Why You Should Consider Investing In Bitcoin
Why are so many people investing in Bitcoin? Are there any real benefits of investing in this cryptocurrency rather than a foreign currency? There are actually several benefits associated with investing in Bitcoin and it’s those benefits that are attracting so many new investors. Here are just a couple of those benefits.
There’s Far Less Inflation Risk
Governments control the currencies in the countries where they operate. There are times when a government will decide that more money needs to be printed. This eventually leads to a depreciation in value, a decrease in purchasing power, and thus inflation occurs. It is happening constantly around the world and there is no real solution to the problem as far as a traditional currency is concerned.
It is estimated that there is a finite limit of 21 million Bitcoins that will ever be produced. Though this number could certainly be changed in the future by certain parties, it does impose some sense of control. The production schedule of Bitcoins is never changed because a certain government or organization wants to produce more money. This results in very limited inflation once that 21 million mark is reached.
That’s not to say Bitcoin is completely immune to inflation. Only that the supply will no longer inflate after reaching the estimated maximum. Once this maximum is reached, the currency will actually experience deflation. The buying power and the value of the currency will increase and investors will make a considerable profit.
Potential For A Global Currency
Many experts believe that Bitcoin has true potential to become a global currency at some point in the future. This idea is what led so many people to initially invest in the idea and the currency. It’s impossible to say whether this will happen or not, but one point that most people agree on is that Bitcoin will experience far more gains than losses over the coming decade.
And what would happen to the value of Bitcoin if it became a global currency? It’s believed that the value will increase roughly 20,000 times its current value. That means a single dollar’s worth of Bitcoin could be worth $20,000 in the future. This is in no way guaranteed to happen, but the potential reward is so great that investing small amounts here and there is a great idea.
Even if Bitcoin never becomes a global currency, it’s already a currency accepted everywhere around the world. Countless online businesses are making the change and beginning to accept Bitcoin. This is resulting in the value of each Bitcoin gradually increasing. And when deflation of the currency begins, that value will increase even further. It may or may not be worth 20,000 times its current value one day, but it will certainly be worth the investment.