Cryptocurrencies may seem like some kind of hoax to those averse to innovation, but between 2.9 and 5.8 million Bitcoin users exist worldwide, according to data from Cambridge University in England. Unlike national currencies, Bitcoin is being used around the world. That includes Portugal, where one of the advantages to investing in it is that the income you earn from Bitcoin investing is not taxed. Belarus offers a similar tax-free incentive to Bitcoin investors. But the reasons why Bitcoin is looking more and more like the currency everyone should invest in are numerous.
First things first
What in the living daylights is a cryptocurrency? Satoshi Nakamoto, the inventor of Bitcoin is quoted as describing it as “a peer-to-peer electronic cash system.” Some would simply call it virtual or digital money whose transactions are verified using algorithms. While cryptocurrencies cannot be held in your hand like U.S. dollars or Euro notes, they’re the first step in the new globalized world becoming cashless.
Why is Bitcoin the best of the many existing cryptocurrencies?
1600 virtual currencies are now in circulation. Ethereum (ETH), Litecoin (LTC) and Ripple (XRP) are just three. Due to the open-source nature of how they’re created, new cryptocoins are constantly being put into circulation. Just a digital handful of them are worth serious consideration, however. Of those, Bitcoin has attained the most legitimacy. Home Depot, Expedia and Microsoft are just three major brands that accept Bitcoins from online shoppers. Mom and pop website operations are slowly starting to get on the Bitcoin payment bandwagon as well. Bart Smith, a trading honcho at Susquehanna Group, recently stated that Bitcoin is the most legitimate cryptocurrency in circulation because it’s the one shoppers most likely to be used in online transactions.
Isn’t it just safer to invest in the Forex?
No one ever said Forex trading was safe being that there are so many factors that determine if an investor will profit or go bust. The incredibly high learning curve in trading hard currency, during which ample amounts of what investors trade can be lost within seconds, leads towards knee jerk buying and selling. Some may be scratching their heads from so much data, but the bottom line is that Bitcoin is poised to become a long-term trusted store of value. At some point in the not so distant future, it’s an educated guess that it will trade for 100 times more than it is today.
Bitcoin outshines other currencies
Just about anything can be purchased online. Functionality is the new mantra. Ordering products on laptops and handheld devices is the new norm. Going shopping in the traditional sense leaves too much to chance for shoppers who know exactly what they want but have no idea if it will be in stock when they get there. E-commerce enables tons more customization. Customers can browse a store’s entire inventory and pay for what they want with a few finger swipes. Bitcoin just naturally accommodates this uniquely digital age shopping experience. If that’s not the sign of a great currency to invest in, then nothing is.