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Many articles have been written explaining what Bitcoin is and why it was introduced. I will give a quick summary for anyone new to this. Ultimately what we all want to know is will it continue its rise and why should we risk buying or using it.
It was introduced in 2009 just 8 years ago and at first, no one took much notice. Its aim was to introduce a global way of payment without the use of banks or financial institutions. It means there are no bank fees, as it is a peer-to-peer software program.
It has been designed in such a way that all transactions can be checked and verified using a blockchain which is basically a giant online ledger. It is as secure as any bank and as it is not like a government currency with all the links to price indexes etc. it is not affected by inflation.
One of the first reasons it started to rise in value was with the introduction of casinos accepting Bitcoin. It has made a huge difference to the scope and profitability of the ones that adopted its technology.
Because it is global it means that the restrictions put on currencies do not apply. For example, you cannot buy a chocolate bar in the UK using a foreign currency. If all countries accepted Bitcoin then it would be a much simpler way of doing business.
Having equal value wherever you live would change so much as they are traded digitally with the value constant at the time of the transaction. The internet opened up a whole new world to all. The introduction of a digital currency was perhaps an inevitable progression.
Why Invest In Bitcoin
The people who have made fortunes on Bitcoin are the ones that took the risk and bought Bitcoin when it was first introduced back in 2009. They are the ones who have become millionaires due to the risk and foresight I just wish I had been one of them.
Therefore the question is will the rise continue and is this a good time to invest in Bitcoin. It is true that Bitcoin can be volatile. You have to watch the market carefully to find the best time to buy as it has been known to drop up to 20% in a day.
However, if you look at year on year the growth has been constant and as it is being accepted in more and more countries. I think some rules will be brought in but this will only strengthen its credibility and continue its growth.
There is a limit to how many Bitcoins can be made which is 21 million and as demand outstrips supply the cost will rise as is shown by any product and simple economics. Knowing when to buy and knowing when to sell is always a gamble but find the right product like Apple, Microsoft, Google etc. A long term investment would bring huge rewards and Bitcoin could be the next life changing investment.