As bitcoin becomes more and more widely known, it has drawn the attention of many prospective investors. No longer is it only tech fans who are interested in investing in this virtual currency. Bitcoin has now garnered the attention of an increasing number of everyday investors.
Despite the increased interest, many prospective investors are still sitting on the sidelines, concerned about the potential risks associated with investing in bitcoin. While bitcoin has experienced some ups and downs in terms of value, there are several excellent reasons why you should not fear investing in this virtual currency.
Bitcoin startups on the rise
Although there are certainly no guarantees regarding a startup or any investment for that matter, the increasing infusion of venture capital funding into bitcoin startups indicates that now is an excellent time to invest in bitcoin.
Bitcoin is independent
One of the reasons that so many people are drawn to bitcoin is the fact that it remains independent in nature. Unlike traditional currencies, which are regulated by governments and central banks, this is not the case with bitcoin. As a result, bitcoin holds the appeal of being far removed from the political and economic uncertainties that can often plague traditional currencies.
Bitcoin is becoming more mainstream
No longer relegated to the underground, bitcoin is now becoming far more mainstream. Furthermore, there is now a strong economy surrounding bitcoin and that economy is growing by the day. More and more merchants are now accepting bitcoin, including such well known names as Overstock.com and Dell. Estimates indicate that there are now more than 3,000 brick-and-mortar merchants around the world registered to accept bitcoin. 1 It is also easy to purchase bitcoin from a specialized automatic teller machines (ATMs), known also as bitcoin teller machines (BTMs).
Bitcoin is increasingly secure
Among the most common arguments given by many people for avoiding investing in bitcoin is a concern regarding security. This is naturally an important concern given the economic volatility seen around the world in just the last few years. Unlike traditional currency, bitcoin allows investors to be in firm control of their funds, based how they choose to secure and store their coins. Perhaps the biggest difference that exists between cash kept in a bank and bitcoin is that bitcoin is not subject to loss in the even that there is a run on the bank. No counter-party risks exist with bitcoin. This means that users are able to control and manage their funds without any concerns regarding economic instability. When proper precautions are taken, users can be assured that their bitcoins are safe from theft. Around for more than five years, bitcoin is backed by an extremely secure network.
Bitcoin is less expensive than other options
Compared to many other investment options, bitcoin is also less expensive. Individuals will find that there are often no fees for their usage of bitcoin, while commercial users are able to enjoy far lowers fees for using bitcoin compared to accepting other forms of payment. Users do not have to worry about maintaining minimum account balances, which is often the case with most types of bank accounts.
While there may still be many critics who are all too eager to voice their concerns regarding bitcoin, it would certainly seem that bitcoin is not only around to stay but will continue to become more mainstream in the months and years to come. With an increasing number of merchants and services coming online to accept and serve bitcoin, there is absolutely no reason to be fearful about investing in the digital currency that has the potential to transform currency as we know it.
1) NASDAQ. How to Buy Bitcoin from a Bitcoin ATM.