Are Bitcoins worth buying?
Are Bitcoins worth buying? Well it all depends on what your objectives are. There are many reasons to own Bitcoin and any of the various other Cryptocurrencies currently available. In the following article we will suggest some of the different reasons and elaborate on their benefits. Remember these are not the only reasons or options of use available. Also, while we may be discussing financial reasons for owning Cryptocurrencies, we are not advising you financially. For financial advice please see a Financial Planner, Wealth Manager, Broker or someone else in the financial field that will be more than happy to steal your money.
In the following paragraphs we are going to take a look at some of the many reasons for buying Bitcoins. You will be presented with the facts in regard to investment, diversification, saving your ASSets , sending money around the world, making payments and regular spending all while avoiding banks and middlemen. Our hope is that at the end, you will be able to answer the question, Are Bitcoins worth buying?
When looking at Bitcoin and Cryptocurrencies as investments it is important to decide what your strategy is. Will you be speculating on short term price fluctuations of the coin or will you be buying and holding, with the idea that over a set period of time your purchase will increase in value relative to the currency you bought the cryptocurrency with.
Bitcoin and Cryptocurrencies can be traded just like stocks, bonds or gold. Short term speculation can be very lucrative. However, without proper knowledge and training it can be financially devastating. There are many exchanges that allow you to trade Cryptocurrencies along with fiat currency also. I prefer to use Bitfinex. Click here for review. Most exchanges will provide you with the ability to do short term speculating and longer term investing.
The real benefit is in the ability to provide your Cryptocoins to other traders and collect the interest. Many exchanges will allow you to pledge a portion or all of your coins to other speculators. In return that speculator will pay a daily fee on the coins that they have borrowed. This option provides you a way to make a return on your coins with nearly no risk. Now I say “Nearly,” because there is always the possibility that the company itself could go bankrupt.
As part of a balanced portfolio, Cryptocurrencies provide a unique hedge against fiat currency fluctuations. This is similar to the way gold could be used if you are afraid that your home currency was going to lose value due to government interventions or a collapse of the economy. For example, if you live in China and the rapid depreciation of your currency by the central bank was depleting your wealth, rather then try to move your money abroad, you may want to hold a portion of your wealth in Cryptocurrencies.
Saving your ASSets
Building on the previous section protecting your wealth against uncertainty is simply prudent investing. Bitcoin and Cryptocurrencies can help quite a bit and make the process simpler and more efficient. Owning Cryptocurrencies gives you the ability to quickly move your wealth around the world much faster than using traditional means. You can move in and out different Cryptocurrencies, world currencies and even precious metals. And if your completely paranoid you can move your coins into your own personal Hardware Wallet to be kept with you or in a safe.
One of the biggest concerns of new Bitcoin and Cryptocurrency users is, once I have my funds converted to Bitcoin how do I access them? How can they be spent? Who accepts them? Well, Bitcoins and Cryptocurrencies can be accessed anywhere the internet is available. This is not to say that if you do not have internet available, you have no Bitcoins. Internet is necessary for transacting and accessing cloud based wallets. As stated before, Bitcoins and Cryptocurrencies can be stored offline. The ledger holds a record of your coins and that is immutable.
Bitcoins can be spent easily by use of a public key or even email. If there is something that you wish to purchase and the merchant or individual will accept Bitcoin or Cryptocurrencies, simply ask them to provide you with their public key, QR code or email. Once you have this information most wallet services such as Coinbase will handle the transaction for you once you have provide the amount and address or code.
How do you know who will accept Bitcoin? The easiest way is to look for the Bitcoin logo. This can be found on either the website you are purchasing from or the Bitcoin symbol displayed near a cash register at a physical establishment. However if a merchant does not accept Bitcoin all is not lost. Websites such as Egifter.com and Gyft.com allow you to buy gift cards from several hundred merchants with Bitcoin and Cryptocurrencies.
So, are Bitcoins worth buying? As you can see there are many reason to own Bitcoin and or Cryptocurrencies. Investment, Convenience, and Protection are some of the main reasons this article has provided you with but there are many more. Bitcoin and its use of the Blockchain are a remarkable advancement in financial technology. Much like the advent of the internet and email, it may take some time to fully adopt but once the assimilation is complete, the financial system as we know it today will be completely different.