Bitcoin is the first revolutionary cryptocurrency which has taken the world by storm. Everybody is talking about the investment opportunities and scope of bitcoins. It is the very first decentralized cryptocurrency which is not dependent on any single administrator. The bitcoin transactions are recorded in block chains and are not on peer to peer networks.
Let’s know about the investment opportunities and scope of bitcoins:
What is bitcoin?
This is a very well known name in the world of digital currencies which has started the trend of mining and investing in cryptocurrencies. Bitcoin is the first digital currency developed by a software developer Satoshi Nakamoto. It was developed aiming that payments must be done digitally without any central authority or administration controlling it. This cryptocurrency was also aimed to get transferred in a short time with suitable charge.
How bitcoins work?
Once you purchase the bitcoins, it stays with you in your possession as you property. You have to purchase bitcoins from the online sellers with debit and credit cards. These bitcoins can then be used for trading, purchasing goods and exchanging digital currencies. The wallet for bitcoins is the database in your computer or tablets. Just like gold and silver rates, the value of bitcoins change on regular basis. The aim is to develop and circulate 21 million bitcoins. Bitcoins are tracked and recorded in a ledger known as blockchain which helps in duplication of transactions.
There are various factors on which, we can decide the strength and power of any digital currency prior to investment. Here are some factors you must know before you invest in this digital currency!
What makes bitcoins so widely adopted?
The rapid increase in value:
Being the first cryptocurrency, bitcoins has achieved more amounts of miners in a short span of time. It is not only the first digital currency, but also the first currency which has grown widely in very less time. Within just a few days of launch, till now almost 35% of bitcoins have been mined. Also, the value of bitcoins have been increasing and not going down which makes it quite reliable and dependable.
It’s more satisfying to know the numbers and performances. The bitcoins have shown its power in strong numbers. From 2011 to 2012, the bitcoins did grow 300% while by mid 2013, the value of bitcoins had increased to 400%. In the starting of 2014, total $130 million was made in the bitcoins which was almost double than the previous years. The currency faced some decline in prices, but yet it showed growth and both the merchants and users continued to invest in the bitcoins. It was still accepted and used as a mode of payment which makes bitcoins quite trustworthy!
Safe and transparent transactions:
The transactions of bitcoins are done through blockchains. Though the transactions in bitcoins are anonymous, there are details like sender, receiver and the amount which is necessary to prevent duplication. You can store the bitcoins in the cloud wallet and also in your hardware wallets.
Competitive analysis of bitcoins:
If you think that being the first and most widely preferred digital currency makes it safe to invest, you need to rethink! There are many cryptocurrencies which were developed to resolve and address the issues in bitcoins! As a result, these currencies came out with best results!
Market capitalization:Bitcoins have a huge market share that other cryptocurrencies. Due to its reliable base and early launch, 91.7% market capital is in favour of bitcoins. This is mainly due to the rapid growth and increasing value of bitcoins with every passing day.
Popularity:For any currency, it is extremely important to be known, until and unless the currency is not marketed properly, people will not invest in it. Bitcoin is the most popular digital currencie currently in the market which also makes it more dependable and adopted. People are less aware about the other currencies like ethereum, zcash etc which gets it some more miners and investors.
Cost:With the increase in value, the cost of Bitcoins too increased. The bitcoins enjoyed dominance in the digital market and thus, had the cost of $5.00. However, the other digital currencies are available with extremely low costs compared to bitcoins.
Coverage and Miners:
The coverage of bitcoins is quite high and is widespread upto 160 countries. Also, the number of miners is estimated to be 1,00,000 which is much higher than expected.
When should you select bitcoins?
- If you are looking for a currency which is reliable and well established
- If you are ready to pay more cost than other currencies and have to perform big transactions
- If you want a currency which has a huge market capitalization
- If you are looking for a transparent blockchain record
Being the first digital currency, the reach and benefits of bitcoins are quite more. There are several other cryptocurrencies which are available with better security, low costs and better future benefits. So, feel free to do explore more until you get convinced to invest in bitcoins as it’s certainly the best!