Five reasons to invest in Bitcoin right now

By Daniel Zo Bitcoin, Investment

With bitcoin becoming more and more popular, and expected to reach new heights by the end of 2016, one question in the mind of investors from all around the world is whether investing in the digital currency is worth it.

During the last couple of months, the digital currency has seen an interesting evolution, as it has managed to grow from roughly $200/coin to an average of $420. The last year has also been proven to be extremely profitable for those involved with the digital currency, and reports indicate that over $314 million US dollars were poured into bitcoin-related investments.

To help better put things into perspective, we have come up with a couple of reasons explaining why investing in bitcoin is such a good idea. We have also decided to leave out some of the obvious reasons such as the coin’s anonymity, transparency and decentralized state.

1. Bitcoin’s supply is fixed

Due to the bitcoin protocol, only a total of 21 million bitcoin can ever exist. This means that once the currency caps its supply, the bitcoin value will boom, as the need of the coin will be higher than ever before.

2. The supply and demand law

As a higher price is most likely bound to happen, the transaction volume of the coin will also increase, due to the supply and demand laws. In return, this would further peak the price of the coin, thus making an investment worth it from all the points of view.

3. Practical applications and wider company-wide bitcoin adoption

Financial institutions and companies from all around the world have showcased a growing interest towards bitcoin, and its underlying system, the blockchain. This can in turn bring over more practical applications via the blockchain, such as transferring stocks, sums of money, or ownership of various assets. As these operations will be carried out via the public ledger, bitcoin will likely be involved. Companies are also looking to use the currency for other purposes such as data management, and more.

4. The government’s attitude on the currency is positive

There are of course places such as Russia where the government has decided to ban the digital currency, and where bitcoin-based companies are facing hell on Earth, but this doesn’t mean that it’s the same everywhere else in the world. In fact, globally, governments have shown an either neutral or positive attitude towards the coin, thus encouraging adoption, and value growth. While regulatory issues did appear, most of these were solved, or are in the process of being dealt with.

5. Other investors are doing it

Recent studies have shown that investors from all around the world are seriously considering bitcoin as a valuable asset, and are using the digital currency to further diversify their portfolios.

Based on everything that has been outlined so far, while there are also considerable risks to consider when investing in bitcoin such as regulatory framework, currency volatility, lack of adoption in the long run and more, based on trading metrics and investing principles, bitcoin definitely looks like a buy. What do you think? Let us know your thoughts in the comment section below.