Are bitcoins good investments| invest in bitcoins like stock| bitcoin share price|Bitcoins worth?
Are bitcoins good investments?
Bitcoin is currently the first and best known cryptocurrency using blockchain technology. There are several ways to invest in Bitcoins- you could for example buy Bitcoin directly (as if you were investing in Bitcoin like a standard stock) and watch the bitcoin share price rise over time significantly- as it has since its inception in 2009; investing in Bitcoin companies stocks, trading Bitcoin like currency e.g. FOREX; or Bitcoin Mining.
Bitcoin share price
Over the last few years, there has been a wildfire-like rise in the value of Bitcoin. Bitcoin’s share price has been rising steadily from below $250 to $400 and currently peaking at over $2600 (as of June 2017) after a several year period where it remained relatively stable. Bitcoin’s initial starting share price was less than half an American cent in 2009- a Swedish man bought 5000 Bitcoins right at the start of its life. Those who were shrewd enough and who really understood what Bitcoin was all about or got in early with a good speculative investment on Bitcoin are now laughing to the bank every day like the Swede; as such investing in bitcoin could be akin to investing in a valuable stock or even gold. Media and government interest in cryptocurrencies has even led to the European Parliament discussing how to help regulate the industry formally via the EU- which is the ultimate accolade of formal financial recognition.
Also known as “digital currency” is rapidly gaining more interest and acceptance worldwide both as a practical financial instrument as well as culturally. This type of currency allows people to do transactions very quickly without needing services of banks and without any extra cost attached. Bitcoin (which is also cryptocurrency) is not only fast and cheap; it is also safe and secure. Even if you do not need Bitcoins for transactions, you can make a lot of money by investing in Bitcoin — due to Bitcoin share price value increasing steadily over time to its current peak of approximately $2600. The chart below shows bitcoin’s worth from January 2015 till the end of 2016.
Additionally Fintech technology in financial services is now being heavily influenced by innovative processes developed from in Bitcoin/Blockchain. A number of major corporations such as Microsoft, Amazon now allow Bitcoin transactions for purchases. More and more local shops and sites now accept Bitcoin.
Before we continue, let’s take a quick at a Bitcoin wallet. Bitcoin Wallet works almost like your bank account. It allows you to send, receive and store Bitcoins. Note that unlike your bank account, your Bitcoin wallets don’t hold actual Bitcoins; rather they are stored on the blockchain. They access multiple locations or “addresses” where Bitcoins are stored.
Your Bitcoin wallets hold the private keys which give you the right to use Bitcoin. Every Bitcoin wallet usually comes with a minimum of 2 keys; one private and one public key. You can give out your public key so someone can send you Bitcoin. However, you need to keep your private key very secure because anyone that lays hands on it can access your account. This excellent infographic explains visually how this is done.
There are various types of Bitcoin wallets; which include;
- Cold Wallet and Hot Wallet: Every Bitcoin wallet is categorized either as cold or hot. The one that is connected to the internet is hot while it is cold when disconnected
- Desktop wallets: This type of wallet is designed to be downloaded and use on PC with or without the internet.
- Mobile wallets: This type of wallet can be downloaded on mobile smartphones and devices. They are usually available both on Android and IOS devices.
- Online Web Wallets: Wallets like this one is operated by third party companies and only accessible through an internet connection.
- Paper wallets: Paper wallets are the closest thing Bitcoin has to a physical form. This type of wallet can hold your Bitcoin securely in a cold storage form for a long duration of time.
Benefits of Bitcoins
- It’s Fast
Transactions with Bitcoins can be completed within ten minutes (or less when no confirmation is required). It is faster than using other means of transaction. Banks take several days to confirm your payment but Bitcoin transactions are generally far faster. In fact, Bitcoin transaction can be instantaneous if there is no confirmation required by the merchant.
- No transaction fees
Most banks and merchants (such as PayPal) charge a fee for your transactions to enable them to cover the “swipe fee” while fulfilling those transactions. This is why Bitcoin has an advantage over credit card transactions as no fee is required for the transaction.
- No Chargebacks
Bitcoin transactions don’t allow chargeback, this means once a payment is completed, the person that sent the payment cannot retrieve them. It saves companies from fraudsters who will contact credit card Company to request for chargeback after receiving the services they paid for. This single reason only is why more and more merchants prefer Bitcoins as means of payment for their product/services.
- Your Payment Information is Secure
Some merchants keep your credit card information when you make a payment leading to the possibility of your credit card information being stolen. On the other hand, Bitcoin transactions don’t require you to give up any private information. You only make use of your public and secret private key to complete transactions. You account is totally safe as long as you don’t reveal your private key.
- You Own it
Imagine what will happen to your money if you bank decide to close shop today with all your money inside. On the other hand, all the electronic payment system apart from Bitcoin is owned by someone and you stand the risk of losing your money if the company encounters one problem or another such as the case of Liberty Reserve. The case is different with Bitcoin, you can have unlimited and a sort of eternal access to your money with your public and private key. No one can take your money from you; no company is storing it for you. You own it and it’s perfectly safe.
-Bitcoin share price long term paints a positive future for Bitcoin’s worth.
The value of bitcoin’s share price is on a long term upwards trend with it having increased value over the long term exponentially. It is likely that buying Bitcoin even now and keeping it long term will yield a substantial profit (bearing in mind there are always peaks and troughs) when the value increases in the long term. The below charts point to this.
Bitcoin’s share price value is rising very rapidly. There is a lot of media and government attention on Bitcoin, blockchain technology. It presents a huge opportunity for both individuals and companies to make money as well as learn from and develop the innovative Fintech technology and processes. Bitcoin is doing well in terms of the exponential networked effect -currently, Bitcoin transactions are hitting all-time highs. Moreover, there is an increase in the number of Merchants adopting the use of Bitcoin. Some prominent companies such as Dell, PayPal, Microsoft, Overstock and lot of other reputable companies are among some merchants that have started accepting Bitcoin in the last couple of years. With these top companies on board, these shows that future of Bitcoin is certainly very bright, the earlier you jump in the more opportunity you will have to make money.
Where To Buy Bitcoin?
Firstly you need to signup for an ewallet. We recommend Coinbase. This is one of the safest and well known platforms that enables buying and selling Bitcoins, and other cryptocurrency. There are lots of local merchants selling Bitcoin- there are local exchanges, trading platforms. You can’t buy Bitcoin directly with cash unless you sign up to a broker or exchange.
We also recommend Regal Assets Bitcoin Individual Retirement Account (IRA) as an alternative option to invest in bitcoin via IRA funds.
Regal Assets is primarily a Gold investment company, but has now branched out to offering Bitcoin IRAs.