Why invest in Bitcoin?
In a world of limited bank transfers, capital controls, bail-ins, volatile markets and increasing geopolitical and economic uncertainty, Bitcoin is becoming an increasingly interesting vehicle for conducting financial transactions, the medium-term storage of wealth, and the international transfer of wealth and investment capital.
Bitcoin units are limited at 21,000,000… making them a finite resource. In a way, Bitcoin was modeled after gold and silver. If the coins are lost, the value lost will be absorbed by all other coins held.
Once-in-a-lifetime investment opportunity?
There are many reasons why investors, organizations and the general public are opting for investing more of their assets into the Bitcoin currency:
- As a store of value against inflation and “wealth redistribution”
- As an investment opportunity with potentially high returns
- As a safe retirement plan for old age.
- As a unique opportunity to be part of a new financial ecosystem
Some of the attributes that make Bitcoin interesting:
- Portability – USB stick can hold wallet
- Privacy – transactions can be made securely
- Security – no single breaking point due to distributed, international nature of network
- Low or no transaction fees
- Instantaneous international transfers
- Cannot be easily stolen or taken by force
- Benefits from an increased popular trust in technology
- Copies can be held in different formats and platforms, including paper, cards or computer disks
- Encrypted copies can be stored in different physical and digital locations
- QR code technology allows instant Bitcoin payment through mobile phones
Some macroeconomic trends influencing Bitcoin adoption:
- Capital and currency controls leading to capital flight
- Currency devaluation, increased inflation and increased taxation
- Dramatic growth in barter transactions and shadow economy
An undiscovered business opportunity
- All over the world, the general public is increasingly interested in Bitcoin. However, news media coverage lags behind public interest in the currency.
- Bitcoin supports the development of local economies by purchasing local products from around the world, directly from the producer. Farmers, producers, beekeepers, agriculturalists, hydroponic growers, manufacturers and others can access the international market through Bitcoin transaction mechanisms and a promotional website.
- Businesses can reduce their prices in accordance with the savings in bank and credit card transaction fees
- Bitcoin transfers allow businesses of any size to receive micro-credits of any size, at any time
- The young and vibrant Bitcoin economy provides investors with attractive opportunities with great potential return on investment
- First mover advantage: in its short life, Bitcoin has already overcome two corrections and achieved considerable traction in the press
…in a growing, truly-global market
- Through Qcoin, an important sector of Chinese society that is already familiar with mining, exchanging and investing through virtual currencies. This will speed up the rate of adoption of other virtual currencies, such as Bitcoin
- Research indicates that only 20% of African families have bank accounts, yet the increase in mobile payment systems indicates that this market is ready for a cheaper, seamless method of electronic payment
- Political and economic instability in developing and developed countries forces savers and investors to diversify their risk by holding several different asset types
- As of 2013, 3.5 billion people around the world do not have access to traditional financial services, 12 million alone in one single country, like Kenya
- The Spanish-speaking world alone comprises 406 million people with most of its population potentially interested in hedging against rampant national inflation