means its value cannot be tampered with by a central government, via quantitative easing for example. It’s borderless, meaning there are no hefty transaction fees when you transfer it overseas. What’s more, the blockchain technology that registers all transactions is considered more secure and reliable than traditional banking databases.
These advantages are virtually undeniable, and there will always be demand for Bitcoin as long as they exist. These utilities prove to be intrinsic values.
The future growth of Bitcoin
Speaking at the World Economic Forum in January, cryptocurrency portfolio manager Jeet Singh predicted it could bypass its all-time high of just under $20,000, all the way to $50,000 in 2018.
This prediction could be justified by the fact that the full potential for blockchain is nowhere near being realized. There are start-ups utilizing blockchain technology in all sorts of industries outside of finance receiving venture capital.
Only recently have we learned the blockchain’s potential for creating smart contracts and decentralized autonomous organizations (DAOs). Who knows what developments will be discovered in the Bitcoin blockchain as time goes on?
As Bitcoin struggles to recover from the dip from its all-time high in December, it could be argued there is no better time to invest. With the start investing feature at coinconnecter.com, doing so couldn’t simpler.
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