It seems as if, all of the sudden, everybody is interested in Bitcoin. This is because, also seemingly all of the sudden, the value of Bitcoin literally skyrocketed. This makes it is super interesting and lead to a lot of people wondering if now is the time for them to invest in Bitcoin. So should you?
Should You Invest in Bitcoin?
One of the reasons why you absolutely should invest in Bitcoin is because the end is nowhere near Close. Yes, there is a finite number of Bitcoins and it will only be a few more years before all 21 million of them have been mined. However, this does not mean that the whole thing will be over at some point. Rather, it is likely that the value will increase even more at that point.
Secondly, Bitcoin comes with automated technology. It is believed that it will soon replace many other fiat currencies, impacting the supply chain as a whole. Decentralized Autonomous Organizations (DAO), for instance, are developing as a result of the blockchain, effectively automating how money is used and sent around the world.
Furthermore, Bitcoin is incredibly secure. You do not have to worry about a John Dillinger wannabee entering the bank and taking your life savings away – even though banks have insurance. You also don’t have to worry about banks snooping on your account or dictating how much you can use or spend. You don’t even have to worry about governments confiscating it or dumping more currency on the market. It is safe, it is secure, it is almost completely anonymous, and it is completely decentralized.
You will also be able to save money. You can send Bitcoin to people the world over in the blink of an eye, often for free. You won’t have to pay for transaction fees, MasterCard or Visa fees, or anything else. It is often possible to make your transaction happen even quicker by paying a fee, but that is done through choice and not obligation.
Furthermore, Bitcoin will never be subject to inflation. Again, because it is a decentralized form of currency of which a finite amount is available, its value cannot suddenly drop. This is why so many people invest in precious metals like silver or gold as well, since they will also always hold a value. That said, there is one scenario in which all may be lost, and that is if there is some sort of apocalyptic event that stops the world’s supply of electricity and takes down the internet. However, should that happen, then money won’t be worth anything anymore either and the world would effectively have to start over.
So should you invest in Bitcoin and start trading with the cryptocurrency? Considering all of the above and the fact that you can now even place them in a self-directed IRA (traditional or Roth), the answer is a resounding: “yes”. Having a diverse investment portfolio is vital to making the most of your money, so do include cryptocurrency in there as well.
